THE WHEAT POOL

Ashburton Guardian, Volume 53, Issue 13, 26 October 1932, Page 3

THE WHEAT POOL

THREE YEARS' OPERATIONS.

SUM OF £31,438 FOR RESERVE.

(Special to the "Guardian ") CHRIBTCHURCH, This Day. A reserve fund of £31,438 from the wheat pools of the seasons 1929-30-31 was revealed at the fourth annual meeting of the New Zealand Wheatgrowers' Co-operative Association, Ltd. held in Christchurch yesterday afternoon. The sales in those years represented a turnover of £2,286,001, and advances .to growers amounted to £2,044,190, a difference of £241.811, which was spent as follows: Brokerage, interest and exchange £63,474, storage and handling £128,702, charges and' salaries £17,607, transfer to reserve £31,416, and reserve for unpaid store charges and contingencies £612. The liabilities included authorised capital of £50,000, less unallotted shares of £35,859 and uncalled £10,606. The assets included investments of £24,227, sundry debtors £9041, cash £935, office furniture £459, and preliminary expenses £3740, making a total of £38,451. The chairman of directors (Mr W. W. Mulholland), who presided over an attendance of about 40 members, stated in an interview after the meeting that he was of opinion., that, as far as he could see, the reserve fund of £31,438 would remain intact during the coming year, as the new marketing scheme would probably relieve the Wheatgrowers' Association of liability in the disposal of wheat. There was as yet no suggestion of winding up the association. The report stated that the obstacles to be overcome before the proposed Wheat Marketing Agency Co. would become an established and satisfactory organisation had, for the greater part, been surmounted. The organisation had proved of inestimable value to all wheatgrowers. The directors decided that in view of the operation of the scheme it was unnecessary to enforce the wheat-selling contracts between, the growers and the association for 1932, and growers were advised that they were at liberty to deal with their wheat from last harvest without further reference to the association, but that if they so decided the association was prepared to handle it in terms of its agreement. If the wheat marketing scheme continued in operation for 1933 no doubt a similar policy would be adopted by the incoming directors.

"Both Sections Identical." It was to be regretted that \ there still existed in the minds of some growers the designation of "Pool" and "free" growers—a difference which, if existent in name, should bo non-exist-ent in all other respects, since the aims and objects of both sections were identical. The directors continued to look to the day when such distinctions would be superseded by a still stronger desire on the part of all wheatgrowers to show ,a united front against the many anxieties that beset the industry now even more than in the past.

The reserve fund resulting from the operations of the Pool was held by the association on account of growers. The directors felt that they could not stress too much the wisdom and necessity of keeping that fund intact. If it were distributed, the individual amounts paid to each grower, or in many cases to his broker, would have no appreciable bearing upon his financial position to-day, whereas in the aggregate, in the hands of tho association this fund constituted a vital factor in the effectiveness of an organisation for the protection of members. The greater part of the fund was being held in liquid form and readily realisable securities in order to be immediately at the directors' disposal should it be required at any time to deal with an emergency.

Heavy Yield Expected. During rue past year wie association hau handled wneat irom ooxn "i-*ooi" and "tree'' growers, ana, in adamon, nad undertaiven ocner services lor growers in order to cover tne snuui overhead that resulted Irom tiie muchreduced stalls and salaries. Statistics obtained irom a large number or Pool growers indicated an increased wheat area or approximately 10. G per cent., which, in view ol the condition existing to-day, gave promise of a heavy yield, and consequently a surplus. There nad been a great deal of comment regarding the importation of both milling and fowl wheat from Australia. In both instances the importations were inevitable owing to the shortage of New Zealand supplies. That afforded a clamorous section ol North Island merchants and consumers a pretext for extensive propaganda.

Combating Propaganda. Tho association's two representatives on the directorate of tho Wheat Marketing Agency Co., Ltd., agreed that the most prudent policy to adopt was that of importng the minimum possible quantity ol Australian wheat necessary to meet the immediate requirements of the milling and poultry industries, without detriment to the growers' interests. Those importations were held up until all local wheat had had an opportunity to find buyers. No opportunity had been lost to combat the ceaseless propaganda of northern interests to induce the Government to abolish the protection that the sliding scale of wheat duties afforded.

Bad debts stood in the books at £227, and, while regretting the necessity of having to report a loss under this heading, the directors felt that, taking into consideration tho prospect of recovery of some small portion of that amount, and in view of the very severe financial crisis existfng throughout the year, a loss representing .009 per cent! of turnover showed very careful attention on tho part of the staff.

The Thr«e PoOhls. The three pools were now finalised, stated the chairman, in moving the adoption of tho report adld balancesheet. It was the irony of fate that m the one year out of four in which the Pool would . have done very well was

the one in which it was not operating. Ho referred to last year, when larmers were willing to sell their wlieat at as low as 3s 8d per bushel. However, a much better system of marketing had been introduced, and had worked .sici.isfactorily to the benefit of all growers. The speaker felt that a short crop was evon more dangerous than a reasonable surplus, as the former gave a chance for fairly effective propaganda by those opposed to the industry. The Wheat Marketing Association had managed to arrange matters without embarrassing any section in the country. He appealed to all growers to pull together and to forget the bogey of difference between ."Pool" and "free" growers. The suggestion of the Minister of Agriculture (the Hon. C. E. Macmillan) that there should be a conference between the wheat-grow-ers of the South Island and the consumers of the North would probably be given effect to.

Outlook Promising. Prior to the present deluge of rain the outlook was the most propitious tor years, as the crops gave promise of very heavy yields. It sunshine followed 'the rain little or no harm would be done, and farmers would have to be satisfied with turning over a large amount of produce at a low price. The marketing of next season's crop was now being arranged by the Wheat Marketing Board, but it must be remembered that a heavy crop naturally brought about a fall in price. In the Wheatgrowers' Co-operative Association farmers had the most efficient voluntary organisation in the Dominion, and its work had given proof of the capacity of farmers to unite for their common good. Election of Directors. The following were announced as the directors for the ensuing year: Messrs W. W. Mulholland, James Carr, P. R. Talbot, R. B. Meek (elected unopposed), A. W. Barnett, John Brown and J. U. Hall, The association was fortunate in having such a capable group of directors, stated Mr A. Fisher (Culverden). They had battled hard against.adverse conditions. The remuneration of the directors was fixedi at £SOO, to be divided among members. The chairman stated that only £4OO of the £SOO granted last year had been appropriated. Motions qf thanks were passed to the chairman and directors and the staff.