COMMANDEER OF IRON STOCKS

Bay of Plenty Beacon, Volume 1, Issue 81, 30 October 1939, Page 9

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. McCracken, 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 Hultquist's main point was that the iron and piping was purchased in the normal way by the 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 commandeered from YVhakatanc firms. Following this statement Mr R. W. Dunning asked Mr Lambert why the directors did Snot tell tlis suppliers this, Mr Lambert replying that he didn't 1 khbw. If they didn't elect directors to tell them those things they would never know.

- 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 L 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. i Supplemented by Stocks. instead of having normal supplies in New Zealand coining forward . from overseas, at the time war was . declared. \ve were desperately short of essentials. The position is even more acute now. Despite short indent orders being placed many months ago for piping and iron, the company's principals can supply nothing, nor can they give any indication as to when supplies will be available. Needless to say if stocks 1 had been obtained as required prices would have been lower than theswhich 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. gen- , erally speaking, fair and honest in their statements, and that the remarks appended show clearly why Hie company's trading store and other business concerns cannot sup-' , ply the farmers of this district with necessities such as iron and piping.' "Iron.—We regiet to inform you that we are unable to execute your outstanding order for galvanised sheets as our suppliers will not shipj unless the necessary funds are ma le available without delay. As the lie serve Tiank allotments granted us will not permit of our being able to remit until 11)40, we are unable to comply with the request of our customers and al! unshipped orders are therefore left in obeyance." "Pipe Indents.—Messrs Stewart and Lloyds Ltd., England, through I heir New Zealand bianch, have 1101,'hed the merchants that they are holding al! orders in England at the moment land 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 shipment of all orders placed with Hvmii. pending clarification of the i'inance position between the United kingdom and this country." "Piping.-—ln reply to your wire of yesterday we attaeli copy of ours and whilst we very much regret the situation that has arisen in the lube world, through the manufacturers having suspended the great bu!.k the New Zealand orders placed with them as far back as;. March of this year mainly due to their inabiliiv to have funds remitted from "sew Zealand, and as Ihe works are now under war control and no permits available to remit money overseas, it is absolutely impossible to get the funds into London and assist Hie makers to oblain a permit to '-hi)lubes to New Zealand. We regre' the siluaiion that ha_s arisen and r (Continued next column).

Mr MeCracken'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 lo place beiore your readers the true facts of the particular cases which have received publicity through your columns. Farmers' Union. "firstly T would like, to say t'ijat some of the remarks made by certain members of the Farmers' Union in reference to the Kangitaiki Plains Daily Company's board of directors are a little unfair and not .particularly sportsmanlike. During my term of office as chairman, it lias not been considered necessary to acquaint either the Farmers' Union or tiie supplier-shareholders, with all extraordinarv happcnings. Mr Hultqnist's Statement. "Galvanised Iron. —Mr Hultquist'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 sloreman indicated that the iron Avas being sold to the company's suppliers only, and that lie 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 storcman 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 liiin, but would send it on to I lie company. On a technical point tiie dairy company's officer had grounds for refusing fo 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 lo 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 Department solely because of their suggested and apparent authorit\' to take possession of it under "The Building Fmergency Regulations."! ft was taken aw ay in a P.W.D. truck j ri requisition was sent to the com-j ! pany, and the company was paid ' the full price fo> the iron by the ' Public Works Department. It there- ' lore appears to be quite clear that the Native Department had no deai-j. 1 ings with the company in the nrai-1 : ter. j > "I was promptly notified as top i\ hat had occurred and my fellow ' lireclors were advised at an early t late. For various reasons publicity t vas not desired, but Hie remarks 3 nade by the Farmers' Union mem- t )ers and Mr Hultquist have com-p jelled me to place the position be-1 1 ore the public. *' "Galvanised Piping.—A quantity j, >f this was ordered bv the Native I )ennrlment and manv of the I > •empanv's suppliers anj natives, tie- ! - ' ' ivpi-v was maae in the usual course i p business. j i

] is hoped that the (Jovernmen!: will at least relax some of their exchange control and permit the farming com munity to obtain some proportions of Uicir tube requirements." Drought Danger. "Piping.—When one thinks that . we«i;ave been prevented^from imporlj ing outstanding orders with the manufacturers for over .{2H.000 feet of assorted si/es and qualities one really wonders what is likely to liecome of the farm producing capacity in the event of a severe dry weather spel! being encountered. We are still awaiting the result of special applications to the Minister of finance to make available to us some proportion of overseas funds which v. ill permit of the goods being paid for in England prior to shipment, as otherwise the manufacturers will not supply until the funds are received."