AUCTIONS. H. MATSON AND CO. CSSRS H. MATSON & Co. present the scheme oi control as submitted by Mr a Higgins in full details. We-strongly recommend all Sheep Owners to retain this f.nd keep it. and we hope when your wool is for sale that it will be eulrusied to K. MATSON & CO.. who have been to considerable expense in publishing these various articles, and all this information for the benefit of the "Wool Grower of Canterbury. We are sending: a Representative to Australia so as to be present at the Opening Sales on the 30th July, and generally to watch llie markets. WOOLMARKETIXG. SCHKME FOR CONTROL. MODIFICATION OF BAWKA. The meeting arranged by the Graziers* Federal Council to hear proposals for the stabilisation of the wool market was held recently. It was attended by representatives of the Graziers' Federal Council. Ai traliaii Woolgrowers' Council, Pastoralist Association of Victoria, Pastoralists' Union of Southern Riverina, National Council of Woolselling Growers. Victorian Chamber of Agriculture aud the A'ictorian Farmers' Union, and representatives of New Zealand grc Sir A. 11. Whittingham, president of the tfraziers' Federal Council, was chairman. Sir John Higgins in outlining his scheme said there were four factors which must be affirmed, otherwise it would, in his opinion, be useless to proceed further. These questions were: — . 1. Are the woolgrowers—or a big- mojoriiv of tliem —and others prepared to come together, form an association, and wortt wholeheartedly in support of a stabilisation scheme for the betterment of the mdusuj . •2. Arc those same interests prepared, wun one voice, io approach the Federal Government in support of (a) a financial E»»"n----t-ee, aud (b) that the association, if formed, be given special authority to issue wool export licenses? . 1h ! ■i If <n and (2) arc answered in. tho; native, and assuming, that *« J^L?.! 1 Government agrees to give the "^""g : suarantee and grant the special a™ l ™ l . 3 ; tor the issue of wool export b™?"*-*™™™-growers prepared to support the re<ommen dation that a representative bo „pp«»£* * visit London and open negotiations regarding fin 4 D Are the woolgrowers prepared to authorise the initiation of '\ee otiat,on ;L,*'"J the woolselling brokers for t.he »PP™"«J«* of wool, including the conduct of the vmious operations of weighing, 18 *'"*' ing, storing, etc., in the collective realisation of Australian wool clips? Ho outlined his scheme as f°»° ws r" 1 That the woolgrowers of tho Commonwealth shall voluntarily form an association mutual in character, for the V*™™* 1 giving, as far as practicable, greater regular itv and greater stability to> wool .values. a." That such association shall acquire Australia wool clips by appraisement methods. 3 That the realisation of wool clips so acquired shall be effected under tion of the association by proper, technical and collective methods of marketing. I 4 That all receipts from whatever source arising leas deductions and expenses, shall he credited by the -Association, and disappraisement. The association would not be for the purpose of profit or gain in the ordmVALTJATIOXS—If you require a valuation of Live and Dead 'Stock, or valuation for Probate at any time, 11. MATSON & 00. can be relied upon in this direction. ary acceptation o. .»»»«. terms, but would be created practically »s an assurance intual in character, for the regulation or stabilisation in values of wool —not fixation of prices—by collective realisation, thus ensuring greater protection to producers, and assisting generally the development of tho wool industry in the Commonwealth. Suggested name of company—British Australasian Wool Regulation and Realisation Association, Limitod, or Brit.sh Empire Wool Regulation and Realisation Association Li Capit'al-£50.000,000. in £25,000,000 wool Capit'al— £50.000,000. in £25,000,000 wool certificates and £25,000,000 sharos of £1 e °The principal terms and conditions for the proposed system under which the Association would operate may be set out briefly as under: — . . , . 1 That freedom of trade in wool witlrm the ' Commonwealth shall be recognised. 2 That, in order to finance the scheme at its initiation, the Commonwealth Government shall guarantee the Association until sufficient capital has been subscribed by its 3. That the Association shall ne vested ■with authority by the Federal Government to iesue licenses for the export of oil wool from the Commonwealth, whether as—(a) Shorn wools, greasy or scoured; (b) skin wools, greasy or scoured; (c) wool tops, noils, waste; (d) woolly sheepskins. 4. That the tables of limits for appraisorisnt by the Association shall be based upon the statistical position of wool, including inter alia, tho following "world" factors.— Production (quantities and qualities), consumption, stocks (manufactured and semimanufactured), purchasing power, fashions, etc., for each wool year. 5. That, having determined tho statistical value (which will bo an'estimate only), less a deduction to cover contingencies, tables of •limits shall be prepared for—(a) Merino wools, shorn, including fine comebacks; (b) crossbred wools, shorn; (c) skin wool —(1) merino, (2) crossbred. 6. That, should it be found advisable to further subdivide these principal classes, such subdivision shall be made. , 7. That the tables .of limits are bases only—First, for the appraisement, and secondly, for the acquisition by the association of tho wool clips. Tho real price shall be determined by the Association on the actual disposal of the wool for each year. 8. That the wool shall be appraised under the direction of tho Association, and on appraisement shall become the property of the Association. 9. That the settlement for wool shall ba on the following basis:—First .payment, 11 'days after appraisement: second payment, at | rlo'so of wool year; third payment (final, less deductions and expenses), when tho whole of the clip for the particular wool year has been sold. 10. That, as woolgrowers arc not in the position to subscribe the large amount of capital necessary for the proposed Association, a deduction of 2J per cent, annually on account of woo! certificates, and a deduction of 2£ per cent, annually on account of paid-up shares, shall be made as a suggested method for building up the capital of the Association by instalments over a series of years, and as a means for creating: an equalisation fund for the stablisation of limits. 11. That the issue of wool certificates shall be made annually, equivalent to a deduction of UJ per cent, of the net value of the clip, and shall be apportioned in ratio to tho value of wool supplied by each individual producer during.each wool year. 12. That wool certificates shall be interestbearing at a rate comparable with suck like investments, and shall be negotiable, but shall carry no voting powers. 10. That shares shall bo issued annually, equivalent to 2$ per cent, deduction on the not value of the clip, and shall be apportioned in ratio to the value of wool supplied by each individual producer during each wool year. i 34. That shares shall be dividend-earning itfter a* certain number of years (tho date shall be fixed later). The rate of dividend also shall be determined later, but shall not exceed, say, 7 per cent, per annum. INSURANCES.—H. MATSON AND CO. represent the ROYAL INSURANCE COMPANY, and will bo glad to get your favours in this direction. Why not? 15. That shares shall not be negotiable and/or transferable except to members of the Association or bona fide producers of wool. andum and articles of association slmll provide that directors shall have the power ?o refuss'the -transfer of shares if they deem fit and in the interest of the Association. 16. That tho amount represented in wool certificates and in shares shall reduce annually an equivalent amount of the Government's guarantee, and thus in tiime freo the Association of all obligations to the Commonwealth Government respecting such guarantee. In amplifying his proposals, Sir John Higgins said: — I "This fact must be emphasised, that the issue of wool certificates and shares reprs- ' sents a 5 per cent, dednction. the former I should become, from the date o£ issue, a sound investment, and be as readily negotiable as ordinary debentures; the latter—shares — should carry regular dividends as soon aa the capital of the Association and the equalisation fund were sufficient to reloase the Association of all obligations to the Government for it* guarantee. ! "The Association will be » mutual or cooperative company. Therefore, all income over and above deductions for capital, working expenses, interest, and an equalisation ! fund as provision for stabilisation of limit*. , shall be returned to woolgrowers. In other ' words, the deduction of 5 per cent, may hj« | looked upon as an assurance premium—first, ; towards the stabilisation of wool, and t-ec- j ondly, as a contribution to the capital of the Association, which should become a sound investment to woolgrowers. The negotiability of the wool certificates should, in practice, lessen the deduction to 2£ pei; cent. ' The restricted non-negotiability of the shares is suggested to protect growers' interests, and to prevent the control of the organisation falling into the hands of persons other than producers. "To take a concrete example, and assume a clip of wool to be forwarded to an approved warehouse for appraisement, the modus operandi would be:— "The wool would be delivered to the approved warehouse:— (ij Weighed and certificate of weight issued: (2) divided into lots for classification and examination; (3) saniplo bales submitted for appraisement; (4) appraised by three approved experts: (5) --•"—VHrt <Vte» T-4 -*- - •-■ *
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Press, Volume LXI, Issue 18425, 4 July 1925, Page 20
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1,541Page 20 Advertisements Column 5 Press, Volume LXI, Issue 18425, 4 July 1925, Page 20
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