FARMERS' UNION

New Zealand Times, Volume XLII, Issue 9721, 25 July 1917, Page 7

FARMERS' UNION

ANNUAL CONFERENCE LAND 'SETTLEMENT AND, TAXATION. The sixteenth annual Dominion conference of the New Zealand Farmers Union was opened at the Chamber of Commerce yesterday. The president (Sir Jam fa G. Wilson) occupied the. chair, and there was a full attendance of provincial presidents and delegates. PRESIDENTS ADDRESS.

The president, in a very exhaustive address, dealt with all matters of interest to the union. Dealing in a sympathetic spirit with the war he pointed out that nothing shpuld be left undone to assist returned soldiers to settle down to profitable work. Referring to the wheat glowing question, ho mentioned that the Minister of Agriculture had visited several districts and held many meetings in relation to future supplies. He had been successful in, completing negotiations in connection with tlio sale of the wool clip; had conducted the sale of portion of the cheese output, and his visit and interviews with farmers. Sir James Wilson firmly believed, were going to result in a great effort to supply sufficient wheat for requirements. If they hod a good soason this would be accomplished. Tho question of Price, however, had still to be settled. If the Government was going to charge anything under 6s 3d there would he a less; Yet, the farmer hero was asked to take lees than that price. Clearly if the price of Australian wheat was to he 6s 3d and bread remain the same price ns at present, then it/ could not raise the - price of bread if the farmers were paid an "O.T.’’ price. After the Minister's experience in. Australia ana the knowledge that harvesting was much more exp-ensivo in New Zealand than in the Commonwealth and the ns* wn.cn was always present in wheat-growing* Sir James did not doubt hut that when the Cabinet finally considered the Order-in-Counoil which must he passed to give the authority to purchase, the fairness of the "'O.T." pnoe would he acknowledged. FROZEN MEAT. Dealing with the question of frozen meat. Sir James Wilson saldi— • "The stores for freight carcases, are more -congested than they _ ever have been. The Prime Minister said there would shortly he four million carcases unshipped, and we have only four months to clear them in. It is certain we cannot do this before the new season begins. It. would take forty vessels, at least, to do this, and that would mean ten a month, so that we may find ourselves with a couple, of millions in storo in November. The worst of this is that it is the cream of our trade which is likely to suffer. Lamb' is not wanted for our troops, and other classes of meat have to be shipped first in. the refrigerated holds. At the end of the season then there must bo a larger proportion of lambs left in store than almost any other floss of meat. Lamb' will begin to come in in December to still further increase this quantity. Prices must fall in consequence, for if the buyers cannot ship their stuff they cannot buy, or if they buy. it must bo at a large discount. This has seriously alarmed those whose principal business it is to fatten lambs. There has been a suggestion made that tho slaughter of ewe lambs should be prohibited, but if this stoppage of sale occurs there will be _a prohibition -of another kind. - Blackfaced lambs will have to be frozen, but at present, it looks as if very tew long-woolled lambs will Tna total cold storage is put down as equal to 4,400,000 freight carcases. If we find the stores with two ,'million in them there is a margin of space for 2,400,000. The output of the year ■ normally is 6,000,000, leaving 3j,600,000- fcarcases to bo provided for by space in oversea steamers. The question resolves itself Into how many of these can be exported during the season; or how much additional storage can be provided. It is possible, of - course, that sufficient space may be--provided on ocean-going steamers; but ■it does not seem likely. Wo are, however, promised seventeen steamers before the end, of September, and Mr Massey, is sanguine that we shall see the season through; but It devolves upon/'farmers ; to provide winter feed for more lambs than are usually carried through the winter. If this is the case. with shortened hands, it is almost certain that it will again affect the area In wheat in the season of 1918-1919.. The farmers will not he able to grow wheat and also provide additional food to carry the lambs through the winter. In connection with the export of ewe and lamb carcases, it has been stated that some exporters have been unduly favoured, and as. these classes are released at Home, by nomination, they had been able to make large profits. Of this I know nothing. I should think, however, that it cannot be laid at the door of the committee which' controls space, for all they have to do is to allocate the number for each port, and I should think have no control over what is being shipped." OHBESB AND BUTTER. ;

As to cheese and butter. Sir James mentioned the storage difficulty, and the dairy people, were proposing to the Government that it should prohibit the slaughter of lambs to allow their butter to be stored. This he pointed out would onlv shift the loss from one set of men to another. The real solution was more cold storage space. WOOL. Wool (Sir James proceeded) fortunately can bo easily stored without cold storage space; but there is still a large number of bales also awaiting shipment. In all, the value of the produce in store must amount to many millions, and we are now faced by the consequences of war ourselves, and it may require great mutual forbearance and considerable hardships before we are ''through the wood.” Sir Joseph Ward estimates that the additions in returns over pre-war rates for produce is .£3,750,000. Many biasedwriters have rushed into print and flung contumely on the farmers for bein"- unpatriotic; for not feeding the people with bread at less than cost price, and for asking a reasonable price tor their produce . It could easily be shown to any fair-minded person that so far is this from being the truth that the prices accepted for their prroduce from the Imperial Government meant many millions less than the market value. Take wool; the value of the previous year's clip - when sold on open market would be at least a million more than was accepted by the fanners when the Minister for Agriculture bought the clip. If the wool had rot been purchased, so great was the demand for it that our clip this last season (at least the wool that reached Home) would have fetched 25 per cent, more than was paid for it here. Our wool has peculiar qualities which make it specially sought after for military purposes—an elasticity not found in other wools—and we mav fairly say that in wool alone the fn rrapr? of Now Zealand ■ have made a contribution to the clothing of the armies of the Allies of at least a couple of million pounds. Our meat has. clearly been a cheap purchase. , Compare the price with what the Argentine people are getting, and it can easily bo seen, that the Imperial Government got it at a cheap rate and we are only sorry that the people of England did not Bet 'he advantage of the cheaper prices when the meat that was not needed for the Armv was disposed of to the retailer.

(Applause.) Cheese, too, came in at a much cheaper rate than that from Canada, and that grown at Home. So that instead of pointing the finger of scorn at the Now Zealand farmer he should receive the l grateful thanks of the Empire on doing his best to feed and clothe the Army and the -armies of tho Allies at such reasonable. prices. SHIPPING.

Another question of great importance (continued Sir James) is that of the shippim of our produce. Shortly after the war began. the shipping combine announced that freights would be raised in the aggregate by about a million rounds. This naturally alarmed the producer, especially as the British uov. eminent provided the wax risk, both on vessel and cargo, at a low rate. We were calmly told that we ought not to object, because we could look upon this as a contribution by the New Zealand producers as a war tax seeing that al additional profit that shipping companies earned was subject to a tax oi ou per cent. I thought it was a P lcce , gratuitous impertinence to make tne suggestion, especially seeing that .f' spite the heavy taxation one shipping company has paid 60 per cent, in a dends, after no doubt concealing as much profit as possible and we have it on the evidence of Mr Bonar Law. that he had invested JSBIIO m hi teen sli-p ping companies, and had received m interest -£3684 and .£3847 respectively during the last two years besides i a steamer which had been sunk and i which he had .£2OO invested. That means that the interest on the 1 investment was 45 per cent, and 47 per cent., and this after paying the 80 per cent, excess profits tax. If one body of men can lav themselves out to exploit another body the first remedy that is at hand is for the latter to find the capital and do the work themselves. This was what gave the impetus to the New Zealand Shipping Co., when it was formed. Freights were so fiign that a company was' formed to provide competition. Most of the shareholders lost their money when going through the slough _of despond, thev fell ' gradually into the hands of capitalists looking for a good Jnvestment. Strange to say it. was the freezing process that caused the greatest loss. Steamers were built, and in tne competition the New Zealand Shipping Co.'s shares fell very low. They were bought up at small poet and when . the merger took place with tho.Bi-®®? Jj* the shares were mostly held in rmgland. Lord Inchoape at the general oi the -P. and O. intimated that .ho had not much fear of any _ shipping company under teh control of or run bv anv Government, and he was probably right. . The producers of New Zealand however dan with the asststanoo of the Government fight this monopoly if they combine. The combination must bo ' complete. Not as is usually the case, that some find the money , and the rest benefit, for that would end in failure to all. Not onlv.must the producer come in, out if necessary the agents must do so too. This moans, however, that Government aid must be invoked, this is nothing unusual. Even in Conservative England, when the Morgan Trust threatened to mop up the whole of the Atlantic shipping Mr Balfour stepped in and advanced to the Cunard line to enable them to build the Lusitania and the Mauretania. At the moment very much the same o°n<l--tion of things has arisen here. iho P. and O. has mopped up both our local ■ shipping companies just in the same way. Shares hold m England, enabled them to control any body of colonials, and I am told that the P. and °- have got a bargain, and that tho price, should have been higher. Bo that as it may, the whole of tho New Zealand shipmng is- governed by one man m London, in© directors and managers here have praotically no say in the matter, and. by u judicious spreading among agents and shippers of commissions and rebates, there is no one to make a fuss, except the producers. It is well known te every one what their position is. Nothinj? short of an Act of Parliament will bring them together, and advantage is taken of them at every, 'turn. .First of all., there is a combination of all shipping companies to exclude any other company coming in. Then contracts are entered into with freezing companies, dairy associations, exporters of all kinds as to freights. Care is taken that these contracts do ■ not run out at the same time, and this is used as a lever when new contracts are being fixed. The representatives here have been so long at this'game that they can play one set against another with the art of a Politician. This will go oh to the end. It the producer does not wake up and take a hand. We must,' however, be all producers and exporters. We are up against a big concern, and probably a bigger concern in. the meat trust as well. - The only way. if we. want to start an opposition company, is. to first nobble the- freights. The only way to ’ fight such a monopoly is te do as they do. They nobble the capital and "call the tune" as to freights; but if all the produce of New. Zealand is’ controlled by another company then the tune is changed. No shipping eompany oan get on without freights m and out. Once control that, or : even e .largo proportion, and terms are possible. Mr Vavasour has put before the public -a scheme to raise the money for such a company by way of levy. This levy has been taken up enthusiastically in Taranaki, where the dairy people have found it an easy means o» raisin <- money for extension purposes. It requires some thought to work out such a scheme and to find out how ter the Government is prepared te assist it. A committee has been set up to make a full investigation on this point, but it would be premature to disclose to what stage'they have reached. A vote of thanks was tendered to the president for his address. remits. LAND SETTLEMENT. The following remits were adopted:— “That the Government be urged to introduce a liberal scheme of laud settlement to induce men to settle on the land in increased numbers. —(laranaki.) , . _ , , ... “That when the Crown deals with Crown' lands in any county council s area, the council be represented in the locating of roads, arranging the subdivision of the land, and fixing tfie rentals of the eame. ,, -~KNorth Canterbury.) "That occupiers of national endowment lands be granted the option of purchasing the freehold, and all be thrown open on these terms as required; that the proceeds, however invested, remain a national endowment. (Auckland.) VALUATION OF LAND.

“That the. Government be asked to have the lands of the Dominion iwriodically valued at intervals of not- .uess than seven years, and that valuations of contiguous counties, be undertaken in rotation according to their position to each other/'—<Taranaki.) "That the Valuer-General be asked to exerci&o greater care in keeping Harbour Boards and other local authorities supplied with up-to-date valuation rolls/'—(Taranaki.) EXCESS PROFITS TAX.

Several remits were received objecting to the excess profits tax. Mr J. Boddie (To Kuiti) moved: "That this conference is of opinion that in place of the present excess profits tax, which has in many cases resulted in great hardship and injustice, tho Government, bo requested to raise the necessary revenue by a graduated land and income tax, and that it reiterates its protest against tho imposition of an export tax/' He remarked that he had heard no justification of the tax, which met with very general condemnation. In many cases farmers had been penalised to a ridiculous extent. The tax offered a great incentive to furnish dishonest returns. There was no doubt

that taxation could bo most fairly imposed by means of a graduated land and income tax. By no possible stretch of imagination could an export tax be approved. , , Mr IV. A. Cox (Southland) seconded the motion. , , Mr D. Jones (North Canterbury) moved as an amendment that tho reference to a graduated land tax should be expunged. He thought it would be sufficient to have the increase on tho income tax. ' Mr R. D. Duxfield (Horotiu) formally seconded the amendment. Tho amendment was carried. Mr A. Robinson (Wanganui) moved an addition to the motion, suggesting that tho exemption should he lowered. Mr G. L. Marshall (Marten) seconded this further amendment.

Mr J. H. Joll (Hawke’s Bay) expressed the view that the exemption should be raised.

Messrs Duxfield, Boddie, and P-. Keegan (Auckland) spoke against the amendment.

Mr G. W. Leadley (Ashburton) regarded the discussion, of such a proposal as lowering the exemption an absolute waste of time. There was no chance in the present state of public opinion of getting it carried. The second amendment was negatived. TJhe motion. as amended was- then agreed to. Mr G. Sheat (Dunsandel) moved: "That tho excess profits tax is unfair to wheat-growers, because they depend upon one crop in every four to compensate ter the losses of previous crops.”—(North Canterbury.) Mr Boddie seconded the motion, which was carried unanimously. BTJTTEIEFAT TAX,

On the motion of Mr Boddie it was resolved:—"That this conference records its emphatic protest against the butter-fat tax as being unjust and uncalled for. and a special tax upon one of the hardest-worked sections of tho community, and urges that restitution bs made immediately to those who have oaid the tax." INCOME TAX.

It was resolved —“That it be incumbent on the Commissioner of Taxes to post to every farmer his form for returns of his income for ■ taxation purnoses."

The following remit from Taranaki was negatived:—“That it be a recommendation to the Government that farmers’ incomes and excess profits and invested capital returns be sot out in one paper instead of in two, as at present, thus simplifying the filling in of returns." j Mr E. Maxwell (Taranaki) moved: "That as 'the labour of a farmer’s family is so essential to the carrying on of the farm work, and so greatly affects the amount of the returns received- the value of such services on a basis of the wages ruling, restricted of course to the proportion of lime spent on purely farm and not' household work, should be allowed as expenses in making up income tax returns. Or, that there should be an additional exemption of. say JJSO for ’each member of the family over sav fourteen years of sgo, who, though not actually on pay, the head of the family makes declaration was engaged for at least a third of their time on the farm work."—The motion was agreed to. It was also resolved that tho Commissioner nf Taxes should be requested to simplify the tax return forms delivered to farmers, , EXPORT TAX, , The following remit from Taranaki was adopted:—. "That the whole producing community mav present a united front in opposition to its adoption, all members of the union, and other farmers and producers b« asked to consider very carefully what the institution of an export tax would mean and load to, and. that the following be presented* as some of the reasons for which it should be opposed:— "(a) That it would offer such a facile means of raising revenue which if once imposed even .for a restricted purpose and limited amount, the temptation to extend the. purposes and amount would, be far too great for any Government ’to resist..

v (b) That it would be absolutely a class tax. hitting the producers only and not at all the professions, manufacturers, traders, employees, or general consumers. "(o) That it would be a tax on the gross product, irrespective of the amount, if any, of profit made. “(d) That it would be a tax bearing inversely in proportion to the payer's means, as to the recognised principle of taxation that the greater individual wealth the greater - in proportion should be the taxes paid. “(e) That unlike in the- cose of the payer of all import taxes, or under the present system of customs duties, the export taxpayer could not pass the amount of the tax’on to the consumer because he has to accept the prices ruling in the world’s markets, which are beyond his control or influence, and which would be unaffected in any way bv the,imposition of a local tax ir..posed at the place of origin." Satisfaction wae expressed at the statement bv the Minister for Finance that no export duties would be: levied this year. DEFENCE MATTERS. The following remit from Taranaki was withdrawn: —“That this conference expresses its sympathy and willingness to heartily co-operate with the Government in their endeavour to carry out the provisions of the Military Service Act. and also that this meeting urges the authorities to deal forcibly with strikers and their sympathisers.' It was resolved—“ That this conference is of opinion that the National Efficiency Board should recommend that in all poses of appeals of shearers and slaughtermen. a trustees board’s report be ob- ( tained for presentation to the Military i Service Board before a decision is arrived at.”—(Wellington.) . It was agreed—“ That in view of the probability that the men of the Second Division mav be called up for service, it is advisable that the ballots and medical examinations be taken at the earliest possible date, so that those interested may have knowledge of what to do in regard to their business. (North Canterbury.) . The conference, after spending the. evening in committee, adjourned until 9.30 a.m. to-day.