THE WHEAT QUESTION.

Press, Volume LXII, Issue 18677, 28 April 1926, Page 11

THE WHEAT QUESTION.

TO THE EDITO* OF "THB PBESS." Sir. —Mr Corson and other millers are, I understand*, interviewing the Minister in connexion ■ with wheat duties on Thursday, but Mr Corson has not been candid with the A. and I'. Society. In the figures which he gave to the committee; he was caret'ul not tp say. anything about the profits made by the millers on the flour manufactured for the making of brown bread, and this has been carefully concealed by all the millers when giving their costs to the public. The estimate of bran and flour out of a ton of flour is 8001b. This would be sold at about an average of £7 per ton, but when it is ground, for making brown flour, it all goes in, and is sold at the full price of £lB per ton, giving the miller an additional profit of somewhere from £3 to £3 10s per ton of every ton .of flour gold for making brown bread. The consumption of this article has very largely increased, many households eating nothing else, and many taking half of brown and half of white. Mr Corson is, however, chairman of Distributors, Ltd., and can get, full particulars .of the quantity at short • notice, And the public and the committee-are entitled to obtain all the particulars to'morrow before going to interview the 'Minister. These are some of the undisclosed facts,, and there may be others which pave the way for the- Timaru imillers' 15 per cent, dividend. •, Mr : Corson would be able-to give in a few minutes the quantity sold by Wood 'Bros.—Yours, etc., " ' " • ONE WHO DESIRIB ! ALL THE FACTS.

TO TOT IDXIOa OJ "the vrib»." Sir, —Mr H. .M. Burgin wants to know why Dominion millers ask more for their flour than Australian millers. May I ask him why growers here want 7s per bushel for their' wheat) when Australian farmers sell at',ss (3d per bushel P There are doubtless good and sufficient reasons ia both cases. Will Mr Burgin • give us the growers' reason for the difference of Is 6d per bushel P Yours, etc., LABOUR. to tecs xditob ot "the wess." Sir, —Mr Gardner's .costs and profit of milling are valueless, but the balancesheet of his milling company is full of interest and profit. The paid-up capital is £13,975. After allowing £566 US' for deprecation, reserve for income tax . £132 Os lid, directors and audit fees £271, the balance available for distribution'is £2503 9s 2d. It would appear that the company could have paid 20 per cent, dividend instead of 10 per cent.—Yours,'etc., i

I GOOD WHEAT PRICES. TO THE EDITO* 0* "THE MUSS." Sir, —I am afraid' lam long overdue in congratulating the North Canterbury Farmers' Union on moving the wheat industry another step forward. Their decision for the formation of a Wheat Pool, with the consent of growers, and also a note of advice not to sell wheat in the meantime under 7s a bushel, will, if given practical effect, to, go a long way towards stimulating wheat-growing.

We have to thank the millers for placing us on the right track. ijy dictating the prices to the growers, they have shown us our weakness, and the helplessness of our. position unless we organise in self-defence. I hare already stated m your columns that we should not be too closely tied to the Flourmillers' Association. Their whole aim seems to have been the removal of the duty 6n wheat. With this end in view they combined with the Poultry Association to enlist the sympathy, of Cabinet. Compare their attitude with that of the wheat-growers. We decided at the Ashburton Conference in favour of adequate duties on both wheat and flour, the impression then being that a higher*duty than at present be placed on flour. Farmers have appreciated the value and the rights of the flourmilling industry, and I trust I am not uncharitable in stating that the millers have • not reciprocated that ypirit. Take the present position,. for' instance. If the flourmillers really desire wheat-growing to expand, why are they now offering farmers prices below market value!'' Many of us early in the season sold our wheat to millers at'7s and 7s 3d a bushel, and the' market prospects for increased prices for wheat in Australia' are even better now than then. In 1 act indications point toward stocks'in'Australia being'reduced to a very small compass before very long; and it is a pity if farmers sacrifice their holdings. The yield in Australia has decreased from 160.000.000 to 110,000,000, and there have also beea heavy exports from there. As you point out in your leader of to-day, the millers paid 7s a .bushel for wheat last) year, with flour at the same level as it is' to-day. There is also this additional point. viz., that the quality of the Dominion's pram has never been better than it is this year,. and 'surely this factor should influence the price. Re- . cently a table of milling costs appeared

ui your columns. In reply to that, I would, state that if.the wheat-farmer based his costs on tho same liberal wale he could never produce wheat under 7s a busheT. * Aga> n - yhat- right have tbe millers and the North Canterbury A. and P. Association to discuss the question behind closed doors? The public have ev ® r . v right to know the particulars, and I for one have no time for this secret business on a public question, as °nly tends to arouse suspicion. Wheat-growers have been suffering through unfair treatment, and we prefer our case to stand the light of public opinion. fCvery wheat-grower who 13 hoodwinked by the millers into selling his goods at under market value is playing into their hands, and injuring his own industry. At the -same t»nie, as 1 pointed out before, the Government, shoulfl investigate the question from the millers' point of view, and ascertain if the duties on wheat and flour are equivalent, which obviously is not the case, judging by the imports of flour.

And now regarding a Wheat Pool. Canada, the United States, and different parts of Australia all have their Wheat Pools; while there is at present in America an agitation to organise a World Wheat Pool. For that and other reasons Australia sent a Mr McDonald as her representative to the American Wheat Conference, and he has recently returned with what he considers valuable information ou the subject of Wheat Pools, both in Canada and the United States. It is to be hoped that all information possible will lie obtained in regard to the working of these pools, before inviting growers to form one here.

,Quite recently a distinguished visitor to this Dominion, Sir Frank Heath, stated that farmers here had given sooie attention to the growing of wheat but had neglected the-sale of it. Some time ago I stated that "it might be all right in a year of shortage to act as individuals, but in a year of full supply, a Wheat Pool would be necessary for the protection of the weak holders." When writing this I little dreamed that outside interests would be able to dominate the position in face of a shortage, but such has proved to be the case. A W r heafc Pool in 6elf-defe.uce would serve to place tho wheat-growing industry in line with other businesses. Whatever steps may yot) be taken in the matter, one thing is certain: the must have that definite assurance that will enable him to act with some measure of confidence. We ought also to appreciate efforts such as "The Press" is making towards that end. It is unfortunate that a groundless attack has been made on your columns by a body of farmers in whose interests as a whole vou have been consistently working. Wheat is worth practically 8s landed at South Island ports, while fowl wheat costs. close on that landed in Auckland.' Far ■better to organise for tho protection. of our own goods while there are so many factors working in our favour. Thanking you.—Yours, etc.. WM. STEWART. Waimate, April 26th.