DAIRY EXPORT CONTROL

New Zealand Herald, Volume LXII, Issue 18965, 12 March 1925, Page 12

DAIRY EXPORT CONTROL

THE SMALL COMPANIES. RESOLUTION OF PROTEST. success doubted. MORE INFORMATION WANTED. [BV TELEGRAPH.—OWN CORRESPONDENT.] MORRINSVILLE, Wednesday A protest against tho proposal of the. Dairy Export Control Board to establish absolute control was made. to-day by a meeting of delegates from co-operative companies which aro members of the Auckland Provincial Dairy Companies' Association. Representatives wero present from tho Sunny Park, East Tarnaki, Hintiera, Morrinsville and Rodney Companies. Tho chairman, Mr. R. J. McCausland, •said he was not in favour of such a drastic step as absolute control. Each factory would lose its identity, its individual brand and perhaps years of goodwill. This specially applied to small companies. The board might, adopt a brand already used by some company. Payment on tho grade for grade basis might bo satisfactory from a grading point of view, but somo districts may bo selliug well on lower grade butter, owing to good connections, which would not realiso so much under tho control sytem. It was unsatisfactory that nothing definite was announced by the board about, its plans. They were told finance would be arranged in London and advance payments made. The produce would he shipped to London aud distributed among various agents, but unless an agent was assured of a certain proportion of butter or cheese, he would not make /advances. These points must be made clear. Question of Existing Contracts. Mr. McCausland said another point was that a quarter of the largest company's output would not be under control, as it was covered by a contract that does not expire till 1930. Compulsory control should not bo enforced until that contract terminated. It was understood among all companies that control would not be established unless it was absolutely necessary. Mr. Bell, representing tho Sunny Park Company, said he was opposed to absolute control. They were fold tho new form of control was only an extension of what one large company is doing. That called for consideration. Why could that company not pay out as well as smaller companies ? Its marketing scheme had not been an apparent, success. Under the present system of f.o.b. sales, ready money was always available, progress payments were always ahead of other companies and final payments wero always equivalent or better. He noticed that two men, more or less capable, had been appointed to handle tho produce. Had they done so well with their own companies as to be fit, to handle the whole dairy produce of Now Zealand ? It was doubtful. Mr. Bell added that more, information should be given, especially regarding finance. If control is such a good thing, there was no need for secrecy. Large and Small Methods. Mr. Leonard, East Tamaki. said be considered bis company had been harshly treated, as it had been paying a levy to. the Control Board and all its output, had been sent to Honolulu, a market where tho Control Board does not help. "One can only assume what the finance ' and marketing scheme is to be," ho added. "East Tamaki is not —«ared to support control" Last year's results of tho big company were a final payment of Is 7d against Is 9|d by the Bay of Plentv Association. Ho maintained the right should bo retained to companies to make f.o.b. sales. Mr. Leeson, Morrinsville, the oldest dairy farmer in the district, said he had never expected that he would live to see the day when, as a British subject, bo would not. bo allowed to do what hp wanted with his own produce. He was extremely sorry to see New Zealand adopt methods that had had such disastrous effects in Russia. The men who had conducted the disposal of New Zealand produce in London had built up a great business by their integrity and efficiency. There was evidence of very strong feeling in Britain against pools and trusts. He thought it would not be wise to antagonise the Dominion's customers. Mr. McCausland moved, and Mr. Bell seconded: "That this meetinc of the Auckland Provincial Dairy Companies' Association protests against the granting of the Order-in-Counc.i| to give, the Dairy Control Board absolute control in 1926. They consider that factories should retain the right to make f.o.b. sales; that the. Control Board should disclose its full working scheme and financial arrangements, with an assurance of a better uett return to producers; also that no extension of the present control should be exercised until 1930, or until suc.fi time as all existing contracts have expired, when the position might be reviewed." MERCHANTS AND CONTROL ATTITUDE OF THE CHAMBERS. MAJORITY OPINION AGAINST. [BV TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON. Wednesday. The secretary of the Associated Chambers of Commerce of New Zealand recently addressed a telegram to the secretaries of chambers of commerce throughout the Dominion, with a view to entering a strong protest, against, the issue of the Order-in-Couneil giving the Dairy Board absolute control. Tho balance of opinion elicited is against, absolute control, arid that from some of tho chambers situated in the centre of dairying districts—there are 12 such—is straight out. against the proposal. Most of these point to what, they suggest _ is the danger of Government by Order-in-Council. One chamber in a North Island dairying centre endorses absolute control, ono confesses that.*its members arc divided on tho subject, five have yet to consider the matter, and one admits that it. has no information on the subject and therefore cannot give an opinion. Most, of the opinion is in the direction of full investigation being made into tho probable effects of absolute control in the interests of both commerce and dairy production before the Government grants the Ordcr-in-Ckiuncil. KONINT COMPANY OPPOSED. RESOLUTION BY" DIRECTORS, [by telegraph.--press association.] PAHIATUA. Wcdneadas. The Konini Dairy Company directors passed a resolution opposing absolute control. SUPPORT FOB THE BOARD. FARMERS' UNION ATTITUDE. Support for the Dairy Produce Control Board in its decision to exercise its right of absolute control was given by the provincial executive of tho Farmers' Union at its last meeting. Mr. A. A. Ross said the board, after having sent a delegation to Groat Britain, was unanimously in favour of taking control. It seemed absurd that it should not be allowed to exercise that "control. The chairman, Mr. ('. C. Munro, said the farmers' co-operative concerns were now on triaL Tho butter belonged to tho

farmers, and it-was only fair and reasonable that, they should sol 1 it where they liked. There was plenty of proof that farmers were able to look after, their own interests. If they did not control their own lmsiuess, someone elso would do it for tjiem. The following resolution, moved by Mr. Ross, was carried"Thai, this meeting supports the Dairy Control Board in its decision to introduce, absolute control. In view of the fact that the Act was framed at the request of t.he producers, that itwas voted on and brought into force, by an overwhelming majority, and that the board has now decided to carry out the wishes of the producers, wo call upon the Government to pass the. necessary Order-in-Council so that the decision may come into force." THE INDEPENDENT FACTORY. GOOD RESULTS CLAIMED. 'Te Foi" writes:—l am sure the majority of the farmers in tbo Auckland proviheo have greatly appreciated the articles in tho Herald on the complete control of the export of dairy produce. I agree with you that Mr. Goodfellow has given us more information on tho matter than we have received from tho Control Board. He informs us that the marketing will be modelled 011 the lines of the Now Zealand Co-operative Dairy Company's London office, which has proved a great success. As to the last remark, I beg to differ. Going back to tho year when Mr. Goodfellow addressed the different centres in the South Auckland districts in reference to tho amalgamation of the leading dairy companies, he laid great stress on the following two points:— (a) That the whole clerical work under the one roof would result in a great saving to tbo shareholders, (b) The ideal butter factory should not manufacture less thau 1500 tons of butter, tho suppliers could rest assured of a better pay out than any other buter factories operating in the district. I will take last year's result as a proof that Mr. Goodfellow's vision on that jioint has' proved quite incorrect as far as the New Zealand Dairy Company is concerned. I will take two small cooperative dairy companies in the Waikato, viz., Morrinsvillo and Hinuera. These companies wero incorporated by suppliers of the N.Z.C. Dairy Co., who asked for the erection of a butter factory in their district and were refused as tho output did not warrant if. The result of last year's operation of the two companies have proved very satisfactory. They manufactured under 350 tons of butter and paid to their suppliers Is 7d per lb butter-fat and received full payment before the end of September. The supuliers of the New Zealand Co-operative Co. received Is 7d per lb butter-fat for superfine direct delivery; their financial year closed May 30; their suppliers did not receive their final payment of £70.000 till the end of the following January. I will take the highest pay-out of two co-operative dairy I companies whose butter i's graded in Auckland, via., Bay of Plenty, Te Puke Is 9d, Northern Wairoa, Is I believe these companies' output approach Mr. Goodfellow's ideal butter factories. I T told that Te Puke and Northern Wairoa have no London office. Their sales are conducted by" tho Tooley Street merchants, who aro in touch with their chairmen of directors. If, certainly appears ''. c ,^' lr . moro satisfactory from a supplier's point of view than having aa expensive London office. AN OBJECTOR'S VIEWPOINT. hands off my butter M J '. W. C. Watts, Papafoetoe. wriTes Mr. C. 11. Mellsop would be well advised, before rushing into print again, to "analyse and finalise" the actual position. If Mr. Mellsop and other advocates of compulsion can separate from the £18,500,000 worth of dairy produce {estimated annual value) the proportion belonging to then), they aro quite entitled to control it, but it is when they seek to lay hands on other people's property that trouble commences. Mr. Mellsop speaks of the howl from proprietary companies. Would not Mr. Mellsop howl if his goods wero in danger of being confiscated ? To put it, in plainer language, if the Government passed a law making burglary a lawful occupation to one section of the community only, would not Mr. Mellsop howl if bo belonged to the other section, and his house was robbed? As for the other howlers, the Chamber of Commerce, they represent the lending and financial institutions, the real owners of probably three-quarters of the produce. They were not given a vote, as the Dairy Produce Export Control Bill was submitted to the farmers only for approval. Are they not entitled to howl when their money, in tho form of advances against land, stock, etc., is at stake? What would Mr. Mellsop think about it if, instead of being a farmer, he advanced money to someone else to start a farm, and that someone else turned round and told him to mind his own business if'he ventured to remonstrate with the farmer for spending his money foolishly ? Yet Mr. Mellsop characterises it as sheer impudence for those whoso rights are being taken from them to protest. In conclusion, let me recommend to Mr. Mellsop a study of tho commandment, "Thou shalt not covet," etc., etc. TEACHING THE WORLD. BUSINESS WITHOUT TRAINING. [BT rELEGHAPH.-rn.BSB ASSOCIATION.] CHIUSTCHURCH. Wednesday. Addressing the conference of the New Zealand Commercial Travellers and Warehousemen's Association, the president, Mr. C. P. Agar, said there seemed to be an increasing tendency for the primary producers to interfere with the well-established and efficient commercial methods that had been built up for the marketing of primary products. It was not intended to defend the merchants who were at present undertaking the handling of butter and cheese. They were quite able to take care of themselves, and probably would do so if they were humbugged ' much more by the producers. Every member of tho conference, however, was concerned with the idea at the back of this project, which was that the " middleman " exploits tho producer and the consumer, and that the service ho renders can be cut out to the advantage of both sides. "If the primary producers can organise co-operatively, and put their produce on the markets of Europe more cheaply than is done at present by efficient and trained salesmen who have built up export methods and trade connections, to say nothing of great resources," said Mr. Agar, " if they can replace this service of expert salesmen by some>cheaper method they will have taught the world something." ____________________