PURCHASES OF STOCK

Waipa Post, Volume 48, Issue 3467, 17 May 1934, Page 5

PURCHASES OF STOCK

FOR MAOjRI DEVELOPMENT SCHEMES. BUYER GIVES INTERESTING EVIDENCE. Quite a number of Te Awamutu and neighbouring district farmers who sold young bulls about eighteen m'onths ago to a buyer who, at least in some cases, gave the impression that he was acting on behalf of the Government, have, following certain inquiries more recently, been reading the evidence given at the var.ous sittings of the Native Affairs Commission and no doubt they will be interested in the reference, during the Commission’s sitting at Rotorua on Tuesday, to purchases of stock. David Donald Nelson, stock buyer and veterinary surgeon, of Hamilton, gave evidence of stock dealings with the Native Department. He 'said he first met the Native Minister in connection with stock at Hamilton ;in 1931. The Minister, whom he had known for. some time, came to his residence in connection with a transaction. . BULLS FOR NORTH AUCKLAND. The Minister described stock he required and witness quoted lines he had already purchased or had an option over. The result of the interview was that he sold the Minister the stock he required. He estimated his profit in accordance with the ruling market value at the time. Ihe first transaction he had was in connection with & line of yearling heiferS# In respect of other transactions witness sometimes received a telephone message from the Minister and on occasions he personally saw the Minister. He had never represented himself as buying for the Native Department in stock dealing. Witness said he remembered a line of bulls he had bought for the Native Department for Auckland, but said he did not know the amount of profit worked out at 38 per cent. The price to the department was 15 guineas for some and 14 guineas for others. Witness said he had had heavy charges in connection with the stock, and maintained that the profit was not excessive. The average price for bulls at that time was 31 1-3 guineas. Mr Quilliam drew the attention of witness to the fact that the farm supervisor, Mr Findlay, had got quotations for stock at 10 guineas. Witness said he could purchase, at that price, but Mr Findlay could not. COMMENT BY CHAIRMAN. The chairman asked witness if he knew any reason why the bulls should have been bought at 14 guineas when the department had been told that bulls could have been bought for 10 guineas. Witness: No, except that he would be receiving my expert knowledge in respect to the animals. The chairman said the transaction was an extraordinary one and required explanation. In repjy to Mr Quilliam, witness said the total amount of the transactions was over £IO,OOO, between August, 1931, and September, 1932. Some of his quotations had been questioned, but not disputed. Questioned by Mr Nelson, witness said the average commission charged by firms operating in the Waikato district yvas 5 per cent. He did not kno\V What the commission was in respect of pedigree stock. Mr Quilliam referred to other stock dealings witness had had wyth the Native Department, including transactions on which he contended witness had made the following gross profits: Thirty-five bulls £146 9s, 62 bulls £333, estimated profit on grade stock, £lOl7 18s; 12 pedigree heifers £25 4s, 65 Southdown rams £24 2s 6d. In 12 months, Mr Quilliam said, witness had made a gross profit of £1556 13s 6d. On the sale of one bull, he said, the profit was 87.5 per cent. END OF TRANSACTIONS. Witness said transactions happened too long ago for him to remember details. He did not, however, contradict the statement. Witness emphasised the heavy charges he had been compelled to pay, and said the Native Department could not have purchased the same quality stock any cheaper than it had purchased from him. In reply to Mr Quilliam, witness said he had stopped buying for the department in September, 1932, when he considered that its requirements for dairy stock were almost completed. Witness did not think there was any connection between the termination of his buying and the fact that about the same time the Audit Department had drawn attention to the price paid for bulls for North Auckland. The chairman: Did you make any inquiries from the Native Minister why transactions stopped ? Witness: No. Mr Quilliam: And you have not had a single transaction since then? Witness: No, I do not think so. Further questioned by Mr Quilliam, witness said he had had farming experience and had two properties of h;is own. He had no connection with development schemes. “NOT EXACTLY A PHILANTHROPIST.’’ Mr Finlay: I do not know, but rather suspect, that the ultimate suggestion is that somebody besides yourself was interested in these sales. Witness: If there are I have never heard of them. Witness added that he was selling for his own personal benefit and advantage. Mr Finlay: You were not buying as ah agent for the department at the time, were you? Witness said he was not: He took it that he was only one of many selling to the department. Mr Finlay: Did you not think you should play the part of a fairy godmother to the Native Department and sell below market value? Witness: No, I am not exactly a philanthropist.