NORTHERN WAIRCA DAIRYMEN

Northern Advocate, 28 July 1934, Page 3

NORTHERN WAIRCA DAIRYMEN

FREE MARKETING ASSOCIATION. PROCEDF i; E CON DEM N ED. CONFIDENCE IN DIE ECTOR ATE. yiie much discussed Free Marketing Association, came up for review at tlie Annual meeting of the Northern Wairoa Dairy Company yesterday. The part played by the directorate of the company was condemned by a section of the shareholders, but a strongly worded motion did not meet with general approval. * Chairman’s Views.

In his annual report, Air E. 0. Appleton, the chairman, referred to marketing in the following terms; UNot in the history of the industry has marketing proved so difficult. With Germany still further reducing her quota of imports of Continental supplies and France admitting practically nil, tho -surplus production has been thrown on to the English market and AA'ith Australia’s increased production and Ncaa* Zealand’s maintenance of her former volume, the quantity available has exceeded dll previous tonnages, and while the price obtained for the product has been on a lower level than -even that of the previous year, some small measure of comfort can be gained from the fact that consumption lias equalled production, and the stock position is still sound, "At the commencement of the season the spectre of quota loomed ominously, and flt one period -it seemed there was no alternative. We uoav are given to-understand the British ATinistry have abandoned their insistence .fot a quantitative restriction of imports of dairy produce but your directors nevertheless vlcav Avith some misgiving the approaching date of the expiry of the Ottawa Agreement. * ‘ Dogmatic Restriction. ’ ’ "An attempt has boon made in some quarters to arouse a contro\ r orsy as to the directors’ action in donating £lO to the Now Zealand Producers’ Free Marketing Association, but the act.iqn taken by your representatives was deemed to bo in the interests of the shareholders and Avas taken to protect them from what appeared to be a. dogmatic and entirely unjustified restriction of their right to express a voice in an entirely revolutionary method of marketing. "The New Zealand Dairy Produce Board arbitrarily brought down proposals which they stated emanated from the Importers’ Association in Great Britain and indicated those proposals would’ be enforced at an early date. Yonr directors AA T cre alarmed at the. very obvious repercussion Avliicli undoubtedly would result from the enforcement of the proposals. Rumours were abroad which Avere of a nature and apparently emanated from an authorative source that it was essential confirmation cither one Avay or another should be obtained. Your directors Avrote and wired twice to the Produce Board requesting that tho companies should be provided with further information, and that prior to the enforcement of the suggested regulations ’opportunity should bo accorded companies to discuss the matter. "No reply in any shape or form was received from the Produce Board. Our English agents, in response to enquiry from us, unanimously reported they were opposed to tliC suggested regulations and stated emphatically that the regulations as outlined did not, as stated definitely by the Pro'duce Board, emanate from the Importers’ Association of Avliich body our agents AOere members. Our representatives in Great Britain wont so far as to say they Avc.ro afraid to express themselves openly for fear of possible victimisation. The experience of other companies Avas on similar lines to our OAvn, and alarm was created in the minds of your directors at the obvious estrangement of tho trade in Great Britain. "Alectings were then called of companies in the North Avith a \-lc)v of j protesting collectively at the action of <£he Produce Board in not permitting companies to discuss the proposals. Later the N.Z. Producers’ Free Marketing Association was formed, of Avhich your company did not become a member but in vioAv’of the information Avhich was made available through f the activities of this Association to your directors, a donation of £lO, Avas made to the organisation. "Emphasis must be laid on the fact that this Association Avas not formed Jvvi.th the intention of acting in opposition of the Produce Board but Avas purely a temporary organisation formed to protect companies’ interests.” Adverse Criticism.

Basing his action on the views contained in the report Mr 8. Batgor moved:

. “That this-meeting of shareholders of the Northern, Wairoa Dairy Company express no confidence in the present directors and request their resignation for the following reason.—That they are not as a whole true co-opera-tors, and therefore not fitted to. direct the policies and destinies of this truly co-operative concern." , Mr Eatger contended that, by opposing the proposed regulations agreed to hy the Control Board and the Importers' Association, the directors had tried to Mock a scheme designed to cut out the existing - haphazard marketing methods. Was it likely, he asked, that a. man with the knowledge and sincerity of Mr Grounds would he a party to steps which would lead to estrangement with the trade at Home? Seconding, Mr T. Anglin said that the nationally constituted Dairy Control Board had been sabotaged, by outside class interests. Mr H. Keane said he believed that marketing methods wore outside, the sphere of company directorates, which were elected to look after the domestic affairs of the company. Before the directors committed the company to marketing policies, the suppliers should be consulted. Mr W. P. Begg: “This hoard has had nothing to say against the Dairy Board. Wo only asked for further information."

A Flirtation. Mr 1L Coleman: "Has the dircctorjtto boon llirtiiig with the I-’too- MarkotinAssociation?” Tlio ohainuan do;ilt fully Avith olVorts made by tlio Northern Wairoa Company to have the proposed regulations submitted to the industry, prior to their acceptance. The (Inal telegram dispatched to the Control Board was to the effect that the directorate was utterly opposed to acceptance of the regulations before their consideration by individual companies. No reply was re-eived, and Northern Wairoa was represented at three meetings of the Free Marketing Association. At the outset, the chairman said, he had made it clear that Northern.. Wairoa was not supporting the association but was present solely for information. The con* ribution of £lO towards the association had been for services rendered. Money Well Spent, Characterising the motion as ridiculous, Mr R. H. Hammond likened it to using a very large weapon on a small thing. The directors had given many vears of splendid -service. Mr F. Staples attributed the necessity of the motion to the fact that the constitution of the company prevented candidates for the directorate coming before the -shareholders and defining their policies. ,

A number .of suppliers considered the £lO AA r ell spent. “A Disgrace.”

Air R. E. Clements: "This company has been co-operative for 80 years, but for I;he past couple of years avg have not boon quite sure whore the directors stood.” The speaker believed that the proprietary and Government nominees continually interfered Avith the Avork of the Control Board. The result of this, ho claimed, Avas tho discrepancy in the price of our product Avith that of truly co-operative Denmark, The policy and origin of the Free Afarketing Association was well known to the rank and file of tho suppliers, if not to the directors.

"The reference to marketing in this report is a disgrace,” Mr Clements affirmed.

Air Appleton: "It seems that some of tho suppliers know more about tlio constitution of tlio association than avo did.” Air Clements: "Yon Avould not got it from the ‘Herald’.” Too Extreme.

Air AlcLonghlan believed that the motion Avas expressed in an extreme avkv. and there was no evidence to justify a clean SAveep ■ of a capable board of directors. The feeling of the meeting did not condone the action of tho directors in giving any support to the. Free Alarketing Association. He moved ns an amendment: "This meeting regrets that the Avording of the chairman’s report may have given the impression that the company was opposed to the Dairy Control Board; it understands that the directorate supported Air Grounds, the co-operative candidate, and congratulates it upon so doing.” Where Directors Stand. Air G. H. Wanabone, a director favoured the amendment. Anyone- Avho said that the directorate opposed the Dairy Board did not understand tho position. The members of the directorate Avorc 100 per cent co-operative, but for the .sake of the struggling farmer had been compelled to take advantage of f.o.b. premiums necessary. If 00 per cent instead of 50 per cent, had boon sold f.0.b., Northern Wairoa would have shown a better pay-out than RnaAvai, which folloAved this method to a larger extent. Air Wansbonc expressed the hope that the Dairy Board Avould squash the Free Marketing Association and put New Zealand back on a national consignment basis, which he Avas sure Avould result in an appreciated .price.

Air B. Coleman did not think the Free Alarketing Association could tell the industry anything which tho Dairy Board did not already know. If a speculator lost money on the New Zealand market one year, he would endeavour to get it back. The right men should be put on the Dairy Board and the utmost support given to the elected representatives.

Mr Appleton hold that the proposed allocation of trading channels by the Dairy Board, Avhen this previously had been loft to tho companies, Avas roA rolutionary.

Mr C. N. Taylor agreed that the measures did appear dogmatic and revolutionary. All the directors had asked was that the Dairy Board should take them into their confidence, and explain the proposed regulations. Through the Free Marketing Association, the information which the Dairy Board would not give was made available, and the company had received full value for its £lO. Had Northern Vvairoa actually linked up with the association, the cost would have been eight times as groat. ‘ ‘There is much cry over little wool,” said Mr A. E. Harding. >“We regret that the directors paid the £lO, but they still retain our absolute confidence. ’ ’ Amendment Carried. After further discussion, the amendment was put to the meeting, and carried.