COMMANDEER OF IRON STOCKS

Bay of Plenty Beacon, Volume 1, Issue 81, 30 October 1939, Page 8

COMMANDEER OF IRON STOCKS

SEIZURE FROM RANGITAIKI MR. McCRACKEN CORRECTS MR. HULTQUIST The facts concerning the commandeer of iron by a Government department from the store of the Rangitaiki Plains Dairy Co. Ltd. are fully set out in a letter to the BEACON from Mr W. A. McGracken, chairman of directors of the dairy factory, who deals with certain statements made by Mr A. G. Hultquist, M.P., in a letter which recently appeared in our columns. Mr Hultqu.ist's main point was that the iron and piping was purchased in the normal way by ihc Native Department for its own use; Mr McCracken says that the iron was taken by the Public Works Department, and thai the piping was disposed of in a separate transaction to the Native Department. The matter was first made public at the Edgecumbe conference of the sub-provincial executive of the New Zeaalnd Farmers' Union by Mr A. E. Lambert, a member of the Auckland executive, who said that the Rangitaiki factory had obtained a large quantity of iron and piping by judicious buying, and that a Government inspector came with three big lorries ; and took it away. Iron, he added, had also been cominandeered fx*om Whakatane firms. Following this statement Mr R. W. Dunning asked Mr Lambert why the directors did <iro't tell the suppliers this, Mr Lambert replying that he didn't l Ithow. If they didn't elect directors to tell them those things they would never know.

Mr McCracken's letter reads, as follows:—■ Supplies of Iron and Piping. "The misunderstanding which exists in reference to some of the company's transactions relating to galvanised piping and iron makes it necessary for me to place before your readers the true facts of the particular cases which have received publicity through 3 r our columns. Farmers* Union. "First Jj* I would like to say t'ijat some of the remarks made by certain members of the Fanners' Union in reference to the Rangitaiki Plains Dairy Company's board of directors are a little unfair and not particularly sportsmanlike. During my term of office as chairman, it has not been considered necessary to acquaint either the Farmers' Union or the supplier-shareholders, with all extraordinary happenings.

Mr HultquistV Statement,

"Galvanised Iron. —Mr Hul'tquist's statement is not quite in line with the actual facts. The true position is that the company's storcman was approached .by the driver of a Public Works Department truck and asked what stocks of iron were avail able. On ascertaining the nature of the enquiry the storcman indicated that the iron Avas being sold to the company's suppliers only, and that he could not dispose of it to the Public Works Department. The driver replied that the Public Works Department would commandeer it.

"A senior officer' of the Public Works Department then spoke to the storeman and told him he would have to relinquish the iron. This officer was asked for his authority to take possession of the stocks, and said that he did not have it with him, but would send it on to Ihe company. On a technical point the dairy company's officer had grounds for refusing to hand over the goods, but, being familiar with the regulations which give the Government power to take over building materials; and considering it inadvisable to antagonize the department with the possibility of being relieved of considerably heavier stocks; it was decided to supply the quantity asked for. Native Department not Mentioned. "The Native Department was not mentioned in the matter. The iron was given to the Public Works De-j partment solely because of their suggested and apparent authority to take possession of it under "The Building Emergency Regulations." It was taken away in a P.W.D. truck a requisition was sent to the company, and the company was paid the full price for the iron by the Public Works Department. It thereTore appears to be quite clear that the Native Department had no deal-j. fngs with the company in the mat-1 !

The Real Cause for Complaint. "I wish to state that the company's board of directors does not complain about the Government's Regulations, empowering the Government during the war period, to commandeer building materials. But the directors DO feel that the whole country has been let down by the Government in the matter of supplies of some essential materials from Great Britain. Supplemented by Stocks. Instead of having normal supplies in New Zealand coming forward from overseas at the time war was declared, \w -were desperately short of essentials. The position is ever.

more acute now. Despite short indent orders being placed many months ago for piping and iron, tiie company's principals can supply nothing, nor can they give any indication as to when supplies will be available. Needless to say if stocks had been obtained as required prices would have been lower than thes;; which will have to be paid now or

later on

"Extracts from letters received

from four different, importers are given below, i believe that all reasonable people will agree that the importers of this country are, generally speaking, fair and honest in their statements, and that the remarks appended show clearly why the company's trading store and other business concerns cannot supply the farmers of this district with necessities such as iron and piping.

"Iron.—We regret to inform von that we are unable to execute your outstanding order for galvanised sheets as our suppliers will not ship unless the necessary funds are made available without delay. As the He serve Hank allotments granted u,s will not permit of our being able to remit until 11)40, we are unable to comply with the request of our customers and all unshipped orders are therefore left in obevance."

' "Pipe Indents.—Messrs Stewart and Lloyds Ltd., England, through their New Zealand blanch, have notified the merchants that they are holding all orders in England at the moment and will give no guarantee of delivery. They advise that this hold up is due to the war and the state of New Zealand sterling funds.."

"Pending Clarification."

"Piping.—We have to advise* that the suppliers, Messrs Stewart and Lloyds Ltd., have suspended inment of all orders placed with them, pending clarification of the finance position between the United Kingdom and this countrv."

"Piping.—-In reply to your aviof yesterday we attach copy >>!' ours and whilst Ave very much regret the situation that has arisen in the lube world, through the manufacturers having suspended the great bu'Ji ,-f the New Zealand orders placed with them as far back as;-March of this j*car mainly due to their inabiiitv to have funds remitted from New Zealand, and as the works are now under war control and no permits

"I was promptly notified as to what had occurred and my fellowdirectors were advised at on early date. For various reasons jjublicity was not desired, but the remarks made by the Farmers' Union members and Mr Hultouist have comoelled me to place the position before the public, "Galvanised Piping.—A quantity of this was ordered bv the Native Department and fft; many of the '•oj'npany's suppliers arc natives, deijVpry Avas made in the usual course ">»' business.

available to remit money overseas, it is absolutely impossible to get the funds into London and assist the makers to oblain a permit to shir tubes to New Zealand. We the situation that has arisen a:i. 1 i !

is hoped that the Government will at least relax some of their exchange control and permit the farming com mixnity to obtain some proportions of their tube requirements." Drought Danger. "Piping.—When one thinks that weiave been preventecHfrom importing outstanding orders with the manufacturers for over <12;$,000 feet of assorted sizes and qualities one really wonders what is Likely to become of the farm producing capacity in the event of a severe dry weather spell being encountered. We are still awaiting the result of special applications to the Minister of Finance to make available to us some proportion ol overseas funds which will permit of the goods being paid for in England prior to shipment, as otherwise the manufacturers will not supply until the funds are received."