DAIRY PRODUCE BOARD.

New Zealand Herald, Volume LXIII, Issue 19474, 2 November 1926, Page 10

DAIRY PRODUCE BOARD.

DIVISION OVER POLICY.

A MEMBER'S REVELATIONS. CABLEGRAMS FROM LONDON. THE TRADE ANTAGONISED. HOSTILITY TO PRICE FIXING. [TIT TELEGRAPH. —OWN CORRESPONDENT. ] INTER C A ROT LTj, Mond ay. A member of the Dairy Produce Board, Mr. T M. Timpany, of Southland, one of tho producers' representatives on the board, in an interview regarding the recent decision concerning tho board's price policv discloses the text of telegrams from London bearing on the matter. He says ho opposed price fixation, but Mr. J. R. Corrigan, of Taranaki, another producers' representative, tabled a notice of motion bearing on the subject, and ho waited. A statement appeared in the press after tho previous meeting of the board suggesting that Mr. W. Grounds, chairman of the board, and Mr. W. A. lorns, of Pahiatua, were opposed to each other, but no reference was made to Mr. Stronach Paterson, the other member of the London agency, who supported Mr. lorns in demanding a change and the removal of Mr. J. B. Wright, the London manager of the board. Attitudo of Mr. lorns. Mr. lorns cabled on October 4 as follows: — " Fixing the minimum price and retaining the present management has already" resulted in some boycotting of New Zealand produce. If persisted in will, in my opinion, result in disaster. If tnis is tho board's policy I request the board s cabled consent to my returning to New Zealand immediately. It board adopts Australian price-control system, accepts Mr. ' Wright's resignation, and replaces him with better man who easily obtainable am confident position can still be retrieved and control policy successfully applied for benefit of producers, and I am willing to remain here and work to this end. Please reply promptly.—W. A. lorns." Re-establishing Confidence. The next day Mr. Grounds expressed his opinion in the. following message: " London, October 5, 1926:—Most practical course present difficulty recall Mr. lorns, make Mr. W. Claud Motion ' chairman London agency. Leave London agency reconstruction until Mr. W. D. Hunt returns and Mr. Grainger and myself report. Mr. lorns'indicated opinion by cable.' Then following on this message from Mr. Grounds came tho following from Mr, Paterson, who is the Government representative on the London agency:— „ "In case board would like my views on the position they are as follows: I concur in Mr. lorns' views. First necessity in reestablishing confidencf! is change of manager and abandonment minimum price fixing in favour of Australian system of price control. I concur in Mr. Grounds' view reorganisation London agency desirable, but do'hot agree his immediate proposals to thai" eiia=,-'feeling they would identify hoard's control policy even more closely than hitherto with the past policy of the New Zealand Co-operative Dairy Company. These methods would result in accentuating present acute hostility throughcat the whole trade." % ' A Change in Name, ■ Nothing further was heard by the " board and the position when the board met a, few days ago. was unchanged, except perhaps that the difficulties were a little more, acute. Mr. Corrigan's motion had been altered, following a conference between tv/o members of the board and the Minister of Agriculture, and it was adopted, though not unanimously as the newspaper acc'ount stated. The decision changed the name of price fixation, but in the essentials left the policy unchanged, and ignored the cabled warnings of Messrs. lorns and Paterson. At that time it was known that a cable from the Prime Minister wafe on its way and the text was hurried over to the meeting, reaching there just before tho luncheon adjournment. That cable, dated London, October 27, Baid:r— Text of Mr. Coates' Message. " Influential deputation representative importers, blenders, multiple shops, wholesale provision merchants and retailers has made very strong representations to mo, firstly, objecting to control, secondly, protesting against price-fixing, thirdly, objecting to the present manager London agency. Regarding firstly I told them that control policy definitely -settled and would continue. They recognised this position and state they desire to continue work in interests of New Zealand dairy trade at this ond and accepted my statements. Re garding secondly 1 am convinced strongly it would be a great mistake to attempt anything in nature of minimum price-fix-ing and in view of uerious position any method at this juncture likely to engender antagonism Should be avoided. Regarding thirdly very strong objection expressed to Wright in whom trade apparently have no confidence, and this attitude very detrimental interests of New Zealand producers. Matter has been discussed with Grounds, who is meeting same people today. Paterson's telegram to board in my opinion correctly represents feeling majority of trade here. Give copy this telegram to Hawken. Matter most urgent. Board meets October 27, Wellington." " Strangest Part ol Business." "Now comes the strangest part of the business," said Mr. Timpany, in referring to the cables from London, " Mr. Coates sends a message from London on October 27' and it reaches Wellington on October 28. Mr. Paterson, of the London agency, sends a cable on October 23, after having shown it, or a copy, to Mr. Coates. Yet Mr. Paterson's message only reaches New Zealand on October 28, the day after the board meeting. Mr. Paterson's cable says: "Cannot urge too strongly that to avoid disaster board should abandon minimum price-fixing and adopt Australian system price control. All allottees, with exception only of Lovells and Wilson Sears, have this week" officially in writing strongly •represented to agency that owing to keen hostility of' all branches trade throughout country price fixation would be detrimental best interests producers. Strongly urge also board should dispense with present manager, who completely lacks confidence trade and in my opinion can never secure trade's goodwill and cooperation. Wright has repeatedly stated Australian system price control both useless and unworkable. If, therefore, board adopts this system all the ftiore essential change manager. Eminently suitable man of great texperience and highest standing in trade is prepared negotiate for position if, and.

when, it. becomes vacant, but declines allow his name disclosed unless and until board creates vacancy. In any case anticipate no difficulty replacing Wright with more suitable man. Think reorganising London agency not urgent and can wait Grounds' return in the meantime. If board by adoption course above suggested lays foundation essential for re-establish-ing goodwill and confidence present agency with suitable new manager can get business working smoothly. . . . Whatever the cost- believe change manager essential. Above message is sent with cognisance of Prime Minister, who requests you to hand copy immediately to ActingPrime Minister." " Now," said Mr. Timpany, " the position is just this. W<i have antagonised the trade in London and they are retaliating by boycotting butter and reducing advances on both butter find cheese. J moved to get an increased advance on cheese and was informed that it was out of the board's control, because the amount of advances available depended upon the merchants handling our produce. If the narket was open to-day our cheese would sol! at round about S<s por lb., f.0.b., vet all that is being advanced against shipments is s£d, which dairy farmers know only too well will result in disaster. Of course the board promised to consider my inquest for an increase in the advances in cheese, but there is the position wholly in the hands of the merchants." Mr. Timpany has given notice to reopen the question in the light of these cablegrams and consider Mr. Wright's position as manager.