WHEAT POOL.

Press, Volume LXIV, Issue 19285, 14 April 1928, Page 16

WHEAT POOL.

GROWERS' PROPOSAL. DISCUSSED BY FARMERS' UNION ' A meeting of wheat-growers held last' night in the Northern x A. and P.' Association's rooms fn Rangiora carried a resolution approving of the setting up of a wheat pool. The committee set up for the purpose at a confcrenco held in Eangiora on Tuesday night presented the following report, which was released for publication, after consideration in committee: The Scheme in Detail. The representative wheat-growers of Hangiora ( district, having realised the need of a better method of marketing wheat, submit the following scheme for a wheat pool. This scheme having been submitted to a large conference of representative wlicat-growers north of the Waimakariri river, at Itangiora on April 10th, 1928, was unanimously endorsed by them. (1) Articles of incorporation of the New Zealand "Wheat-Growers' Association (Inc.), New Zealand. (2) We, the undersigned, all of whom are residents and citizens of the Dominion of New' Zealand, do hereby voluntarily associate ourselves together for the purpose of forming a capital stock corporation under the laws of the Dominion of New Zealand. (3) The name of this corporation shall be the New Zealand "Wheat-Grow-lers' Association (Inc.), New Zealand. Purposes of Association. (•1) The purpose for which the New Zealand "Wheat-Growers' Association is formed is as follows:— 1 (5) To promote, foster, and encourage the business of producing and marketing wheat co-operatively; to minimise speculation and wasto in the production and marketing of wheat; to stabilise wheat markets; to handle co- • operatively and collectively the prob.lems of wheat-growers. (G) To engage in any activity in connexion with the production, grading, handling, processing, storing, shipping, freights, warehousing, and marketing of wheat for. domestic or export trade, and in the financing of any said operations.

(7) To take over and sell any member's wheat, and. to purchase and sell machinery, equipment, and supplies used in any of the above-mentioned activities, -either by the Association or by the members thereof. : (8) To borrow money,and niako advances to the members of the Association, on wheat.taken over from them by the Association. , Endorsements and Guarantees. (9) To endorse, guarantee the payment of, or secure, in any way commer- • cial paper or .negotiable instruments signed by any, of the Association, or by any related or- subsidiary corporation or association. (10) To sell, issue, .oiscount, or borrow money upon any commercial paper or negotiable instruments or promissory notes ori warehouse .receipts,, or. mortgages, or bonds, pr any other kind, of property or security owned by or under the control of ]the; Association. (11) To act as- tho agent,.represenor ; .broker elf its members in any of the above activities.. • , (12) To purchase or otherwise acquire, and- to- hold, own, exercise all ; rights of ownership, sell, transfer, or pledge shares of the capital Btock, or bonds, or securities of any corporation ' -or association engaged in the process- , ing, or grading, or. storing, or shipping, or handling, or marketing, , of any wheat. (13) To'buy, hold, lease, construct, contract for, the use of and exercise, all privileges of owpership pver such real ' or personal property as may be neces- . sary or convenient for the conduct and operation of any of the business of the , Association. 1 (14) To acquire, own, develop any interest in patents, trade marks, or necessary in carrying out the business of the Association. (15) And to do each and every thing necessary suitable pr proper in the judgment'of the directors of this Association, anywhere throughout the world, for the accomplishment of any bf the pur- ' poses or attainment of any one or more of the objects herein enumerated, or which shall at any time appear con- . "ducive to or expedient for the interests or benefits of this Association, and the members thereof, and to contract accordingly. ,

Purely Co-operative. '' (i6),Tiie New Zealand Wheat-Growers' Association shall make no profits from any of Its 'activities; but iall of its operations shall be commercial, but cooperative in' character. The operations nnd activities of this Association-, shall be liniited to activities arising out of the production, processing, grading,' "shipping, storing, warehousing, handling, : and marketing of the wheat of its mem- . bers 6nly and to the fihancing of any of the-said operations of its members. \ (17) The New Zealand Wheat-Grow-lers' Association shall not be permitted :• to buy or sell .wheat except ;from and J for its members only, and on a standard ' co-operative basis. -It Shall' V.'not buy [any wheat whatsocver from non-mem-rbers, or be permitted to go in the open 1 market to buy wheat. - -

(18) The New Zealand Wheat-Grow-j'crs' Association is expressly forbidden ■ to do anything with the intent or effect ' of limiting or fixing the price; or of lessening the production or sale of any ! product; or of restricting or limiting the • output of any product; but this Association shall do everything within its power to" prevent speculation in the , handling of wheat, and to secure for ■" its members a fair price for their wheat 'in the markets of the world; and to. increase the prod" !tiop, sale, use, and !• consumption of wheat and wheat products lry all .possible commercial' and merchandising methods; and to ' use every possible mo«".s to extend and increase both the supply and the demand for wheat and wheat products. (19) The New Zealand Wheatgrowfrs' Association shall not be organised or operated for profit; but all of its operations shall be for the mutual benefit of its members, all of whom i arc wheatgrowers in the Dominion of New . Zealand. (20) The Association shall have and exercise all powers and rights authorised by tho laws of this Dominion and all powers and rights incident thereto. (21) The principal place of business of the New Zealand Wheatgrowers' Association shall be Christchurrh.

For Three Years. (22) Tho term for which tho New Zealand Wheatgrowers' Association is to contract is three years from and after the date of incorporation. (23) The New Zealand Wheatgrowers' Association shall be managed by u Board of Directors of seven, who shall he elected by ballot by the members of -the Asso"i"'!on who shall hold ollicc for one year. . (24) ,The property rights of each member shall be equal; and each member shall liavo ono unit of property - tights only. (25) The Association shall issuo to ■each of its members out of its capital

stock, one share only of five shillings (•Is) at par and fully paid up, and that i-'ach grower shall pay with his application for his one share, the sum of fifteen shillings (15s) to defray the costs of the Association. (26) That the area be divided into seven districts, with one representative from each district. Machinery Clauses. (27) A director must be a wheatgrower and resident in the district he represents, and must bo nominated by ten members, and in ease of more than the required number being nominated, those securing the highest number of votes shall be declared elected. (28) The directors so elected shall meet within fourteen days and elect their own chairman. (29) The directors shall elect three of their number to act as an executive. (.10) An annual meeting shall be held each year during the month of November and shall be held in Christchurch, Ashburton, and Timaru consecutively, at which every member of the Association shall be entitled to vote on any measure submitted to the meeting. (31) All expenses incurred by the directors while performing the regular duties of the annual, ordinary, or special meetings, shall be paid by the Association as part of its general expenses. (32) The Board of Directors shall be paid such sums for their services as'the annual meeting may from time to time determine.

The Discussion. The chairman of the meeting, Mr A. M. Carpenter, said that the wheat question had always-been a vital one to the district and because of this the farmers associated with the scheme, who repre.sented about 18 per cent, of all the wheat grown in the Dominion, had always taken a lteen interest in the matter. He considered that the scheme should commend itself to business men, farmers, and other sections of the community. He drew attention to the Canadian scheme, stating that it had proved beneficial to the whole of that Dominion and had been evolved because of. the previous bad conditions under which Canadian growers worked. He was glad to know that the growers themselves had brought about such changed conditions. When good men in New Zealand were seen walking off their farms, leaving their crops behind them because of unsatisfactory conditions, it was obviously time that a wheat pool scheme was brought into existence here. The local growers were indebted to Mr J. E. Strachan and other gentlemen for the interest they had taken in the proposal and the work tliey had undertaken in order to acquaint New Zealand growers of its advantages, Mr Carpenter believed that the scheme would solve the questions of storing, financing, and selling the wheat grown in New Zealand.

Middlemen !s Profits. Mr C. V. "Woodfield said that some years ago a farmer growing wheat had to chop down a tree and. make the implements necessary to go ahead with his industry. Inside bis house his wife had to spin the material necessary to provide articles Of apparel worn by the family. Gradually' conditions industrially. began to improve, but farnjert continued to buy their implements and other necessities retail while they sold their products' at wholesale prices. The time'had come when farmers should get a fair . remuneration for their services; at present they were not doing so. The prices fixed by the law of supply and demand had not been applicable to the New Zealand farmer. A system had grown up which had enabled middlemen to provide transport, finance, and grading services to farmers at a high rate of profit. He stated that the problem was an economic not political one, and should be treated as such. Mr Woodfield went on to state that the Government's, handling of the wheat question in the past had been conducted on : wrong lines. Instead of wheat being dumped on the market in the first three months. of the season, it should be handled by farmers' organisations and the supplies sent forward regulated so as to get the world's parity.

' Good Besults From Pool. lii Canada, before the establishment of , a wheat pool, farmers were in a similar position to that obtaining in New Zealand to-day. This had been eliminated by the wheat pool, which was nothing more or less than' a scheme to bring' the farmer up to date in his business methods. In fact it enabled him to ' mind his; own business. "What, he asked, could be better for the stock agents than to have prosperous farmers in the- country around them, and what could be better, for bankers than to have farmers prosperous instead of waiting on' their doorstep for assistance. A pool, which would* cost very little tp operate, would bring this about. A great deal of the. cause of the rise and fall in the price of wheat was due to £ s d. A farmer borrowed money from a and 'looked forward to making paymentwheii he ' dispatched his wheat to the market. He sent the bulk of his wheat' forwaird in the first few months of the, year, with the result iliat prices were forced down and speculators saw their chance and operated accordingly. If the supplies were regulated, it would restrict the operation of speculators and decrease the fluctuation of wheat prices in the spring and after harvest. He ventured to state that shortly after a wheat pool was operative in tho Dominion the difference in the price of wheat in the periods mentioned would be no more than 3d per bushel.

Mr J. E. Strachan said that during his visit to America aa a trained observer, not as a practical fanner, ho had learned that the reason farmers were prosperous there was because of co-operative trading. He was convinced that the loss of from £150,000 to £300,000 that farmers made annually in the Dominion of New Zealand could be obviated if the question were tackled in a proper manner, that was by co-operative marketing. He desired to point out that a pool did not aim at holding up the community for higher prices and increasing the price of bread; it would ensure world's parity and would reduce marketing costs. Nothing would more quickly or effectively restore Now Zealand to prosperity than a contented and industrious farming community and he did not think that- a wheat pool scheme would ever be opposed by business people. Eesolution Carried. After further discussion it was moved bv Mr W. Stalker, and seconded by Mr \V. Panned: "That this meeting of wheat-growers is strongly in favour of a wheat pool oit the lines set out by the sub-committee appointed for that purpose, ami pledges its unstinted support of same if carried into effect."-

The Mayor of Onchunga, Mr W. </. Coldicutt, is of the opinion that the annual reopening of old v.ar wounds on Anzac Day is not the correct thing. The Hcv. I>. D. Scott wrote to tho Town Clerk suggesting that the Mayor .should call a meeting of the clergymen of Onuluutgu to make arrangements for the usual religious service on Anzac liny. When the letter was read at tho last meeting of tho Council the Mayor said, "I am not in favour of these services being kept up. it is not the correct, tiling. They only serve to bring hack tiie miseries which happened on that day. If I "had hist any of my near relatives I would not like to have the bitter memories revived every year." Or. Moor: "If everybody thoug'it like that, nobody would attend tho services. That is not the idea of Aiv/.ac Day at all." It was agreed to make the usual arrnrgemonls for Anzac Day services.