SOUTH ISLAND DAIRY ASSOCIATION.

Otago Daily Times, Issue 19497, 4 June 1925, Page 7

SOUTH ISLAND DAIRY ASSOCIATION.

ANNUAL CONFLUENCE. LARGE ATTENDANCE OF DELEGATES. The annual conference of the South Island Dairy Association was held in (he Art Gallery Hall yesterday. Mr H. G. Middleton (chairman of directors) presided, and there was a large attendance of delegates. EXTRAORDINARY MEETING. Prior to the conference an extraordinary general meeting was held for the purpose of considering the following motion : “Article 81 shall bo cancelled, and the following article substituted therefor: ‘lf, upon the association being wound up and after satisfaction of the expenses of winding up and the debts and liabilities of the association and the adjustment of the rights of members inter se, there shall be auv surplus assets of the association, the same shall be divided among those who were members of the association at the date of the commencement of the winding up pro rata and in proportion to the respective amounts of their purchases of manufacturing requisites from the association from the date of the formation of the association.’ ’’ The Chairman explained that the profits of the association had been made out of trading, and not out of the annual subscription, and the directors thought that their proposal was the most equitable way of dealing with the assets in the event of liquidation being decided upon. Air R. Arnott seconded the motion, expressing the opinion that the proposal was a step in the right direction. The motion was opposed by Mr A. H Templeton, who said he thought the delegates would be wise if they voted against the proposal. ! In the course of the discussion it was explained that, if the motion was carried its effect would be retrospective till 1909. The motion was carried by 39 votes to five. The Chairman stated that another mooting would be held in Invercargill for the purpose of confirming the resolution. i CHAIRMAN’S ADDRESS. ; The Chairman said that during the year ' the association had gone into the, dairy machinery business, and that a very promising start had been made. They were also going to open a repair shop at Invercargill. In immense amount of -repair work whs offering from the factories, and thescheme would take some organisation. It would be necessary to increase the staff to cope with the work. An exhibit would be made in conjunction with the National Dairy Association at the New Zealand and South Seas Exhibition. The speaker went on to express the opinion that a reasonable period should bo allowed to the Dairy Control Board to see if it would make good. The question of the mode of electing members to the board had been freely discussed during the.last few months. The ward system had been suggested, but was it not important to see that they got the host men on the board irrespective of the locality in which they lived' Otago had not had a representative, on the board, and he thought there were people sufficiently fair-minded to give Otago a representative. The ward system had been suggested in connection with the election of directors of the association, and an understanding had been arrived at so as to give the various districts representation. He thought that principle could be followed in connection 1 with the Control Board provided that suit- j able men were offering. Representations ' had been mode to the Government in regard to taxation on dairy companies, but no progress had been made. A deputation had waited on the Hon. Mr Nosworthy that morning. It had received a sympathetic rcplv and he was hopeful that something would be clone. The Control Board had taken over the question of shipping and insurance, collection of the j levies, etc. The Dairy Association had j carried cut the work for the board Inst ; year, and it had arranged to do so again this year, but at a much reduced rale. The Control Board intended to set un its own organisation to deal with the matter, and bo understood that it hrd started to do so in the North Island. Last rear their association got £2250 from the board for doing the work, and this year it would get £1650. The proposed action cf the Control Board would make a serious in-

road on the affairs of the association. Next year they would have to consider whether- the association should confine itself to carrying on its trading departments, or go out of business. Ho thought it would be admitted that the association had had a steadying effect on some of the other traders, and ho was sure those people would be pleased if the association decided that it could bo done without. The speaker referred to the excellent, service rendered by the staff during the year, and asked the meeting to express its satisfaction with the work done. —(Applause.) A branch had been opened in Invercargill, and he thought fhev could congratulate themselves on the appointment of Mr M‘Donald to take charge of it. A suggestion had boon made for a superannuation scheme for the factory managers. A report had been submitted to the managers, but nothing further ha*d been heard from them. Do thought, tbev had found that (heir contributions would bo so high that they would not take the, scheme up. Mr J. Dunlop seconded the motion. Ho congratulated I bo association on the success of its trading departments. He was quite satisfied that the factories would support, the Machinery Department-. The motion was carried. FLECTION OF OFFICERS. The Secretary (Mr G. A. Lamb) declared Messrs H. J. Middleton and W. Bryant reelected as directors of the association. There | had been no other nominations. Mr J. \V. Smeaton was re-appointed auditor. RAILAGE OF PRODUCT. Mr Herron moved : “That the Government be urged to reduce the railage, on dairy produce to the cool stores, and also from the cool stores to the ships’ side.” Ho j said this matter had been before the association previously, but they had received no reductions. At the present time his factory had to pay 29s 5d por ton, for railage to the Bluff, a distance of 66 miles, or about £lO per truck. Last season their factory had to pay £3OO for railage on 189 tons output. The prices for produce i were, now lower, and the relation (o the I cost of carriage for wool was net equitable. He thought strong . pressure should bo brought on the Government to remedy the , position. Mr .Fox (Wainina) seconded the motion. He know the association and the Control Bcai cl bad tried - to get a reduction, but so far nothing had been done. I Mr Herron said that while railage charge ’ to the Bluff was far too high, the charge from the cool stores to ship’s side was ridiculous. From the coo! store to the ship’s side was about five chains, and the Government charged 3s per ton for carrying the produce over this distance. The Chairman said the executive had striven, bard to get reductions, but so far it bad got only sympathy.—(Laughter.) The position was improving, and Mr Coates was shaking no the dry bones of the service. 'I ho Railway Department realised the effect, of competition from motor bus traffic, and the (Minister was doing his honest best to improve matters. Fie understood the Control Beard had this matter in hand, and it might be able, acting on behalf of the dominion, to do better than the associations. Mr Brash, secretary of the Control Board, said the Railway Department was already giving concessions, but only where the department was meeting competition. lie did not think the position was quite fair. He thought they could look for an improvement, as the board was bringing steady pressure to bear on the department. I Mr Mould (Waircwa) said so far as his | factory was concerned, it was not getting any concession. sli- Fox said he thought, the Government should treat all factories the. same. Fir Arnott said they should have a reduced flat rate for each factory. The policy of concessions because pressure could be put on the department should not be. tolerated.—(“Hear, bear.") The Chairman suggested that ,no-c factories working under a railway carriage | handicap should communicate with the as- | sociation, giving particulars of their traffic I facilities, and it would bring the matter | under the notice of the commercial agents, lb* agreed that the .system complained of | w::-- quite wrong- : Mr Herron said his factory could carry | its produce to the Bluff by motor lorry for i 23s per ton, but there was no road into the cool store.-- (Langiuoi-.) The motion was carried. IVA RD SYSTEM OF ELECTION. 'The following motion was brought forward by Air Grieve on behalf of the executive: “That this meeting recommends to : the -Government the institution of the ward system for the election of die members of ’

tilt? Dairy Control Board.” The mover said lie would prefer that such a remit should come from (lie, factories rather (lute from the executive He, understood that tlio secretary had written to the Government on the matter, receiving tho usual reply. The association wanted to assist the Control Board, and put men on it who were loyal to flic board. Mr L. Hansen seconded the motion, ami i slated that: he was very much in favour of it. The motion was carried. COMPULSORY GRADING OF CREAM. On behalf of the executive flic Chairman moved; ‘‘That this meeting recommends (ho Government to undertake the mc-cssary steps to institute the compulsory grading cf cream.’' '1 lie. mover said an attempt was made last .year by the butter factmios in the Mouth Islam! to institute cream grading and to pay by results. He understood, however, that an agreement to that eflect was broken when the season opened. He was strongly in favour of (he grading of cream. There appeared to ho considerable competition bet ween the companies, and a manager knew that, if he rejected putrid cream another manager would take il. He was of opinion that the only way to retain their position on the T<ondon market was to turn out the best article possible, and they could not. expect a manager to turn out a good article unless he got good raw material. Mr Booth (Temukn.) said that after two days had been spent, in conference by representatives of Canterbury and Otago it was agreed that grading was essential, but it, was subsequently found that local circumstances prevented them from carrying the scheme into effect. Ho (bought the Government should bring in legislation to make grading compulsory. Mr Smith (North Canterbury) said that an effort bad been made in North Canterbury to carry out the scheme arrived at at the conference. Thrvre was a lot of cream verging on second grade. In view of the existing competition it. was impossible to get a factory manager to turn cream down wlie.n lie know that someone else would fake it. Mr Rut ledge said that grading had been 1 strictly adhered lo in Invercargill this season, and the scheme had been an c-norm- | oils success, the average of second-grade ; cream being only .61 to .69 per cent. The , trouble was that in practice a weak-kneed , policy was adopted, managers being afraid of losing suppliers. He hoped the motion would bo carried, unanimously. Mr Ha.nsen said be war- satisfied that somethin"- drastic must he done to carry out grading. Mr M. Bowman said (bat he and his company were quite in sympathy with the 1 proposal, but, the problem was a difficult one. He believed that (bo smallest butler factory in (bo dominion was responsible for upsetting the arrangements made at, the conference. ft seemed to him that they must get compulsion, but ho did i.ot think that the Minister of Agriculture would . legislate this year. | The Chairman said he thought the scheme | could not have been on a very firm foimda- ; tion when a small weakling was allowed to upset, il. Mr W. M. Miiiglcfou (Dairy Division of the Department cf Agriculture) said that in North Auckland an agreement not lo accept second-grade cream was working splendidly. He had been very hopeful tiiat. i the. South Island scheme would come into i operation. 'There was nor, much use ;n com- ( pnlsory grading without the introduction nf differential rate- of payment. He hoped I the meeting would endorse (he proposal. , In re-plv to questions Mr Singleton sa.id he did not feel that ho would bring in ! compulsory grading of milk at least until j they got some experience with cream. Ho ; believed that 60 por cent, of the butler j made in New Zealand (ins season bad been ! manufactured from graded cream. He was doubtful if legislation could be passed in time to make grading compulsory next season. Thn Chairman asked if they could take if that Mr .Singleton would give them every assistance in giving effect to the proposed legislation. Mr Singleton: Absolutely. Tin- motion was carried. At the suggestion of .Mr Siuiili the Chairman said tlie directors would try to bring the recommendation before the’ I ton. Mr .No.sworlby during his visit to Dunedin. WAGES AWARDS. The following motion was. proposed by Mr J. Smith on behalf of the executive: — “That dm matter of attending to the Southland and Otago cheese and butter faeiory employees’ (other than managers, wages awards lie taken out of the hands of the association, and that the Otago and

Southland Employers’ Association (or both) he asked to net on liehalt’ of the employers in these matters.” The mover expressed the opinion that, if (lie motion were eiirrie:! there would he more harmony between the managers and the companies Ilian would otherwise lie Hie ease. An awards committee would still lie required. Tlie motion was seconded by Air A. P. Phoning. .Mr 1!. Arnott said he was not altogether in favour of allowing the matter to go completely outside the han.ls of the association. Mr lint ledge expressed I lie opinion that there were men in (lie ranks of (lie Dairy Association who were just as competent, as tlie Employers' Association to deal with the matter. Mr ,|olin Fisher su'd lie thought the welfare of the association would lie better conserved by dealing with (he managers in conference than by going to the Arbitration Court (lirough the Employers' Association. Me thought, it would be a mistake to allow the question to go away from tlie control ef (he association. The motion was lost on the voices. CHAT UMAX'S 11ONOK AIM DM. The Chairman's honorarium for (lie ensuing year was fixed at 100 guineas. A hear! v vote of thanks was passed to the executive, the secretary (Mr I.amb), and the staff. DAIRY COXTKOE HOARD. Mr W. C. Motion, a director of the Xew Zealand i'airy Produce Control Hoard, gave some particulars of the visit to America and Europe of the delegation from the Control Hoard. Me explained the propaganda that was being carried mil in the Cnited States to promote tlie use of milk as a food product, and said that in three years the consumptive demand hud been increased by five gallons per capita. Tlie laboratory and research work in the Uni tear Slates was carried out on a largo scale, lint the people wore not as much interested in tlie matter as the Xew Zealand delegation would have liked to see. The marketing of produce in tlie Slates was explained, and Mr Motion said that it; was dsiposed of in the same matter as they in Xew Zealand deal! in mining and other shares. In Toronto they met many farmers who were interested in the cooperative movement in Xew /aland. Tins cheese there was sold by auction and (lie butter by private treaty. The cold stores in Montreal were splendid up-to-date buildings. Dairying in the States was only in its infancy, and it remained to be seen whether (hey would lie aide to hold their present high tariff against Hie importation of outside products. There were 4,500,000 dairy farmers in the States, and the average herd was only six. lie thought they should sel! (heir products where they sold their goods.—(Applause.! In l.ondon they received a cordial welcome to discuss the information they had gone Mome to obtain. 'idle people in l.ondon had assured (diem that there would lit- no iliilienlty in arranging for finance in connection with control. They had gone to tlie wharves to examine the pro lime as soon as it arrived from Xew Zealand. At Tilbury and tlie Royal Albert Docks they saw tlie, unloading of meat into insulated barges and the butter and cheese into ordinary iron barges—tile latter arrangement causing them mpeli surprise. They discovered that none of (heir produce was ever placed in insulated barges, and this notwithstanding (he trouble they took to turn out a first-class article. As a result, of their representations the wharf authorities had stated they were prepared to improve conditions, and from April to Xoveiniier much belter conditions for handling their produce were being introduced. The speaker gave illustrations regarding tlie pom* storage in the barges and Die coo] stores in l.ondon, and said their Now Zealand butter suffered. They had seen thousands of cases of cheese held in store under very poor conditions, and (he cheese deteriorated as a consequence. Speculators bought t he produce, sold if. and hell it in store waiting delivery under unsuitable conditions. In other instances the produce was held under excellent conditions. 'i hey should learn from the upforninnle circumstances unde; which iheir produce was ,-l.ored, when iho Xew Zealand factories might be holding for higher prices. They vi.-ited the port? on the We-! of England, and there was no doubt there were great opportunities there for extending the consumption of Xew Zealand dairy produce. There was a disadvtwttage owing to the merchants in the northern provinces being nimble to get. u '-ontiii nit \ of supply. Thu speaker related how the four large X’ow Zealand chooses at the Wembley Exhibition had

been disposed of. Insurance and shipping rales had been gone into, imd (he hoard in New /oaland had made a, very satisfae- ■ lory deal at lids ('ini in regard to insurance. The larger portion of tbo saving 1 of £40,000 in insurance was largely a. benefit to I lie smaller factories. They :iad had a. long eonfcrem e with the shipping people, and had obtained a reduction in freights of £120,000 for (he next two years and £140.000 on the third year. Tin's, with the insurance established a substantial reduction in die cost of handling their prod me for the next two or three years. They should loyally suppoti the hoard. The hoard was out. to do everything in the interest of the producers. —(Applause.) In answer to questions Hr Motion said the Toolcv street people had expressed no host ilitv to Ihe dairy control movement . '1 hey had met three merchants who did not approve of the board, but they, had not been able to give them ,-og-gesl ions to improve (he proposed system. They were quite prepared at any rate to do everything to foster business in New Zealand produce. The Toolcv street m'rrhanis Avon' talrl what the Uon.nl Mood for, ond tliov wen* quire prepared (o aeeepf llie ndinrr of in o Uonrd. AVhen tho supply was too large they ''onnd speeulators buying it. holding it in store, and reaping any profit. His own particular company tried to snri-ad the supply of the produce over a period. They would he tar better elf if they could get an average price of 180 s to 19f!s all the year round. High prices were of no advantage because thev choked off demand. Mr Torn?, another member of the New Zealand delegation, said lie and Mr Motion were shortly' going Horne to represent, the hoard. They were going Home with the expressed intention of dealing fairly with the Tcolev street; merchants and doing good work for the producers. A hearty vote of thanks was passed to the two speakers. Tho Chairman remarked that ho was very pleased to hear (heir remarks. They cleared up a lot of misapprehension regarding the alleged disastrous clb-ebs following on courrol.