DAIRY PRODUCE BOARD

Waipa Post, Volume 32, Issue 1929, 2 November 1926, Page 5

DAIRY PRODUCE BOARD

\_\ A MEMBER'S REVELATIONS. ■ THE TRADE ANTAGONISED. (By Telegraph. Press Association.) ■ ■"■' > INVERCARGILL, Monday. A member of the Dairy Produce Board, Mr T. M. Timpany, of Southland, one of the producers' representativeis on the board ,in an interview regardng the! recent decision concernthe board's price policy (discloses the text of telegrams from London bearing on the matter. ATTITUDE OF MR lORNS. Mr lorns cabled 1 on October 4 as follows: "Fixing the minimum prioei and retaining the present management has already resulted in some boycotting of New Zealand (produce. If persisted in wild, in my opinion, result in (disaster. If this is the board's policy I requebt the board's cabled consent to my returning to .New Zealand immediately. If board adopts- Australian price-control system, accepts Mr Wright's resignation, and replaces him wi'tjh better man who easily obtainable am confident position can sitilll be retrieved and control policy successfully appEied for benefit produers, and lam wiiling to remain here and work to 'this end. Please reply promptly.—W. A. lorns." RE-ESTABLISHING CONFIDENCE. The'hext day Mr Grounds expressed his opinion in the following message: "London, October 5, 1926:—Most practical course present difficulty recall Mr lorns, make Mr W. Claude Motion' chairman London agency. Leave London agency reconstruction •until Mr W. D. Hunt returns and Mr Grainger :and myself report. Mr lorns indicated opinion by cable." "; Then following on this message from Mr Grounds came the following from Mr Patersoh, who' is the Governmenk'Tepresetatative on the agency: >.'' "In case board would like my views on the position 'they are as follows: I concur with Mr lorns' views. First necessity in re-establishing confidence is change of manager and abandonment minimum price fixing in favour of Australian price system of control.' I concur in Mr Grounds' view reorganisation London agency desirable, but do not agree, his imimediate proposals to that end, feeding they would lidentify board's control policy even more closety than hitherto with the past policy of the New Zealand 'Co-operative Dairy Company. These methods would .result in accentuating prelsent acute hostility fdiroughbut the whole trade." A CHANGE IN NAME,

Nothing further was heard by the boar-d ard the position when the ,met a few daysi ago was unchanged, except perhaps that the difficulties,, were a little more acute. Mr Corrigans' motion had been altered, following ia conference between two members of t|he board aind the 1 Minister of Agriculture, and it was adopted •tlhough not unanimously as the newspaper account stated . The decision changed the name of price fixation, but lin the essentials fl'elft policy . unchanged, and ignored the tabled warnings! of Messrs lorns. and Pater-, son . At that time it' was known that a cable from the ißrime Minister was on lits way and the teixt wals hurried over to>tjhe meeting, reaching there just before the luncheon adjournment. That, cable, dated) London, October 27, s'alid'-;

"Influential deputation representative importers, blenders, multiple shops, wholesale provision merchants arid'retailes has made very strong repesentations to me, firstly, objecting to control, secondly, protesting against price ffixing, thiidly, objecting to the present manager London agency. Regarding firstly I told thehi'tOiat control policy definitely settled will contimue. ' They recognised this position and state they desire to continue) work in interests of New Zealand dairy trade at this end

and accepted my statements. Regarding secondly I am convinced strongly it would be a great mistake to attempt anything in the nature of minimum price-fixing and in view of serious position any method at this juncture likely to engender antagonism should be avoided Regarding thirdly very strong objection to Wright in whom, trade, apparently have no confidence, and this attitude very detrimental interests of New Zealand producers. Matter has been discussed with Grounds, who is meeting same people to-day. Paberson's telegram to board in my opinion correctly represents feeling majority tade (here. Give copy this telegram to Hawken. Matter most urgent. Board meets October 27, Wellington." "STRANGEST PART OF THE BUSINESS."

"Now comes the strangest part of the business," said Mr Timpany, in referring to the cable from London. " Mr Coates sends a message from London on 27th October, and it arrives in Wellington on 28th October. Mr. Paterson, of the London agency, sends a cable on 23rd October, af'er .having shown it ,or a copy, to Mr Coates. Yet Mr Paterson's message reaches Wellington only on 28th October, the day after the Board meeting. Mr Paterson's cable says: "' Cannot urge too strongly that to avoid disaster the Board should abandon minimum price-fixing and adopt Australian system price control. All allotees, with exception only of Lovells and Wilson Sears, have this week officially in writing strongly represented to agency that owing to keen hostility of alii branches trade be detrimental best interests producers. Also strongly urge Board should dispense with present manager, , who completely lacks confidence trade and in my opinion.ean never secure trade's goodwill and" co-operation. Wright has repeatedly stated Australian system of price control both useless and unworkable. If, therefore-, Board adopts this system all the more essential change manager. v ,Eminetitly suitable man of great experience'and highest standing in' trade is prepared to negotiate for .position if and when it becomes vacant, but declines allow his name be disclosed unless and until Board creates vacancy. In any case anticipate |no difficulty replacing Wright with i more suitable man. Think reorganis-

ing London agency not urgent, and can wait Grounds' return in the meantime. If the Board by adoption course above suggested lays foundation essential for re-establishing goodwill and confidence present agency with suitable new manager can get business working smoothly. .. . What ever the cost believe change manager essential . Above message is sent with cognisance of Prime Minister, who requests you to hand copy immediately to acting Prime Minister.' 1 " Now," said Mr Timpany, " the position is just this: We have antagonised the trade in London, and they are retaliating by boycotting butter and reducing advances on both butter and cheeS'Si. I moved to get ah increased advance on cheese, and was informed that it was out of the Board's control, because the amount of advances available depended upon the merchants available depended upon the merchants handling our produce. If the market was open to-day our cheese would sell at round about 8d per lb, f.0.b.; yet all that is being advanced against shipments is 5Jd, which dairy farmers know only too well will resultin disaster. Of course, the Board promised to consider my request for an increase in the advances in cheese, but there is the position wholly in the hands of the merchants." Mr Timpany has given notice to reopen the question in the.light of these cablegrams and consider Mr Wright's position as London manager for the Board.