DAIRY CONTROL AND PRICE FIXATION

Manawatu Times, Volume XLIX, Issue 3495, 3 November 1926, Page 7

DAIRY CONTROL AND PRICE FIXATION

Strong Objection to London Manager THE ARRIVAL OF A BELATED CABLE

INVERCARGILL, Nov. 1

Mr. T. M. Timpany. Southland (member of the Dairy Control Board, j has made an interesting statement to tho press concerning proceedings at the recent meeting of the Board. He states that, after Mr. Corrigan’s notice of motion had been passed, setting up a system of price naming, an announcement was made to the meeting that tho Hon. J. G. Coates had cent the following telegram to the Board, dated London, October 27; “Influential deputation representative importers, ' blenders, multiple shops, wholesale provision merchants and retailers has made strong representations to me (1) objecting to control: (2) protesting against priceaxing; (3) objecting to the present manager of the London agency. Kcgarding firstly. 1 told them that control policy was definitely settled, and would continue. They recognised this position: and stated they desire to continue work in interests of New Zealand dairy' trade at this end, a,nd accepted my statements. Regarding secondly, I am convinced strongly it would be a great mistake to attempt anything in nature of minimum pricefixing, and. in view of serious position. any method at this juncture likely to engender antagonism should bo' avoided. Regarding thirdly, verystrong objection expressed to Wright, in whom trade apparently have no confidence. and this attitude very detrimental interests of New Zealand producers. Matter has „ been discussed with Grounds who is meeting same people to-day. Paterson’s telegram to Board, in my opinion, correctly represents feeling majority of trade here. Give copy this telegram to Hawkcn. Matter most urgent.— (Signed) Coates.’’ “Now comes tho strangest, part, of the business.” said Mr. Timpany in referring to cables from London. Mr. Coates sent his message from London on October 27. and it reaches Wellington on the 28th. Mr. Paterson. of the London agency, sends a cable on October 23. after having shown it or a copy to Mr. Coates, yet Mr. Paterson’s message only roaches New Zealand on October 28. the day after the Board meeting. Mr. Paterson’s cable this time leaves no doubt as to the opinions held in London. Here it is (received October 2S, 1926):

“London. October 23. 1925: Cannot urge too strongly that to avoid disaster (he Board should abandon minimum price-fixing and adopt the Australian system of price control. All allottees, with exception only of Lovells and Wilson Sears, have this week officially In writing strongly represented to agency that owing to keen hostility of all branches of trade throughout country, price fixation would be detrimental to best interests of producers. Strongly urge also that the Board should dispense with present manager, who completely lacks confidence trade, and in my opinion can never secure the trade’s goodwill and co-operation. Wright has repeatedly stated that the Australian system of price control is both useless and unworkable. If, therefore, the Board adopts this system it is all the more essential to change the manager. An eminently suitable man of great experience and highest standing in trade is prepared to negotiate for the poistion if and when it becomes vacant, but declines to allow his name to be disclosed unless and until the Board creates a vacancy. In any case, anticipate no difficulty in replacing Wright with more suitable man. Think reorganisation of the Dominion agency not urgent, and can wait Ground’s return and that meantime if Board by adoption of the course above suggested lays foundation essential for re-establishing goodwill and confidence, present agency with a suitable new manager can got business working smoothly. Believe that, firstly, in view of the provisions section fi, subsection 2. of Act- it, is at least very doubtful whether Wright has an enforceable contract against the Board: secondly, if he has such contract and Board decided dispense with services the measure damages would ho salary of the balance period loss what he might Vcasonably be expected to earn during same period, but on those points Board will doubtless take legal advice before final decision in event deciding dispense Wright’s services. Suggest Board should authorise agency at discretion, arrange amicably best terms or alternatively notify Wright on Board’s behalf of termination of services, and if Board decides it advisable to make any payment in lieu notice, such should be made with denial of liability. Whatever the cost, believe change essential. Above message i.s sent with cognisance Prime Minister, who requests you hand copy immediately to Acting Prime Minister.—(Signed) Stronach Paterson.”