BUTTER CRISIS

Poverty Bay Herald, Volume LIII, Issue 16297, 23 March 1927, Page 10

BUTTER CRISIS

j FAIR DEAL PROMISED ! BY ENGLISH TRADERS I (Eke. T«I. Copyright—United Press Aesn. 1 (Australian and N.2. Cable Association LONDON, March 21. The leading butter linns oppose speculation in any form,, and declare their intention is to give New ilealand butter a fair deal, because they desire to see a restoration of good' will. Cheese is not expected to rise for a while, owing to the existence of largo stofcks, but the position will caii.se no anxiety until June, when overseas supplies arrive. Stocks should he cleared before, then. CONFERENCE SHOULD BE HELD N.Z. CO-OPERATIVE DAIRY CO.'a ATTITUDE. (Per Press Association.) HAMILTON, last night. Tho attitude of the New Zealand Co-operative Dairy Co. in the dairy crisis, was defined to day by Mr. Dynes Fulton, chairman of directors. Mr. Fulton said that the attitude which the company took was that the case was essentially one in which' a meeting' of dairy companies should be called by the Control Board along the lines of the meeting held under the auspices of the board in Wellington in April last. The company had embodied its views in a communication sent to the chairmen of the Control Board as follows: "Our company, representing approximately 8000 producers (30,000 tons of produce), desire to enter an emphatic protest against the decision' of the board in • abandoning pricefixing. We consider that the statute, while fully empowering the board to take control of. and sell produce, could not possibly be taken to have contemplated the handing over of the produce to third parties, wiihout any reserve being fixed by the board. This, in our opinion, constitutes a breach of faith with the producers; The basic principle on which the Control Board was constituted was the regulation of marketing, and the 'decision of the board regarding price fixing is an absolute negation of this principle. Jat furl her pursuance of the protest, wo desire to say that while we should have been prepared to place confidence in the board to itself market .our goods with adequate safeguards, we emphatically state that the present action on the part of the board has the effect of handing oyer flic sale of our produce from the board to third partics. Suck a radical departure from the principle of market regulation, on which tlie Control Board was founded.

could only be justified on an unequivocal mandate from the producers, according fo tlieir interest in the issue. We ask that the Board take immediate steps to convene a meeting on the lines of that which was called by the board in April last, in order that the board may place the position fully before the producers' representatives, and in order also that the producers may have an opportunity of expressing an-opin-ion on the lines we have already indicated. In particular, we desire to urge upon the board that the responsibility of securing- sueh an expression of opinion must rest villi the board, and cannot be left to third parties." Pursuing the matter, Mr. Fulton sitid he agreed with (lie Prime Minister that it "was one for the producers, and ivus due to the producers. 1 He thought that the Control Board should convene such a. meeting as suggested in order that the board might state its case fully to them. Meetings convened by partisan interests must he entirely unsatisfactory not only because they must inevitably be colored by the interests calling them, but also because the board, which is an essential party to the discussion, would have no voice in the meeting. The position that had arisen was, said Mr. Fulton, undoubtedly a critical one, calling for calmness and clear thinking. It should lie the aim .of all producers to help the board in the present difficult position. This could best be obtained by free, frank discussion at a meeting convened for the purpose by the board, along the lines suggested by ■the company. APPEAL COURT CASE. (Vor Pross Association.) WELLINGTON, last night. The Appeal Court had before, it to day the ease of the Southland Dairy Co. Ltd., and .T. B. McEwan and Co.Ltd., v. the N.Z. Dairy Control Board, which was removed from the Supreme Conn: for argument. This is a case' in Which McEwan and Co. entered into an agreement with the Southland Dairy Co. to have the handling of its butter on certain conditions accepted by the Dairy Board. Arrangements were then made with three other companies to act as agents for tin; dairy company, and the. latter claims that tho butler manufactured under these agreements is exempt, from control. The case, which is regarded of consul-, erable importance, did not' get beyond the opening stages.