NATIVE ADMINISTRATION

Poverty Bay Herald, Volume LXI, Issue 18397, 15 May 1934, Page 13

NATIVE ADMINISTRATION

PURCHASES OF STOCK DEALER’S LARGE PROFITS EVIDENCE AT ROTORUA (Per Press Association.) ROTORUA, this day. The Native Commission was engaged this morning hearing evidence on stock dealing with the Native Department by Donald Wilson, a veterinary surgeon and stock dealer, of Hamilton. The witness said he had known the Native Minister for a number of years, and first commenced dealing with the department in 1951, when the Minister visited him at his residence and they discussed stock. He admitted that he might have made a profit of 38 per cent, on a line of bulls sold to the department for {he North Auckland scheme, but he said this was considerably decreased by heavy expenses in connection with the sale which ho had to meet. He admitted that he bought the bulls in the Waikato at lOgns. each and sold them for 14gns. This price was still belowi tho market rate at the time. He was in a position to buy cheaply owing to his knowledge of Wailfato stock. The chairman pointed out that the farm director ot the North Auckland scheme had communicated with the head office of the Native Department, Wellington, and stated that lie could buy bulls of as good a type in the Auckland district for lOgns. each. The director had given evidence before the commission that in spite of this he had been instructed to buy bulls from Wilson at 14gns. On tne face of it, it was an extraordinary transaction, and required explanation. The witness said he was positive that the farm dii’ector could not have bought bulls of the same quality at lOgns., although witness was able to do so owing to his special knowledge. He admitted that his total transaction with the department over a period of 12 months amounted to £IO,OOO, but said that all dealings had been on the basis of market rates, and that in practically every case the department had bought from him below the ruling market values. His expenses had been heavy, and had decreased his profit, but Mr. Nelson pointed out that operating stock firms covered these charges by a commission of 5 per cent. > Mr. Quilliam pointed out that according to the schedule produced, Wilson sold another line of 62 bulls at a profit of 51 per cent., and a line of heifers at a. profit of 25 per cent. The witness admitted that he had probably sold in excess of 1500 grade heifers to the department during 12 months, and that the profit on these would be in the vicinity of 13s a head. Mr. Quilliam put it to the witness that his gross profit from dealings with the department over 12 months had been £1556 13s 6d.

The witness : I can say quite definitely that the department could not have bought any cheaper than it did from me.

Wilson admitted that his transactions with the department eeas*ed suddenly in September, 1932, but said he did not know whether this had anything to do with the fact that it was at this time that the Audit Department drew the attention of the Native Department to the sale of. hulls for the North Auckland scheme. The witness emphatically denied -that any; person other ithan himself had benefited from his dealings. He had operated purely on his own account as a vendor of stock, and considered his profits fair.