HERD-TESTERS MAKE BETTER SYSTEM OF COLLECTING MONEY

Manawatu Times, Volume LIV, Issue 6843, 22 February 1929, Page 8

HERD-TESTERS MAKE BETTER SYSTEM OF COLLECTING MONEY

Fees From Cream Cheques

Not Prompt in Payments

PLACES ASSOCIATION IN UNENVIABLE POSITION

ONLY SELF-SUPPORTING BODY.

There is no other herd testing association in New Zealand which conducts its tests as cheaply as the Manawatu Association yet, notwithstanding this fact, it has probably the greatest difficulty in collecting the fees due by members. It was in an endeavour to find a remedy for this state of affairs, which threatened to undermine the important work of the association, that the executive met in conference yesterday delegates from dairy companies in its district. There was a lengthy discussion in which it was acknowledged that the association was carrying on a very necessary work and that failure to function would hit the dairy companies very hard. .Regret was also expressed that certain farmers were not honouring their obligations to the association. Eventually a scheme was evolved whereby it is hoped the financial position of the association will fie improved in the future.

The following dairy companies were represented: Apiti, Awahuri. Bamesse, Cheltenham, Kairanga, Kuku, Levin, Manawatu Reliance, Paraparaumu, Rata, Rangitikei, Rongotea, Rangiotu, Tiakitahuna, Te Horo, Tui, Taikorea, Apologies were received from YVhakaxongo and Glaxo. Mr. W. H. Gimblcbt, chairman of the Herd Testing' Association presided and welcomed the delegates. Mr Gimblott pointed out that the object of calling the conference was to seek the co-operation of the dairy companies in the matter of. finance. There were 14 testing groups in operation at the present time, testing between 18.000 and 20,000 cows and it cost about £IOO to start a new group. To carry on the work successfully, it was essential that all interested should co-operate. The financial side was a most important one and methods adopted in the past would have to be amended to give more cffitM cn t. se r vic The present system of collecting fe was very unsatisfactory, in that the association trusted its members and a rumber did not respond to the call as quickly as they might. The executive thought the dairy companies could as sist the association materially. JJF at did the association good, also aided th dairv companies, for any increase m production brought about by herd testire was reflected in higher returns to the factories. Perhaps the factories might guarantee the fees of their suppliers, who were members of the assoC 'hlr D P. J- Small congratulated tho association on the work it had done m the past and asked fox a definite suggestion from the Herd Testing Association. Would it like the dairy companies to shoulder some of the guarantee given the bank, or would it like the companies to pay up the outstanding fees and deduct the amounts from that were made on members of the association in October and January. Up to January, the association worked very well but after that, there was a period of stringency, even with all the fees in. Ho would like to see the companies cmarantee the amounts owing by such of their suppliers who were members of the association. That would do away with the bank guarantee. At present no less than £lOsl was outstanding in fC Mr N. Campbell thought there would be no difficulty in members of tho association giving an order on their respective dairy companies. , The chairman said that that had been tried out but a large percentage of farmers would not sign orders. The matter had not been forced, lest tho herd testing movement be broken up. Mr. Small thought the meeting could discard at once any idea of dairy companies paying suppliers’ debts without orders from those suppliers. Suggested Solution,

Mr Hardham vParaparaumu) sugtested that at dairy companies’ annual meetings endeavour should be made to have resolutions carried, by which suppliers agreed that companies would clear the way. This method had been in vogue in Paraparaumu for several years without trouble and the Kata Dairy Company- was acting similarly. Mr Campbell: You are taking a risk. Mr Hardham: “But suppliers are not unreasonable.” He moved that the dairy companies be asked to accept the responsibilities of their suppliers in the matter of payment of fees due the Herd Testing Association. Mr W. Hart (Rata) thought that if the Herd Testing Association was to flourish it must have the backing of dairv companies financially. Herd testing "should be kept going at all costs, it was benefiting dairy companies through increased production.

Running Risks.

Mr. C. G. C. Bermer (Chetlenham) thought the Rata and Paraparaumu companies were running risks in not getting orders from suppliers. Mr Hardham: But what farmers would dishonour their debts? Mr Dernier: Some of them will do anything! Mr Gimblett reminded Mr Dermcr that when suppliers were testing under the government, there had been no orders signed and yet the dairy companies had paid out.

Mr (Paraparaumu) said all that was wanted was for companies to take over the responsibilities of their suppliers and that should not be a very hard thing to do. The companies were going to benefit from testing. Mr. Anderson (Rangitikei) urged the meeting to keep matters on a legal footing. Mr Dermer: Why won’t suppliers sign orders? We don’t have any tiouble. If a man is not sufficiently interested to sign an order, then that man should be dropped. Mr Hume (Tokomaru) agreed with Mr Dermer in regard to orders and cculd not see any difficulty in getting them. Personally, he would, like to seo dairy companies subsidise herd testing.

Can’t Afford to Walk Away. In replv to the two previous speakers, Mr. R. V. Brown (Weraxoa) pointed out that the association could not afford to walk away, if a fanner would not sign an order. It was imperative for cheap working that the testing groups should be concentrated and not scattered. If half of the members fell out, the whole scheme would fall flat. He thought the dairy companies should get behind the association. There was also the point of the number of orders that companies had to deal with at the present time. There were too many and more were not wanted as it would entail additional clerical staff to deal with them. The chairman reminded the conference that the companies had paid the government fees without any trouble. If there was a farmer who would not let a company pay out from his supply cheque, then tho company concerned could hand the case over to the association to deal with direct.

To Many Orders. Mr S. A. Broadbelt stated that -recently tho Levin company had put its foot down on tho number of orders handed in. There were far too many to handle. He thought tho company should get behind tho herd testing movement —it was not right that members of the executive should have to sign a bank guarantee. If the companies were to guarantee the fees, however, he thougat the association should recompense the companies in some way for their trouble.

Only Association Not Supported. The chairman explained that in the Manawatu association’s district there were 33 dairy companies and they were tho only co-op. association in New Zealand which was not supported financially by the dairy companies. In War kato and Poverty Bay, the whole of tho fees w r ere collected by the dairy companies. He reminded the confer ence that if production went back the dairy companies would be hit. Mr Campbell acknowledged the good work of the Testing association but he thought any guarantee should be on a legal basis. Nobody w’ould like to see the testing movement drop* yet it was unreasonable to require a few men to sign a bank guarantee for £750. As far as the Awahuri dairy company was concerned, the orders would be honour ed and no charge would be made. Mr Gimblott said that if possible they wanted to do away with the oidere.

The Way Out.

Mr Heayns thought that the way out of the difiiculty would be for the association to have a clause inserted in its articles of association, so that on becoming a member, a farmer would agree to the dairy company he supplied paying the foes. Mr N. Campbell thought the idea a good one. Messrs Oaverhill (Rongotea) and Broadbelt also supported the idea, but thought there was no need for an amendment of articles. All that was wanted was a new contract form for members to sign, with the payment clause added. The chairman said that the association had experienced a great dislike on the part of the majority of farmers to sign orders and had they refused to test the herds of those farmers, then the herd testing movement would have been given a nasty set back. Mr Small thought that even if Mr Hardham’a motion was carried, ho doubted if it would bo passed by the dairy companies. He would recommend to his board of directors, however, that if the association experienced a loss, the company make a subsidy to holp it out of its difficulties. It would be a pity to carry a motion that would bo abortive* Each member ot f he association signed a contract and there would be no difficulty, he thought iu including an agreement for payment through the dairy companies. Mr Hardham agreed to withdraw his motion in favour of the following moved by Mr Broadbelt.

.“That it bo a recommendation to the Herd Testing executive to draft a new form of application for membership, to include a clause authorising the dairy company involved to pay the fees duo to tho association for tosting free of charges.”

Mr Small seconded and the motion was carried unanimously. The chairman thanked the delegates lor their help and asked that the companies continue to foster tho herd testing movement. Mr Anderson brought forward a suggestion that the executive approach tho various dairy companies to take over * the obligations of the bank guarantors. It would be a big help to the movement and not a very big obligation to the dairy companies. The suggestion was noted.

In answer to a suggestion that testing be done every other month to reduce tho cost, the chairman said that the association was compelled to tosx monthly. The association was the cheapest in New Zealand as it was and even if the testing was every two months, it could not bo run any cheaper. Mr Legg stated that he did not want

the delegates to go away with the idea that the association was unsound financially. It was in a very good position but only experienced times when money was short, because members were slow in paying up.