Stock Agents And Their Commissions

Chronicle (Levin), 14 February 1948, Page 4

Stock Agents And Their Commissions

T— m , ■ •• s • Prets- ABsociationJ

(Per*

' " NEW-PLYMOUTH, Peb. I?. Stock agents in the Auckland pro- . cim-e are to.be ealled upon to show v-anse wlfy their comniissions, should be high.er than, tltosfi* in force elsewhere In cke North Island. Jnstructions to this •effect ha.ve been issued according to a mtter from the Minister of ludustries and Commerce, Mr Nordmeyer, eonsidered at a meeting of the Taumarunui, sub-provineial executive of Federatedi carmers last night. The letter was written to, the Member for Walmariho, Mr Kehrins, and fonvarded by hini to the executive. jlr Nordmeyer M actions _ were in respoAise to representations >> made by the, executive through Mr ivearins. The Price. Tribunffil ascertained that, *- as stated by Federated Farmers, the lommission of stock agents in tlie King Country and in fact the whole of the Auckland province, Vere liigher than elsewhere in the North Island, a dilt'erence whicli had existed for 30 years, said Mr Nordmeyer. The Stoclc and Stajion . Agents.' Associatiou stated tliat tliis w;aa caused by'the difierent conclition wliic.lt applied in the Auckland province. Individual saies were • stated to be smaller tha'n elsewhere and 4in many instances distances travelled -and time taken by representatives entailed substantially liigher costs in re- • latlon to tlie quantity of stock sold. '•'The Tribunal had not investigated the" claims of the agents," adde'd Mr Nordmeyer. He. had, however, called oiL tliem to show cause for their high. conuiiissions. Three commission rates applied in New Zehland today, said tlie chairuiaii, Mr N. J. B, Dougherty. In the Soutli Island the rate was 21 per cent., in tlie southern part of tlie North Island ,3 per cent. and in the Auckland pro.vince 4 per cent.

There was good cause for redress and he was fully in favQur of a ilat rate for. the whole North Island, deelared Mr F. Duncan. -The federation should . not bring itself np against local stock hrms. J.t inight do harm to farmers. In the greatest number of stock saies the buyers were representatives of lirms in otlier districts. The hrms conducting tlie saies, in many cases, allowed them 1 per cent. and kept 3 per cent. themselves. This was an encourageinent to buyers in other areas to come to the districts to which access was not, aiways easy. lle was merely pointing out that farmers did get some service for the extra commission. "As I see the position from Mr Duncan's statement, tlie stock hrms instead of encouraging gcnuine buyers, ar.e bringing in agents, in some cases from their own branches, to re-sell the stoclt and get more c'ommission, " deelared Mr C. N. Cotter. Every time the stock was turned over, he added,, the hrm made more money. "That is not my point at all," deelared Mr .Dunearn " In the Waikato and elsewhere manv farmers do not attend saies at all but buy their stock through agents." Stock from Taumarunui went in many cases to the youth Island. The commission rate was still 21 per eenfc. and he could see 110 justilieation for a 4 per cent. charge in the Auckland province, contended Mr Dougherty. Tlie North Island hiad twice as much stock as the y'outh Island. There was a deliuite need for redress. The executive decided again to approacli Mr Nordmeyer through Mr Ivearins asking that uniform commission rates for the North Island be deelared.