DAIRY CONTROL SCHEME.

New Zealand Herald, Volume LXIII, Issue 19289, 30 March 1926, Page 10

DAIRY CONTROL SCHEME.

ATTITUDE OF TOOLEY STREET. t , CO-OPERATION WITH BOARD. ASSURANCES FROM LONDON. PROVIDING LETTERS OF CREDIT. [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON. Monday. Definite assurances have now been given in writing by all the distributors • n Tooley Street who have fceea engaged in the past in handling New Zealand dairy produce upon the London market, that they will establish letters of credit, in the name of the Dairy Board, under its policy to be initiated in August next. Similar assurances are now being secured from the New Zealand firms engaged in the same business whose head offices are *n New Zealand. The above information was foi warded to the Dairy Board by cable from the l/ondon agency, stating: "Obtained in writing from importers willingness establish credits in name of Board." Then followed the names of the firms eonrerned, which are as follows: Lovell and Christmas, Ltd., A. J. Mills and Co., Ltd., R. and W. Davidson, Ltd., Weddells Ltd., J. and J. Lonsdale, Ltd., Foley Bros., Anglo-Continental Produce Co., Ltd., Andrew Clements and Sons, G. Giilanders, Oetzcs and Gerritzen, Ltd., Marketing Association, Ltd., Page and Son. Ltd., A. C. Eowson, Henry Lane and Co., Ltd., Armours and Sons, Ltd,, National Mortgage and Agency Co., Ltd., Loan and Mercantile Agency. Ltd., Dalgety and Co., Ltd.

Earlier Undertakings Confirmed,

In commenting upon this information Mr. W. Grounds, chairman of the board, said: "Everyone with an intimate knowledge of the inner working of the exporting dairy produce trade has known throughout this controversy that therp would be no difficulty about finance under the board's policy. This we have asserted repeatedly, but, notwithstanding, it has remained the centre point of criticism and misrepresentation. An ex plicit statement was again made last week regarding fiuance, following which some critics even had the temerity to declare that we were wilfully misleading, and that Tooley Street would not establish the credits as we had stated. That Tooley Street would go back on the assurances that, had been given was unthinkable to us. Events have once again proved that Tooley Street needs to be protected from its so-called friends. "A request to London for a confirmation of the assurances resulted in a cable being received stating that all the leading firms had renewed that assurance in ' writing. Firms with their headquarters in New Zealand are doing likewise. W« shall possibly now be criticised for not having done this before, to which we answer, in anticipation, that there has never been any doubt upon the point, and we were not disposed to indicate any question in our mind of the honourable word of our distributive associates. Advantages to Distributors. " Tooley Street is plainly aware of the advantages our system has to offer to the legitimate, distributor. That supplies shall be guaranteed to them in accordance with their distributive cutlets is all they desire. The difficulty in existing circumstances to secure these has been their greatest trouble. F.ab. buying has made the trade more speculative than ever. Serious disturbances to long-established connections have been experienced and in tlie end some of our best distributors might have been forced to look for supplies from elsewhere. There was far more danger to the industry from this than any prospect of merchants seeking supplies from other countries as a result of the board's policy. We know that in this connection the only way to preserve our interests in any competition with other countries is to be prepared to give better value and service for the money than any of them. The Dairy Board was instructed to investigate the whole question of marketing New Zealand dairy produce and decided that certain methods in present marketing were inimical to the whole inindustry. In moving to eliminate them its objective is not to compel the minority, but ix> protect the majority. It is satisfied that its action is in the interests of all." /