Conference of Milk Suppliers

Oamaru Mail, Volume XXIX, Issue 8583, 10 September 1904, Page 2

Conference of Milk Suppliers

A conference of milk suppliers in. (lie North >Otago mid South Canterbury districts was held in the Waitaki County Council Chambers this afternoon. There was a very large attendance, the room being crowded. The following directors of the Taicri; and Peninsula, Company were in attendance: Messrs R. Hodgers, 11. Macfarla.ne, W. Thompson, W. Nicolson, and A. Stewart.

Mr Piper, secretary pro tern, read the advertisement calling the meeting. Mr Avery waa voted to tlio chair, on the motion of Mr Dovey, seconded by Mr Shaw.

In opening the proceedings, Mr Avery said that they were assembled as a company of milk suppliers. The question had been asked what liad prompted tho movement? He had taken up the work of canvassing tho district to place before the milk suppliers the benefits of being associated, with the Taieri and Peninsula Company. In, the course of his canvass he had had to answer questions in relation, to tho local factory, and ho had been very careful in doing so, and tho present mooting should be equally careful. He thought, as a milk supplier, that ho would bo doing the best for himself by supplying tho Taieri and Peninsula Company, and others would do the same. In that company tho profits were returned to those who supplied tho milk, and not to "dry" shareholders, for the company was worked on co-operativo principles. The company had paid a dividend of 8 per cent for a period extending over many years, and had returned to tho farmers thousands of sharos fully paid-up. If the district associated with the-com-pany there could bo no monopoly. How could there be a monopoly wlicn all tho profits went to tho shareholders? It nil depended which side of the fenco one was on. The Taieri and Peninsula Company had a large turn-over, and it was able to pay 9id per lb for butter fat. Tho reason it paid so high a price was because it was well-established, and tho cost of production was lessened. Ho thought those present woidd be standing in their own light if they did not take up tho company's offer.

Mr A. Gillies, in moving the first resolution, said : Mr Chairman, —I have been asked at somewhat short notice to propose the following resolution: "That it is advisable that the Taieri and Peninsula Company extend their operations in North Otago." I speak to the resolution first of all as one who has the welfare of the dairying industry in North (11 ago lit heart ; and, secondly, ns a largo shareholders or the Taieri and 'Peninsula Company, ] do not intend to go into the past History of the North Otago Company. But one fact has in my opinion had more to do witli their troubles than anything else, and that fact is tliat from the start they had to compete for butter fat with Urn Taieri and Peninsula Company—a company ably managed, on a sound financial position, and with even then such a large output -that it was for the North (lingo Company to pay the same price for butter fat and live. I will go further and say that if the North Otago Comjuny was to-day in a sound financial position it would bo good business for Ixitli companies to .amalgamate, for I am satisfied the North Otago Company could not even then pay ns high price for fat tin;' Taieri arid Peninsula. Company. The Taioii and Peninsula, would have a. still bigger output and, therefore, would be able to make buttor cheaper after. The statement has been made that the Taieri and Peninsula. Company have paid a fictitious prico

for fat in North Olago to kill tin- <illn r concern. Thin is incorrect, as tin; Tairri and Peninsula directors will tell yon, | :i.m (old that lh«* same price in always ]>.-■ id for butter fat in nil tiu-ir creameries, 'linn another statement lias been made ilmi, tho Tniori and l'tMiiiiMulil is- a huge iii.iukply and that once having srcuivd i|„, North Otago Company tliey will l»oi, r down the price of butter fttt m t ln:* dr.,trict. Gentlemen, 1 toll you this is ikhi. sense. Tho Taiori and Peninsula Company is a co-operative one—practically for milk suppliers only—and after providing t■ ■r ;. dividend tho surplus protitH are given 1.a.1, to the milk suppliers. And yu will easily find what a very sound concern the, Taiori and Peninsula Comnany is tiuaiiei.il ly. I need not say anything more :il«>.tt. the advisability of the North Ulago Com puny soiling out. Willi ivgard jo the ad vantages of such a sale to the Taieri und Peninsula Company 1 am not on tjiirh err lain ground, but I think Unit the iirgn ments in favor are very strong. The 1n,.; ger tho output of a factory tho less should be tho cost of production, and this iieem:. speeia.llv tho ease in btiller fart ones. I have noticed lately thai there has In. „ a bin amalgamation in Auckland, and now as ono large factory with 19 creameries || M , company is most successful. I stiecrss of the Tuirri and Peninsula Com paiiiy has I*oll <lnr> to üble in aicigriiirni, and a large, output, and 1 am sure lli.y would bo unable to pay the price I hey do to-day if it were not for the output. I hry have, at present alioiil 10 creameries in Hum district, and this cream in all railed h. Duncdin. If tliey purchase limy will have more than double the number of rroumrnr:. this side of the Homo Range, and it should pay them handsomely to manidar turo this in Onmaru, saving the railage ic Duncdin, flnd above all handling (lie cream in Oamaru when it is fresher and in bettor order tliiin if ran possibly lm after a journey to Duncdin. Tim <]iir>,(ioi> is sometimes rained that it would not. |iay to run some of these North Ola go creameries owing to small ruipply, hut, gentlemen, that docs not mailer to tin Taieri and Peninsula Company. If a creamery Ims a, small supply Hi" patrons of that creamery have to make good any loss on working expenses, and other share. holders do not suffer. 'Hie company can not lose, n,nd it is in the inlcrest of the milk suppliers to increase their wipply fn a paying point. For these reasons, gentlemen, I lW to move : "That it is advisable that the and Peninsula Company r.v tend their operations in North Olago. The motion wan (seconded by Mr Hi'^ii.

Mr Murray (Tokanihi) said (here was little to ndd to Mr Gillies* remarks. ll« had been deputed to wipport tho motion. It w.>uld bo n good tiling' if "» arrange me.nt could bo com© to whereby the. pre •sent oreamcricu might Ixi kept going. Mr Dovcy jDuntroon) Maid that, llm Tiucri and Peninsula Company hud Wennaked to erect a creamery in his district, but if tlw prcßtmt crcamorief oottld bo run ns usual it would bo a good thing fur "II concerned. Mr Leonard (Rcdcliff). who wild ho re presented thoso who had 100 cows, mipportcd the motion 1 . Mr Sinclair (Sludholmo) Hiud they could Taiso 500 shares in bin district, and were anxious for tho Taiori and Peninsula. Company to erect creameries. After further discussion (lio molion wan carried. Tho following rccolutioim were mil>t qucnt-lv carried : —• "That tho T;iieri and Peninsula Company lxv nhkicxl to establish a Ivullci--factory in Oamaru."—Moved by Mr Mabonny and seconded by Mr Dovcy. "That tho Taicri and Poniimula Com pany amend their constitution ho um to a-l nut of the pork industry being carried <>n in connection with their factory."—Moved by Mr Liudloy Murray and ncooiidod l>y Mr Walker. [Wo are compelled to hold over the remainder of the discussion.]

This part of tho business having hoinc. disposed of, tho Chairman then pro Oetdcd ■with tho presentation of an illuminated address to Mr Nicolson, emicliod in tho following terms :■••-

"To W. Nicolson, Kh<i., Ilii.inpilc-ii. Dour Sir,—We, tho undornignod, sliuie holders in the Taieri ami PeniiiHiihi. MillSupply Co. and dairy farmers in the North Otago district, desire to place on record our estocin and admiration of yon for your past indefatigable effnrt« in ('awfully pro tooting our inherootß during the long yearn in which you have served a.s a direct or lathe Company. Not alone do wo apprc ciatc your valuable sorvioAs on tho diivetmr ate, but wo gratefully acknowledge (lie kindness and willriigiiet-s with, which you have succeiSrifully safeguarded the intcrc-if; of tho dairy fanners in this district.. We earnestly hope your term of ollice will lu> a. prolonged one, s» that in tho future your efforts will continue, an in the pant, tohrinr prosperity to tho humeri of every dairy farmer in tho district you have so Inni; and (successfully reprcsouteil. We are, nit behalf of tho dairy farmers of Km Hi Otago.—Youra fuilhfnlly." [Here follow the signatures.] Mr Nicolson after saying he win i.ur prised, Mated that ho felt thai while lie was benefiting himself he win also <loing bis duty towards Hie district. Tho business w.m one of tho best in tho colony. There were districts which could hardly have exi.-.lcd without tho-Taicri and Peninsula, lie. \v;e> sorry that the quality of the hut lev had been impugned. Mo did nut wish to say anything a/gainat tho local butler, Ims when they could win two gold ineduki lor their butter in Liverpool, they would In juslilied in talking about il.