Eleven Over Our Own Floors 1914

CHAPTER ELEVEN

Over Our Own Floors

Great Britain declared war against Germany on 4 August 1914. Farmers’ Co-op directors were unprepared for the untimely disruption this would bring, particularly in relation to the availability of males in the workforce in this distant corner of the British Empire. 120,000 New Zealanders, over ten per cent of the population, would be enlisted in the armed services and 103,000 would serve abroad. 18,500 died in or because of the war and 50,000 were wounded. Had the Farmers’ Co-op board had the benefit of hindsight, the decision to embark on such an enterprise may have been delayed. However, directors and management drew a long breath as the provincial juggernaut settled in and became the centre of attention.

Chairman George Buckeridge was, as we know, absent overseas investigating trading possibilities for the company and producers. His decision to go at this rather delicate and possibly inopportune time was to ensure Farmers’ Co-op had a dairy produce co-operative marketing scheme in place before the arrival of the forthcoming dairy season and with his connections he was the man for the job. Organisation was left in the capable hands of deputy chairman Alex Hunter and his board to evaluate the vast array of propositions placed before them. Combining the director’s personal farming activities with an enormous Farmers’ Co-op workload led the board to meet on Saturdays at 11am, and they often laboured throughout the day. Considerable work was also going on behind scenes as they knew only too well that bad decisions made today would impact on tomorrow.

The Society’s most urgent consideration was the marketing of dairy produce under a planned co-operative marketing scheme at present being arranged by George Buckeridge. Dairy cooperatives and some proprietary dairy companies were being established throughout the province and with significant quantities of butter and cheese outstripping the capacity of the New Zealand home market, marketing overseas was a priority. The Dairy Export Control Board and what became the Dairy Board were still some time away, and marketing was being handled, often in an ad hoc way by individual companies and co-operatives, many sending their own representatives overseas to negotiate deals. Tooley Street, London situated on the south side of the River Thames between London Bridge and Tower Bridge, had become the mecca for trading in dairy produce, with a tradition dating back many hundreds of years. The district was nicknamed ‘London’s Larder’ and agents such as James Kowin, of Lovell and Christmas, reputed to have the major part of the Taranaki’s trade at the time, came to Taranaki and was followed by representatives of other London firms. However, it was Henry A. Lane and Co. in Tooley Street, that George Buckeridge associated himself with.

Farmers’ Co-op directors had already met with a number of Taranaki dairy company representatives in connection with marketing dairy produce, and with the milking season fast

arriving, there was pressure to have the sale and distribution of produce settled for the coming season. A board decision was made to write to all companies asking them to ‘withhold their final decision regarding co-operative marketing of their dairy produce until such time as the Society has had an opportunity of placing their scheme fully before them.’

Relief at the return and attendance of chairman George Buckeridge at the Tuesday 9 June directors’ meeting was plainly evident. He addressed the meeting with an ‘account of his doings during his trip to Great Britain and America and fully outlined the arrangements he had made with regard to the disposal of the Dominion’s Dairy Produce on the Home Markets.’

It was moved by Mr Corrigan that Mr Buckeridge supply the Society with a typed report on his ‘doings’ and that it be pasted in the Minute Book as a record of the arrangements he had made ‘in the old country with regard to the handling and marketing of New Zealand dairy produce in Great Britain’. This request was agreed to and the following is a transcript of that report:

REPORT OF CHAIRMAN ON INQUIRIES MADE BY HIM RE TRADING OPENINGS &c ON HIS VISIT TO UNITED KINGDOM AND ELSEWHERE.

In accordance with your request, on my journey to the United Kingdom, I made enquiry on your behalf, at the various towns, in the different countries I passed through, and in the United Kingdom, as to the possibilities of opening up profitable trade and obtaining business agencies for the Society. FIJI: The first place I called at was Suva, and after making extensive enquiries, from all the best business firms, and from the Department of Agriculture, I found the possibility of trade with these islands, except perhaps for onions, was at present not practicable. HAWAII: The next place I called at was Honolulu, in Hawaii Islands. Here I called on all the best firms and ascertained that there is a good prospect of trade being opened up in the Butter, Cheese, Meats (both tinned and frozen) and I have taken one sample order from Messrs Davies & Co, for two crates of coloured cheese, to see how the quality will suit the trade there. Later on it may be possible to open up trade on an extensive scale with frozen beef, mutton and lamb, if it can be delivered, as desired, to meet the regulations of the United States Army authorities. BRITISH COLUMBIA: Here I found trade in an unusually depressed condition, due principally to a financial stringency, which has been caused recently owing to a stoppage of large expenditure in railway construction and other public works. Money is very scarce and it is possible to obtain as much as 15% on first mortgage, which will give you some idea of the state of the money market. Such a condition of affairs is not conducive to the realisation of high prices for our products, and this condition has, unfortunately, been made worse for us owing to the attitude of many of our exporters of butter, over the past few years, in so overloading the market that the prices have been unduly deflated, and the firms that have handled the New Zealand butter have, every one, made big losses on it. This will, in the opinion of all those I interviewed in Victoria and Vancouver lead to a disinclination on the part of firms there to buy their season’s requirements at the beginning of the season, and they most likely will be tempted to transfer their attention to Australian butter, which is cheaper than N.Z. or to buy only from ship to ship. After making extensive enquiries I did not find that there is much likelihood of being able to open up trade in Canadian manufactured goods. The only opportunities I could see were for tinned fish and Canadian lumber. These we may, at some later stage be able to take up. UNITED STATES: There appears to be a good opportunity of extensive trade opening up shortly between U.S. and N.Z. in butter and frozen meat and also in raw hides. There was not any evidence of any great interest in N.Z. produce in New York although a few firms seem inclined to deal on commission with limited quantities of butter. I find it is wise to be very careful in dealing with many of the so called Commission Houses, as the reputation they enjoy, for strictly honest commission dealings, is not too clean, and we would need to be very careful in selecting firms to sell on commission for us, that we did not select the wrong firms. Altogether I ascertain it would be better to try to deal on a C. I. F. basis, if possible, with firms of repute, rather than to try to sell on commission. I put through

enquiries, and gave a good deal of information, which may lead to business during the coming season. A difficulty we will have to contend against is the stringent laws in the United States – which applies to the Hawaii Islands also – against the slightest trace of Boric Acid in butter. This would have to be guarded against very carefully.

I was able to secure the Agency of Pratt car from ‘The Elkhart Carriage and Harness Company’, Elkhart, and submit for your approval, a contract I made with them for their sole agency in New Zealand.

UNITED KINGDOM: On my arrival at Queenstown I at once communicated with Horace Plunkett, at Dublin, the President and Organiser of the Irish Agricultural Organisation Society – and endeavoured to make an early appointment to meet him and his committee to discuss the possibility of their acting for us, as our distributing agents, in the same way as they act for the Irish Creameries.

On my arrival in London, I received a letter from Sir Horace, making an appointment for me to meet him in Dublin three days later.

My first call in London was upon Mr Ellison, who was not in when I called, but I got a letter from him next day, asking me to call and I spent three hours with him that day, discussing the possibility of the Producers of New Zealand being able to obtain some measure of control over the distribution of their Produce on the Home Markets. Mr Ellison told me that, unless we had the bulk of the Produce behind us to deal with, we had no chance whatever of making any arrangements with the wholesale merchants in Tooley Street; but that, if we had the assured support of a majority of the Produce in butter and cheese coming from N. Z. we could make almost any terms we chose to ask. This was just what I anticipated, and was the reason why I had got into communication with Sir Horace Plunkett. I left the same evening for Dublin, and at eleven next morning I met Sir Horace Plunkett, his Secretary, Mr R. A. Anderson, and his committee, with whom I spent four hours, discussing the possibility of their Agency Society acting in a like capacity for us in N. Z. as they do for the Irish Creameries.

I was first met with refusal, because they considered we were competitors with them on the United Kingdom Markets; but after carefully going into the whole question with them, I was able to prove successfully to them that we are not competitors, as we produced butter at the opposite end of the year from them, when they had none to sell, and that by selling our produce, on similar terms to those they sold for the Irish Creameries, they would be in a position to hold their customers together over the whole of the year – which would be a matter of very great importance to them – and they would be put in a position to supply an article similar to their own, over the whole year. This they eventually recognised and they decided to eliminate that part of their enunciated business policy whereby they set out the ‘Irish, English and Scottish Organisation Societies existed as a defence organisation, to protect the producers of England, Scotland and Ireland, against the incursion of foreign produce, from the Continent and the colonies’, and wherein they look upon the colonies as ‘foreign competitors’ and got them to strike out the reference to the colonies and to support us in distributing our produce.

They were very desirous that I should meet the Chairman of Directors of the Irish Agency Society (Lord Monteagle), his manager and committee, so I stayed another day and went to Limerick to meet them, and spent about seven hours with them, by which time I made full arrangements for the Agency Society to handle our produce on the same terms as they do for their own creameries, viz: To sell it over their own floors in London Glasgow, &c, to the retail trade, in 1 box up to about 10 box lots, and to charge a commission for doing so, and to protect us against bad debts, of 2½%. I also arranged that they would work in harmony with the firm we appoint as Agents to distribute the wholesale trade.

My next move was to try and persuade some of the wholesale merchants to work with the Irish Organisation Society; and, bearing in mind what Mr Ellison had said, I expected to find considerable trouble in this direction. This I found was the case, and had it not been that I was particularly well circumstanced to make a very strong case, I should have certainly have failed in the mission. As it was I have been able to induce at least one very strong firm to work along these lines, and to do so at a rate of 2% commission, out of which they protect us against all loss by bad debts, and would allow a rebate of commission of ½% appointing our Society their Agents in New Zealand if I was willing personally to do so.

I next saw the manager of the Irish Agency Society in London and in Glasgow and introduced them [to] the managers of our Wholesale Firm, and endeavoured to arrange with them the manner in

which the business should be conducted, so as to prevent any overlapping, and this I was successful in doing. This now places us in a position, if we affiliate with the Irish Agency Society (which I strongly recommend should be done – which will cost us from £20 to £200, according to the number of shares we apply for – we cannot apply for less than 20 nor more than 200 and they are £1 per share) of being able to sell ‘over our own floors’ in the United Kingdom, and we have reduced the gap between the producer and the actual consumer to an irreducible minimum, unless we establish our own retail shops. This I look upon as quite an impossibility as it would require the establishment of a company with a capital of £5,000,000 to £10,000,000 and this is beyond the possibility of the N. Z. Producers for many years to come.

Beside the Irish Agency Company, I interviewed the London Agency for the N. Z. Farmers’ and Canterbury Farmers’ Co-op. Associations and I found, however, that, upon the terms they quoted me, we could make better arrangements outside them. This may be rectified after the proposed conference in Christchurch. Meantime I cannot recommend using their agency in London.

I also interviewed the Port of London Authority re the handling of our produce and was taken by them over the London Docks. I was greatly impressed with the improvements that have taken place in this direction since I last had the opportunity of seeing the Dock equipment, and I do not find very much room for complaint. What few points I did object to I was assured they were taking steps to put right.

I saw a number of firms re acting as our buying agents in London, and place at your disposal the letters from them on the matter.

I also saw the High Commissioner and the Produce Commissioner and Mr Wright the Dairy Commissioner and discussed with them in connection with the dairying industry &c.

I also saw a number of firms of manufacturers of Motor Cars, and am laying before you several proposals for sole agencies for N. Z. which I have tentatively obtained on your behalf and which I recommend to your attention.

I also saw a number of firms re Basic slag and super-phosphates, including the Irish Wholesale Society, and I append, for your information, various letters which I received on the subject, and which are self explanatory. We can be in a position next year, provided we can get the orders in time, to procure these manures at the very lowest possible cost.

In conclusion I would like to say that I was treated, as your representative, on all sides, with the utmost courtesy, and had every attention shown to me.

As I promised before leaving, I kept a record of my expenses so as to show you how your grant toward my expenses was spent.

It cost me slightly over £225 for the trip; and seeing that I had private business of my own to do, as well as that I was undertaking of behalf of the Society, which absorbed by far the greater part of my time – I am not going to ask the Society for any further contribution.

On the whole the Society should be greatly pleased with the position they are now in to handle Dairy Produce this coming season, and to deal with the sale of manures next season. Yours faithfully, Geo. H. Buckeridge

George Buckeridge’s mission abroad had achieved exceptional results for Farmers’ Co-op and the industry as a whole. The board passed ‘a vote of thanks to Mr Buckeridge for his efforts on the Society’s behalf as disclosed by the aforementioned report of his trip through Great Britain and America’. He had secured extremely sound retail partners in the very influential gentlemen, Sir Horace Plunkett president and organiser of the Irish Agricultural Organisation Society and Lord Monteagle to distribute produce along with the appointment of a well positioned and reputable wholesale firm. The name was never disclosed. The finance sub-committee was appointed to deal with the matters relating to Mr Buckeridge’s report. No detailed record can be found; however, it is apparent that George made a number of trips in connection with the sale of New Zealand dairy produce on account of his own agency business over the years.

Circulars were sent to all dairy factories throughout the districts of Taranaki requesting that they meet delegates from the Society ‘at a place and time to be appointed to lay proposals in regard to the handling of dairy produce’. The dairy factories responded, although the precise number that did is unknown. It appears a ‘minimum participation’ was requested and it is minuted that: The dairy companies that are willing to come into our proposed scheme of marketing dairy produce be notified that providing fifteen (15) factories are willing support the scheme, this Society is agreeable to take the necessary steps to enable a committee being elected by the contributors under our B issue of shares for the controlling of our Dairy Produce Department and that the Chairman and Secretary be authorised to draft a letter to the factories interested putting the position before them.

Concerted efforts by farmers’ co-operative societies throughout New Zealand were being made to find some common ground to bring their undoubted influence in the agricultural sector under one umbrella and a conference of societies was held in Christchurch on 24 and 25 June 1915. Messrs Hunter, Death, Corrigan and Buckeridge were appointed delegates to represent the Society:

COOPERATIVE ASSOCIATION A Proposed Federation By Telegraph – Press Association CHRISTCHURCH June 25 This morning the managers of the various co-operative associations represented at a conference met and discussed a number of matters in committee. The principal subject considered was the question of a federation of farmers’ co-operative associations in the Dominion. In the afternoon it was recommended to the conference that a scheme of federation should be approved. The recommendation was unanimously agreed on, and a committee was set up to frame articles of association. The decision to adopt a scheme for the federation, of all farmers’ co-operative associations in the Dominion will, it is believed, have very beneficial results. These will be felt more particularly in the North Island, where there are comparatively few farmers’ co-operative associations run on similar lines to those in the South Island. There are quite a number there in the embryonic stage, which are being fostered by various branches of the Farmers’ Union. There is, however, a great deal of overlapping, which does not make for the best results being obtained from the principle of co-operation. The proposed federation, it is believed, will obviate this state of affairs and result in the fullest benefit being obtained from cooperation. The conference has concluded its sittings.

Alas, although deals negotiated by Mr Buckeridge whilst in Great Britain for the sale of produce on the Home markets and a number of deals in connection with ‘chemical manures’ and basic slag still held good – the outbreak of war meant many of these arrangements were suspended.

In July 1914 Alex Hunter and George Buckeridge were appointed to represent the Society at a conference in Palmerston North in connection with marketing of dairy produce. Collective bargaining was gaining popularity, proving to have considerable advantage over one-off arrangements between individual dairy companies and overseas importers and exporting large quantities of butter and cheese commanded much better financial returns. Some London firms sent representatives to New Zealand and offered cash advancements on the season’s dairy produce, in effect providing a guaranteed minimum purchase, with buyers underwriting any loss accruing through over-estimation. The discussions now being held regularly between farmers’ co-operatives, dairy co-operatives and companies, and the recently formed Federation of Co-operatives may have persuaded The Farmers’ Co-operative Organisation Society of New Zealand Limited marketing venture, initiated by George Buckeridge, to place the dedicated marketing of dairy produce initiative on the back-burner. Although no minuted details of a decision to abandon the concept can be found, the first annual report of the Society makes reference to: The scheme which was originally propounded for the selling of produce on the Home markets had for various reasons not matured.

It was somewhat disappointing after all the time and work that had gone into the co-operative marketing scheme. The chairman was philosophical about this and other problems that had eventuated throughout the Society’s first year operation and said, the first year’s working of such a society as the Farmers’ Co-op. must necessarily be of a more or less experimental nature. They must be expected to make mistakes, but these in the future would be avoided as they gained experience. Co-operation between farmers’ organisations was now becoming more common as industries throughout the Dominion connected with primary produce began to strengthen and mature. The farmers’ voice was now one to be reckoned with. Recently elected Prime Minister William Ferguson Massey, a farmer himself, was supporting and articulating the agricultural cause in Parliament. He had support from many other influential farmer colleagues, including his friend and associate Sir James Wilson, first chairman of the New Zealand Farmers’ Union, and considerable progress was being made in establishing better conditions for the New Zealand farmer. It was not surprising when Farmers’ Co-op received a letter from the New Zealand Farmers’ Union in March 1915 in reference to co-operation with them in connection with their members’ indenting requirements.