Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] WEDNESDAY, FEBRUARY 9, 1921. WOOL REALISATION SCHEME.

Manawatu Times, Volume XLII, Issue 1734, 9 February 1921, Page 4

Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] WEDNESDAY, FEBRUARY 9, 1921. WOOL REALISATION SCHEME.

The main features of the Australian v.'ool realisation scheme are as follow: Provision is made for the formation of a company with a capital of £25,000,000. The scheme provides for the formation of an association to control the sale of all the carry-over wool under the Imperial contract which is to terminate the contract for the sale of the Australian wool clips to the British Government provided for the payment to the grower of a flat rate of 15Jd per lb, plus half the profits made on the re-sale of wool not required for military purposes. The Imperial Treasury has been recouped for its advances, and the position to-day is that the returns from the sale of wool still in the pool will be clear profit, and will be devisible equally between Australia and Great Britain. Under the new scheme control of this wool will be surrendered by Britain, and the sale will be placed in the hands of a directorate appointed by the Australian growers. The new organisation will bo called the British-Australian Wool Realisation Association, Ltd., and the assets which it will take over are estimated at £25,000,000. The effect of the scheme will be that every grower will be taking half his profits in a negotiable security, in the form of shares in the new company. Every grower who puts wool into any of the four pools will be entitled to shares in accordance with the appraised value of his contributions. Half his- interest will be given to him in debenture stock and the remainder in shares. Both will be negotiable, but the debenture stock will be a first charge on the proceeds of the sale, and will always be worth its face value. The value of the shares depend, however, on the prices realised for the wool. Each grower may roughly calculate his interest in the association at a little les3 than a sixth of the appraised value of all wool which he contributed to the pool.