Twenty-Two Cloaked in Secrecy 1944

CHAPTER TWENTY-TWO

Cloaked in Secrecy

Throughout what had been a traumatic year for the Society with major changes to the directorate and structure of the company, Charles Dunsbie Dickie, the Society’s deputy chairman had presided over the board during late 1943 and during the absence and illness of Mr Hunter in 1944. Mr Dickie of Waverley was only the third chairman in the entire 30-year history of the Society. He had been a provisional director in 1913, and with his considerable experience he was without doubt the man for the job. As Mr Dickie had only recently married, a presentation was made to him and his wife of a pair of entrée dishes on behalf of the directors and shareholders. Thrust into an energised environment with expectations of a future without war, chairman Charles Dickie was faced with many proposals and problems and no time to settle his nerves in what had become Taranaki’s leading farmers’ trading enterprise. Under his chairmanship the Society made a number of acquisitions, including the purchase in 1944 of D. Root’s grocery business at Patea for £1,850 and this established Patea’s first FCOS branch trading store. This property included Mr C. D. Dickie, chairman, The Farmers’ Co-operative sufficient room for a right of way and large yard. The building, however, was old and inconvenient and ‘quite inadequate for the rapidly expanding business’, Organisation Society of New at Patea. Consequently when a building owned by Wright Stephenson and Coy Zealand Limited, 1944–49. became available for removal it was decided to purchase it for £900 and re-erect the structure behind the present premises. The materials in the building were considered to be in good condition and that it would last for many years. The South Taranaki Winter Show Company Buildings on Princes Street, Hawera, the original site of the first Farmers’ Co-op head office in 1914, had recently been placed on the market and at the Society’s board meeting on 20 February 1945, Clem Trotter reported that he had secured a verbal option ‘over the whole property as it stands at £8,200’. The capital value was £13,300, made up of unimproved value £2,750 and improved value of £10,550. The rates amounted to £106. 8.10d per annum, with the permanent leases bringing in £312. The roof was in a bad state of repair and re-roofing the whole building would cost £3,500. It was considered that with temporary repairs to the roof and building it would show an excellent return as a woolstore and house other activities of the Society. At 4:00pm the same day the directors adjourned to make an inspection of the building and on reconvening the meeting it was resolved to ‘endeavour to obtain an option over the property for 28 days at £8,000 and in the event of the option being agreed upon the matter be left in the hands of the Executive Committee with power to act’. Negotiation took place and estimates of the cost of repairs and probable revenue was tabled. There was, however, further discussion regarding an alternative arrangement to lease the property

for three years at a rental of £700 per annum, plus rates and insurance, with an optional purchase clause. It was estimated that the building would hold a minimum of 22,800 bales. At a penny per bale per week, with a ceiling of 3/6 per bale per year, this would bring in revenue of £3,990 per annum. Messrs Duffill and Gibson, architects, had estimated that renewing and repairing portions of the roof and concreting the floors, excluding the leanto would cost £4,067. Allowing for taxation and taking all contingencies into account, a profit of at least £600 per annum would accrue. It was unanimously resolved the D. Roots Grocery Store in earlier years. Farmers’ Co-op purchased the executive committee exercise the option premises to establish the first Patea branch store in 1944. over the Winter Show Company’s buildings COURTESY OF SOUTH TARANAKI MUSEUM for a lease of three years with an optional purchasing clause on the terms set out in the option. The recreation hall, known to many as a dance venue, was retained with the right to let the hall as and when required.

Only 18 months later, in August 1946, the manager of the National Dairy Association approached the Farmers’ Co-op general manager Clem Trotter with a suggestion to exchange the National Dairy Association’s property on the west side of Princes Street, Hawera adjacent to the Society’s garage for the Winter Show Buildings situated immediately opposite and which were at the time occupied by the Society under a lease agreement with a purchasing option of £8,200, expiring on 1 March 1948. The two National Dairy Association buildings were inspected by the general manager in the company of officials of the N.D.A. in order that full particulars could be placed before the boards of the respective companies. Valuations had been made by Mr Duffill on behalf of the Society and Mr Grant on behalf of the N.D.A. Mr Duffill valued the Winter Show Buildings at £28,484, and National Dairy Association buildings at £13,701 and Mr Grant valued the Winter Show Buildings at £27,997 and the National Dairy Association buildings at £13,622. The sale of the properties required the approval of the Land Sales Court and additional negotiations included the Society renting two halls for a further 14 months. Final valuations referred to by the Land Court are unexplained, but bargaining went on between the two parties for some months, with Messrs Horner and Burns, the Society’s solicitors (formerly Halliwells), advising that a letter from the Land Court stated: That the respective valuation of £22,400 and £8,350 indicated an equality of exchange amounting to £14,050, whereas the sum provided in the agreement was £12,000, and it would not be possible for the transaction to be approved without a hearing. In order to avoid the necessity for this it was proposed by the Court that the N.D.A. should increase the amount to £14,050. In transferring the Winter Show Buildings to the National Dairy Association the Society retained ownership of the right-of-way and a section on Albion Street. It was decided the buildings on this section would be suitable for re-erection at Eltham and the section would then be available for sale. This decision would leave a small portion of land adjoining the National Dairy Association’s property that would cost £20 to have surveyed off and it was decided to include it in the National Dairy Association’s purchase without further cost. Farmers’ Co-op continued to store wool in certain areas of the Winter Show Buildings premises, but within a relatively short period the Society permanently vacated the premises and their long-time association with this building came to an end.

Charles Dickie’s ability to hold onto the reins was tested soon after his appointment, when on 20 February 1945 he announced to the board that Clem Trotter, the general manager, had been appointed Government Delegate with a New Zealand delegation to the Wool Conference to be held in London, England in the spring and would be leaving within the next few days. Clem was chairman of the New Zealand Woolbrokers’ Association and this appointment, representing the Dominion at such a critical time in history, was indeed an honour. The purpose of the conference was to discuss how the world wool stockpile of some 10.4 million bales was to be disposed of without collapsing the market. He would be away for at least 15 weeks and it was noted that ‘during that time expenses would be paid by the Government’. As Clem Trotter’s management style had involved him in every aspect of the Society’s business, such a lengthy sojourn abroad would need to be carefully handled. It was decided that during his absence local members of the executive committee would scrutinise all advances and generally look after accounts. Mr H. F. Wooffindin, branch manager at New Plymouth, was appointed acting general manager, spending one or two days a week in Hawera. Mr Norm Blake was appointed acting secretary. Matters in connection with the stores would be attended by Mr Oakley and Mr Snelling. A motion: that Mr Trotter be granted leave of absence to visit England as a Government Delegate to the Wool Conference, and that he be paid his full salary while he is away, was carried.

Although World War II was at a turning point and the Allied Forces were now getting the upper hand in the Pacific and northern hemisphere, the voyage to the Home country was not without danger. Mr Dickie suggested that the Society take out an insurance policy on Mr Trotter’s life for the benefit of his wife and family. The premium for such a policy for a year ‘would not cost more that £200’. The Society hoped that there would be some fall-out for the Farmers’ Co-op, with the opportunity for Clem Trotter to visit firms with whom the Society had business connections, while making business contacts that would be useful in the future. It was agreed that Clem Trotter’s stay in Britain could be extended if necessary specifically for this purpose. An arrangement was made with the Reserve Bank for £250 of the Society’s funds with the Overseas Farmers’ Federations in London and this would be made available to him while in England. It was also resolved that: ‘Mr Trotter will be given a free hand with regards to expenses while on any business connected with the Society and that we insure his life for the benefit of his wife and family for the time he will be absent from New Zealand.’

Five months later, on Saturday 14 July 1945, Mr Trotter arrived back in Auckland having returned to New Zealand by air ‘in 76 hours and 21 minutes actual flying time’, Stops on the homeward journey included, Ireland, Newfoundland and Baltimore on the way to Washington where he spent a few days of the week available to him in the United States. From Washington, after visiting New York, he went to San Diego, thence to Honolulu, Canton Island and Fiji. He was welcomed back by the board at the 31 July board meeting, just in time for the annual general meeting which for the first time in its history was being held in the month of August, no doubt to coincide with the return of the general manager. It had been a very rewarding trip in that the delegates to the ‘Empire Wool Conference’ were unanimous in their findings, with representatives from all the wool-producing countries in the Empire and Mr Trotter regarded the outcome as a ‘happy augury for the satisfactory disposal of accumulated surpluses and orderly marketing of oncoming clips’. In an interview Mr Trotter said:

Once broad principles became clear … this was brought about to a large extent by the intermingling of delegates, so that each could study the other’s viewpoint, the conference achieved a common aim and conclusion in which all were in agreement.

The circumstances of the war and the necessity of negotiations between the various Dominions and the United States had made London, ‘in spite of bombs and all else’, the best centre for discussions. The final outcome of the conference was ‘cloaked in secrecy’ and when questioned regarding the

outcome of the mammoth meeting Mr Trotter replied: ‘All I can say about it now is that it was an inter-Government conference which sat continuously from early in March until the middle of May and that it reached unanimously certain conclusions that have been forwarded to the respective Governments for their consideration.’

He added that he was not in a position to comment on the details of the report prepared in London and forwarded to the New Zealand Government while the Delegation was still in London. It transpired that the New Zealand Delegation, which consisted of 10 members, was headed by George A. Duncan CBE, ARNZ, AAIS, director of External Marketing, formerly of Hawera where he once held the position of secretary of the Hawera Co-operative Dairy Company. Mr Trotter stated that the government appointment of Mr Duncan to lead such a mission was a wise choice, being a man of wide experience, having visited London on several occasions during the war in connection with New Zealand primary produce. He was held in very high regard both in the United Kingdom Government and other circles. Hawera’s connection with George Duncan was fortuitous because throughout the years his friendship and influence in high places provided many opportunities of assistance. His ‘quiet wisdom’ and unrivalled practical experience was sought after by government, producer representatives and the wider primary industries of New Zealand. His wise council and in particular negotiating skills are demonstrated when he was negotiating the terms of the British World War II wool commandeer on New Zealand’s behalf:

Late in the negotiation when the two sides were a quarter of a penny apart, they broke for dinner during which the chief British negotiator offered and Duncan agreed to settle the result over a game of billiards. Little did the UK man know he was up against a keen and expert player. Duncan won, but years later he said it was the hardest game he had ever played, knowing what a farthing per pound would be worth to the New Zealand woolgrowers over the duration of the war.

He eventually became an associate member of the New Zealand Wool Board and was later chairman and general manager of both the Wool Disposals Commission (JO) and its successor the New Zealand Wool Commission.

Little progress was being made at one stage at the conference and Mr Trotter spoke of a break in the proceedings when a visit to Scotland was arranged. It was from a lesson in Empire solidarity learned at Edinburgh that the delegates on their return to London made great progress, presenting a united front to the problem at hand: What impressed us most was the way Britain geared herself for war and I do not think we in New Zealand have a proper appreciation of how everything has been sacrificed to the national war effort. The people have cheerfully submitted to the controls and inconveniences, and of making do and doing without that is far beyond the experience of this country… The delicate balance sustained by ‘sheer physical effort’ was illustrated by the fact that, ‘before the war Britain produced enough food to feed herself for only a day and a half each week, but today she was producing sufficient to sustain herself for five days on the present basis of rationing’. Clem Trotter’s visit to Europe at a time of war was indeed a lesson in itself and his contribution would be recognised by the Government in years to come in further appointments. As an outcome of this mission he was appointed to the board of NZ Wool Disposals Limited from 1946 to 1951. At a board meeting in December 1945, director J. D. Law congratulated Mr Trotter on his appointment: ‘It was a most important position and the appointment was an acknowledgement of Mr Trotter’s outstanding ability.’

Endorsing Mr Law’s remarks Mr Dickie said that it was a position in which Mr Trotter would be able to render valuable service to the wool-growers. The company was eventually replaced by the New Zealand Wool Commission and Clem served on this body from 1952 to 1961 and again from 1965 to 1968.

In a world short of foodstuffs, and in particular edible fats, which in all probability had never

been in shorter supply, maximum production had been urged. Mr Trotter, now with first-hand experience and keenly aware of the predicament of New Zealand’s European partners, made these observations when addressing the 1945 annual general meeting: It was the immediate duty of every farmer to stretch his food production to the fullest possible extent, for the future course of events in the liberated countries of Europe, and in fact the whole world, might be determined by the ability of the primary producers to feed the people of these lands during the present difficulties.

Farmers’ Co-op profit for the year totalled £11,905 and without taking into consideration land sales a record annual turnover of £1,750,000 was revealed by the Society. The rise was mainly due to increased prices of goods and livestock. Taking into consideration the conditions under which they had operated within the past year the payment of a dividend to shareholders of 4 per cent was an extremely pleasing result. In the 31 years of operation, nine had been under war conditions and although huge national and international issues now lay ahead, the Society was in a sound position and ready for the first time to plan its future without the imminent threat of war.

The past five years of war had not impeded growth and, in good fettle, the Society was now ready to face the future. The war in Europe had ended and peace was in sight in the Pacific thanks to the huge effort and sacrifice made by everyone at home and abroad. The war had taken its toll among Society staff and families who had loved ones serving abroad. At the outbreak of war Farmers’ Coop employed 205 males and females. Of the 169 staff members who entered the armed forces, 58 returned, including 20 who had taken up employment elsewhere, and 90 were still serving in the forces as at 9 August 1945. Sixteen had paid the supreme sacrifice: 1941 Pte. D. F. Robertson. 1942 Pilot Officer I. C. Grant, T/Sgt. R. A. Kemp, Pilot Officer C. E. Langdon, Pte. W. L. Shepard, Sgt. E. B. Whittaker. 1943 2nd Lieut. B. Budd, A.C.2. M. S. Nelson, Gnr. C. S. Wylds. 1944 Pte. N. C. Franklin, Tpr. E. R. Honeyfield, Pilot Officer J. V. B. Mooney, Pilot Officer D. Webster, Flt. Lieut. G. R. Joblin. 1945 Flying Officer F. A. Rutherfurd, 2nd Lieut. F. L. Sargent. Throughout the war the Society played its part providing support to the Government with an early interest-free War Loan of £2,000 and later £5,000. It also contributed to a number of patriotic funds and made donations to the Red Cross and St. John’s Ambulance Sick and Wounded Fund.

The Second World War was now thankfully at an end but the end of an era for the Farmers’ Co-op had arrived as the winter of 1945 drew to a close, with the passing of chairman Alex Hunter, Albert E. Death and Arthur T. Wills, all foundation members of the Society. These gentlemen were some of the last local pioneering gladiators, who placed their own wealth at risk with personal guarantees, establishing South Taranaki’s agricultural industry out of what was hitherto virgin bush, fern and scrub, and then in addition, through dogged determination, tenacity and common sense, built the district’s commercial infrastructure around it. Their stories of survival and their sacrifice for and dedication to the Farmers’ Co-op and the wider community would, but for the wisdom of those who have commissioned the research and writing of this history, have all but disappeared into the mists of yesteryear.

Albert Ernest Death was one of Farmers’ Co-op’s most loyal and hard-working supporters on the board and had been at the forefront of the movement to establish the co-operative in 1913 and seen the company through some turbulent years. He was appointed to the board in 1914 and remained there until 1920 when he retired but in 1936 he stood again and remained there until his death in 1945. He was born at ‘Pine Park’ Tutuaenui Road, Marton on 26 June 1868, the sixth son of 14 children to George Gooch Death and Philippa Poad. George Death established most of his sons

on farms he purchased in the Manawatu, Rangitikei, Wanganui, Taranaki and the Waikato districts. In 1885 George moved to ‘Lake Farm’ at Waverley and built a large house. On retiring they moved to Auckland, selling the farm to the Bremer family. At the time of writing this history the house is occupied by Robert Bremer. Albert Death farmed a property on Manawapou Road, Hawera and married Alice Winks. They raised a family of nine children.

Christmas and good tidings from the board were announced with a resolution to pay a bonus of 2½ per cent to all members of the staff on the payroll as at 18 December 1945, including members of the permanent staff serving with military forces, to be calculated by the amount actually paid by the Society in salaries or wages for the nine months ended the 31 December 1945, but excluding bonuses or overtime. It was also agreed to pay a bonus to married members of the staff with children under the age of sixteen and serving in the forces, on the same basis as the previous year.

War had finished but the Society still had staff serving in J Force. When Japan surrendered, Allied Forces, including New Zealanders, Australians, Canadians and Indians, entered Japan as an occupying force, to restore the peace, clean debris from the atomic blast, help rebuild and direct Japan towards democracy. Initially called BCOF (British Commonwealth Occupation Force), they became known as J Force. The board of directors resolved that staff enlisting in the service should be granted leave of absence for the term of such service. Members who had joined the superannuation scheme and required the Society’s consideration with respect to assisting them with contributions towards the maintenance of their policies would be treated on merit.

Reducing the working week to 40 hours for grocers and shop assistants had now become a reality under the Shops and Offices Amendment Act and the whole question was discussed at length by the board of directors. It had major ramifications for the Society as although the 40 hours could currently be spread over five and a half days, the Arbitration Court had the power to enforce a fiveday week after the end of June 1946. The net result of the change would increase the wage bill by £53 per week. The way forward was dictated by the practices in other centres. While the Society did not wish to curtail the service provided to shareholders by trading on Saturdays, it transpired that although shops and offices remained open on Saturday’s business was negligible and it was decided to fall in line with other traders and work a five-day week.