WHEAT PRICES.

Press, Volume LIX, Issue 17701, 1 March 1923, Page 8

WHEAT PRICES.

AGREEMENT REACHED. APPROVED BY FARMERS' UNION. Particulars of an agreement arrived at between wheat-growers and millers were submitted at yesterday's meeting of the North Canterbury Branch of the New Zealand Farmers' Union. The prices agreed on are as follows, a comparison being given with the figures last season:— 1 ■' Last 1922-23. season, s. d. s. d. Tuscan . ..5 1 5 6 Hunters ..5 3 5 9 Pearl .. x ..5 5 6 3 The agreement stipulates that the millers will purchase in New Zealand from New Zealand growers all the wheat required by them for the 1922 23 season, so long as the growers are able to supply it.' The schedule of prices is as follows (1) For good milling wheat grown in the South Island, other than in the provincial district of Nelson and Marlborough, sq,ld for delivery free on board, at the nearest port: (a) In January, February, March; April, and May, 1923, for Tuscan 5s Id per bushel, for Hunters 5s 3d per bushel, for Pearl 5s 5d per bushel, and au increment of Ad per bushel per month to those prices for t each subsequent month up to and including Oc tober. (2) Sold for delivery otherwise than free on board at the nefifest port: a .price equivalent' as regards the seller to the prices aforesaid. For good milling wheat grown in the North Island, or in the provincial, districts of Nelson and Marlborough: (1) Sold for delivery free on rail at the nearest railway station the same price as that fixed by sub-clause (a) hereof for good milling' wheat grown in the South Island (elsewhere than in Nelson and Marlborough), and sold for delivery free on board at the nearest port with an addition of 4d per bushel. (2) Sold for delivery otherwise than free on rail at the nearest railway Station —a equivalent as regards the seller to the price aforesaid.' In addition to the prices mentioned the millers are to pay 2d per bushel for the creation of a fund for the ad-, ministration of the agreement. The millers will pay for sacks in addition to the above prices, fair market value not exceeding Is Id for 48in sacks, and Is for smaller sizes. In caseß where it is necessary to employer a broker, the millers will pay Id a bushel brokerage. Each of the millers will refer, to an official appointed under the agreement all such returns relative to the" purchase and delivery of wheat as the official may require, and will allow him or his appointee to inspect their books for the purpose of rectifying such returns. Any dispute arising between _ a grower and a miller as to the quality, etc., of wheat delivered, is to be referred to the official ox a grader 'appointed by him, any question arising out of the interpretation of the agreement to be decided by Mr M. Myers, K.C., of Wellington. If any miller commits a breach of the agreement by purchasing good milling wheat at prices other than those specified be shall pay to the official, as representing. the other millers, a sum equal to four times the difference between the purchase price and the specified jjrjice. ... " It shall be a breach of the agreement to mill wheat into .flour for sale to the public for which the miller has paid more than the scheduled price, and in respect of such breaches the offending miller shall pay, on behalf of the other millers as liquidated damages, to be assessed by an official, whose decision-shall "be final, a sum not exceeding 3s per bushel on all wheat so milled, provided that nothing in the clause, shall apply to wheat grown in previous seasons, and carried over by the miller. - The award shall be in force until February 29th", 1924. It is provided that in the event of the removal of the Australian embargo, or in the event of.the Government fix-ing-lower maximum prices than £ls 10s for flour, £5 for bran, and £7 for pollard respectively, f.o.b. Lyttelton, Timaru, or Oamaru, or prices equivalent in l either case, this agreement shall cease/to have any force or operation, and any contracts for the purchase of wheat made pursuant to its provisions shall be cancelled so far as concerns any portion of the wheat which shall not have, been shipped or delivered at the time of removal of such prohibition or embargo by the Government of any duch lower maximum price. Nothing in this agreement Bhall be deemed to prevent or to constitute as , a"-breach of the provisions hereof the fulfilment of any legally binding agreement for the sale or purchase of wheat which may have been made prior to this agreement. . ' A memorandum attached to the agreement stated that the gentlemen who signed their names to it with the miller, as representing the wheatgrowers, were the committee appointed by a conference of growers held at Ashburton in January. Those gentlemen were instructed to meet the millers in conference at Christchurch, and to endeavour to arrange a scheme which would ensure the farmers a price commensurate with the costs or growing the 1922-23 crop of wheat, ihey met the millers, drafted a scheme which was laid before the Government, but which they could not accept, ( as it involved them in taking action with regard to the wheat-growing industry which they were not prepared to take. A further' conference with the millers developed the scheme which had been' adopted", and to which these gentlemen, namely, Duncan Cameron (North Otago), Geo. W. Leadley and W. T. Lill (Mid Canterbury), Jas. Macauley, W. W. Mulholland, and E. T. McMillan (North Canterbury), signed their names as representatives of the wheat-growers, and in this agreement they had constituted a board to represent the growers and carry out the growers' part in the agreement.

THE DISCUSSION. In submitting the agreement, the chairman (Mr W." "W. Mulliolland) said that the committee had brought its labours to a successful conclusion. The 2d a bushel would result in a fund of £50,000 to finance the working of the scheme and cover unforeseen losses. The growers would receive a price equal to 5a 2}d for Tuscan if there was no export. He then went into the history of the negotiations leading up to the present agreement, and criticised adverselyg.the action of someone who had attended one of the conferences, supplying, the Press with details of a scheme which it was intended to present to the Government. This action constituted a breach of faith, although the details published were mainly correct. When it was found that the Government would have nothing to do with the scheme, the present agreement was arrived at. With, the exception of two or three millers, all the millers ' in New Zealand had either signed, or signified their intention of signing, the agreement. Of course those "millers who were not bound by the agreement would not need to pay the 2d per bushel allowance. The growers then who sold to those people would get their first and last payment when they

received tlieir cheque for the "wheat. He wanted tJiis to be made clear. The millers were figuring on a reduction in the price of brand and pollcrd, but the price of flour would remain at £ls 10s peip ton. He considered that the growers had every reason to bo proud of the agreement which had been arrived at. The millers had met the growers' representatives in a most amiable spirit, and the agreement should ensure that the wheat-growing industry would continue in New Zealand. Of course it was necessary . that thete should be sufficient wheat grown in the Dominion to obviate the necessity of f wheat being imported. The committee had done'" what it considered best in the circumstances, and hoped the agreement mentioned would prove of benefit to the growers. t In reply to a question by Mr G. Sheat as to whether the millers outside the agreement would be indicated, Mr Mulholland said that probably the information could be obtained in the office. Mr W. A. Banks asked if the millers were under a bond to buy the wheat at once. It seemed to him that the millers would only buy what they wanted from time to time. The chairman replied that this aspect had been considered by the committee. The millers were not bound by it, but ho hitch was expected to occur. Mr W. T. Lill stated that the committee had fought hard for an extra Id per bushel, but could not it, the millers guaranteeing to take 75 per cent, of their requirements by May. Had the Government accepted this arrangement, they would have lost the equivalent of 3s per bushel. This would mean that they would take about 6,000,000 bushels. The growers had been given about Is a bushel more bv the action of the committee than they would otherwise have got. In reply to a question, the chairman stated thkt the millers had nlofc agreed to take more than their requirements. The committee had undertaken the responsibility of this. It would J>e met by the 2s per bushel previously rel- - to. The Government had wide powers and if it found that people were being exploited, it,,could- find rheans to get behind the scheme. The chairman stated that it was the Board which would collect the 2s per bushel. Mr G. Sheat stated that euch a scheme would result m a good deal of criticism. He Considered that the food stuffs of the Dominion weSfe assured for next year. He would go ahead next year with wheat growing in the knowledge' that his price would be a fair one. What would happen, he asked, in the case of those people who had already sold tneir wheat at low prices. The chairman stated that the millers had agreed to pay the new prices for all the parcels sold previously at-about 4s 6d. Mr 1411 stated that there was only one miller in the North Island, and two in the South, who had not signed the agreement, and as 'a matter of fact they did not count. Mr Sheat said that the chairman and the other members of the committee expect a good deal of' adverse criticism from the "Lyttelton Times" and Mr H. E. Holland, \who would no doubt complain that the workers' bread was Tieing, taxed. The chairman stated that there, was no obligation on the part of .the miller to buy through a He could please-himself as to'how he made his purchase. The soheme meant practically a return to pre-war conditions. -4ta the motion of Mr J. R. Cullen, seconded by Mr H. M. Burgin, the committee's action in regard to* the agreement was endorsed, and it was accorded a vote of thanks for its efforts in that connexion. Mr Hall stated that when a„ fanner dealt in wheat he had to wait about twelve ninths for his money. Under the system of grading, however, a farmer should be able to send-his grain into the, stores and get his money for ■it right away. The chairman aaid that probably a discussion between the wMat-growers and millers would result step being agreed to. Such a 6cheme was now being worked in the United States. The motion was carried unanimously. • ■