NATIONAL DAIRY ASSOCIATION. ANNUAL CONFERENCE.

Otago Witness, Issue 2675, 21 June 1905, Page 15

NATIONAL DAIRY ASSOCIATION. ANNUAL CONFERENCE.

I The annual conference of the National • Dairy Association of the South Island of ' New Zealand was opened at the Agricul- \ tural Hall on Wednesday morning, when Mr ! ! James Milne (Wyndham), president, pre- .' sided, and the following delegates were i present : — Messrs W. Thomson (Taieri and | Peninsula), W. Nicolson (Hampden), R. | j Rogers (Peninsula), J. Gray (Mataura), R. I Winning (Mataura), Hurdley (Timaru), ! Bowie (Timaru), J. Spratt (Dunedin), H. E. j- Bacon (Gore), G. Beeves (Otamita), S. j Kidd (Mokoreta), A. Milne (Te Tua), 0. R. ' Robertson .(Waimea, Plains), C. Keay (Seaward Downs), H. M'Call (Seaward Downs). J Stevenson (Henley), W. J. Bolt (Taieri and Peninsula), J. Barnett (Christchurch Central Dairy), J. Middleton (Central Dairy), J. G. Harkness (secretary National Dairy Association of the North Island), J. | Champion (Tai Tapu), G. Cassels (Aparima), |W. Rule (Mataura Island), J. Graham i (Mataura Island), A. Mitchell (Edendale), W- J. Winter (Wyndham), J. M'Lauchlan (Wyndham), A. Cunningham (Wyndham), J. Merrifield (Aparima), W. C. Dixon (South Canterbury), D. M'Curdy (Anderson's Bay), James Sawers (Edendale), J. C. Clark (Mataura Island), J. R. Scott (secretary National Dairy Association, South Island), G. Maxwell (Waikouaiti), and A. Prydc (Omimi). THE ANNUAL EEPOET. The adoption of the annual report was moved by the President, who said the season had been a very prosperous one to j dairymen in general, much more so than they anticipated at the early part of the season. There was no doubt that had the weather not been backward at the beginning of the season the season would have been even, more prosperous. So far as the market was concerned, they had been very fortunate indeed, much more so than the most sanguine of them expected. W^" regard to the working of the association, there were a good many recommendations made at last year's meeting, and the committee had been doing its best to carry out the wishes of the conference and for the benefit of the association. The committee tried to do its best as regarded concentration of the produoe to a port of shipment by medium of the railways, but in this it had been unsuccessful. This was a measure which the dairy industry could not get on without; he meant better facilities of concentration. It would enhance the appearance of the products very much if they could be gob to a port quickly and with as little handling as possible. Of course, there ' might be difficulties such as port jealousies, or the Minister of Railways might want a surplus, but these considerations should be waived by any Government, and the Government should do its utmost to assist the dairying industry in conveying the produce as cheaply and in the best condition possible to the markets of the world. — (Applause.) Another matter to which a great j deal of attention had been devoted was the question of shipping freights. The committee had been instructed to do its I utmost to have the ocean freights reduced to, say, id per lb net. In his opinion it had been very successful in that respect. Although it had not had the butter freights reduced to £d, it had got it very nearly that, and it was well to accept small j meroies and be thankful for them. He was quite certain that those present would approve of the committee's action in that matter. Of course, there were a great many other matters in connection with the functions the oommittee had to discharge during the year, but he would not detain them at that juncture, and~&e moved the adoption of the report. Mr Merrifield (Aparima) seconded the motion. Mr W. J. Bolt (Taieri and Peninsula) said there were certain matters in the report that were, perhaps, not as absolutely correct as they might be. He did not wish to say they were nrissiatements, but they did not bear themselves out. He quoted the passages relating to rate of freight, and complained that -from beginning to end the side of tKe shipping companies rather than that of the Dairy Association had been taken in the report. The statement that there were rising prices till about Christmas was not borne out by the table of prices, which showed the highest prices in March. k Mr Scott sa i(J the season had been an abnormal one. The statement was founded on an ordinary season. Mi- Bolt then said butter-fat was quoted [ at Is 6d per lb. He was sure no one in j the room ever got Is 6d per lb for butterj fa 4. Thea # wa§ stated that the NeE £ja-

lsnd fortr-ightly service of L 1 days I'ad given general satisfaction. This vrou'd have boon bettor had it been stated that the service was to 50 days. The fact of the matter was that tho New Zealand Shipping Company was favoured in every possible way. and the others were shoved into the background. Mr Sooti. quoted .a tablo showing that tho Pananui took 4-7 days, Delphic 49, R'mutafca 43, Athenio 43, Tongs riro 4-2, Cormthic H, Turakina 4-5, Gothic 4-3, Ruapehu 41, Mataiua Papanui 48. lonic 44, Rimutaka 42, Athenic 42, and Tongariro 42. Mv Bolt said he fiimply drew attention to the inaccuracy, for on their own showing the service exceeded 42 (.lays. A Delegate asked if this was not a committee report, and if so, why should Mr Bolt, who was a member of the committee, criticise it? Thci Chairman said it was a oommitte report. The committee was thoroughly at one ! with regard to the report, but Mr Bolt had objected to one or two liable points, and wanted liberty to speak on them at the annual meeting. This he (thei president) gave consent to. Mr Scott said tKe figures criticised were r.ot Lis. but Mr J. R. Cuddy's. Mr Hurdley (Timaru) thought it abotit tim<? the South and North Island Association 1 ; combined and took steps to sec if it wao? not iMssible \o establish a board of advice and control the London market. He quoted the control established by the combination cf factories in Victoria, and said he intended to bring up the matter later in the form of a motion. The association had done good work, but he thought it about time — and it would pay the association— that it secured the services of a thoroughly practical man who would devote his whole time to tho ?orvice of the association. He did not reflect on Mr Scott in any way, but he Hi ought the secretary should be paid sufficient to enable him to devote his whole time to the service cf the association. Then the committee shotild meet at lea*t once a month, and the members of the association should be fully informed of the doings of the committee. The present committee had held two meetings " in 12 months, and that was something like a faroe in such a large industry. He complained of the delays in the unloading of the Matatua. " Mr Bolt also referred to the delaj' in the delivery of the Matatua' s cargo. Mr Nicolson (Hampden) said he agreed with Mr Hurdley that the committee should meet more frequently. The dairy industry was a very large one, and the association should have a good, live committee and a seoretary who could devote his whole time to the business. He understood the com- \ mittee had signed a contract for a number i of years regarding ehrppincr, and there was r.ot a dairy farmer in New Zealand who knew \ the conditions of the contract. The dairy j farmers should have been consulted in this matter. This contract- was signed on the ! eve of tho annual meeting. Was there any- j thing pressing? W\hy could it not stand ( over until the meeting? He would have something to say later about that contract, j Mr Thomson thought the report might have been more concise. Th.Pi Chairman said it would be better to take the shipping 1 question by itself. It was then decided to alter the price of Is 6d quoted for butt>er-fat-to 9d to lOd, the secretary explaining that it was a misprint. The motion was then carried. The balance sheet was then adopted, after some questions asked by Mr Bacon had been satisfactorily answered by the secretary. "^ ELECTION OF COMMITTEE. The Chairman said that the two retiring members of committee were Messrs Jam-es Milne (Wyndham) and John Stevenson (Henley), who were both eligible for reelection. He would vacate the chair while this business was being taken. j The Secretary took the chair, and Mr j M'Coll proposed that the retiring members ! be elected. Mr Bolt aske*d whether Mr Stevenson represented any factory, and the Secretary j replied that he represented the Tuturau Factory. Mr Graham said it would be a loss to the association to lose Mr Stevenson's services. | Mr Thomson eaid that Mr Stevenson was an estimable gentleman, but th«* time had oome in the history of the Dairy Association when the producers should take a live interest in the industry. Mr Stevenson had no £ s. d. interest in the concern, and on principle they ought to put a farmer — one of themee'lves — on tho committee. After further discussion it was decided to take nominations, and the following gentlemen were proposed : — Messrs James Milne, John Stevenson, Hugh M'Coll, and William Nicolson. A ballot was then taken, resulting in the election of Messrs Milne and Stevenson, the vobing being as follows : Milne 23, Stevenson 13, Nicolson 4, M'Coll 6. On the motion of Messrs Winter and Bolt, Mr James Milne was unanimously re-elected president. — Mr Milne suitably acknowledged the honour conferred upon him. Mr J. G. Harkness, seoretary of the North Island Association, who was present, was welcomed by the president, and by a unanimous vote associated with the meeting. THE BTTTTEK-BOX QUESTION. It was moved by Mr Bacon—" That the Government be asked to impose an export duty on white pine timber, sufficiently heavy to make its export unprofitable." i Mr Bolt seconded the motion, saying that at the same time he regarded the attempt as hopeless in view of previous efforts in the same direction. The motion, which was supported by Mr Winning and the President, was carried unanimously. Mr Bacon then moved — "That representations be made to the Minister of Railways to have dairy produce carried on the railways at net weight, instead of gross weight as at present." Mr Bacon said now that the shipping companies were carrying dairy produce at net weights it was only just that the railways should do the same. Mr Winter seconded the motion. Mr Hurdley said that this opened up a ! wide question, as farmers would want an allowance on their eornsacks. Mr M'Call supported the motion. The dairymen were building up the country, and the Government should help them to concentrate the shipping of their produce. j They paid carriage on the timber coming I to the factory, and they should not be re- [ quired to pay freight on the timber twice. I Mr Harkness emphasised the desirability ' of the South Island Association coming into \ line with the North Island Association. Mr r Bacon's rftotioa ;wss jcood ; but it did not

go far enough They sho-ild a=k Sir Joseph \Vard to reduce, the fro ghts en da ry produce. Some years ago the Mmisto.- of Railways promised a differential late on dairy pioduc?, bin this had rover l:c »i arranged. At present tl'c flights on gra.n wore 50 pot- conr. lovwr tiia i the freight's o*i dairy prodrce. Mr Bacon, att'ng on Z\lr liariv.uesb's sug, gestion, wiihdrc.v his motion, and m .fs ptead the following resolution was canwl unan'mcusly — "In"the opin'on of this mocimg it is considered achisable tliat the ra:l ago on dairy produce bo adjusted on Hie following lines: That the rate should boon the net weight ; and, further, that t''c dairy porduce should be put on the =am a footing as grain, and that factories remo\cd from the port of shipment shall be put on the same footing as tho c e more advantageously situated." NOTICE OF MOTION. Mr Hurdley gave notice of the following motion:— "Thai; it be a recommendation to the committee to communicate with tin North Island Dairy Association and all factories with a view to establish a board to control the disposal of output of dajry produce from New Zealand on tliC Danish or other principle, and to gather all information on the subject and report to next conference." The meeting then adjourned until 10 o'cloeq next morning. I

f The annual oenferenoe of the National i Dairy Association of the> South Island of j New Zealand was continued in the board ( ' room, Agricultural Hall, on Thursday morning, when the president (Mr Milne) pie- j sided, and there was a full attendance of , delegates. . , , j The conference was occupied for an hour ' and a-half listening to and discucsing Mr | Kinsella's address on the dairying industry, | and ordinary business was resumed at 11.30. I The President explained, with regard to j the price quoted in the annual report for ' butter-fat, that by a clerical error it was quoted at Is 6d instead of Bd. • INSURANCE. Mr Bowie (Timaru) moved—" That further ""endeavours bs made, to get a stibstantial ' reduction made in fire insurance premiums ,on factory buildings and creameries." Ke urged that there was a great deal too | heavy a. rate charged for insurance. He thought a circular should be seni to all ■ the factory managers asking them to abstain from insuring until the companies I brought down the rates, or asking them to combine and insure with one company which would give a reduced rate. I Mr Hurdley (Timaru) seconded the motion, but said he feared the factories oould never be got into line in this respect. He advocated going on the lines of -the Canterbury Co-operative Association, and providing their own insurance. If they put into one sinking fund for three or four years what they (the various factories and creameries) were paying for insurance they would have a fund with which they could insure all their creameries for about 5s per cent., and they were now paying something like 26s 3d for creameries, and yet a stable could be erected on the same section as a creamery and insured for ]ls. Before they could do any good the dairy associations must combine and register themselves and form their own insurance company. Mr Barnett pointed out that some factories were under mortgage, and would not be able to combine. Mr Bolt said the Taieri and- Peninsula Company had insured their own factories and creamf-ries for a number of years, and the fund was steadily accumulating, for there hadn't been a fire yet. Some yeare ago £1000 was put down as sinking fund, and now it had increased to £2000. Only one creamery had been destroyed by fire in the colony in four years. I Several other speakers advocated an in eurance scheme, and then the motion was carried unanimously. I THE FttEIGHT CONTRACT. The nexu question brought before the conference was the question of the freight contract. The President said instructions had been given at last annual meeting to the committee to obtain a reduction in ocean freights. So far as the committee was concerned the contraor had been made and signed, and the committee was, with the exception of one member, unanimous in the matter. That member asked that he should be allowed to b& heard afc the annual meeting, and this permission had been given. He hoped that any remarks Mr Bolt (the dissenting member) desired to make would be as concise as possible. He was quite willing to let Mr Bolt or anyone else express an opinion, but there was no need for discussion of the terms of the oon tract: it was purely a matter of oensrur© to be discus<sed. Mr Bolt pointed out ihat he did not require permission to speak as he had a perfect right to speak. At the request of some of the delegates the Secretary- read portions of the contract (already published in the^e columns). The extract wr-rc as follow, tb-ei contract being with the " direct service " (the New Zealand Shipping Company and the Sl-aw. Savill, and Albion Con'pany) :— " For the ■ j fir»t two years of the contract freight on buttar in boxes it to bo fd lb; butter in kegs, 11-16 d lb; and for the remaining three years butter in boxes, 9-16 d lb, and in kegs |d lb. These rates are for net weight, without primage if the freight is paid in the colony, but if paid in London plus 2 per cent. The rates for cheese extending throughout tho whole term of five years are £d per lb net. The contract cancels the agreement, which hae still two years to run, by which butter went as |d per lb gioss weighs and cheese at 9-16 d per lb gross." A Delegate asked if the shipping company was bound to carry the butter at 15 degrees. Mr Scott said the shipping company would have to face the usual penalty. The association had won cases against shippers on tlial point before. Mr Bolt then said bhe committee was instructed to negotiate for id per lb for butter, and he was very much surprised when the committee met on May 31 to see tho contract, aaid as a member of the committee he said distinctly that the in.*truo t'iona to the committee were to get the freights reduced, and no mention was made of contracts. These negotiations were con- | ducted and the arrangements made with- i out the knowledge or consent of the committee at ail. There were never any negotiations tihat the committee knew anything about. He would like to ask the secretary if any negotiations were opened i With any other shiujpin^ oomnanyf ft

Air Scott: "We Wi a irr.tratt v li other 00-np;in:o;. i '<] wo pnpic"c'~^r' . liOin to g-r't IP" Kites X CUKCt . Mi P.olt : Did you c, \.r t.i. i • '.'. t'c~ any op-p-muim ot km", .nc' Mr Sett : Ii \\:\~ in tie „< ' ' ])iints. Mr 15' ii: V.\:i I reve- ?ix it: ycu did i Tli ilv < : ' ' v. ; vo VjC ' = ihil,ry. _\lr .■con: i <.' ) r.' (':'"• tv.\ my own ic-p >n i' .]. v. 'i'lio President- It '}■, uniiU" to charge the

iocrctary with that, for he did nothing without cprsu'tino me. What was the good of calling? the committee together until we were in a position to place something before ]F?~^ Tr communicated with the North Island Asroriaiiou, and \lireetly we were in a position f.o siy there was something definite the r.,c-ei:ii£ teas called, and a very im-'-porta^ii alteration was made. The terms v'-orn f o; - vt^ven years, and we got them reduced to five years. I will ask Mr Hark-n-ws presently to explain the whole matter. We fid T'.ot ! et everyone- know Gur negotiations ; ii have been a most foolish t'lirw io advertise our business all over fio wo rid when we were seeking a reduction. Mr Bolt paid the contract came- as a com- * plete surprise to him. The shipping company pr3ct:cally had a monopoly, and ui-nopo'-C". were not good for the country. "M.* Harkness. What about the monopoly pf tV Tsi^'.i and Peninsula Company? — (].3'?'ltci.) Vi \liui : That is not a monopoly. It is n co-oycraiive company. Mr Bolt then read extracts frc-m a leader in the Otago Daily TinHv, r-a'.'ai-ciing freights, and '.vent on to fay that the P. and 0. service was a cheaper freig-'it iba'i that provided in the contract, and ihe dairy farmers would have to take : : d less per 1b for fc'ieir butter-fat for ihe next iive yeors. He wanted to know what was the necessity for the hurry in this matter. The dairy farmers did not, know the terms •of tb? tonrract. and the signing of it could I'-ave been left till afwr the annual meeting 1 . "3 he eomir.ittee had done its level best all the time of office, but in this case it had midc a mistake in rushing- into things. \lr IN> 'Call raked a rcoint of order. He as.icd if they had ccme there to listen to a lecture from IMr Bait, who was one of Ike committee, and in due re-?peot to himself and the committee he had no right to bring up t!,ef<? so"es. The President: I think we have had enough of it. and I vri'l ask Mr Harknees, wlio p. - sctieally arranged the contract, to spi- j ak. .\iv Brxt, after being called to order sueral ti.nos, said that the butter exporters' interests had been subordinated to these of t!v> cVe'o facfories. Mr Barnett said he wae surprised that Mr Bolt should have known nothing about the l-egotiations. At the conference in Lytlelton some months age he (the speaker) v.'as .chairman, and there were represenia-t:i-ps of tiie Taieri and Peninsula Company there, and he had told them that the committee had the iraltei- in bond, and there was every prospect of having J,d or near id reduction made in the freights : co that t'.v& niatter was well known by those who wished to know 'it. Mr Harkness secretary of the . North Island Association, said he was pleased to notice the cordial relations existing between the North Island and the South as regarded the dairying industry. He had communicated with Mr Scott as to getting ocean freights reduced. The upshot waa ihat arrangements were come to with the heads of the shipping companies to hold a conference over the question of ocean freiwht=. They had. as the association knew, obtained a reduction of ad per 1b on butter for the next two year-* and 3-16 d per lb for the remaining three years. and the rate of fipijilir, on oVjo-o ha.il been re-

duced also. Under the contract the cheese got rather the be?t of it, but in the past the cheese industry had been rather handicapped. The saving for the j next three years was £1 3s 4d per ton to j the producer of butter. Last year the export of butter was 14,000 tons, and the \ saving on this quantity under the new j freight would be £17,000. The saving on cheese would be about £6000 per annum, i making a total annual saving in freights of I £23,000 to £25,000. Under the freights I which would rule in the "last years of the contract, and allowing for a natural growth of the industry at its present rate, the annual saving would be- £40,000 to £45,000. ! Mr Harkness contended that, considering all the circumstances, the New Zealand con- , tract was altogether better than the Aus- , tralian one, and the business man would j favour it. If he were a buyer he would rather have his butter shipped under the . New Zealand contract. I Mr Mitchell (Edendale) moved— " That this association approves of what the comi mittee has done in arranging and signing . th.i contract." : Mr Winter seconded the motion, which i was carried with acclamation, the only dissentient being Mr Bolt. i The Chairman said he felt it right that . he should express their cordial thanks to j | Mr Harkness for the trouble he had taken j I in this matter, and for the explanation i be had given. He moved accordingly, and the motion was carried by acclamation. Mr Winter said he did not see that the butter had any advantage over cheese. It was right that it should pay a higher freight, because it was of higher value. Mr Haa-kness returned thanks. Mr Bolt said he was glad to see Mr Harkness there. . because he seemed a man of brains. He thanked him for what he had done, but maintained that they had not got enough reduction in freight yet. QUESTION OF REGISTRATION. The Secretary then read a legal opinion on the question of registration of the j association^ as a corporate body. | I At this 'stage the conference adjourned I till 8 p.m. ! In the evening the proceedings of the association were resumed. Mr Milne again | occupied the chair. REGISTRATTOX OF TJLK ASSOCIATION. Mr Winning (Mataura) moved that the association bo registered under the Com- | panics Act on the principle of a company | limited by a guarantee, with a constitution on similar lines to the North Island Association. Mr "Winter (Wyndiham) seconded the motion. Mr J. Barnolt (Christchurch Central Dairy) moved as an amendment that the committee prepare a scheme for registration and submit it by circular to the factories fur their approval. At the request of the meeting Mr J. G. Harkness, secretary of the North Island Association, gave sonvei particulars of the work done by that association for its members He mentioned, amid applau°o, that ■he had often taken the opportunity of assisting the South Island members by looking after the stuff when the boxcts got damaged fnd giving instructions to have them repaired. During the shipping season

the association did a great deal of work for its members. They made out no fewear than 60 sets of bills of lading in one season, and superintended the whole of the shipping of the cheese of the North Island, Auck- , land excepted. They also did a big business , in indenting necessaries, letting the factories have them ~at the price paid, charging only t 1 per cent... They also made contracts for ' butter boxes, and kept the factories advised . of the value of dairy produce. They also sold for them. The association also kept f its members informed a3 to markets. < Some of the factories had an exchange amongst themselves, and fixed prices from j nicnth to month. He did not think that this was a very wise thing. JFor instance. ' they had fixed the price of butter at lid j when there were 40,000 boxes stored in New Zealand. If they had fixed it at 10£ d they could have sold it. They, had, however, passed a resolution at the last meeting to communicate with him in future as to the quantity cf butter in New Zealand. By buying in the manner indicated the small factories reaped the benefit of cheap supplies as well as the largo ones, which was most desirable. He suggested that they should not delay the question of registration, but that they should get their executive to draft a resolution and send it out at ence, and have the matter settled at the next mooting of the executive. j It wa3 finally decided that the amend- . ment and the motion should he made one. | The amended motion was then put, and j carried. j Mr Barnett (Christchurch) moved that j the association strongly urges the Government to start and equip at once an experi- | mental station for the Dairy Department, as it was urgently required, and that all factories Iw circularised and urged to ask their members to help in this matter. Mr Sprafcfc (Dunodin) seconded the motion, which was carried. | Mr Hurdley (Timaru) moved — " That it be a recommendation to the committee to • communicate with the North Island Dairy | Association and all factories, with a view to establishing a boar^t to control the dis- j posal of the exporo of dairy produce from ' New Zealand on the Danish or other principle, and to gather all information on the , subject " Speaking to the motion, Mr , Hurdley <*aid the present system of sending ' Pioduco Home left much to be desired. He . instanced the lafe Matatua shipment, when ' the different agents, rushed butter on to a falling market so as to get rid of it. The \ result was ttfat while the firsl lot brought 112s, the la^t lot brought only 102s. If the produce had been in the nands of a board ifc could have conti-olled the market and probably have obtained 112s for the Jot. The same j principle had been adopted in the meat j trade, and he trusted they would do the srme in their line. Mr Merri field (Aparima) seconded the motion. Mr M'Call (Seiward Downs), in support- j ing the motion, said before the motion could be given proper effect to the two associa- J tions would have to combine. He pre- • dieted this would happen in the course of a few years ' The motion was carried. ' Mr Bowie (Timaru) moved that in the inspection of milk and milking yards /iupply-

ing dairy factories should at once be put under control of the Dairy Department, and qualified men appointed to instruct suppliers to factories and inspect milk and milking yards and sheds Mr Hurdlay seconded the motion, which was carried. Before the proceedings closed, Mr Barnett expressed his pleasure at the manner they as visitors had been treated. He also moved a hearty vote of thanks to the chairman for the good work he had done. Mr Hurdley seconded the motion, which was carried with applause. The Chairman, in acknowledging the vote of thanks. said they were all specially indebted to Mr Harkness for associating himself with them, and for giving them the advice and assistance he had given. He moved that he dlso be- awarded a vote of thanks. This vote was also carried unanimously. A vote of thanks was also accorded to the press and to the secretary, (Mr J. R. Scott).