N.Z. FARMERS’ UNION.

Otago Witness, Issue 3672, 29 July 1924, Page 15

N.Z. FARMERS’ UNION.

ANXUAL COXF FRENC-E. ADDRESS BY LORD JELLICOE. WELLINGTON, July 22. The Governor-General, at the opening ,of the annual conference of the Dominion Farmers’ Union to-day, paid a tribute to the memory of the late Sir Walter Buchanan, who, he said, was one cf whom the dominion should be proud, as well it might be, for he had had in him all those qualities so typical of the early pioneers who had made New Zealand what it was to-day. His Excellency said that one of the things which had struck him most during his time :n New Zealand had been the progress of the dominion. It was quite natural that anyone who loved New Zealand as he did should feel intense pleasure to think that the dominion was going ahead. He was very much struck bv the progress made during the 10 years preceding 1923. The figures showed that it had been very remarkable progress indeed. Trade had increased by 83 per cent., and last year was a record in that respect. Exports had increased by 98 per cent., frozen meat in volume by 37 per cent., wool by 71 per cent., butter in volume by 196 per cent., and cheese by 101 per cent., while the population had increased in proportion 'The swamp area reclaimed had increased during those 10 years by 474 per cent. His Excellency alluded to the drift of population to the towns, and remarked that there could be no question that the country was much the healthier and better place in which to live and bring up a family. In regard to inducing immigrants, of the right stamp to come to New Zealand, he gave them his assurance that, on his return to England, ho would do all he could for the dominion. Reference was made by his Excellency to the opening of Flock House for the sons of members of the navy and mercantile marine who lost their lives during the war, and he spoke in terms of the highest praise of the arrangements made at Flock House, and promised that he would give an assurance to the mothers and guardians of youths entitled to benfits of the institution that thev would be well cared for. When he left New' Zealand he would leave behind nim a great part of his heart, as would his family. He concluded by wishing tnose present good-bye and God-speed. The President (Mr W. J. Poison), in his annual address, stated, inter alia: “This year has seen an amount of interest and energy in the affairs of the organisation that has cheered up even the pessimists. There is still a lot to do, of course. There is still the farmer, who does not know' w r hat ails him, to cure, and there is still the farmer, who does not believe in organisation, to convince. But in an age when every section of the community is organising, the farmer who stays out- in the cold and refuses to heln himself i% either very foolish cr very selfish, and probably both. Considering the aloofness of so many farmers, the wonder is that this union has achieved so much in the past. But it is nothing to what it will achieve when producers, as a bod}', learn that they must look after their interests themselves, and unite as one solid body, instead of dissipating their energies as they do now. We have been at work upon the problems incidental to our development and growth. Each succeeding year brings its own propositions for investigation because, as times change, so does legislation require to change also, to fit the new' condition. The world's competition, against which we can have no protection, forces us to adopt new methods in. keeping with the methods of our competitors. The Farmers’ Union’s usefulness continually grows as it suggests hr initiates the legislation needed to keep us in line with those competitors, or points out the dangers in the way. “The arresting figures lay bare the w'hole position and show those who care to read that we are steadily losing ground. Compare such a situation with Denmark’s, a country w'ith every climatic and physical disability, and with little or no wealth, which, in less time than it has taken the American producer to drop from owner of 80 per cent, to owner of 5 per cent, of the community’s wealth, has grown rich, until to day she stands at the head of the list, the richest country per head of population in the world. If producers would recollect chat Denmark has applied the co-operative programme we seek to apply here, they would better understand the necessity for united action and more deeply appreciate the work of our organisation. “I wish to offer my congratulations to the Prime Minister upon the success of his last mission to Great Britain. Mr Massey was the doyen of the Prime Ministers assembled at the Imperial Conference in London, and there' can be no manner of doubt that the soundness of his view's and the breadth of his experience were of great help to his fellow delegates. He represented -.ew Zealand with honour, and lie lost no opportunity of preaching the doctrine of Empire to our fellow citizens at Home. If we fail always to see eye to eye with Mr Massey on matters of domestic poliev we realise one and all the soundness of his Imperial vision. It may not be out of place to add here that, while we may disagree with his attitude towards those political questions which affect ourselves, we have a keen regard for our Prime Minister chiefly because we realise that he has striven to the utmost of his ability and according to his lights for the progress and prosperity of New Zealand. But Mr Massey has been many years in office. In the nature of things it is unlikely that he will long remain at the head of the Government. He has earned the right to retire with honour whenever he thinks fit. It is W'ith the effects of that retirement, whenever it may take place, that wo are immediately concerned. We have seen the rise and wane of many parties, none of them identified with the producers’ interest, and we may still stand h" or we may imitate our fellow producers elsewhere and declare that the time has come when we should have a part}; of our own. I believe I am right in saying that only the influence of Mr Massey has prevented such a step being taken before this. With the retirement of Mr Massey a new' situation would arise which might require a revision of the policy of laissez faire with which in the past we have been content. I do not, of course, know whethe,r there is any necessity for immediate concern. Mr Massey’s health and vigour are, fortunately, unimpaired and he may decide that ho can still continue to serve the public. “Much has been done during the year to popularise herd testing among dairymen and to educate sheep farmers to the necessity for improving their stock. The meat

Board has emphasised the necessity for increased stringency in the grading of our meat, particularly our lamb, for export, and the Agricultural Department has bv no means lost sight of the necessity for tightening- up the grading of both butter and cheese. All tins is admirable and in the right-directio-n, but the subject is of vital importance and much more remains to re done. While we may face the future we must never forget that we have competitors nearer the market who can produce at a lower cost and that those competitors are waking up to the importance of the trade and' making plans accordingly. A serious decline in the vrV.ies cf our products will have a catastrophic effect upon this dominion if we do not entrench ourselves while we have the opportunity behind the ramparts of scientific, economical, aird high class production. We must not be misled by the apparent balance of exports over imports, we must remember that this is sometimes -more than counterbalanced by tb.e country's interest bill and that a moderate balance of trade in -our favour does not always represent the true position. In this regard I was struck with the sentiment expressed by Mr T. S. Weston, the able president of the Employers.’ Association of New Zealand, in bis last annual address. ‘There is,’ he said, ‘no good disguising the fact that this country lias yet a long path to travel before all post-war problems of reconstruction and readjustthont are left behind. Although the Government has reduced its expenses of administration. there is the ever-present tendency towards renewed extravagance immediately the pressure of hard times lessens in the slightest degree. There is also a steady and astonishing growth in local bodies' borrowing. Government loans, although admittedly for works more or less reproductive, continue to be heavy, and taxation has not yet a reserve available to increase the national revenue.’ “If co-operation has received a check in New Zealand during the past year or two — which I am inclined to doubt —the matter should bo one for regret not merely by the producing community, but by the community as a whole. We are consumers of goods whether we live in the country or the towns. Properly applied, co-operation should reduce costs to all of us and if there has been any misapplication the fault lies not with the principles of co-operation, but with the application of those principles in New Zealand. Tire cost of distribution is too high when compared with manufacturing cost. In the United States of America, where distribution co-sts are as high as they are in New Zealand, this question has attracted the attention -of the Government. A Joint Commission of Agricultural Inquiry set up by both houses of government has discovered, in the course of a prolonged investigation, that ‘ Sve have now reached a point where it costs more to distribute and serve than it costs to produce.” After giving the facts in some striking and astonishing figures the Commission commends the Farmers’ Cooperative movement which is sweeping over the United States as the “most promising experiment” looking towards the more efficient distribution of essential commodities. “The attitude of the authorities over the immigration question • still leaves many of us cold. Other bodies have joined in the protest raised by this organisation a year ago against the slip-shod immigration policy of this dominion. The nomination system has come in for fairly universal condemnation. Instances of its unsuitability, and of the unfortunate results of its operation, have come before us on more tliat one occasion. I am glad to see that we have successfully focussed attention on the group system, and that conferences of various bodies have endorsed that system, while condemning the present policy of the Government. During the year we had a visit from an Imperial Immigration Commission, instructed by the Imperial authorities to survey the dominions and report upon their suitability for immigration. The Commission was more impressed with the wide empty spaces of Australia, than with New Zealand, the members going so far as to say that we had no land in New Zealand. No doubt the Commission’s misconception was largely due to the fact that it was raced through this country at express speed and that it had no opportunity of examining our vacant lands or of assassing their value for settlement. The Commission spoke in the most glowing terms of this ‘glorious country,’ its -magnificent climate and its fertile soil, but it seemed to doubt whether possessing all those advantages it could sustain any great increase in population. It seemed to me that the dominating personality on the Commission was a Labour member of Parliament who seized upon every circumstance, however trivial, to oppose immigration, or at all events immigration to New Zealand. I do not know what the policy of the British Labour Party upon this important question may be, but I imagine that it realises the advantages of a self contained and self sustaining Empire and that only colonial development with it.s consequent migration of population can bring that about. During the recess we have published a great deal of informative literature about this question and particularly about the various Australian schemes in order to stimulate interest amongst our own members. The question is of the greatest national importance. The president of the Associated Chambers of Commerce, Mr W. H. Hudson, at the annual conference, pointed out that in New Zealand less than one-seventh of tf'o population were engaged in our primary industries and producing 95 per cent, of our wealth. Our commercial population. he stated, in proportion to that engaged in production was, in comparison with that of Britain upon the same basis, two and a-half times as numerous (i.e.. 50 per cent., as against 20 per cent.), while our ‘professional’ class wass 75 per cent, larger than theirs (i.e., 4.52 as against 2.5). “In addition to our partiallv settled 1 a”d —land held in large arcs which is capable of sustaining 10 times the population, the Lands Department has nnhlished a memorandum giving the following figures in regard to Crown lands available for settlement. Acres. Pumice lands in North Island ... 6.000.000 Irrigable lands Central Otago ... 571.800 Gum-bearing lands 800,900 Total 7.171,800 “This is one of the questions which no patriotic citizen can allow to be longer neglected. We must push on with immigration. It is not possible in this address to review any particular scheme, but an opportunity will be given to members during this conference to discuss the whole question.

“For reasons which I have never been able to agree with, the Farmers’ Union has since, its inception, made Free Trade it 3 slogan. It should not be difficult, therefore, for its members to accept with acquiescence the verdict of the electors of Britain, including the agricultural districts of England in connection with the great issues of Free Trade and protection recently laid before them. I am bound to -ay that in spite of the Free Trade plank j on our platform, very many indeed I bej iieve, a vast majority of the producers cf this _ country regret the attitude of the J British public. Without subscribing to all that was said on the Conservative side, it looks to the New Zealander scanning the situation from a distance as if the Britisher has discarded a shilling's worth of extra wages in order to have a pennyworth of bread. But from the viewpoint of the Empire surely a tariff that would help to make us self sustaining without inflicting hardship upon ihe Mother Country is not an impossible thing. There is no desire in the dominions to impose greater burdens on the British taxpayer, the desire is to lighten those burdens. That can well be done by expanding tho Empire, settling it s outposts, populating the overseas: only a fiscal system that will give them some preference over the foreigner will adequately do that. Surely, if we further curtail the foreigners’ trade in favour of the Homeland, we are creating employment, adding to the wealth of the community. and assisting in relief from high taxation. We realise that we must make sacrifices in return for Great Britain’s protection apart from the ties of blood, but we do not want to make unnecessary sacrifices. J.he decision of the British electors is an avowal that they do not want preference from us, at all events that preference from U 3 is not worth troubling themselves about. We may therefore with a clear conscience seek to increase our foreign markets by means of tariff bargains with other countries if we wish. Markets are vital, of course, and with this mandate from tile Mother Country to guide us we .should have little hesitation in seeking those markets, and if we examine the position it is easy to convince ourselves that we are right in taking such a course. Markets mean population. Population means strength, and so we may increase the power of the Empire and achieve- outends by the very plan we have hitherto refused to consider. I imagine that Ihe course the Mother Country is adopting will tend to increase immigration of which also we may take advantage by fostering our markets abroad. “Much-needed relief from war taxation was, I am glad to say, provided by the Government during last session of Parliament. The double system of taxation—taxation on our tools of production and taxation on the income wo earned from it. has been done away with. For this great credit is due to tho Prime Minister. It would have been easy for him to give way to popular clamour and allow the producers to carry the burden imposed on them by the war. But the burden of taxation borne by the New Zealander is still far too heavy. If we compare the 1922 taxation with the taxation for that year of France and the United States, as typical States, we are able to see at a glance the comparative load we carry:—Direct. Indirect. Total. France ... £3 6 8 £2 10 0 £ 5 16 8 America ... 2 14 . 0 2 4 0 4 18 0 New Zealand 9 1 11 4 11 2 13 13 1 “Those are surely sufficiently arresting figures. It must be pointed out in fairness to the Government that last year’s figures show a reduction, but no doubt tho figures for France and the United States, which are not available, show a reduction also. If we are to have a further reduction in taxation in the near future, we must insist upon the maintenance of economy in our public service. Just now we have another Taxation Commission's report in process of digestion. I imagine that report will not be palatable to producers. While we admit the fairness of income tax properly applied, we are certainly not going to stand double taxation land and income tax. The Government which seeks to reimpose it will sign its own death warrant as far as the producers are concerned. “There has been some controversy during the past few months about the action of the so-called Wool Committee set up some years ago by the Producers’ Committee and given certain powers under Board of Trade Act, in regard to the price and sale of our wool. Most of us are in favour of co-operative control of our industries, and, personally, I believe it generally in the best intersts of the growers, and I also believe that a measure of control would be beneficial to the wool industry. Brokers have informed me that there is always a slackening off in the bidding ivnen orders are filled, and the larger the offering the sooner the slackening off takes place, but it is one thing to control an industry when you have an authorised manadale from the producers already upon the Statute Book. The wool-growers, unlike other bodies, have expressed themselves through their organisation as definitely opposed to control, and are possibly still of the same mind, although I ! understand the organisation in question subsequently invited the committee to continue. If such is the case, wool-growers have a right to object to control until the whole of the wool-growers (a very large proportion of whom are members of the Farmers’ Union) have been consulted in the way other bodies of producers have been consulted. So, in any case, it is the dutv of the Government to put this matter on a more satisfactory basis. Let us hone that a satisfactory scheme will be forthcoming which will provide the necessary control —a scheme that will not be too ambitious and that will be unobjectionable to w 001 -growers themselves. “The passage of the dairy control legislation and the election of a sympathetic board is another milestone on the road to co-operative marketing of our produce. I am more than ever satisfied that this great movement is absolutely sound and that it will prove a weapon of defence against the attacks of our trade competitors in future times. Proofs of the soundness of dairy control are accumulating. We have practical if not absolute control in Denmark, and ‘control’ is the keynote of i.ie new American marketing movement. Mr MacFarlane, in his valuable criticism of the situation at Home, informed us that Siberia was actually considering similar control methods to ours and that other dominions and the Mother Country herself would be compelled to follow suit. The fact is that production is increasing. Siberia is expected to beat its pre-war output in a very few years, and the recovery of the Russian trade is extraordinarily rapid. Only by control methods

can we insist on the high quality that will save us in the future. It is not so much a question of getting the highest price as of the turning out the highest quality in the most economical manner. I imagine that the Dairy Boaid will work along such lines as these. If it does so, and concentrates on removing difficulties, and increasing the popularity of our butter, it will uo a great national service to the dominion. Possibly, it may be able later on to encourage production at this end as well as by devoting, if such be possible, some ol irs funds to this purpose. “The Meat Board began its career with a very definite pronouncement making it very clear that it had no intention of permitting ‘oversea interests’ to purchase, build, or acquire interests that would give them a further measure of control over freezing works in New Zealand. This decision was in line with a pronouncement made some years previously by a Dominion Conference of the Farmers’ Union, when the following resolution was unanimously carried:— “That in the opinion of this conference the Government should lake immediate and effective steps to absolutely stop the trust and big combines from directly or indirectly buying or controlling any freezing works in New Zealand or operating in any way with our produce, and in particular to stop Armour and Co.’s and Vostey Bros., and the latter’s various organisations from operating in New Zealand in any manner howsoever in connection with our freezing industry.” “Singularly enough the ink with which the board’s resolution was written was hardly dry before a farmers’ freezing works in the North Island became so financially involved that it had to be sold by its creditor, the National Bank, in order to get back a proportion of the money lent; by that institution to the company, the only possible purchasers were Vestey and Co. It was difficult for the Government to say Vo the bank that it should not have the right to recover its debt and the circumstances that Vestcy’s were prepared to shut up another works in the district decided the question. Vestey and Co. bought the works, which shows how unwise it is to lay down hard and fast rules on matters of this kind. The Meat Board has had an early lesson and has now adopted Che method made famous by Chandler Harris, in Uncle Renuis, and of which Brer Rabbit was the. chief exponent. Now, we have a new cry raised, that there must be fewer freezing works—the fewer the better apparently. “Centralisation with its consequent reduction in overhead charges is, of course, an excellent thing and in tne case of many of our industries a necessary thing, but centralisation can become a fetish. We have heard a good deal about the necessity for centralisation during the past 12 months, and to a certain extent, I am in agreement with those who claim that we have too many freezing works in New Zealand, although I have never heard it asserted that we have too many butter and cheese factories in tlie dominion, and they are more numerous and the industry consequently more decentralised than the freezing industry. But I emphatically disagree with the sentiments expressed at its last annual meeting by the chairman of one important North Island freezing company, who assorted, with almost brutal candour, his belief that it was desirable that some of the companies operating in New Zealand should be closed down by the financial institutions behind them in order to provide easier business facilities for those that remain. It has unfortunately been the farmers freezing companies—enterprises began under stress of circumstances, to obtain relief from conditions that were more often rendered intolerable by the proprietary concerns in the field —which have been hardly hit by the slump in the freezing industry, and for any farmer to suggest the closing down under pressure of those enterprises with the consequent loss of all tho producers put into them, 13, in my opinion, to propose the heartless desertion of his class. Freezing works—particularly those inland —frequently save in the added expedition with which they enable the stock to be killed, a not inconsiderable proportion of the added charges, and they possess the great advantages of enabling the farmer to see his stock killed and keep a close watch on his business. We hear a great deal about the success of centralisation in South American works, but any one who studies a railway map of he Argenine Renublic will quickly realise the enormous advantages the producers in that country possess in the ease and despatch with which their stock are handled. Unfortunately neither in the despatch, nor the handling of our stock, does our railway system give us complete satisfaction, the reason being partly due to insufficiency of freight. Some of us would prefer to entrust the frozen carcase to their care rather than the live animal The point of course is that the number of freezing works we are entitled to is the number which will serve us with most convenience and despatch and with the necessary regard for our interests and no less. I have carefully refrained in these remarks from discussing the meat merger proposals which require further explanation before they can be recommended to producers.” July 23. The conference was cont.aued to-day. It was resolved that, as the policy of the union is the establishment of co-operation marketing of the primary produce of the dominion, and also a co-operative shipping line, this conference instructs the dominion executive to confer with the Sheepowners’ Federation with a view to obtaining control over the wool trade, a 3 well as securing all possible trade for our proposed shipping iine. It was further resolved: “ That all municipal trading concerns bo liable to taxation. " That the companies 'income tax he abolished. and replaced by an individual graduated income tax. The Commissioner of Taxes attended by request, and made some comment on the following remit:—"That the system of collecting overdue land tax be investigated, it having come under notice that a demand had been made, after five years had elapsed, the property meantime having changed hands three times.” Mr Clark explained that the provision was an old one in the Land Tax Act. It meant that the land tax followed the land. The reason why there had been some hard cases of late was that a lot of people fell into arrears during the war and just after, and the department endeavoured to give them a chance. Finally, the department had to come on the mortgagee, it being utterly hopeless to collect the tax from the people who had defaulted. The provision was characteristic of all land tax laws, and ns far as lie could see would Lava to bs re* tained.

The remit was withdrawn. Various remits on the question of the land and income taxes borne by farmers were diseussed, and the following resolution was adopted: —“ The conference is of opinion that the land tax discourages production, and should be replaced by a farmers’ income tax.” The conference also resolved —“ Whatever the attitude of individual members towards either the land or income tax, this conference agrees that under no circumstances can it support dual taxation in the shape of both land and income tax, and urges the executive to use every means in its power to prevent such a catastrophe.” Remits were adopted urging a review of the stamp duty on mortgages to give relief to mortgagors, especially in view of the early lifting of the moratorium; and a reduction of the stamp duty on conveyances. The following remits were passed: ” That the Government be strongly urged to undertake, without any unnecessary delay, an adequate scheme of immigration and land settlement so as to take full advantage of the Imperial Empire Settlement Act of 1922 to develop the waste lands of the dominion.” “ That in all schemes of land settlement, it be the policy of the Government to provide adequate transport facilities before placing settlers on the land, and where blocks of land are being held for the encouragement of immigration and close settlement they should be exempt from land tax during such limited time as an approved annual amount of capita! is being expended for the purposes of development. " That in the opinion of this meeting of farmers it is unwise and impolitic for the Farmers’ Union to engage in the strife of party politics, and that only general politics as they affect the life and the well-being of the primary producers of the whole community should be touched on by the Farmers' Union.” That all municipal trading concerns be liable to taxation.”—Otago. That the graduated companies income tax be abolished and replaced by an individual income tax.” “ That this conference is of the opinion that the land tax discourages production and should be replaced by a farmers’ ini come tax.” " That the stamp duty on mortgages be reviewed with the object of giving relief to mortgagors, especially in view of the early lifting of the moratorium.” “ That the Government be requested to reduce the stamp dirty on conveyances and mortgages.” " That the Government ‘be urged to adopt a more progressive policy of financial advances on farm mortgages than is adopted by the State Advances to Settlers Office.” “ That the railway tariff be not used for protective purposes.” “ That this conference considers that where estates were purchased by the Government for soldier settlements the Crown should refund to local bodies the loss of rates sustained by the inability of the settlers to meet their liabilities." Remits were adopted urging the Government to undertake without delay an adequate scheme of immigration and land settlement so as to take full advantage of the Empire Settlement Act, an dto develop the waste lands of the dominion; also that in all schemes of land settlement it be the policy of the Government to provide adequate transport facilities before placing settlers on the land. . . July 26. The dominion conference of the Farmers’ Union to-day heard an address on the activities of the dairy divison of the De partment of Agriculture, delivered by Mj VV Singleton, director of the division. It was agreed that the Government .be urged to establish a dairy school and laboratory, with a view to the carrying on of research work, and the tuition ,ot dairy factory managers and assistants in Connection therewith. It was also resolved that the Govern ment oe urged to have brought into force the regulations which have been drafted and approved under the Dairy Industry Amendment Act, with a view to arriving at a uniform method of reading the Babcock test. It was decided that the Government bo requested to set aside a sum, with a view to experimenting on the best and most effective means of eradicating gorse, an offer to be widely advertised of a substantial reward for the discovery of some specific which can be applied at a reasonable cost, whereby the spread of these and other noxious weeds may be combated and growth already existing destroyed It was resolved that the Government be recommended to pass the Bill proposed by the Agricultural Department provided that provision is inserted to ensure that the purchaser is supplied on the analysis certificate with statement of the origin of f he materials as set out in section 3, sub-section 3, paragraph C, of the proposed Bill. A cow«i-,ieiee was appointed to give evidence m-'vi e a committee of the House,. A motion was carried urging the Governr *"° * n^ r °duce legislation giving power for the setting up of boards for the eradication and prevention of the spread of blackberry. It was resoived that the Government be asked r -o pass a Bill protecting the farmers against impure arfd sterile seeds: that the Agricultural Implement and Sales Act should be repealed. Professor Peran (Victoria College; outlined the course of agricultural education proposed to bo given at Victoria College; •nd Dr Reakes (of the Department ot Agriculture! and Mr Cockayne (Director of the Fields Division) outlined the assistance •nd information being given by the department to farmers in connection with various agricultural operations. Remits were carried recommending that the basis of the election of members to the University Senate and the 'UniversityCollege Councils be broadened so as to make provision for the representation of agriculture. That efforts be made to have the traininu work being carried on at Ruakura and other experimental farms extended. That the Education Department be asked to at once systematise agricultural instruction from primary schools right to the university, and that the matricultaion examination be amended accordingly. Dr Heakes said in regard to cattle tick and foot-and-mouth disease that the, department had under consideration the taking of further precautionary measures. The following officers were elected: President. Mr Poison; vice-presidents Messrs Mumey (Otago), Duxfield (Auckland!. Matheson (Ekttahuna;. North Island Advisory Committee.— Messrs Ross (Auckland). Marshall (Marton), Livingston (Dannovirke). South Island Advisory Committee.— Messrs Cameron (North Otago), Dickie (Southland), Mulholland (Canterbury).

Mr Chadwick (Dannevirke) was elected treasurer.