DAIRY CONTROL.

Hawera Star, Volume XLV, 13 May 1925, Page 8

DAIRY CONTROL.

FREE MARKETING ADVOCATED. LEAGUE FORMED AT NEW PLYMOUTH. A representative meeting oi : dairymen was held at New Plymouth on ■Monday afternoon to discuss matters -in connection with dairy control: Mr. W. C. Green, liahotu, was elected chairman and Mr. G. Gibson, liahotu, was appointed secretary. Mr; J. B. Marx (Mangatoki), in stressing the_ importance or the question they bad to consider, said he differed with the Control Board in part of what it was attempting- to do, and claimed that the board was going into the marketing business prematurely. He pointed out that the Meat Control Board, although it bad the power to enforce compulsory control, had been working for several years, and successfully too, without absolute control. The Dairy Act was on similar lines, but unlike the meat people it was proposed to bring into operation the compulsory marketing clauses:' To this he had a strong objection. There was quite a wide field for the operations of the board without this question of compulsory marketing. There was the question of shipping for instance, and the irregularity of de'iveries on the Home market; and there-was also the question of exchange which amounted to nearly half a million of money. The shipping- business bad been gone into to some extent, but the reduction that had been granted by the shippingpeople in regard to freights had been lost to. the farmers as a result of the delays in clearing the produce from the different ports of .call. Particularly did this apply to those farmers supplying cheese factories. He was of opinion that the loss to the farmers already as the result of these delays would represent more than the three years’ reduction in freights. Continuing, Mr. Marx said be was being accused of having turned on the question of dairy control? This was not so, however, hut he was one of those who accepted at the outset the statements, that control would not be .exercised in regard to marketing. The first direct information they had: that this course was proposed was when the delegation representing the Control Board returned from its visit to the Old Country. They were called together in Fit/.roy this year, and Mr. Grounds then gave it out that the board intended to act on the compulsory marketing clauses. At that meeting, Mr. Agar, of the South Island, and himself had strongly opposed the proposal, feeling that it was a ( ■dangerous measure to adopt at this stage. ' He contended that in adopting absolute control the hoard had gone further than at first intended, certainly further than the farmers were led to believe it intended to go. The question of marketing should be put off for another twelve months at least. If the hoard would not adopt a friendly course and leave it alone, then he

urged that steps should be taken to prevent the compulsory marketing clauses- being enforced. Referring to the meeting of suppliers of the Mangatoki -Dairy Company, Mr. Marx said it had' passed unanimously a resolution in favour of free marketing and he then moved “That this meeting of New Zealand dairy farmers form .a league to be called the New Zealand -Dairy Producers’' Free M arketing League, for the purpose of taking united action against the adoption and enforcement of absolute control in marketing exportable produce by the Control Board. New Zealand dairy farmers opposed to absolute control are asked to become members of the Free Marketing League.” Mr. Marx expressed the hope that every dairy farmer opposed to compulsory marketing would link up with the league, and that if it came to a vote on the question all would exercise (he privilege. There were 26,000 persons on the last roll, but of this number only 2-2,000 voted. Then they had a minority vote, and, while they had a majority on the board favouring absolute control, they had not an absolute ' majority. “ Mr. W. Corbett (Oxford Road) seconded" the motion. '• 1 Mf. G-. Gibsoii (llahotu), supported the motion, arid gave an emphatic denial to the statement that those in

opposition were i n the pay of the merchants. The chairman, the speaker and the company had borne all their expenses in connection with the scheme.. This he assured them was •absolutely • true. He pointed out that of the' meetings which had already taken place the supporters had held the floor, the opponents being limited to the asking of questions. , Continuing, Mr Gibson said that Mr Grounds had said that as in the case of the Meat Board there would be no absolute' control of marketing, unless after more careful, investigations such a procedure was .found to he absolutely ■necessary"in the interests' of the producers. Who was'going to make these investigations? -he asked. Could the members of -the Dairy Board, he asked, He impartial investigators? Their minds were made up. He did not

think it Was fair, right or just that the committee of investigation should consist of fed hot advocates of compulsory- control-. The committee should have been- an independent'one, as suggested bv the opposition. Mr Grounds had- been asked if he had anything beyond an undertaking in regard to the question of- finance, but he-cqjild only say that he had an assurance. It was natural for the houses at Home to say in a general way they won Id help ail they could, but when it came to putting up- money, it was a different question, and after all, they could not be expected to put up the money without something in black and "white. Reference had been made at previous meetings to advances of from 80 per cent to 90 per cent. Such advances were very good, hut how could they give this if the produce was. stored for three or four months. They could not get the money without paying interest, and they could not store goods without paying storage charges, and further, so far as cheese was concerned-, they could not store that- without shrinkage. Where were all these charges going to come from? The merchants certainly were not going to advance money without security.

Mr. J, \Y. Harding rose to a point pi order, but the chairman i n led against him and requested that he should not interrupt. Continuing, Mr. ■ Gibson stressed the point that absolute control forbade them selling their produce in New Zealand. Why should: they be debarred from selling their produce- at the factory door and receiving their money for it • when it was shipped. They produced the goods, it was their living, and they had the right apart from national exigencies to sell to whom and at what-price- they liked. Mr. J. Hine (Tikorangi) supported the motion. He had carefully watched proceedings since its inception and ■never had he found Mr.'-'Grounds say anything definite except on two occasions. At Tikorangi when lie was advocating setting up the Control Board he said in reply to a : question that he was not in favour of pooling the >• a Pl'o.

dupe, and at a meeting about two months ago in reply to the same gentleman he made another definite statement when he denied ever having said any such thing. Continuing, Mr. Hine, to prove his words, said that when they were in Wellington at the time, of' the passing of the Bill, a conference was arranged between Mr. Grounds and himself, and he on that occasion said to Mr. Grounds that on certain conditions the opposition would withdraw their objections. The conditions were that they would agree to the levy and the other clauses, providing the marketing clause was deleted. Mr. Grounds refused absolutely, saying that without this the Pill was of no value Regarding the resolution before the meeting jt- was very well as far as it went, but how were they going to nut it into effect? It provided for free marketing, but in his opinion it would never get them out of the noose' they had placed around their own necks. Continuing, Mi-. Hi lie said lie was quite satisfied that their only hope- was to interest the business men of the community. They had to fight to get back to free trade. They had to show members of Parliament that their seats were in jeopardy unless the Bill was repealed. Mr. J. O. Taylor said that lie had contended all along that the legislature had no business to pass tin Act like this. Mr. Taylor commented upon the expense of setting up the London agency, and also stated that the board was going to start a newspaper to support its claims. They were canvassing for advertisements now. Because some wanted control they had ho- right to force it on those who were opposed to it. QUESTIONS AND DISCUSSIONS. Mr. Candish (Patna), notwithstanding the explanation given by Mr. Marx in his speec-h, asked why lie had changed his point of view in regard to this question. Mi - . Hine objected to the inference that men were not acting consistently. '

Mr. Marx explained again that he was in favour of control. When this was first placed before the producers, absolute control and the marketing by the board had never been favoured by him. He had in reality not changed bis attitude. He . thought, however, if circumstances convinced’ a man that he had been in tlie wrong lie would be a coward if he did not alter liis opinion. Mr. ■ J. AY. Harding asked how regular shipments could- be made and the people of England given a regular supply of New Zealand produce' without absolute control. The chairman said the shipping and supply question had been muddled throughout, arid he did not consider ( that -giving the board absolute control was going to cure that. The factories should arrange their own business in that respect. Air. Marx said the question of regulating the supply on the' English market was a difficult one. If supplies were short at any period the loss could not be made up. Better arrangements could and should he made for getting the produce to the English market at regular intervals; Mr Harding said there would be difficulty if a regular supply was not available all -the'-year round to sellers ip England who tried to build' up a trade in New Zealand butter or cheese. Mr. Hine replied by asking how English grocers "could be compelled to take New Zealand produce if a “corner” was made in it by tbe Control Board. Messrs H. D. Forsyth and lorns, members of the Control Board, who were present, endeavoured to make some explanations, the former Submitting a series of questions.' The chairman, however, said he did not intend to allow them to address the meeting. Mr, Harding said the position under control • could not be any worse than at presenj;. A big proportion of dairy producers' had put the board in office to look -alter their interests. This was practically .the only corner that had opposed it. (Cries of “No!”) The speaker asserted that 80 per cent, of the dairy farmers were bankrupt, and they could therefore not be worse off. ’ Mr. lorns rose to s , contradict some statements which he said were incorrect. The board had endeavoured to regulate shipping. It was possible at present to deal with only one concern. If they would not give the New Zealand producer what was considered a satisfactory service. the n other firms at Home could be brought into the business in New Zealand, hut it would not’ be possible to bring that about unless thev had control.

Mr. T. Wilcox (Kahili) advocated the appointment of an executive who should take legal advise on the question, and if desired, the point should be contested to the highest authority in the Empire. At this stage the motion was put to the' meeting ancl declared carried on the voices, there being' -only a small section against it. Mr. Gibson then moved another resolution to the effect that immediate steps be taken to bring about the amendment of the Control Act by having deleted the clauses relating to the control and marketing by the board, and that each factory be free to market its own produce.

Mr. Hine supported the motion, which was carried. A further resolution was then carried to the effect that immediate steps lie taken to secure the ward system of electing members of the Board of Control.

For the purpose of giving effect to the decision of the meeting a committee of seven was appointed, with power to add to their number, so that this district could co-operate with farmers in other districts who desired to oppose absolute control. The committee appointed consisted- of Messrs J. Marx, G. Gibson, W. Green', At. Fleming, H. At. Purdie, J. S. Jones and J. Hi lie. A vote of thanks to Air. Marx for taking the initiative in the matter was carried with acclamation.