SELLING OF PRODUCE.

New Zealand Herald, Volume LXVI, Issue 20339, 21 August 1929, Page 7

SELLING OF PRODUCE.

STANDARDISED CONTRACTS.

REPLY MADE TO CRITICISM. [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Tucsdny. Discussing reports published in Dunedin last week tho chairman of the Dunedin Exporters' Association said to-day that they could not understand why there should be so much concern in the South about tho matter of dairy produce contracts. In reply, ho made the following points:—

It became apparent, he said, that the old contracts were out of date, and, therefore, a committee of tho Exporters' Association was appointed to draft fresh contracts in cable consultation with tho London importers. Ihe few alterations to what had existed for years were nearly all caused by new Governnrent regulations and the Dairy Board's shipping policy. When the drafts were completed they were submitted to the board as the authority for the factories in such matters. Tho board had not vet ratified the cheese contract, nor had the butter or cheese draft contracts been approved by tho London importers. All trading in dairy produce in London was ruled by tho London Produce Exchange rules, and therefore tho New Zealand contract must approximate that if tho factories expect tho utmost market value.

The only point in the butter contract, which was the only ono that had been approved by the board, and in connection with which tho South Island producers had taken exception, was the clause providing that tho basic price should be for finest grade. The fact was that for the last two seasons contracts had nearly all been made for finest, with allowances for first and second. For tho coming season approximately 400,000 boxes of butter for August-March shipment had been sold f.0.b., on the basis that tho price offered was for finest, with a reduction of -Jd per lb. for first grade. These sales were nearly all made before the standard contract was considered by tho board. DAIRY PRODUCE PRICES. LONDON MARKET VALUES. Dalgetv and Co., Ltd., report having received the following cablegram from their London houso dated August 19: — Messrs. Samuel Pago and Son report. — Butter: There is more demand. FARMERS' FREEZING COMPANY. MORE CAPITAL ASKED FOR. Dairy companies in North and South Auckland aro being asked by the- Auckland Farmers' Freezing Company, Limited, to increase their share holdings in the company with a view to raising the capital requisite for (he provision of additional freezing facilities. The South Auckland Dairy Association considered the matter on Monday and decided to confer with North Auckland dairy companies on the question.

ARTIFICIAL TEXTILES

EFFECT OF OVER-PRODUCTION

Atention has been directed recently to the effect upon the textile industries of competition by synthetic products. Evidence that the now industry lias been developed in excess of the consumptive demand is afforded by the announcement last month that the directors of Courtaulds had decided to pay an interim dividend of 4 per cent, (free of tax), as compared with 5 per cent., free of tax, a year ago. A reduction of 1 per cent., in the company's rate is not surprising on account of its size, tho Times City editor remarked, but as tho interim distribution of Courtaulds is so small compared with the final distribution—last year, for example, the company followed its interim dividend of 5 per cent., with a final payment of 10 per cent.—the action of the directors in making any cut in the interim payment must tend to draw pointed attention to current conditions in the rayon industry. It recalls the timely warning of Mr. Samuel Courtauld at the company's annual meeting—which he also adumbrated in a letter to the Times—regarding over-production. While subsequent reductions in selling prices havo dono something toward remedying tho disparity between production and consumption they havo not yet restored to tho trade the conditions of prosperity that prevailed previously; indeed, only last month a further cut in prices was made by ono of tho American producers. BRADFORD TOPS. Australian Press Association—United Sorvico LONDON, Aug. 10. On (ho Bradford tops market quotations are unchanged, and thoro is no business. CHICAGO WHEAT MARKET. Australian and N.Z. Press Association. CHICAGO, Aug. 10. Wheat.—September, 1 dollar 38| cents per bushel: December, 1 dollar 47 cents; March, 1 dollar 52 7-8 cents; May, 1 dollar 56 1-8 cents.