DAIRY AMENDMENT BILL.

Waipa Post, Volume XXIV, Issue 1574, 15 November 1924, Page 5

DAIRY AMENDMENT BILL.

Sir,—Quite a number of letters have appeared in the columns, of your paper re the Dairy Amendment Bill since you first introduced the subject in a sub-leader some weeks ago', when you severely criticised the directors of the Kakepuku Cheese Co. for passing a motion in favour of the Bill. Most of the writers seem to take the same view as yourself and "Shareholder," in your issue of Tuesday, 11th inst., when referring to the New Zealand Herald, states that t'he Herald must know that this matter is not exactly clean. Now, Sir, anyone who has filled the position of director of any of the co-operative dairy companies knows that this Bill is not only clean but very necessary for the protection of the directors and loyal shareholder, suppliers of the vaious co-operative companies, more especially of the smaller companies. The N.Z.C.D.C. is now in a strong position financialy and therefore would not be affected to the same extent. "Shareholder" gives the banks the credit of having the Bill brought down. I don't know whether or not this is so, but if so, why? The reason is not far to seek. Everybody concerned knows how the co-operative dairy companies are financed in the beginning, viz., by a joint and several bond given to the bank by the directors. This is one of the privileges of the directors, and most of your correspondents seem to think 'it should be the privilege of the ordinary shareholder supplier to leave the directors to carry the burden, although the said suppliers were probably as eager as anyone to have the company started. No Sir, it is quite just and right that suppliers of co-operative should bear their full burden and should take shares to cover the cost of handling their supply. The' N.Z. D.C. are not concerned with the second clause of the Bill, although they sometimes found it expedient to have a supply agreement signed. There is nothing unfair in compelling a man to supply a company until his liabilities to that company are extinct. When starting a factory the first thing t'he promoters do is to seek the support of those likely to benefit and when sufficient supply is promised to warrant the building of a factory they proceed to form a company. Now, sir, if a portion of the promised supply is withdrawn you can easily see that it means the difference between success and failure. Shareholders should remember that they elect the directors and that being shareholders themselves and in most cases large suppliers, they are not likely to agree to legislation that would be unduly harsh. "Shareholder" in his closing paragraph suggests that 'al primary producers should federate, but if he has been long in this country he should know that this has been tried without much response. The most successful federation we have had so far is the N.Z. C.D.C., where each supplier has a financial stake. Thanking you in anticipation, I am, etc., W. G. MACKY. 10/11/24.