SURPLUS PROFITS ON WOOL

Otago Witness, Issue 3467, 24 August 1920, Page 14

SURPLUS PROFITS ON WOOL

ACKNOWLEDGMENT OF DEBT FUND.

MEETING OF CONTRIBUTORS.

(Feom Oub Own Correspondent.) WELLINGTON, August 18.

Representatives of the ' woolgrowers interested in the New Zealand Sheepowners' Acknowledgment of Debt to British Seamen Fund met in ..he Parliamentary Buildings to-day to receive a report from the trustees. This fund was inagurated by Mr E. Newman, M.F., who suggested . in 1918 that the woclgrowers should agree to- hand over the money that they might receive when the surplus profits made by the British Government on the sale of wool in Great Britain were distributed. . Many farmers agreed to the proposal that this money should be used for the benefit of the dependents of British sailors who died, or suffered disablement in the war. Mr Newman was in the chair, and about 40 sheepowners were present. The Minister of Lands (the Hon. D. H. Guthrie) attended. Sir Walter Buchanan, M.L.C., Sir James Wilson, and Mr J. C. N. Gngg, members of the Beard of Trustees, were also present. Mr Newman reminded the meeting of the circumstances in which the scheme had been started. The British Government had agreed to pay to the New Zealand growers half of any profit that might be made by the sale of requisitioned wool in Britain for civilian purposes. There had been unexpected and regrettable delay in the distribution of these profits, but it had been announced recently that the Imperial Government had paid over to the New Zealand Government a sum of some £1.600,000 for distribution to the growers,. About one-quarter of the sheepowners in New Zealand had agreed to hand their share of the surplus -profits to the Seamen's Fund, and that the trustees estimated that these shares would amount to a sum of about £250.000. The exact' sum could not yet be ascertained. Mr Newman expressed bis regret that tho number of farmers who had agreed to hand over their shares was not larger. He believed that more farmers would have signed the agreement had not storms in the South Island, and fires in the North Island caused many men to suffer loss in 1918. He did not think that any New Zealand far Tier had yet forgotten the debt that the dominion owed to the Empire's seamen. The efforts and the sacrifice of these seamen alcne had made it possible for New Zealand to ship meat and wool during the war, and the transfer of surplus profits to th-3 fund was a simple recognition of the debt of gratitude that was owing. The farmers who had supported the fund intended to show their gratitude in a practical way. The trustees, added Mr Newman, had made very satisfactory arrangements with the Publio Trustee for the investment of the fund. The Public Trustee would receive the money and pay the current interest upon it. It was proposed that a permanent board should be appointed in New Zealand to control the fund. This board would appoint a London committee, consisting probably of the High Commissioner, a representative of the Admiralty, a representative of the mercantile marine, and one or two prominent New Zealand sheepfarmers now resident in London. The London committee would consider how the money should be spent, and would make its recommendations to the permanent board, which would have full control of the expenditure. It was proposed that the payments from the sum of £1,600,000 now in the hands of the Government should be the final payments to the fund. The signatories would not be required to hand over any money received in a later distribution of surplus profits. Mr 'Newman acknowledged the excellent work of Mr T. R. Lees and a band of Upper Hutt ladies in connection with the fund. He mentioned that income tax in respect to money handed over to the fund would be paid direct from the fund. Legislation would be required to make this possible, but there would be no difficulty about getting the required clause placed in a Government Bill during the session. About 44 men had expressed a wish to withdraw from the fund. Mr Newman read a list of the sheepowners who had changed their minds about handing over the surplus wool profits, and stated that the trustees en legal advice recomr. ended that these men should be allowed to withdraw. No other withdrawal would be permitted. The conference proceded to adopt the following resolutions: (1) That the following gentlemen be requested to act as permanent trustees of the New Zealand Sheepowners' Acknowledgment of Debt to British Seamen Fund: Sir Walter Buchanan (Masterton), Hon. W. D. :S. M'Donald (Wellington) Messrs R, Bcetham (Wellington), 11. M. Campbell. M.P. (Hastings), J. C. N. Grigg (Longbeach), T. R. Lees (Wellington), A. Boyle (Christchurch). G. L. Marshall (Marton), J. Murray (Kaka Point), E. Newman, M.P. (Marton), A. E. Pearce (Wellington), W A. Scaifc (Waimate), W. D Hunt (Wellington), M. Bethell (North Canterbury)- That Mr T. R. Lees be asked als6 to act as hon. treasurer.. (2) That the interim dividend from surplus wool profits row in process of distribution, covering profits made by the Imperial Government on wool sold lit) to March 31, 1919, shall be the final dividend as far as authorities to pay to the Seamen's Fund are concerned. (3) That the trustees be authorised to pay the whole or any part of the moneys belonging to the fund'to the Public Trustee to be invested by him" as agent for the fund, and to hold such moneys and all interest thereon in manner from time to time directed by the trustees. (4) That the trustees be authorised to pay out of moneys received income tax as assessed by the Commissioner of Taxes, and gift duty if payable on the individual amounts contributed, the intention beins it shall be unnecessary for contributors to show amounts subscribed to this fond in their separate income t>ix returns. Mr A. Fisher (Oulverde.n) thought it unfair that any man should be allowed to withdraw from the fund. Jt appeared that many of the big farmers had not agreed to hand over their surplus profits. The big farmers in his own district had not signed. Apparently some men had discovered that the nrofits were larger than they expected, and so they repented of their irenerosity to the sailors He thought that all signatories should be held to their promises. Mr Newman said there was no doubt that whig men had been carried away by enthusiasm, and now wished to retract their promises; but there were cases where withdrawal from the fund seemed 1 bo justified bv circumstances. He had received lettera from men who bad lost sons attho war, and now found themselves financially

unable ti make the gift that they had promised to make. "Certain names had been struck off the list on the advice of the trustees' solicitor. No more names could, be struck oft after the passing of the resolutions.

Mr Fisher suggested that the names of the subscribers and the amounts they had subscribed should bo published, in order that the people might see who had been generous and who had .not. The Minister of Lands thought that the publication of a list of the subscribers could be arranged. He believed that the preparation of such a list would be fair to everybody. A sheep-farmer ?aid that he believed many people had signed" under a misapprehension. He was a small farmer with a big mortgage and a young family. He had signed because he believed that everybody was signing, but he found now that the biff men in his district had not signed, and that he was making a sacrifice that the big men were not making. One of his neighbours had signed under the belief that he was required to do so. He felt now that he could not afford to make the gift.

Mr Newman said the trustees were advised that no more names could be withdrawn.

My Grigg agreed that some of the bur men' had not signed. That was the position in Canterbury. He suggested that a further effort should be made to enlarge the number of subscribers. He moved that the permanent trustees should be instructed to make an effort in that direction. People who would not hand over all their profits might be asked what proportion of their profits they would give. Sir Walter Buchanan pointed out that in voluntary effort it was always the willing givers who made the sacrifices. If the willing men waited untjj the unwilling men moved nothing would ever be done. Several sheep-owners stated that the big farmers in their districts had not signed tho agreement. Eventually Mr Grigg's motion was carried, and the meeting closed with votes of thanks to the trustees and others who had worked to make the scheme a success.