THE WOOL CLIP.

Waimate Daily Advertiser, Volume XVIIII, Issue 449, 17 November 1916, Page 4

THE WOOL CLIP.

L'ONFERENCE IN WELLINGTON. IMPERIAL GOVERNMENT'S OFFER. "~ Referring to the wool eotlierenee. ■jo Wellington correspondent of "lite 'res.,'- sta'tes: A 15 PER. CENT. INCREASE. This alternative offer is now being a bled Home, and if the offer is adopted the transaction is ended. li , is not the conference may have to e reassembled. The meeting appointed a committee o deal with detail matters that may rise, and to represent the groweri consultation with the Government such should be necessary on the-e etail.s. It is stated that the price* sked for by the growers are considrahly below the actual value of the 00l at current rates in-day. FELL STATEMENT OF PROPOSALS. It is undcrtsood (says the • "Lyndon 'limes'j that tuc proposals suntutted to the eonterenee by tin •linister are : "That- the Imperial Government ,eeept as a basis the average price eah.sed for each quality of wool foi he season FJlo-14, and is prepared U The offer that the woolgrou er.s hat ■o consider was an increase of 15 pel cut, on the lijL'l-M prices. As it itippens, an increase of -15 per cent m the lyio-tl prices for eortaii lasses of wool, which are the bos' lasses of wool, would bring the rate: •ery near to those ruling last season hat the Imperial Government's (die vas inequitable. jut for certain classes. such as ia erior crossbred, which sold, accovdinj o Government statistics, at from 7;,'< :.o Od in 1913-14. the rates last seaso vere 12', to 15.\d. This ddi'oreHe •oprosonts a. rise of much more thai 15 per cent., and a big fight wa ivaged in the conference on behalf n the small bush farmer, who caiino n-oduee wool entitled to be gradci higher than inferior crossbred. (hi section wanted to accept the Imperii government's offer, and another see lion held out for the l!)15-l(i prieofihese latter being the men who urge A COMPROMISE. A division was taken on the que' lion, and the decision in favour < last'.season's values was carried by on vote. In the end a compromise wa eii'ected. and it was agreed that lb prices for the different sorts of wot .should be considered separately. The result of this procedure wa that the conference agreed to acce| the increase of 15 per cent. I'm- cet tain classes of wool, and to ask tha last year's values be paid for oth< classes in which the rise in price i the meantime has been rather mo; than 15 per cent. pay an advance of -15 per cent, then on, delivery to bo made at eifhi port, railway station, or store, _ r

approved bv' iho Government oi New Zealand, till handling expenses from th • point of delivery decided upon to he borne by the Imperial Government. '•I am further advised thai in the event of the whole of the woo! not being required for military purposes., the surplus is to be placed on the open market, and if it should be that a profit is realised, half of such profit is in revert to the New Zealand wool growers, but if any loss results the whole of such loss will he borne by the Imperial Government. "The terms of payment wi'il be prompt cash on delivery. It is also intimated that as a condition of the requisition, all existing contracts shall he cancelled. For the information of the conference, I am able to make it known that the necessary transport will he arranged by the Imperial Board

of Trade." PROBLEMS TO BE FACED. The fixing of prices, it .s pointed out by the correspondent cf the -'Press,'' is only one of the problems in this huge undertaking. The wool business is the biggest, the best, organised, and the most highly specialised business in this country, and the keen coinpet.tio.'i which "is a feature of it has always sufficed to keep the business running smoothly and efficiently. This business has to be disturbed, ami in some measure directed into unaccustomed channels, and tho d'flicultios to be encountered are many, if they are not a.'!l great, It is generally conceded that the organisation provided by the wool-broking firms throughout New Zealand for handling the wool will have to be used. Theiy are the only people who have suitable stores for classifying and displaying the wool, and the only people with staffs who understand the routine of the trade.

IHE SERVICES OF THE BROKERS

'Lilt- first question that arises is as to the, terms on which their services shail be utilised. The Government could commandeer everything and make the brokers and their staffs Government .servants, Dtit th.s is very unlikely. T'jio Government will probably prefer to allow business to take it" ordinary course as nearly as po&sib-.e, and so will allow the brokers to handle the wool in the same way as before. Formerly the brokers used to charge a percentage rate for welling wool, but as the brokers will not now bo coricorned with values received, it is urged that it would be absurd for them to charge a percentage rate to the Government. It is now proposed that they shall charge a flat rate per pound on all wool, good or bad, and this, it is contended, is quite fair, seeing that the service rendered in respect of inferior wool is identical wtli that given for the finest wool. It is stated that the charge the New Zealand brokers propose to make is less than the charges being paid for like services in respect. <lf the requisitioned British wool. Everything that the brokers did previously, witli the exception of the selling of the wool at auction, they will KtUI do. The only difference will be that they will not hav the same frenzied rushes to prepare catalogues for the periodical sales. Undor the Government purchase scheme the work will 1) espread fairly and evenly over a period of from six to nine months according to the season, and the shipping space available.

VALUING THE WOOL. The task which seems the heaviest and moat complex of all is that of devising some scheme for tho valuing of the wool. It is a task for which the highest expert knowledge is required—a task which the average farmer will not understand. Hitherto classification and values have been determined by the arbitrament of competition under tho hammer, and that decision the farmer Jias had to accept as final. If wool is requisitioned there will be no competition to assure the farmer that he is getting his due. No. decisions seem to have been reached •as to how the wool is to Devalued, or by whom. Those who know most about the wool trade, however, say

that wool can bo classified K torily, but that the only , )0l f % §§ do the work are the f 't v B on I hero to attend tin- niLs !'!'■ ; ''H lor Yorkshire. The-e liuv,.}V l ' r ' : k- H) tions ordinarily <-onsi<i i,i' t ,- tj l "'•'.•■;■'. 1 number of cabled qi.Mt;'.'''''' %. E scoured wool, say iiuiii 3ii'.' nili ''.; § and on these rates they vulu,. r >° "''•. 1 lor which they are f-*»"nt|•.-tii*i-- t " e M 1 regulate the difl'eren. v'' l,^"^' ;; '-'2 prices ul' seoiired aii(| mv.io''' '- i The difi'ei-ences vary in .|,|j,'.,. (I ''' B sons. In some year.- 'ln- S(J[) i - ;i! '■. If seme is clii'ly or - l( ,!v. I].,'"'.' ; -H and he know> lhar , i M . V;i |~ '^'■:■:. wool .-eonred w ill In- .»,, : ,''' i; prund. lie has io det<. n .;'!' i>' much the wool will i,.,|,| ~' I ' | ' [ ' ll '-' '■'.- or in other words, ]\,,\ v i mil {"''' ] "\ and dirt lie will he j,,' j ":K----and note down lii- liii|i|in„ " '*"'< :u <oriline| \. This dciiKniils" ' ,r; ''" knowledge, gained oli!.v | lv i n '%'>: in-. The taTsk «ill lv, ,■,.{, J gt >s. complex under the (M.vm.mQ ,!' : chase scheme, Oecau-e thev IV] H'be any ehaneo ..) i|„. ~ ■'. 1 1 ■ t ■• ' '■ l 'tUft Iff! ■ values li u i s ~„,.,, ,"• '■; lod. is the value of Honinr.y V]' • wooL of average quality, j;'"'' 1 --'. remain constant sou, but the expert will , t ;]]'|'" "'■ quired to determine hmv !,,-„.[, ."_ ;'• is above or helow ''"■''' STOiJACK AM) \.\F.Tat;jx There are question- n.| a tj 1!( , , storage and valuation uhie?, "| ' not yet heen Inky 1 1- ,-■;,|,. j [.' , ' i,; - that, the Government v ;jj J,^.' jW'; : services rendered l, v ill- firo'koi"' t" cost of these services, ~|l ls ;,,'; l: " and other costs, lanos .„,.,„.,,■ ;• the time wool has to i.e li,.],| i ,~." avrt-ayo amount the far.-a.c |l r ' l ,l : ' rily to pay in YVcllin./tnn j„ l) u ',^ : ;. per Jb. on liis wool. (); t 1,,.,,! | i' ; " •■ ho will be relieved. ( t , v ,' '* ; ; decided who is to pay f, )r ,]„-. ' !"r,,\ of the wool, or, indeed, |. o , v '"';y ■• erviee i. s to lie paid, for terms |-. not been discussed. 1 [., Il( , t '■'']: able, Jiowever, that farmer Hl ||"i r f to pay for the vabmie „r i|,,.j,. ~,/■ THE LAIiOTR ASPKpr. The Minister of Atrn'rulture i|[,-. W. D. S. MacDonald) tek LT ,ip| !f ,;'', follows to Air AY. K. \\ (lodkani, V rotary of the Canteronrv TamiriV -•'■ Fell mongers' Union :■-- "Your letter of the l:!;|i ii )vti . , subsidiary trades in connection v -„ tho wool industry will ivrvive r,'.consideration should (In Governments proposals l»i ailopt^'"'