WHEAT DEALINGS

Otago Daily Times, Issue 16978, 14 April 1917, Page 8

WHEAT DEALINGS

SOME QUESTIONS TO CONSIDER. (Feom Oub Own Cobbespondent.) WKLLJJN-UTUN, April 13. The Board of 'irade is going to Christchurch on Monday to discus with farmers, morchanti, uaid milters certain questions that havo arisen in tlio development of tho Government's wheat purchase enterprise. Tho Government lias tixed the prieo of wheat at 5s lOd per bushel, f.o.b. if all the wheat wero brought to a port and actually shipped no question would bo at ail likely to uiise as to tho effect of the term t.0.b., but tho fact is that only some of tho wheat is shipped. The maximum price is that probable lor wheat delivered at some main port of shipment, and if tho wheat is purchased free on rail at a country station the grower or other sellex is entitled only to tho lixed price less the cost of transport to tho nearest port of shipment. It is, therefore, a breach of the Ordor-in-Council to pay any farmer the prico of 5s lOd per bushel frco on rail at a country station. In tho same way, if a farmer sells liis wheat to a country mill, of which thoro axo a few in Canterbury, he is not entitled to receive tho f.0.-b. price. If, for instance, a llangiora fanner sells his wheat to the local null lie is entitled to payment at tho rate of 5s lOd per bushel, loss tho cost per bushel of transporting- that wheat to Lyttelton, even though tnoso costs havo not actually been incurrod. There us a misunderstanding also regarding tho payment of brokerage. Brokarago is allowed for service actually performed. If a Wellington merchant instructs a Christchurch firm to buy for him a certain quantity of -wheat the Christchurch firm is entitled to buy the wheat at tho current market prioo, which ia now the fixed price, and to charge brokerage, but it is not legal for a merchant to charge brokerage on the re-sale of wheat which ho has himself pnrohased on his own account at tho price fixed by the Government.