NATIVE AFFAIRS INQUIRY

Evening Star, Issue 21721, 16 May 1934, Page 3

NATIVE AFFAIRS INQUIRY

EXAMINATION OF STOCK PURCHASES [Per United Press Association.] ROTORUA, May 15. The Native A Pairs Commission was engaged this morning hearing evidence by Donald Wilson, veterinary surgeon and stock dealer, of Hamilton, on stock dealing with the Native Department. Witness said he had known the Minister of Native Affairs for a number of years, and had first commenced dealings with the department in 1931, when the Minister visited him at his residence, and they discussed stock. He admitted that he might have made a profit of 38 per cent, on a line of bulls sold to the department for the North Auckland scheme, but said that this was considerably decreased by the heavy expenses which he had to meet in connection with the sale. He admitted that he bought the bulls in the Waikato district for lOgs each and sold them for Mgs. This price was still below the market rate at the time. He was in a position to buy cheaply owing to his knowledge of Waikato stock.

The Chairman pointed out that the farm director of the North Auckland scheme had communicated with the head office of the Native Department in Wellington, and had stated that-he could buy bulls of as good a type in the Auckland district for £lO 10s each. The director had given evidence before the commission that, in spite of this, he had ■ been instructed to buy bulls from Wilson at £l4 14s. On the face of it it was an extraordinary transaction. and required explanation. Witness said he was positive that the farm director could not have bought bulls of the same quality at £lO 10s each, although witness was able to do so owing to his special knowledge. He admitted that his total transactions with the department over a period of twelve months amounted to £IO,OOO, but he said that all his dealings had been on the basis of the market rates, and that in practically every case the department had bought from him below the ruling market values. His expenses had been heavy and had decreased his profit, but Mr Nelson pointed out that the operating stock firms covered these charges by a commission of 5 per cent. Mr Quilliam said that, according to the schedule produced, Wilson sold another line of sixty-two bulls at a profit of 51 per cent., and a line of heifers at a profit of 23 per cent. Witn iss admitted that he had probably sold in excess 1,500 grade heifers to the department during the twelve months, and that the profit on these would be in the vicinity of 13s per head.

Mr QuiJliam put it to witness that his gross profit from his dealings with the department over twelve months had been £1,556 13s 6d. Witness: I can say quite definitely that the department could not have bought any cheaper than, it did from me. Wilson admitted that his transactions with the department ceased suddenly in September, 1032, but said he did not know whether this had anything to do with the fact that it was at this time that he Audit Department drew the attention of the Native Department to the sale of bulls for the North Auckland scheme. Witness emphatically denied that any person other than himself had benefited from his' dealings. He had operated purely on his own account as a vendor of stock, and considered his profits fair. The first witness in the afternoon was J. H. Watson, accountant of the Wairiki Native Land Board. Witness said he had held this position for the past four years, previously being on the staff of the Lands Department. He said it had been impossible to carry out a proper system owing to the shortage of the staff, which grew steadily more acute. Ho knew the system that was required, but he did not have the staff to carry it out. The system of keeping the majority of the main accounts in Wellington also made it very difficult. The whole of the accounts had now been transferred to Rotorua, and the staff had been increased, with ttie result that the position was now quite satisfactory. The posting of the units accounts was still a year in arrears, but he considered he would catch up by the end of July of this year. Prior to this he had done his best with the limited staff, but had been obliged to let some stock records fall behind. He contended, however, that his records, were sufficient to account for the stock numerically. His office was not concerned with the financial side of stock matters, which was attended to m Wellington. He admitted that an over allowance had boon paid to Mitchell on the Maketu scheme owing to the fact that witness misunderstood the regulations. This had since been rectified.

To Mr Hampson; Witness said that there was no doubt that the schemes would not have progressed as they had done without the influence of Tai Mitchell, who had not spared himself in spite of the fact that he had not enjoyed good health for a considerable period. William James Scott, farm supervisor for the Native Department in tho Rotorua district, said that all of the schemes in and around Rotorua came under his supervision. Witness said that the schemes had grown so vapidly that ho had been quite unable to supervise all the work in hand adequately. He undertook most of the purchases of beef cattle and sheep, but not of dairy cattle. Some of the latter ho did not consider good purchases. Dealing with various schemes, witness said that personally he would uot recommend taking up the Horohoro country for dairying, but lie had not been consulted with regard to the land to he taken up in this area. He also considered that it was probable that the eventual capital cost would be £l4 or £ls an acre, which would be loaded on to the land, and would make it impossible for the unit occupiers to farm it successfully under present conditions. He considered that a great deal of it could be worked as a payable proposition at £lO or £ll an acre, but it would have to bo written down. He did not think the costs of the implements used on Horohoro and subsequently taken to other schemes should be loaded on to the Horohoro land. The same applied to the cost of the internal loading of blocks. The Natives were of a good type and were working well. He thought that if the capital charges were written down they would manage to pay their way. He criticised the system of manuring adopted, which he did not consider suitable for the Rotorua land. This had been formulated bv the Cawthron Institute. and carrier! out on instructions from the Native Minister, but he considered the results shown were not effective. A fair proportion of the pasture would have to be reconditioned. He considered that the Horohoro country could have been bought in for £l2

an acre if.hor teams bad been used instead of tram's. The rough TTorolioro count rv vk not suitable for tractors. which ba proved very expensive, and further tided the costs on Die land.