H.—3o

" The prices were unaltered during May, 1942, but for June the prices were increased by |d. per pound. There was no alteration for July, 1942. On the Ist of August, 1942, the contract for shipments of hides to Australia was renewed. The new contract included, in addition to the present grades for shipment to Australia, cow-hides 40/50 lb. and 4-0/47 lb. ox-hides.

"The prices for August, 1942, were per pound lower, and the new schedule included the additional grades mentioned above.

" September, 1942, prices remained unchanged, and October, 1942, prices were increased by per pound. The prioes remained unchanged for the months of November, 1942, to March, 1943, inclusive. " Market Prices. —Early in 1942 ceiling prices were fixed in the United Kingdom, the United States, and Canada. From April to June, 1942, the prices for freezer cow-hides for shipment to United Kingdom were BJd. per pound c. and f., and from July onwards were B}f d. c. and f. The ceiling prices for the United States and Canada are equivalent to the United Kingdom prices. " Claiming of Yearlings by Tanners.-- -On the 26th June, 1941, the Committee agreed that it was desirable that up to 100 per cent, of yearlings, all weights and grades, be made available to tanners for military leather, and this was approved by the Hon. the Minister of Marketing. As there was no export competition for yearlings the Committee set up a sub-committee to agree upon the export price of yearlings for all grades, this price to be regarded as the equivalent of the present export bid price at auctions and for tenders. " This export price continued until 24th October, 1942, when the price schedule was reviewed by the Committee in line with the then export parity. This schedule is still in force. " Financial Report. —The following summary shows the position of the Equalization Fund as at the 31st March, 1943£ s- d. " Cash in hand on Ist April, 1942 .. .. .. .. 9,755 16 4 " Receipts from levy .. .. .. .. ■■ •• 100,367 19 8 110,123 16 0 " Less claims paid to tanners, freezing companies, and exporters 71,087 12 6 39,036 3 6 " Expenses to 31st March, 1943 — £ s. d. " Salaries .. .. .. .. 875 0 0 " Telegrams, stamps, and petty expenses . . 22 19 6 " Travelling-expenses .. .. .. 32 13 10 " Sundries (rent, phone, cleaning, &c.) .. 56 18 2 " Audit fees .. .. .. .. 56 1 8 " Bank charge and cheque-books .. .. 410 0 1,048 3 2 "Cash in hand 37,988 0 4 " From this must be deducted claims which were finalized but not paid at 31st March, 1943 .. .. •• 10,343 10 0 27,644 10 4 " To this must be added estimated levy due on hides which have not been shipped or for which payment has not been received from H.M. Customs as at 31st March, 1943 .. .. .. 10,010 0 0 "Leaving an estimated surplus in hand of .. .. £37,654 10 4 " The amount of surplus funds shown (£37,654 10s. 4d.) may appear large, but it is necessary as the tanners have been claiming very freely while hides are available, and the proportion of hides required by tanners continues gradually to increase. In any case it is impossible to achieve anything approaching an unchanging levy for a twelve-monthly period unless there is an adequate reserve.

4—H. 30

25

„ ., ,, . Country First Second Third Freezers. Abatto.re. Butohe £ Country. Country. Country. d. d. . d. d. d. d. Ox-hides 40/47 lb. 10J 9f 9J 8§ 8|- 7§ Ox : 48 lb. up — Average weight 52 to 54 lb. .. 10J 10 9| 9 8£ 8 Average weight over 54 to 56 lb. 8-j^ Average weight over 56 to 58 lb. lOf lo| 9§ 9-| 8f 8| Average weight over 58 to 59 lb. 10-j-J- LOfg 8j£ 8^ Average weight over 59 to 61 lb. lOf 10J 9f 9| 8| 8| Average weight 61 lb. up .. 10,% 9}| 9 8|| 8^-Cow-hides: 51 lb. up .. .. 10J 9| 91 8| 8J 7f Cow-hides 40 to 50 lb. .. .. 10J 9f 9]; 8f 8J 7f