THE DAIRY POOL.

Feilding Star, Volume XVIII, Issue 4593, 19 May 1922, Page 2

THE DAIRY POOL.

CONFERENCE IN WELLINGTON. COMPULSORY POOL FAVOURED. (Por Press Association.) Wellington, May 18. A representative meeting, consisting of about 100 delegates from all over Ncvf Zealand attended the conference to-day to consider the formation of a compulsory dairy pool. Mr Norton was appointed chairman, and stated that the meeting was called to approvo or othcrwif#> of the proposal to form a compulsory pool and devise necessary ways and means. When on the question of voting, it transpired that the South Island delegates had no power to voto for or against tho proposal, but were solely present in order to obtain all the information of the scheme, the following motion was carried unanimously: "That this meeting of delegates, being representative of the whole of the Dominion, express their entire approval in the setting up of a compulsory Dominion organisation to effectively control the handling, marketing and distribution of the export of our dairy produce." Before proceeding with the discussion of ways and means, it was made quito clear that whatever this conference may decide upon, the whole matter is to be referred to the directors and suppliers of the various dairy companies before definite stops will bo taken.

Mr Corrigan proposed that the delegates confirm the principle of forming a limited company with £1,000,000 capital. The general opinion was that such a capital was too large, and would bo unfavourably received by dairy companies. Mr A. Lancaster nointed out that to absorb £1,000,000 capital would moan £7 per ton on tho output of cheeso, which in most instances would exceed tho capital of the individual companies. Tho. amount of the capital was eventually reduced to, £250,000 with a provision that not more than £150,000 be allocated in the first year, such allocation to be according to the output of factories. Strong doubt was expressed as to whether the Government would give compulsory powers and financial backing to a limited company, and it was eventually decided that should tho Government refuse to give the necessary powers to a private company, a committee be appointed to devise some scheme to meet the requirements of both the Government and the suppliers. After a lengthy discussion it was decided that the Company be controlled by a board of fifteen directors.

Strong exception was taken by the , South Island delegates to the number ■ of directors to be allocated to Cani terbury, Otago, and Southland, they r being of opinion that at least five directors should be_ apportioned to the • South Island, being one-third of the whole board. The North Island directors pointed out that according to output the South Island was only entitled to two 1 directors. It was finally agreed, however, to concede four seats on the board. This compromise did not prove acceptable to the southern members, and after a twoJiour discussion, the matter was adjourned. Clause S ,was adopted, providing for the directors in New Zealand to appoint a hoard in London of at least two representatives and a managing director, with power to control prices and regulate supplies. It was made very clear that the whole of the existing channels of distribution in London wourd be given to any firm or group of firms. Mr Goodfellow explained that it was proposed that the London board would, in the beginning of the season, allocate quantities of produce to the various firms according to their requirements, and in return these firms would establish credits in New Zealand, with .which the Company would finance suppliers. The conference adjourned till 7.30 to-night. On resuming at 7.30, Mr Norton moved that the Government be asked to introduce necessary legislation to make compulsory tho marketing of all export dairy produce through the company, and to give power to the directors to make a levy on all exported produce of not more than one per cent on tho gross proceeds, and that such amount be credited to the share capital.—This was adopted. It was further agreed that it be a recommendation to the dairy division that all buter grading at 92 per cent and over, and all cheese grfading 91 per cent and over lie marketed as super fine. Mr 'Singleton, of the Dairy Division, stated that he was willing to recommend tho above to his Department, and in reply to a question said that approximately 53 per cent <>f the butter and -14 per cent of the cheese would, under the above scheme, be graded superfine. Finally it was decided to ask the Government to give the necessary guarantee for tho financing of shipments, etc. It was generally held that it was a great weakness in the scheme to have to depend on the capital of Tooley Street merchants, and" the sooner the company could do without their financial backing, the | better for tho dairy industry in New Zealand. i