FIXING BUTTER PRICES.

New Zealand Herald, Volume LXII, Issue 18950, 23 February 1925, Page 11

FIXING BUTTER PRICES.

DISPUTE REGARDING BASIS. THE COMMITTEE PROPOSAL. OPQTIKI COMPANY'S VIEWS.. [BY TELEGRAPH.—OWN CORRESPONDENT. ] r OPOTIKI. Saturday. The criticism by Mr. W. Goodfellow, managing director of the New Zealand Co-operative Dairy Company, of the proposal to establish a committee to regulate the local, price of butter was the subject of a statement to-day by Mr. H. R- Hogg, chairman of the Opotiki Dairy Association. He reaffirmed the determination of his company and of others associated with it to carry out the plan of selling their butter at prices corresponding with current London quotations. "I very much regret that Mr Goodfellow does not agree with our proposals, and is not persuaded by our contentions to review his former decision," said Mr. Hogg. "I also regret that, while declaring his opposition to the idea of a local committee, he was not content to set forth his views and reasons for them without making charges of bad faith against his former associates in similar committees. It would be easy to reply with counter-charges, but that method of controversy does not appeal to me. We a,re concerned wholly with the responsibility of conducting our business in such a way that both producers and consumers shall receive fair and equitable treatment, and oven if we disagree as to the best method* of securing that result, in my opinion, it is better to confine the discussion to the actual merits of the proposal, than to revive memories of past misunderstandings." Eeferring to Mr. Goodfeliow's criticism of the committee proposal, Mr. Hogg said :—"Mr. Goodfellow thinks that following the High Commissioner's weekly cabled quotations will tend to increase speculation. It is difficult to follow his reasoning. The High Commissioner's cables deal with actual ruling prices, and avoid any extended forecast of market tendencies. Mr. Goodfeliow's methods of continuously forecasting the market for three months ahead, however, are calculated to give speculators the lead they seek, and with a knowledge of the largest producer's estimate of forward values, they can operate with much more confidence and profit to themselves. Mr. Goodfellow dismisses as ridiculous the proposal to base values on facts supplied by the High Commissioner, instead of on his personal predictions. While approving the theory, he holds that the former method will be found quite unworkable in practice. For many years before Mr. Goodfellow had any experience of marketing butter, the proposed method operated most satisfactorily, and it is only since his introduction within recent years of the new method that any dissatisfaction or misunderstanding has arisen." As to Mr. Goodfeliow's claim that his company had helped to keep Opotiki butter on the market, Mr, Hogg said:— "Because we found it necessary some years ago to purchase butter to supplement. short winter supplies from our own factory, and made our purchases from the New Zealand Co-operative Dairy Company at, full market rates, it is absurd to suggest that, that company helped to keep 'Opotiki' on the market. They were successful in securing our business in competition with other factories. I am glad to say that increasing output at Opotiki has kept pace with the increasing trade for that brand, and made if unnecessary to make such supplementary purchases for some years past. It is unfortunate that Mr. Goodfellow. whose enthusiasm for business principles is so well known, should now publicJv disclose, as evidence of his goodwill. past private business transactions, where ordinary business confidence is usually observed. "I am charged with breach of faith in giving a statement to the press regarding the recent conference," Mr. Hogg added. "I may state that, while the meeting agreed that there was nothing to give the press, it was never assumed that the suppliers of either company should not be fully informed of what took place." *