LETTER TO MR GROUNDS.

Horowhenua Chronicle, 15 June 1927, Page 8

LETTER TO MR GROUNDS.

MR PATERSON AGREEABLE TO INQUIRY. TO DISCLOSE REAL FACTS OF BOARD’S POLICY WELLINGTON, Last Night. Messrs. Morison, Smith and Morison, solicitors for Mr. Stronach Paterson, late Government representative on the Loudon agency of the Now Zealand Dairy Produce Control Board to-day forwarded the following letter to Mr. William Grounds, chairman of the New Zealand Dairy Produce Export Control Board: Dear Sir, —

Wo write to yon as solicitors for and under instructions from Mr. Stronach Paterson, until lately New Zealand Government agency of your Board. Mr. Paterson has had brought under his notice various New Zealand newspapers including the Now Zealand Dairy Produce' Exporter of March 26 last, containing what purports to bo your version of the history of Mr. Paterson’s actions in his capacity as such Government representative.

You were, of course, aware at the time when you made your attack upon Mr. Paterson that even if he desired to reply it was impossible for him to do so for a period of at least several weeks. To reply in detail now after-such a. lapse of time is obviously of very little use particularly because such reply might well give rise to further controversy; and again Mr. Paterson’s reply to you could not by reason of his absence in England be published until the lapse of many weeks after publication of your own statement.

Mr. Paterson therefore does not consider it necessary or desirable that he should at this stage enter into discussion of the merits or demerits of price-fixation of dairy produce in London. That issue he points out to us is already settled —unfortunately at the expense of New Zealand in general and the New Zealand dairy farmers in particular. Nor does Mr. Paterson regard it as his concern at the moment to answer what he regards as specious propaganda by yourself and some of yonr supporters whoso policy has brought the actual results achieved hy pricefixation to the dairy industry of New Zealand and the interests of the hominion as a whole. Put it is his concern and it is for that purpose that this letter is written to repudiate what he iegard« as yonr gross misrepresentation of his actions as New Zealand Government representative on the London agency of the Control Poard. and in that connection Mr. Paterson would welcome an opportunity before a Poyal Commission or other appropriate tribunal appointed to inquire into the reasons for the failure of the Board’s poliey of absolute control and price-fixation, and of having his own actions fully investigated.

Mr Paterson also desires us to remind you that while you were in London you had several conversations wilh him Tinder the clear and definite pledge of strict confidence on both ■sides. Tie desires ns to point out that for the purposes of your attack upon birn you have not hesitated to refer freely to those conversations. In his ,- iew yonr attack contains some complete, misstatements of fart. Tt distorts, and misrepresents both his confidential conversations with you and the general aims and effect of his work, and it insinuates responsibility on his part for many happenings with which he was in no way concerned. Tt would be useless to attempt to carry matters further at this stage because as we have already said Mr. Paterson is still in London and unable by reason of his absence to continue the controversy with you now. But ho expects to be back in New Zealand not later than October and if you then desire any public investigation such a s that for example which would be afforded by a Royal Commission into the affairs of the Conti ol Board and the true history of the actions of its chairman .and certain of its members and of himself as Government representative on the London agency, and into the real causes nf v-hat he alleges are the disastrous results of the Board’s policy we assure you that Mr. Paterson will be delighted (n ioin with yon in endeavouring to have, such investigation brought about. Tn View of the fact that your atto eke. on Mr. Paterson have been of fhp most public character we are instructed to band copies of this lelteto newspaper press and We are accordingly adopting that course.

Mr Grounds’ Reply WELLINGTON. Last Night. Interviewed to-night on the matter, the chairman of the Dairy Control Board (Mr. W. Grounds) made the following comment : “There has been no misrepresentation and no misstatement of fact, and if a commission .of inquiry could remove the harm that has been done I would gladly welcome it. But, the damage can never be repaired. “I shall be prepared for the fullest investigation at any lime.” Regulations and Cream Grading TEST CASE AT WOODVILIE. WOODVTLLE. Last Night. A test case of interest to the dairy industry was heard before Air. S. ,L P. Free, the local Magistrate to-day. Mr. J. W..'..Smith, a dairy inspector brought an action against Mr. J Swoode, manager of the Ended Company’s dairy factory tor not grading r .,-, accord 5 ”" to *he " ’nernl vf, guI-. Mons wnc -r the Dairy Industries Act,

Tlie prosecution contended that; the

defendant was grading* higher than was warranted. After lengthy evidence the Magistrate reserved hL decision. The defence argued that the grading w.as fair and reasonable, and that tha .Department based its ease on crarling dene more than three hours after the cream arrived at the factory.