THE WOOL CLIP

Dominion, Volume 10, Issue 2929, 15 November 1916, Page 6

THE WOOL CLIP

SCHEME FOR REQUISITIONING THE GOVERNMENT'S PROPOSALS 45 PER CENT. ON 1913-14 PRICES NEGOTIATIONS NOT YET COMPLETED The conference of wool producers convened bv the Minister of Commerce (the Hon. W. D..S. Mac Donald) met yesterday morning to consider proposals to be submitted by the Minister for the i purchase of the' New Zealand wool clip by the Imperial Board of Trade, on behalf of the Imperial Government. Representatives of the chief wool-broking firms of the Dominion were present, and also the buyers representing English, New Zealand, and foreign houses. Later the. brokers amibuyers held separate meetings, discussing the matter from their points of view.

The negotiations are not yet concluded. The growers have adjourned their mooting until 10 a.m. to-day, and the matter will be considered further at to-day's meeting. Following is the text of the memorandum supplied to the delegates prosent at the conference: —

Telegraphic information lias been received' from the Right Hon. the Prime Minister that, as the outcome of a ■ conference, between himself, the Right Hon. Sir_ Josopli Ward, and the High Commissioner, and representatives of the Imperial Government, a proposal has been formulated to requisition all New Zealand wool.

In connection therewith, in view of the importance of the proposal, I desire to consult freely representatives of wool-Growers and all interested in the wool industry.

I'liavo therefore invited representatives to meet me to-day to consider the proposals which the Government have received. The proposals arc: — That the Imperial Government

accept as a basis the average price

realised for each quality of wool for the season 1913-14, and is prepared to pay an advance of 45 per cent, thereon. Delivery to be made at either port, railway-station, or store as approved by the Government of Now Zealand. All handling expenses from the point of delivery decided unoii tobe borne by tho Imperial Government. I am further advised that, in the . event of the whole of the wool not _ being required for military pur- ' poses, the surplus is to he. placed on the. open market, and if it should be that a profit is realised, • half of- such profit is to. revert to the New Zealand wool-crowers: but if anv loss results, the whole of such loss will be borne by the Imperial Government. The terms of nnvment will be prompt cash on delivery. It. is also intimated that as a condition of the requisition all existing contracts shall be can-' 'coiled. . ■ ■ For the information of the conference I am able, to make it known that the necessary transport will be. arranged by the Imperial Board of Trade. . As appears from tho memorandum, the b n sis of cakuiJetion is the value of wool in season 1913-14: In that year prices at the several sales" ranged, as follow;;— '■ •■

Ha'lfbred Super.—December, lid. to Lt-Ul.: January, lid. tolled. ' '. Half bred Medium.—December, 91d. to 103 d.; -'January. 9!d. to 10ad.; February, 9' a d. to lid.; March, 9/d. to lid. .

Crossbred Super.—December. IOJd. to' Hid.': January. lOd. to 10i|d.: February, IOJd. to HJd. • March, 103 d. to lljd. i

Crossbred Medium.—December, 9d. to 10Jd.;'January, 9d. to IOJd.: February, 9Jd. to 10Jd.; March, 93d. to io.}d. : . .

Crossbred'.' Coarse.—December. Sd. to 9id.: January, 84d. to 9> f d.: February. BJd; to lOd;; March, 9d. to lfHd. Crossbred Inferior.—December, 7fd. to BJd.: January, 7Jd. to BM.: February; Bd. to 9Jd.; March. B}d. to 91d. The conference did not accept the Government proposals. The resolution actually passed was to the effect that if 'wool -was to be requisitioned, it should be paid for at the present English ruling rates. A committee of thirteen members was .appointed to confer with the buyers, to get exact information as to what the present Bradford prices are. These are always quoted'in trade terms, with reference to "tops/! and the.task of'the committee, with the aid of the buyers, who are experts', in the' trade, will be to reduce the Bradford trade quotations to plain figures, or to rates per lb; for greasy wool in New Zealand. This inforamtion will be supplied to the conference when it meets to-day. The Government proposed that, every grower should receive 45 per cent, incrase on the prices W actually received for his clip in 1913-14, as shown by account sales. This would have avoided very much of the difficulty of classification; as-it could be assumed that the individual producer would still be growing the same classes of wool as he grew three years ago. One objection raised to this proposal was that it would penalise the small producer, who might not have been fortunate enough to get the real market value of his wool in season 1913-14.

It may be noted th.it one of the conditions imposed by the Government is that all contracts' of sale already made shall be cancelled. 'Die buyers arc reported to bo. very anxious not to lose Hip wool they have already secured. They have a financial interest in this wool, for th»v are paid at a commission rate. . If the requisitioning scheme goes through they will have, to cease operations absolutely, but it urn' bo. possible that the Government will engago some of- them, as being the best experts available for the classifying of ,won!.

THE BRITISH METHOD REQUISITIONING WOOL AT HOME. Mr. F. H. Labatt, secretary of the New Zealaud Sheepfarmers' Fedora-" tion, lias handed us tho following oxtract from a.recent issue of tho "Australasian," dealing with the method adopted _ by the Imperial Government for requisitioning tho Home wool clip: "Arrangements were completed some weeks ago for giving effect to the decision of the War Office to take over the whole of the English and Welsh wool clip of 1916. England and Wales have been divided into 13 'wool areas,' in cacli of which a district executive officer, witli an expert knowledge of wool-buying, has been appointed to superintend all wool purchases for tho Government in his area. Each of those officers has his offices and a, small clerical staff, and each is to have the assistance of a local advisory committee, composed in equal numbers of wool merchants and farmers. Under the supervision of the i district officers, the purchase will he made by authorised buyers, selected from the merchants, who usually carry on business in tho districts. Census forms and explanatory leaflets have been issued of farmers in most of tho areas. The procedure so far as tho farmer is conI coined is certainly simplo enough. On

the census paper he is required to make a return of his fleeces.and the name of tho buyer of last year's clip. An authorised buyer, probably last year's buyer, will then-inspect and weigh tho wool, and estimate its value in accordance with a scab of prices fixed by the Government. Tho scales for the different districts vary according to local conditions, but they are all based on a 'central scale' (not yet made public), which is founded on tho 1914 prices, plus 35 per cent. If the farmer has less than 50 fleeces for sale, the wool will be purchased outright and paid for by tho authorised buyer. In other cases 75 per cent, will be paid within a week of delivery, and tho balance when the fleeces have undergone final inspection in tho merchant's warehouse and the final valuation has been made."

THE CONFERENCE IN LONDON POSTPONED TILL TO-DAY. Australian-New Zealand Oablo Association. (Rec. November 14, 6 p.m.) London, 'November 14. Tho'Wool Conference has been postponed till to-morrow owing to the absence of several of the Cabinet Ministers.