LOSS ON CORN SACKS

Ashburton Guardian, Volume XLVI, Issue 10532, 23 October 1925, Page 5

LOSS ON CORN SACKS

TRANSACTION BY STATE. NEW SOUTH WALES WHEAT CROP EXPLANATION BY MINISTER.

(Per Press Association—Copyright.) (Received This Day, 9.20 a.m.) SYDNEY, This Day. Documents tabled in the Legislative Assembly disclosed details of the Government transaction in corn sacks, whereby, the State lost £12,500. The purchase was made in July at 15s 6d per dozen, and the sacks were re-sold at 12s 9d. Official papers showed that as farmers had suffered the previous year through the high price of sacks, and were expecting a bumper harvest of 60,000,000 bushels this year, Mr Dunn (Minister of Agriculture) decided to purchase a supply to prevent the farmers again having to pay such a high price. Steps were taken to prevent the transaction leaking out, 60 as not to affect tlie market, and the sacks were purchased through a private agent. Unfortunately, dry weather militated against the wheat, bringing the estimated yield down to 30,000,000 bushels. This caused an unexpected break in tlie jute market, and prices fell, with the prospect of a further fall. Thereupon it was decided to sell a portion of the sacks already delivered at tlie best price obtainable, and to cancel the rest of the contract. Yesterday the leader of the Opposition (Mr Bavin) made a strong attack on the Government regarding the secrecy and other circumstances connected with the purphase and sale, and asked the Premier (Mr to appoint a Royal Commission of Inquiry, failing which other means might be necessary. Mr Lang, in agreeing to appoint a Commission, denied that there was anything “fishy” about tlie business. The Minister had consulted him, and he had advised him to cut his loss. Mr Dunn, explained ' that he knew very little about the jute business, therefore he obtained the services of an experienced man, a personal friend whom he could absolutely trust. He had acted in the interests of the farmers. If anybody could prove he had even as much as a cigar out of the transaction he would go right out of Parliament and not come back.