THE WHEAT POOL

Ashburton Guardian, Volume 50, Issue 124, 7 March 1930, Page 6

THE WHEAT POOL

DISSATISFIED GROWERS. MEETING HELD AT TIMARU. NUMBER OF COMPLAINTS VOICED REPLY BY THE CHAIRMAN. (Special to the “Guardian.”) TIMARU. Tliis Day. The action of the Wheat Pool in allegedly having withheld final payments • to members fol* last year’s crop, while “free” men received considerably higher^nrices for their wheat with the advantage of payment on delivery, has caused considerable unrest tlie farming community in South Canterbury. A largely-attended meeting ot farmers was held in the Wentworth Hall to-day for the purpose of discussing the situation, espe- _ cially in regard to final payments for last year’s crop. The Chairman (Mr W. H. 'Orbell),Jn the coures of his opening address, said: “It is becoming public property that many members of the Wlieatgrowers’ Association are looking for ways and means of overcoming their obligations to hand this year’s crop and those of £utu„re to the Pool.” v \

There also were present at the meeting Mr W. W. Mulholland (chairman of directors of the Pool), Messrs J. W. Barnett, A. W 7 ard, W. J. Black, and P. R. Talbot * (directors) and Mr R. McPherson (geperal manager of the Pool). - . , . A motion was carried asking those who were not members of the Association to leave the hall. This left an attendance of approximately 120. The chairman said it would be better to wait until the chairman and directors of the Pool arrived. They had promised to arrive at 12.30. A voice: What is the meeting convened for? The chairman: I will explain that later. We want to know the position in regard to last year’s final payments before we place this year’s crop in the hands of the pool. Mr D. Lewis: The Pool has already decided that we are tied up for five years. ~ , , Mr E. Cartwright said that the majority of the growers were dissatisfied at the treatment they received from the Pool. A voice: Not all! Mr Cartwright: I’m dissatisfied anyway and I convened the meeting. At this stage the directors and manager of the Pool arrived and were greeted with ironical applause. TJn Causes of Complaint. x In formally opening the proceedings, the chairman said the meeting had been called for the purpose of ascertaining the exact position in regard to last year’s final payments for wheat before this year’s crop.was placed m the hands of the Pool. Payments or 3s 6d fo.b and 9d had been made, and this meant that the nett price to the orower would be about 4s 4d. lhe sneaker also understood that this year’s wheat received by the Pool in the lower grades remained in the o-rade in which it was received, even rf it matured to a higher grade, and the grower was paid according to the grade in which his wheat was classed on o-oing into store. Last yeai , Mr Orbed pointed out, a grower was paid according to grade in which his wheat was classed on going out of store. One of the great causes of unrest among members of the AY heatgrowei s Association was that free wheat until now had been selling, if anything, at a higher price than was obtained by Pool. For instance a “Free” man was receiving 5s 9d for Tuscan and. moreover, received his money on delivery of the wheat. Thus he was in a position to make his financial arrangements, whereas members of the Pool v/ere unable to do this, because they were not in a position to state definitely what price they would ultimately receive above the promised prices, this Tear of 4s 4d a bushel, aud leiuenihering that omy 4s 3d f.o.b. had been received for. last year’s wheat. Mr Orbeil went on to say that members of the Pool had to pay an overdraft on the remainder of the money held by the Pool, and this placed them in an unfair position with the free grower. Another thing to be taken into eonsiaeration was the fact that there might he a possibility that farmers who hitherto have been grazing sheep might consider the coming year suitable tor growing wheat, because of the less attractive prospects for sheep. These men to a large extent would be “free growers, and the competition thus created would have the effect of embarrassing the Pool to an even greater extent than was the case last year. Success Would Be a Great Thing.

“It is becoming public property,’’ continued Mr Orbell, “that many of the members of the Wheatgrowers Association are looking for ways and means of overcoming their obligations to hand this year’s crop and those in future years to the 'Pool. If this should happen, and some growers manage to overcome the difficulty, I am afraid it will lead to something like ‘ a run on a. bank.’ It has to be remembered, however, that the Association that its operations kept up the price of last year’s wheat when there was a Pig crop and a surplus fiom the orevious year. I am afraid that the only grower who. has benefited lias been the free man, unless, of course, the Association has something up its sleeve, which should have been mtimated to members long ago. Mr Orbell said he thought the or ganisation of the Pool had done quite a lot toward the retention of the sliding scale of duties. If the Pool could be made a success it would be a great thing for the average farmer. All he would require to do would, be to inform his broker that his wheat was ready and then leave it to experts to see “that his interests were being protected and that he would receive the most possible for his wheat. However the only way in which the Pool could he a success was. for all wheat-growers to become members, and this, at present, unfortunately was not the case. Voicing *cf Complaints. Mr Mulholland said lie would like to hear the complaints from other mem'hers so that all could be dealt with at the one time. The directors were quite prepared to answer questions Mr Cain said the Association had failed miserably to helo the small man. ("Applause.) “We do not know what we are going to get for our wheat, lie added’. “The Pool has not served its object.” Mr W S. Jones said he was “between the devil and the deep blue sea ” The Pool was not giving the small man a chance, keeping him ivait-

ing two years for his money. “I ask you can, can any man afford it?” Cries of “No!” Mr D l . Bell said that the Pool could have sold last year’s wheat at os lOd, whereas most, of it is kept in store. Mr R. Smith: I would like to know what the Pool got for the wheat it shipped Home. Mr Bell: How many bushels did the Pool handle > last year ? Mr Watson said the Pool should pay for last year’s wheat before'this year’s was sold. Mr Jones: If last year’s carry-over of milling Tuscan were sold to-day at os 9d, ex store, can you give an indication of the approximate price growlers will net on trucks at country stations, for Tuscan classed as f.a.q. nulling, ex 1929 crop? Mr Hill: Why is there sa much secrecy in the tvorkifig of the Pool ? The millers know more than we do. Mr Mulh&lland’s Reply. Mr Mulholland, in reply, said he Was pleased to see such a large gathering. In the past it was difficult to get growers together and talk oyer matters with them. It would seetn that when the complaints were boiled down they were two in number: First, that the free grower could ride on the back of growers. Second, that the 1929 Pool was not cleared' up. These were the vital matters. The Pool had in hand last year 2,000,000 bushels more than was required, the result of a record harvest. It had previously been decided that if there were a surplus the price would have to come down to export parity, which was 3s 6d. Thus there were two courses open—one of which was to bring the price down to export parity, and the other to hold the ' wheat in store. The directors had decided in> favour of the latter course. There was no way of preventing the “free” man obtaining an advantage and this was the chief cause of dissatisfaction. Some of the “free” men had been foolish enough to jeer, but growers who were members of the Pool should ignore the taunts. Referring to the questions, Mr Mulholland said it would have been possible to sell the surplus wheat to the mills which would have stored it themselves, thus occupying space which was left for this year’s wheat. The “free” man had sold his wheat for 5s 9d, but if there had been a glut on the market there vyould have keen a big drop in prevailing prices. A voice: But the “free” man gets the 5s 9d, not the members of the Pool. Mr Mulholland: That could not be prevented. \ What is the Alternative? Mr Mulholland went on to refer to the statement made by the chairman that members were looking for an opportunity to get out of their contracts. Loyalty was essential in every farmers’ organisation and if the Pool were not supported it could not hope to succeed. The question then was what would be the substitute for the Pool? If there were no Pool the growers would l be at a great disadvantage. There would soon be a slump in the market. He urged growers to support the Pool, but they would never get the outside men in so long as they cried “stinking fish.” A yoice: We have reason to: “The Pool is out to do its best for growers,” concluded Mr Mulhollgnd, “and I urge all members to be loyal to the Pool.” Mr Jones (indignantly) : But you haven’t answered my 7 questions! • Mr Mulholland: 1 have left one or two matters for Mr AlcPhersoiv to deal with. Mr Jones: The feeling is very bitter toward the Association. Mr Mulholland: I want you to crossexamine me so that you will understand the true position. My remarks probably have been very disjointed, hut we will only be too pleased to answer any 7 questions. (Applause.) Address by the Manager. Mr McPherson said the meeting was the best that had yet been held. One member had stated that he had to pay’ exchange on his cheque. There was no need for that if it were exchanged at one of the Association’s branches. There had been trouble in this respect at Temuka, but this would" soon be rectified.

Mr Cain: But I was charged . exchange through mv brokers. Mr McPherson: I cannot understand that. The brokers are not asked to pay exchange. In reply to another question, Mr McPherson said that no payment had been promised in January. From 1928, 1,500,000 bushels were carried over; this was increased by 500,000 the following year,, and 1,275,000 bushels were carried over into the 1930 season. If it were not for the Pool it would have meant a slump in the market to-day. New Zealand wheat on a world parity was worth 3s a bushel f.0.b., so growers could imagine what would have been the position had it not been for the Pool. The grower who delivered his wheat in February of last year would receive an additional Is 3d, which would mean 5s 3d a bushel f.o.b. Last year the “free” man received 5s 3d to 5s 9d on trucks and although this was more than that received by the Pool members, the Pool prices would 1 have been considerably reduced on a free market. (Applause.)/ Proceeding, Mr McPherson said the membership should he increased. The dissatisfaction mostly was stirred up by enemies of the Pool. A Voice: Not at all. Mr McPherson: I repeat mv statement. Dissatisfaction is stirred up by those who cannot become members of the Pool, and they resent its activities. (Applause.) I appeal to you all not to “throw bricks,” but to be loyal to the Pool. Mr McPherson also stated that the wheat in store now would all he disposed of before the 1931 wheat came to the market. There was a surplus of wheat and growers would agree that it was necessary to ship overseas to rid the country of this surplus. That, he said, was the reason why some of the wheat had been shipped overseas. Mr Mulholland, referring to the question of surplus wheat, said that if they were again faced with a big surplus export prices naturally would have to rule. In this event the “free” man would not get his 5s 9d. A voice: But the “free” man has benefited. Mr Mulholland: To a certain extent. Mr McPherson: The millers give the “free” man the better prices, though. Mr Jones: The Pool needs an organiser to canvas the various districts. Mr A. Dobson said the bone of contention was the “free” man. He moved: That the meeting should express its confidence in the administration of the Pool. (Proceeding.)