WHEAT POOL

Ashburton Guardian, Volume 50, Issue 151, 8 April 1930, Page 6

WHEAT POOL

ITS WORKING EXPLAINED. THE SALE OVERSEAS. VOTE OF CONFIDENCE PASSED. There was a. large attendance of wheat-growers in the Tailored Street Hall this afternoon, when an address on the working of the Pool was given by -Mr W. W. Mulholland (chairman of directors), who was accompanied by Mr R. MacPherson (manager of the Pool) and Mr A. S. Smith (grader). Mr F. G. Evans presided, and said that everyone had heard criticism of the operations of the /Pool, and they would be glad to hear an explanation. Mr Mujliolland said he was pleased to see so many growers taking an interest in the Pool. When, last year, no .payment was made to members there was some impatience, but he thought members had been marvellously patient in the absence of any statement from the Pool as to why the payment was not made. He had to thank the members for the way they had held off from hammering at the directors. No business —and the Pool was a business —could be- run by making all its affairs public. They had to have confidence in the men in charge. The time had come when some explanation might be made as to why the full amount for last year’s wheat was not paid out. There had been two matters of complaint: (1) Delay in paying out: and (2) the “free” men were able to get all the benefits of the Pool without paying anything for it. Though the overseas market did not affect the Pool very much, it plight easily have been a serious item in the market. v They had 2,000,000 bushels ;at the end of the harvest, for. which no possible buyer could be. found in New Zealand. One of two things had to hannen to that surplus: either it had to be exported, or it had to be held in store for the next season. To export it would mean that it would have to he bought at considerably less than 4s a bushel. If it had been held it would have cost 2s a bushel to hold it. Had the market been allowed to follow its unorganised course the price would have fallen very low last season. Thedirectors were forced with a serious position in view of these things. To have let the market go would have entailed disaster to very many of the growers a.nd to the market generally. It had been decided, in the interests of members, to hold the market, and he was proud to say that they were successful, so that members would be much better off than they would have been otherwise. This betterment was fully one shilling a bushel. Mr Mulholland added that the Pool had saved the position last year; this had "been given out to the directors hv people who knew. While they regretted that members had had to carry this on their backs, all would 1 agree that their decision had been warranted. (Applause.) He did not want to attack the “free” man in any way, but the facts were there, and must be stated. It had been rumoured that the directors had been criticised because they refused an offer of 6s 3d a bushel for the surplus wheat. He empliaticallyi denied .that any such offer had been made. He would like to point out that a normal carry-over was half a million bushels, a surplus being anything over that figure. With regard 1 to the" export of wheat, the overseas market had recovered somewhat, and there- were prospects that it would continue to rise. The London agents advised to ship, and the directors decided to ship 210,000 bushels. Unfortunately, the fu ancial crisis in London and New York came just as the wheat was on the sea. However, though prices were down, in the depths, they received about 4s 3d a bushel. The shipment cleared' the air iij New Zealand, and eased the position considerably, the Pool making a good clearance after that. The loss incurred, hypothetically, was somewhat less than 2d a bushel. This was being charged over the whole Pool, and not on individual lines. (Applause). Address by The Manager.

Mr MacPherson said that if the wheat now held was sold at 5s 9d there would be a pay-out of Is 3d a bushel. The business had been a. most difficult cue. The season had started with a big surplus, there was a huge crop, and a large amount had come in in the way of wheat and flour. Had it not been for the Pool the wheat market would have been in a bad way. It was possible to depress the market to dump all the wheat on hand into the market. He quoted statistics worked out by the 'Government Statistician showing an estimated hold-over at February 28, 1931, of 508,107 bushels. The threshings up to March 19 last showed that bushels had totalled 1,750,254. The average at that date was 31.08 bushels an acre, the Canterbury average being 31.04. He thought this figure was high, however, an error having apparently crept in somewhere. In reply to questions, Mr Mulliolland said payment had been spread over some time, as there were several thousands of accounts to be made up, and payments were made as the accounts were made up. One group had been considerably delayed, because the wheat in it had been of bad or doubtful condition, and grading could not be decided upon at the time. It would pay growers to hold damp wheat this season till it was ready. He did not know the percentage of growers in the Pool when it was started, but 130,000 acres were signed up. There were about 6000 actual growers in New Zealand, something over 2000 growers in Canterbury and Otago were in the Pool, or about 55 per cent, of the local growers. If fowl wheat were sold to the millers after being nursed back to milling quality, the growers would receive the benefit of the increased price.

AlimSmitli explained something of the grading system adopted by the Pool. This year the top Pool was f.a.q., wheat in good condition and free from blemish, and of not less than 611 b a bushel. The next Pool contained wheat from 611bs to 591bs a bushel. Then there was the good whole fowlwlieat Pool, of 571bs, wheat free from smut. Below this was wheat running to _ lower weights, followed by seconds which the Pool did not care to handle, as much of it was more like fifths and sixths. The principal trouble round Ashburton was wheat with tares in it. In reply to a question, Mr MacPherson said "there was no charge against the grower in cases where re-gradmg had to be carried out. He detailed the agreement between the Pool and the millers with regard to the taking of wheat.

After a number of other questions had been answered, ai hearty vote of thanks was passed to the speakers, Mr G. Tait saying that what had been said would do a great deal to alleviate the anxiety of growers. . On the motion; of Messrs Tait and A. Wilson, a vote of confidence with the directors of the Pool was passed, with one dissentient.