AUCTIONEERS' CHARGES

Hawera & Normanby Star, Volume XLI, Issue XLI, 5 July 1921, Page 6

AUCTIONEERS' CHARGES

CONFERENCE WITH FARMERS

A conference between representatives of Wanganui sub-provincial executive of the Farmers' Union and the 'Associated Auctioneers was held at Wainganui last week to discuss auctioneering charges. Mr. Parsons presided. Mr. W. S. Glenn, M.P., briefly outlined the history of the negotiations which led up to the conference. Mr. Poison remarked that so long as farmers insisted on motor car service^ "when viewing stock and occupying the time of the agents, then so long would they have to pay high, rates. If farmers drew in *heir horns and were prepared to put up with conditions which prevailed 20 years ago it might be possible for auctioneers to reduce commissions. He' suggested that the country should be parcelled out into districts and farmers should not be carried to other districts, to view stock which could be obtained in their own district. With curtailed 'charges in this way and a less sumptuous/ service some alteration might be possible.

The spokesman for the auctioneers ; was Mr. Abraham, of Abraham and ). Williams, Ltd.; of Palmer ston North, j Mr. Abraham said he had listened with • interest to what the farmers had urged,^, and "those associated- with him recog- ; nised, as he did, that the farmer is i to-day, owing to events out of his con- j xtrol, faced with a most difficult prob- j lem. There is, however, another side i of. the question, and he would put j matters squarely as they appear to the auctioneering firms. His firm,, and pos- j sibly F. It. Jackson and Go., were till , quite recently'solely engaged in the stock business, and it was only lately that his firm had taken up the produce business because it was found that they could not make a living at the other \.game. The • business at present is not remunerative, and agents are not being fairly paid. He reminded tlie delegates that the stock representatives were trustees for their shareholders, who rightly expected a fair return for their money. He asked them to realise what it would mean to farmers if the stock companies were to call in their money. The auctioneers ifiust keep their clients going and at the same time be able to give a fair return to their shareholders. "Mr;. Poison: The farmers are not getting a decent return. - Mr. Abraham replied that they had had rattling good times 3 and, like other " people, had failed to put'aside funds for a rainy day. , ' The speaKer tnen contrasted the rates ruling here with those in other"countries. At Buenos Aires, in the Argentine the yards are owned by the civic authorities, and every day they yarded from 30,000 to 60,000 sheep and from 5000 to. 8000 head of cattle. Commission rate is 6 per cent., added to whic there are stitf rates by way of yar fees, receiving, and delivering. Cash had to be paid before the stock let*-, the yards, and there was no system of . financing the buyer. Continuing, Mr. Abraham said: In Australia, I believe, the rates for private selling are 1\ per cent., but there the agents deal in thousands as against the hundreds we sell here, whilst at Homebush rates ar« very stiff indeed. What is done here? Our yard fees amoxint to 4 per cent., that is about 9|d in the £, which is the totaf charge made. For this sura we find and maintain yards ourselves •^ we find men to receive and deliver thp stock, we pay all advertising charge?, (a very heavy item), we send a cheque to the vendor next day,_ quite irrespective of whether, we £&$& i^e1 paid ourselves, and, finally, we'fynd, in the greater number of cases, heavy accommodation to the buyer; which means that the vendors get very much better prices. Paddock sales are paid still worse, and, hi these days of motor cars, are run at a dead loss. T¥le Auckland Association have recently raised their rates for paddock sales to 4f uer cent., because they could not make bread and butter at the lower rate. How does that compare with the 6 per cent, plus heavy charges in the Argentine, whilst here the vendor immediately his stook is knocked down can clear off home, knowing that he will get his cheque in due course. In my opinion, you are the best treated farmers in the world, as far as stock business is concerned, and you may be sure that if any particular business is run at a loss, sooner or later that business will go /out of existence. -I have been engaged in this business for nearly 40 years; nevertheless I find there is no chance of my being able to>etire with a competency, during that period I have seen hundreds of farmer? who got their first start at the hands of the stock auctioneer, when no one else would give them credit, who have either retired to live on their savings, or are thoroughly prosperous on the fine farms they now pos86f \u lf y°u wish to reduce rates, then got the Government to treat companies more fairly in regard to income tax. Mow can we do so when we have to pay if ln^ he £ on our P^fits, as that is what the 8s 9d works out at after adding expenses, which are disallowed, and the fact that you haye to pay taxation on the tax paid the previous year He suggested that-the farmers would be helped if they assisted the companies m having these taxes reduced Taxation was the basis of the charges, and he considered that to reduce commissions just now would mean putting the tanner, m the long run, in a worst position than he is now--Ln reply Mr. Fletcher, Mr. Abraham denied that there was any truth in the statement that auctioneers ran ?Ln,°t C+l. fff the beDefit of clienfcs against the farmer. rn^A ehi aJ rm:f ask<L d if the auctioneers could hold out any hope of a reduction of charges later on when better times came. +W FV, Abraham rePl?ed to the effect that he could not give any hope for »uch a reduction l