DAIRY PRODUCE POOL

Otago Daily Times, Issue 18601, 8 July 1922, Page 10

DAIRY PRODUCE POOL

MAJORITY PROTEST. “BriTER EXPERIENCE OF THE PAST.” (Fbom Ooe Own Correspondent.) LONDON, May 17. Following the letter contributed by Messrs R. and W. Davidson, Henry A. Lane and Co., Lovell and Christmas, A. J. Mills and Co., and Samuel Page and Son —the five companies at present acting as agents for the New Zealand Co-opera-tive Dairy Company—and published in various London papers, there now appears a protest in the Financial Times and other journals from the remaining importers. It is ae follows: “With reference to the > letter in your issue of to-day signed by five of the principal importers of colonial produce .into this country, we should like to make the following remarks on behalf of tho remaining importers. Although the circular issued to the trade by the promoters states that ‘the object of the proposal is to regulate shipments and control prices,’ your correspondents appear to bo quite satisfied in their own minds that there is no intention of holding up prices in this country. It may be that the main object is only to prevent unnecessary fluctuations, although we are rather at a loss to understand how any pool could prevent fluctuations wliioh have taken place during the past two years, as the result of Government control and its aftermath. We cordially approve of .that object in so far as it applies to the future, and also of endeavouring, by organisation to secure economies' and greater efficiency in tho distribution of New Zealand produce in this country. The only difference of opinion between us is upon the question as to whether the creation of a compulsory pool is the best, or only means of securing these results or is in the best interests of the producers. Mass control can doubtless be used to regulate prices, but the idea that it can be used successfully from tho point of view of either the producer or consumer received no support from the bitter experiences of control during and after the war.

“It may bo that your five correspondents as agenda for the promoters of the pool feel themselves safeguarded as regards supplies under the proposed scheme; but no satisfactory assurance has been offered to the rest of the trade. The other importers arc naturally loth to run the risk of scrapping their organisation in deference to the wishes of the promoters of the compulsory pool, who, after they have received Ihe sanction and support of the New Zealand Parliament, may find themselves unable to carry out effectively all the good intentions with which they are at present animated.” The letter is signed “'Flic Majority.” Reference is made in the Daily Telegraph to Mr Goodfeilow’s statement when lie relumed to New Zealand, and the following sentences arc quoted: “There is far too much speculation in colonial produce in London, which results in fluctuating prices. What is of supremo importance is to get. top prices. An effort mast be made to stabilise markets by establishing effective control of prices in London and elsewhere. An effective price control in conformity with supply and demand is needed, and for this reason it would be wise to 00-opcralo with the producing interests in Denmark and Australia. “The consumer in London recognises the desire of the New Zealand producer to ‘get top prices,’ ” the Daily Telegraph adds, “but fails to appreciate anything in the nature of a ring to keep them at a high level.’’