CONTROL DISPUTE

Pahiatua Herald, Volume XXXV, Issue 10570, 15 June 1927, Page 5

CONTROL DISPUTE

MESSRS. PATERSON AND GROUNDS

THE LATEST DEVELOPMENT. Electric Telegraph—Press Association WELLINGTON, Last Night. Messrs Alorison, Smith and Alorison, solicitors for Air Stronach Paterson, late Government representative on the London agency of the New Zealand Dairy Produce Control Board to-day forwarded the following letter to Air YVilliam Grounds, chairman of the New Zealand Produce Export Control Board: Dear Sir, — We write to you as solicitors for and under instructions from Mr Stronach Paterson, until lately New Zealand Government agency of your Board. Mr Paterson has had brought under his notice various New Zealand newspapers including the New Zealand Dairy Produce Exporter of Alarch 26 last, containing what purports to be your version of the history of Air Paterson’s actions in his capacity as such Government representative.

A’on were, of course, aware at the time when you made your attack upon Mr Paterson that even if he desired to reply it was impossible for him to do so for a period of at least several weeks. To reply in. detail now after a lapse of time is obviously of very little use- particularly because such reply might well give rise to further controversy; and again Air Paterson’s reply to you could not by reason of his absence in England be published until the lapse of several weeks after publication of your own statement. Mr Paterson therefore does not consider it necessary or desirable that lie should at this stage enter into discussion of the merits or demerits of price-fixation of dairy produce in London. That issue he points out to us is already settled—unfortunately at the expense of New Zealand in general and the New Zealand dairy farmers in particular. Nor does Air Paterson regard it as his concern at the moment to. answer what he regards as specious propaganda by yourself and some of your supporters whose policy has brought the actual results achieved by price-fixation to the dairy industry of New Zealand and the interests of the Dominion as a whole. But it is his concern and it is for that purpose that this letter is written to repudiate what he regards as your gross misrepresentation of his actions as New Zealand Government representative on the London agency of the Control Board, and in that connection Mr Paterson would welcome an opportunity before a Royal Commission or other appropriate tribunal appointed to inquire into the reasons for the failure of the Board’s policy of absolute contra! and price-fixation, and of having his own actions fully investigated. Air Paterson also desires us to remind you that while you were in London you had several conversations with him under the clear and definite pledge of strict confidence on both sides. He desires us to point out that for the purposes of your attack upon him you have not hesitated _ to refer freely to those conversations.

In bis .'iew your attack contains some complete misstatements of fact. Tt distorts and misrepresents both his confidential conversations with you and the general aims and effect of his work. arid it insinuates responsibility on bis part for many happenings with which he was in no way concerned.

It would be useless to attempt to carry matters further at this stage because as we have already said Air Paterson iis ’Still in London and unable by reason of his absence to continue the controversy with you now. But he expects to be back in New Zealand not later than October and if you then desire any public investigation such as that for example which would be afforded by a Royal Commission into the affairs of the Control Board and the true history of the actions of its chairman and certain of its members and of himself as Government representative on the London agency, and into the real causes of what he alleges are the disastrous results of the Board’s policy we assure you that Mr Paterson will be delighted to join you in endeavouring to have such investigation brought about.

lit view of the fact that your attacks on Air Paterson have been of the most public character we are instructed to band copies of this letter to newspaper press and we are accordingly adopting that course. Interviewed to-night on the matter, the chairman of the Dairy Control Board (Mr AY. Grounds) made the following comment:

“There has been no misrepresentation and no misstatement of faci, and if a commission of inquiry could remove the harm that has been done I would gladly welcome it. But the damage can never he repaired. “I shall be prepared for the fullest investigation at any time.”