DWINDLING WOOL CHEQUE

New Zealand Herald, Volume LXIX, Issue 21277, 2 September 1932, Page 12

DWINDLING WOOL CHEQUE

COMPLAINT OF FARMER HEAVY CHARGE FOR FREIGHT The extent to which shipping and allied charges can diminish the value of a wool cheque is illustrated by documents produced yesterday by a Waikato farmer, who was concerned mainly fo show that, whilo importers are complaining about freight rates, the man on the land also has a grievance. "And the farmer cannot pass the charges on," he added. After tho deduction of brokerage and sale expenses 28 bales of wool sent by the farmer for sale in London produced a cheque for £192 7s sd. But the farmer received only £122 Os 6d, plus exchange amounting to £l2 Os lid, a total of £134 Is sd. The balance of £7O 6s lid was absorbed in the following manner:—Freight, £SO 14s; interest on freight, 5s 8d; warehouse entry, 4s 6d; firo and strike insurance, 2s; proportion of cablegram, ss; London dock charges, £l4 9s lOd; port rate, 7s Id; commission at 2 per cent., £3 17s lOd.

Apart from these charges the farmer paid £8 8s to rail his wool from tho Waikato to Auckland, and shipping and other charges at; Auckland absorbed £8 3s Bd. Thus I ho farmer netted £ll7 9s 9d for his 28 bales. Reckoning a bale afc 4001b., the farmer found that 11,2001b. of wool' had brought him 28,207 pence, or about 2jd a lb.

From that return, of course, lias to be deducted the cost of production, and it is commonly reckoned that .a return of h shilling a lb. is necessary to recoup the farmer for his expenditure in producing and marketing the wool.

MEAT EXPORTERS' PROBLEM EFFECTS OF HIGH CHARGES [BY TELEGRAPH—OWN CORRESPONDENT] INVERCARGILL, Thursday Tho high charges involved in the export of New Zealand meat to tho London market were criticised in a discussion at the monthly meeting of tho Southland Provincial executive of tho New Zealand Farmers' Union. Several members quoted examples of tho charges on consignments shipped Home, and declared that the industry was facing bankruptcy.

Mr. E. K. Siin said he had received figures of account sales of a consignment of 63 sheep, including 36 ewes, shipped to London by a Southland farmer. The net return to the consignor was 2s 5d per head, equal to .54d per lb. Tim total charges amounted to 10s 9d per head, including 4s freight and 3s 6d freezing charges. Tho return from tho skiti3 was not included in this. This position spelt bankruptcy for tho farmers if it was allowed to continue. Mr. Walter Clark said that returns which ho had received for his own shipments revealed a shocking position.