DAIRY CONTROL ISSUE.

New Zealand Herald, Volume LXIV, Issue 19649, 30 May 1927, Page 11

DAIRY CONTROL ISSUE.

EEPLY TO MR. GOODFEIXOW

MARKETING LEAGUE'S VIEWS. METHOD OF ELECTING. BOARD.. FUTURE RIGHTS OF FACTORIES. As part of the responsibility for the failure of the dairy control scheme has been attributed by Mr. Goodfellow, in his statement published on Saturday, to the Free Marketing League, Mr. A. J. Sinclair, honorary organiser lor the league in the Auckland province, has written, defining the position of the league and its views on certain aspects of Mr. Goodfeliow's statement. He says "In allocating the responsibility for the present fiasco, Mr. Goodfellow gives the league a prominence which it modestly disclaims. The policy of the board has not been modified in the slightest degree by ou:.' efforts, nor have we been in any way responsible for the dissension on the London agency. lhe full power of the board was brought into operation, and the responsibility for failure rests entirely upon, those members who refhsed to temper their ardour for reform with discretion and sound judgment. It will always bo a matte? for regret that the efforts to defer absolute control, made by 133 dairy companies at the Dominion conference in April, 1926, were arbitrarily over-ridden. The Abolition ol Frice-Fising. " Mr. Goodi'ellow's statement that the position in London would have rectified itself if the board had adhered rigidly to its policy of price-fixing for a few weeks longer is in striking contrast with the memorandum addressed to the London agency of the board on February 18, and signed by 22 of the 29 agents who are handling allotments of New Zealand produce. It also conflicts with a cable received from Mr. W. A. lorns, chairman of ihe London agency, stating that the decision to abandon price-fixing had averted a catastrophe in the industry. Mr. lorns will arrive in the Dominion this week, and his views upon this aspect will be interesting. "Possibly the most far-reaching'state-ment made by Mr. Goodfellow is the implied reflection upon the dairy farmers of New Zealand when lie says that the present method of election—one man, one vote —is responsible for placing the wrong typo of man upon the board. Mr. Goodfeliow's scheme/ which has been consistently opposed by the Free Marketing League, seeks to deprive the individual producer of his vote, and vest it in, the directors of dairy companies, who would elect a council of 3G on a tonnage basis, this council in turn select' ing the board from amoug its own number. The scheme is known as the American " college " method, and we oppose it because it would place unlimited power in the hands of a small but united minority which, by a process of bargaining and negotiation, might be able to dominate the election of the whole board.

*'lt also possesses this weakness: If the individual producer has not sufficient commonsenae and intelligence to elect the right type of man to the Control Board, obviously he is equally incapdfbla of electing in his own company those directors upon whose intelligence Mr. Good fellow is prepared to rely. Mr. Goodfellow's argument is one which will not ibe viewed favourably by the dairy farmer. 1 !. Question of F. 0.8. Sales.

"Unfortunately; Mt. Goodfellow's statement is vague apon the one essential feature necessary to give the industry a lead at the present juncture., While lie favours the abandonment of absolute control, and forecasts the formation of marketing associations on the lines of those operating in Denmark, Canada, and other countries, he does not specifically ataie that dairy companies in New Zealand will have the free and unfettered rights possessed in other countries with regard to the disposal of produce. Any intention, for instance, to prohibit f.o.b. selling under the new scnerhe will intensify the dissensiqn which Mr. Goodfellow deplores. Judicious f.o.b, sales have been a powerful factor in the past in enabling small dairy companies to hold their own against their more powerful rivals, who find this system of marketing unworkable. The argument that f.o.b,' Belling plays into the hands of speculators hiis b«en proved to be a fallacy of the 1 sow- £ rapes' type used by »srga oesipariies to the detriment oi their smaller competitor!,."

OHAIEMA2J OF BOAiflD,

I TILL STATEMENT TO-DAY. A detailed reply to Mr. W. Goodfellow's statement regarding the control of dairy produce will b miwl# by Mr. W. Ground#., chairman of the Dairy Produce Board, at the North Auckland Dairy Conference to-day. Mr. Grounds will deal with statements made at the recent Farmers' Union conference at Whamjarei by Mr. IL W. Hudson, delegate of the Auckland Chamber of Commerce. Asked yesterday to express bis view* on Goodfellow'a manifesto, Mr. Grounds said he was reserving what he had to say for to-day's conference. No announcement could be made regarding the board's future policy until alter »t% next meeting on June 35, when st would bo decided, on motions of wJshh notice had been given, v. hether or not \u«tUtig was to foe abolished.

MB, GOODFELLOW S ATTITUDE

"CHANGING HORSES IN STREAM,'

CoßJMiitioe yesterday on h..r **aU-ir!frii regarding dairy control, Mr. A, (j«w)follow said be it w> b« and*r*to©d b« did not sj>ftaK «rstr>«r ob»> ctally or otherwise for ifee I'rodnj-* board, but as managing of the NV* Co-ojj<T,»t;?« Dairy CO«Jpanv. .Mr. CfcodfeJfo* «.a;d thai *b«n absolute control was d*r hJ*4 »j>on **- ■*"•'» * '** ibft *'<*;*rti revert to partial control at tb«? end of any without {w*. Ho*»v«, st ««* f>ot cont*ispbt«i the i'X'ard would I.? «o_ a% to change J»or?«s whtn <*«♦«»« •tfeiro. If lb* *y?t«a of »bv«ivt« 0.-r.tfd had bwrs a wets*, a ■ %&tioti wc*?sl<l ff-ft to k>r the council rtw'?ho<J of •>{«•- tmjf *h« hoard and to r-ombat the a>~t < i tut Kn* Mark.es-rjir ts*afpir. Itwwfcf*. the atafcetneai that th* bnard took «r»du« rik* 2ft istrodacing ftbuolut* ix&tr<4 *•»» eat wholly correct. daisy bgakd EL2CTIOH. ADDRESS BY MIL HOODFELLOW. Dairy tf.strol tuttm w»U b« ifoalt w«b by Mr' W, GoodMlow ;a *a mfclx® m dairy farawn :o ih» f'wc# M»bwml Hal* at t»mbtvlg» eo WtdfttwJif *!t«nv«Cß. TK® *4dr*M will Is* (Wivwi *» part <A Mr. fikwdMlfow** catejaMsre <«r ses of the ,N U, 5 v, &:'d o,tx t'tiz, Utity Frsxlas* SoaurdL