DAIRY CONTROL PRICE

Evening Post, Volume CXIII, Issue 112, 14 May 1927, Page 11

DAIRY CONTROL PRICE

WHAT WAS LONDON TOLD?

What did 'Mr. Grounds say in London about the intentions of the Dairy Control Board to fix prices on New Zealand dairy produce? Tho question arises over a Eeuter cablegram from Wellington which appeared in tho London papers, and read: — "Mr. W. Grounds, the chairman of the Dairy Control Board, declared today that 'vested interests iv England, aided by interested parties in New Zealand, combined to weaken tho sales of New Zealand • butter, thus frightening the producers into selling on the open market again. The board had hung out long enough to have the merchants in such a position that they would have been compelled to operate again. If it had not been for this combination of anti-control interests tho markets would not have dropped to the extent they did.'"

Mr. W. A. Robinson, chairman of the .London Provision Exchange, in a letter received in Wellington to-day, commenting upon this statement, writes:— "He (Mr. Grounds) made a statement before the Prime Minister to the effect that New Zealand butter and cheese would be sold week by week as the boats arrived, and it was not their intention to speculate with farmers' produce. He made, tho same statement several times at meetings with the importers; and then in. this statement, you will see by the cutting, he says: 'The board had hung out long enough 'to have the merchants in such a position that they would be compellod to operate again. In other words, he admits tho board was speculating and gambling with tho producers' goods in ordor to squeeze tho buyer on this sido. That being so, do you wonder that the. English buyers did all they could to avoid using New Zealand butter which was being more or less cornerod against them unless they would pay whatever price the board dictated, independent altogether of ■• economic values?' "

Tho recipient of tho 'letter assures "Tho Post" that not only Mr. Grounds but Mr. J. B. Wright, gave the same assurance in the presence of the Prime Minister (Mr. Coates), and Mr. Robinson, writer of tho above letter to his New Zealand correspondent.