WOOL CHEQUES PAID

Otago Daily Times, Issue 27568, 9 December 1950, Page 10

WOOL CHEQUES PAID

First Auckland Sale

FARMERS RECEIVE ABOUT 64' PER CENT.

PA AUCKLAND, Dec. 8. Auckland farmers yesterday received wool cheques totalling about £3,000,000 as proceeds from the first main Auckland wool sale last month. One-third of the gross sales return of each grower was retained by his woolbroker in accord with the Wool Proceeds Retention Bill. This week’s pay-out is more than double the amount the farmers received after the first main sale last year. Each grower receiving a cheque was asked if he wanted the frozen credit placed in a trading bank account or deposited through his wool broker in a special trust account. The farmer, after deductions for freight, classing charges, and brokerage, received yesterday about 64 per cent, of the price his wool realised. . Since the record-breaking sale last month, stock and station agents have noticed farmers buying more fertiliser. The manager of one broking firm said it was wrong to suggest that they were rushing to buy cars for every member of their families. “ Most have earned their money the hard way, and they will spend it wisely,” he declared. Wire and galvanised piping—which were scarce today—would be bought by farmers as available. He predicted both would help to raise production. Brokers say there is no evidence to show that farmers are spending more than usual, except on their farms to clean up accounts where monqy had been advanced against wool cheques. Because of the high value of wool extensive fire precautions are being taken to protect lots in store for the next sale in January. These include “ dummy ” runs by the city fire brigade in the early morning at least once a week to the wool stores in Beach road. Insurance companies have never had to carry such heavy fire risks on wool before, and considerable reinsurance has been done London. To keep down the value of wool stored under any one roof, farmers have been asked to hold their wool for the third sale in March. Only m urgent cases is wool being accepted here by road or rail transport.