TENSE FEELING

Evening Post, Volume CV, Issue 121, 24 May 1928, Page 12

TENSE FEELING

DAIRY CONTROL POLICY CHAIRMAN'S REVIEW MR. GOODFELLOW RESIGNS Strong difference of opinion on policy between the chairman of tho New Zealand Dairy Board (Mr. William Grounds) and Mr. William Goodfellow, one of the foundation members of the board, culminated yesterday in the latter's resignation. Mr. Goodfellow is managing director of the New Zealand Co-operative Dairy Company, an organisation contributing 20 to 30 per cent, of tho total export dairy produce of the Dominion.' ■ His company, with some others, was opposed to disclosure of certain information to tho board relative to export trade, under certain conditions by which export licenses were issued. Tho board at its meeting in March decided that all companies must conform to export license regulations, Mr. Goodfellow objecting. .The chairman of the board, Mr. Grounds, in his review published in ''The Exporter" of 28th April, referred to tho fact that' five factories refused to sign acceptance of the conditions, but later reconsidered their decision w*hen they found that export would bo impossible without a license. Theso were but fi.vo of five hundred registered companies. The chairman claimed that the board had been tolerant in this matter. The board finally decided that the clauses in the export license to which objection had been taken should be held in abeyance for the rest of the season so far as they applied to f.o.b. sales outside of Great Britain and Europe. "ABSOLUTE CONTROL." Mr. Goodfellow's view, as given in "The Exporter for May, is:— "When advocating absolute control, Mr. Grounds followed a well-defined path, and. simply applied to all New Zealand a system of marketing which had been thoroughly tried and proved satisfactorily by the New Zealand Cooperative Dairy Company. In that campaign he had the consistent and solid support, not only of the Waikato but of tlio South Auckland Province. Now, however, Mr. Grounds is attempting an experiment which, if carried to its logical conclusion, may prove to bo -an oven greater disaster than that which befell tho industry with tho downfall of absolute control. "This is the considered opinion of tho management of the New Zealand Co-, operative ■ Dairy Company, with nearly twenty years' world-wide marketing experience. "What is the essence of the.board's present policy? Tho initial step of collecting London account sales and' obtaining a return of all f.o.b. sates 14 days after shipment, may in itself appear quite harmless, but this is in fact only a preliminary to the formation of a national marketing scheme, as con-, ceived by tho chairman, which, without price fixing, would land the industry in an intolerable- position. Even the initial steps so far made aro cumbersome, dangerous, and annoying to the industry." The board's' demand for the information referred to, Mr. Goodfellow said he had strenuously opposed, "as it was an utterly stupid idea." The New Zealand Co-operative Company's selling policy, inaugurated seven years ago, was adopted by the board, but subsequently it changed its policy. "The board has definitely decided not to fix prices nor to pay for an audit — how, v then', can a pool be a success? Tho now scheme, if persisted in, will undoubtedly have a depressing effect on tho market, and result in lower average prices. A pool without price-fixing places greater power in the hands of Tooley street, and gives more scopo than ever for manipulation. "The New Zealand Amalgamated Dairies' Company was formed by tho New Zealand Co-operative Dairy Company, and is attempting to do by voluntary what the Control" Board has failed to do." CAME TO A HEAD. The whole question came to a head at the board's meeting yesterday, when export license policy was considered, especially in connection with outstanding companies which had failed to send in returns. The chairman said it was incumbent upon the board to say what 'course was to be taken with companies refusing to comply with the terms of the board's license. ' Mr. Corrigan said that some of the companies standing out had given the excuse that they would not comply because tho New Zealand Co-operative Dairy Company was not doing so. He suggested moving that steps be taken to cancel their licenses. Mr. Timpany said there was doubt as to whether tho Minister would comply with the hoard's request. It would be desirable to first approach the Government to see how far the Minister and the Government would support the board in the suggestion that the license be revoked. - "WEAKNESS OR SILLINESS?" Mr. Corrigan said it was first necessary for the board to itself decide what stand it would take. Unless tltey did something, it would be taken as a sign of weakness—not only weakness, - but silliness —to ask tho Minister what he was going to do. The Minister would only reply, '.'What are you going to do?" The chairman said that he had waited upon the. Minister regarding the necessity, in vi.w of the board's previous decision, of revoking the license of these dairy companies, and the Minister's reply was that, before any action could be taken by himself, he wonld need to have an intimation from the board outlining the full facts and the board's recommendation. Mr. Timpany stressed the need of discovering the attitude of the Minister. THE MINISTER KNOWS. The chairman said the Minister was fully seized of the position from the board's point of view,*and'had intimated that he had issued licenses on the board's recommendation; and he would consequently require the board to make a specific request before he could take the course of revoking those licenses. There was no other' course but for the board to decide what was to be done— whether the licenses were to be shelved, or whether they were to be proceeded with. Mr. W. A. lorns moved that the matter remain in abeyance and Come' up for reviow next season; he could, not see that they could do any good by going to the Minister: they were now at tho end of the season, and there probably would be no meeting in June, and the whole matter could be.reviewed in readiness for next season. In response to Mr. Corrigan, the secretary (Mr. Brash) advised that, out of approximately 500 companies'in New Zealand, throe had given nothing, and the other three had given only partial returns. Mir. Corrigan said tlio question was whothor these six factories should dominato tho Dairy Board or not. LAWYERS DIFFER. Mr. W. D. Hunt seconded Mr. lorns's motion. Tho position plainly was that the board wanted oortam gonditions put

in tho license. Their solicitors told them in plain language that the board had no power to do what they wonted; but the board was not satisfied, and rushed off to another solicitor, who gave a contrary opinion. So they had two solicitors with two different opinions. Thoy knew the matter had been put before other legal authorities, and they confirmed the first opinion. There was more legal talent at the back of that opinion than at the back of the opinion on which the board had acted. Mr. Hino said a remarkable position had arisen, and the board should recogniso it. The position in plain language was that, after the extraordinary decision of the board at last meeting, the question of complying with the wishes of the board or otherwise lay entirely- in tho hands of the dairy companies themselves. The board had rendered itself absolutely impotent through its action at last meeting. The board refused to enforce its regulations, and also refused to allow them to remain in abeyance, and' to his mind foolishly amended tho license in ono parti- j cular direction,.and by so doing destroyed whatever littlo prestige there was loft to them. As regards the Minister, ho was now in a most happy position. If the board passed a resolution to-day asking him to revoke tho license of, say, the Joll Company, what would the Minister say? Ho would say, "You declined to ask mo to revoke the licenses generally last meeting, and I am not going to be a party to this sort of thing.. I will not penalise one or two companies." The board had removed the Minister from a very delicate position. Mr.. Goodfellow said Mr. Hine had put the position very clearly. Mr. D. Fulton agreed with Mr. Hine that they could not throw the responsibility on the' Minister. CRITICISM RESENTED. Other business having been dealt with, Mr. Goodfellow raised the question of tho chairman's review made in the April "i-xporter." He wanted to know if the chairman's review was subject to, perusal by a committee. Mr. Grounds: "No. The chairman's review ha. never been subject to any committee." Mr. Hunt: "Wo especially appointed a committee to deal with it." Mr. Grounds: "Not the chairman's review. I said quite definitely that my review would not be subject to review prior to publication." Mr. Hunt: "Do I take it that the chairman can put in what are* not the views of the board?" Mr.' Goodfellow: "I can only say that I regard it as grossly insulting. I havo put in a very full, reply, and it won't makov matters any better. You will come back, and then I will reply again. It is very unfortunate. It is not only untrue, but it misrepresents the' position.''' --',-' A DENIAL. Mr. Grounds: "I deny that it is untrue. I consider ■it quito fairly represents: tho views of the boa,rd as I understand them." Mr.' Goodfellow: "Your opinion now is so much at variance with that of the board that it is not worth discussing. You will have tho opportunity of reading my reply, which you will find pretty frank and to the point." Mr. Hunt: "What was that^committeo set up for?" Mr. Grounds: "It was to see that the matter provided for the advancement of the industry was calculated to give as great service to the industry as was possible." ' . Mr. Irons: "Not exactly, Mr. Chairman. I remember being most emphatic on- tiro point at tho time. I pointed out that the chairman was advancing his own views in tho chairman*^ re-" view, and it was suggested that tho committee should be set up to see that the articles appearing did comply with tho opinions of the majority of tho board." After further discussion, Mr. Goodfellow proposed that tho chairman's review bo subject to. tho "0.X." of tho committee. > Mr. Grounds would , not accopt that as a resolution as it indicated lack of confidence in th© chairman. He had accepted responsibility for writing on behalf of the board and had hitherto not been challenged. "I cannot accept the limitation that what I write shall be subject to a committee," he said. 'In my experience that would make it such a thing of shreds and patches that I could not accept responsibility." Mr. Goodfellow: "Will you take a ruling of the board on the position?" Mr. Grounds: "No, I will not." MR. GOpDFELLOW RESIGNS. Mr. Goodfellow: "Then- you can accept my resignation now. If I am going to bo subject to this matter, I will not sit on tho board.'' Mr. Hino: 'I- would be very sorry to see Mr. Goodfellow take up that position. Tho chairman has been in a very difficult position. lie had endeavoured to reflect the opinion of the board, but the opinion of the board varies with such considerable rapidity that it is rather difficult for him to do so. T quito sco Mr. Goodfellow's point. I know perfectly well that it has been repeated round this table that factories and companies who havo. accepted condi- • tions were bound to carry them out. That has been said repeatedly by members of the board, and the chairman in his reviow merely re-echoed that opinion and jpublished it. As far as this particluar thing is concerned, the chairman only re-echoed opinion that has been expressed at some period or other by ever/ member of the board. I think we should try +o work together as much as wo can, and I think Mr. Goodfellow has acted rather hastily." "DIRTY RUBBISH." Mr. Goodfellow: "No; I have consid-" ered it quite carefully. I am not going to be subject to this dirty rubbish; tho whole thing is most disgusting." Mr. Timpany: "It is only a repetition of what other members have got. I have maintained for a long time that the principle of the thing is wrong, but so long as the board allows it the chairman has got away with it." Mr. Grounds: "I say most emphatically that I have always endeavoured to reflect what was the mind of the board, as presented to me by its various members, upon the various points that were before it. I say .again that I havo been urged by members of the board to more fully, represent the position that was developing, and which I hoped we would be able to avoid by consolidation of the interests and the burying of these differences. I have refrained for months from elucidating that point towards which most of us could see we were being steadily directed. I have always endeavoured to deal with these matters in an absolutely courteous and dispassionate way, and I maintain still that the reviow which I published last month is a definitely accurate statement of the position, based upon tho experiences that we have had round this board table here." Mr. Goodfellow: "Tarn not going to discuss it. I am positively disgusted; there is nothing fair or frank about it; the whole thing is a misstatement." Mr. Timpany: "I will give notice of motion that tho board's interest in the paper be reviewed at tho July meeting." Mr. Grounds: "Will you put that in writing?" Mr. Timpany: "Yes." Mr. lorns said there was a meeting of dairy farmers in his district, and many dairy farmers wero discussing tho way the chairman was using tho paper to belittle other members of tho board. Tho board should try to pull together. Ho regretted Mr. GoodfelloYv's attitude. Mr. Grounds: "I am not concerned with' individuals. I stand for principles. " "GOOD-BYE; I AM OFF!" . j Mr. Goodfellow*, i4_?c«________ejw__ijM

resignation, gentlemen, please. Goodbye, gentlemen; I am off." Mr. Goodfellow rose and left the meeting. Mr. Grounds: "It is very unfortunate that the courso has developed along lines it has, and at the same time I am quite sure I am taking the right courso in this." Mr. Hunt: "I think you are very successful in putting sand in the wheels of the progress of this board." Mi*. Fulton: "Do you think you are doing the fair thing by not giving the board an opportunity of looking over the whole of the publication that is mado by yourself? Do you consider you are doing the right thing in defiance of the request of the board?" Mr. Grounds: "I think I am doing exactly tho right thing so far as tho review is concerned. If it is subject to review, it would be a patched thing. If tho chairman is to bo responsible, I must be responsible. . It is quite impracticable to havo it along tho ■ lines you suggest." Mr. Hunt said responsibility for tho chairman's review had to be taken by the board. "Tho impression all over the country is that the boards are quarrelling amongst themselves, and you (Mr. Grounds) are giving that impression in your statements.Mr, Grounds: "Has the board not been at loggerheads all through this season?" Mr. Hunt: "There is no reason why they should wash dirty linen in public." Mr. Grounds: "It is quite clear that tho position has to be made clear to the industry before there is any chance if advancing." CHAIRMAN DEFENDED. Mr. Hine: "Due allowance has not been made for the unfortunate position the chairman has been in. The position has arrived because of the fact that individual members of the board would not face the position. They havo shelved the position. They have continually dodged. ■ They have put off facing the inevitable, oblivious to the fact that every time a body of men refuses to face a difficulty ahead of them, they are building up dozens in its place, and that is the trouble that this board is faced with. In presiding over a board like this, the chairman has been placed in a most unfortunate and difficult position, and I think every allowance should bo made for that. Every member of this board has, his duties and obligation, and must take his full share of -the responsibility which attaches to the present position of the board and not put it on to the chairman. I can recollect how members have voted and voted and voted, rand when it came to the show-down they voted tho other way again, and. ten minutes later voted as they were again. It is not fair for a body representing the whole industry to belabour the chariman. You know, perfectly well that, so far as the chairman and I are concerned, we are diametrically opposed on questions affecting the industry. I • am a free marketer puro and simple, and Mr. Grounds is a controller—at j least he was, and I believe is still—but at the same time there is room for difference of opinion, but for goodness sake let us hold our opinions, and not jvhave this'continual dodging. Face the position. I have every sympathy with' tho chairman, although I oppose him." The meeting then terminated.