THE WOOL COMMANDEER

Dominion, Volume 11, Issue 268, 1 August 1918, Page 8

THE WOOL COMMANDEER

DOMINION'^POSITION

HUGMFITEERING ALLEGED

IS OUR BARGAIN BAD?

GROWERS DEBATE THE SUBJECT 'The question of (ho disposal of the Aow Zealand wool clip was discussed by the Aew Zealnnvl Tamers' Virion Conference yesterday, and a proposal was made to tho conference by Mr. E. Newiuau, Ai.p., .that if there- wero in future, any surjpltis over tho contract price of wool 'sold to tho Imperial Government, that surplus should bo devoted to the needs «it the dependants of tho sailors of the •British. Navy and tho mercantile marine. Mr. Newman, addressing the conference, said that tho present position was that tho wool is 6old to the imperial Government at a contract price. Ho believed that tho new contract would pro'vide that half the profits on surplus tvool 6old in the open market would come ,'to the New Zealand growers. It was these surplus profits which he proposed should 1)0 used as a fund for the sailors' tie;i)endante. Referring to what the Navy 'had done for tho Empire, Air. Newman . said thai for four years they had stood between the Empire and the enemy. ■.There was no denying the fact that without the success of tho Navy I'ranee would have been defeated and England starved into submission. For New Zealand the Navy had enabled U3 to take our troops to '.he' front without the loss of a life, and had -kept our trade routes open. The woolgrowers had benefited more than anyone by the good work of the Navy; to the Navy they owed their security and their prosperity. The men of the mercantila marine also had done magnificent service. He mentioned the poor pav of tho Navy men, and said that it made Vie case of their dependants' harder. It bad been said that his scheme would press heavily on the small man, but that ■was not so; the small man and the big man would pay proportionately. It was faid also that the scheme was 'impracticable, but it was perfectly practicable. • Atr. J. Boddie (Te Kiiiti) thought that the least the conference could do was to heartily thank Mr. Newman for having placed the suggestion before it. Air. Newman's proposal was an appeal to their humanity. ■The motion, was carried with acclamation. Air. AT. B. Matheson (Eketahuna) said that the conference should go a little further, and he moved: "That this con-.fet-sneo approves tho suggestion that the ■woolgrowers) should be asked to give their surplus profits to the fund." Air. AV. D. Lysnar (Gisborne) said the proposal was a worthy one, but the question was, .AVould there be a' surplus? lie could show that there was no surplus, but loss. ■After some argument about procedure Mr. Matheson's motion was held over. THE WOOL CONTRACT ENGLISH MANUFACTURERS' "HUGE PROFITS." Mr. Lysnar then moved:— (1) That this Dominion Conference of the New Zealand Earners' Union desires to make an emphatic protest against the manufacturers in England being allowed to make huge profits out of the Dominion's surplus wool, which is being sold for the civilian requirements to the trado at Home at practically cost price and much below its actual value, and further this meeting is of opinion that the Imperial Government should only commandeer our wool for the yeriocl of the war, but in order to make the wool contract co-termious with the meat eon- "' tract tho commandeering should continue for three mouths after the close of tho war upon the existing terms. The Imperial War Cabinet have acknowledged that the purchase of the .■ : ew Zealand wool clip was effected in 1916 at practically ten per cent, below tho market ruling priie at the time. This meeting is uf the opinion that 'ho woolgrowers, having satisfied all Imperial requirements for war purposes below actual inai'kei values, |are,.in the trade interests of this Dojninion, entitled to resume the ordinary marketing and control of their wool as soon as possible, subject to any legislation the Imperial or A'ew Zealand Parliaments may impose in order to provide restrictions preventing our wool leaching any enemy or other country, as in the opinion of this meeting this'phase can only be effectually provided against by direct legislation. (2) And further: That this meeting desires to draw the attention of the National Government to the excessive retail prices that are being charged for the leather and woollen goods, whieh «ro greatly out of proportion to the cost of hides and wool, i nd would ask that the Government take tho necessary steps to see I hat the Cost of Living Commission investigate the matter and if there is unduo profiteering then to limit the retail price to the consumer. Atr. Lysnar said that much was being ; said against tho fanners to the ell'eci that they were receiving great profits, but that was wrong. The money was going to English profiteers, and was not benefiting tho people of .New Zealand in any'way. As to the position of the mer-' chants here, he said that before the war tho merchant got 2} per cent, up to ,£SOO for selling tho wool by auction and 11 per cent, when tiie wool was above that value, whilst for that amount he did everything e!so in connection with it. It was a very reasonable position. What did they find now? Thev found that the merchant was getting 9 1-lfid. per lb. fov shipping, receiving, and opening up for valuation, and they did not even have the responsibility of selling it. In addition, be was getting t<l. a. bale per week for storing the wool during the summer months and 2'd. a bale during the winter months. \\'as Xew Zealand getting a fair and square denl In the matter?. He had samples of wool for which one penny per pound was paid, and which, before commandeering, would realise i)d. to l-Id., and other wool at Cjd. The least price the grower got for the latter fur four years before commandeering was 10ld., and for the year preceding the war Hid. per lbThe basis of the purchases was to be 55 per cent, on the January- prices in New Zealand. The Loudon Chamber of Commerce Journal for January, 1918, stated that the price for tops was 75d. per lb. for -til's, and in the case of yarn it was 200 per cunt, above the prewar rates. Ho did not pretend to be a wool expert, but two wool experts had stated that if tops were sold at 75i1. greasy wool would be worth, after certain deductions, 4s. 3d. If they deducted 3d. for expenses ami I he buyer gave Is. Sd. that still left a profit of'2s. 7d. per lb. The growers should get half and the Imperial Government the other half of that excess profit. On the basis of the Is. 3d. which the growers should get they were, losing between ,£3.000.000 and .£.1,000,000 a year on the New Zealand quota sold by the I'mm-rinl authorities for civilian purposes. This was going intovthe hands of the manufacturers. Air. J. Christie (Dalclutha) seconded Air. Lysnar's motion tiro forma. Afr. B. Al. Pieid (Thorpe) said that ho understood that the district he represented was willing to submit to the "twelve months' extension afler thy war." Ah'. A. Robinson moved as an amendment that after tho word "value'.' in the first part of Air. Lysnar's motion the following words should be added in substitution for those in the motion—"and urges that tho surplus wool be sold by auction in the usual manner by members of tho Wool brokers' Association, so as to ensure that full market value is obtained." "Generally speaking," said Mr. Eobiusoii, "Atr. Ljsiiitf liii.j proved,

Nils point that wool is being used for the benefit .of certain people at Home." All'. I). Jones (Dunsandelj expressed the opinion that Ihe Imperial Government had not carried out its contract, and said that he was not afraid that there would be a shortage of shipping after the war. So many ships wero now being built that I here must be ample shipping space. As to Air. Newman's proposal, why should it refer to wool only? Why not to .butter and other things? Air. Matheson seconded the amendment proposed by Afr. Robinson. Sir James Wilson Advises Caution, Sir James AA'ilson (president of the conference) remarked that Air. Jones had said that the English Govern men t had not carried out its.contract. 'The reason for that \\n> known. If (he L'ritish Government had put the wool on the market tin- price of clothing tu Ihe Bi'il-i'-ii people would have gone up, anil that was why it was not done. As tu Air Lysnnr's iiiotien. they had to look at this thing in a broad light, and he would like to inquire into the evidence Air. Lysnar had produced. He did not blame tht- Biiii:--i lioveriiinent for putting the -void to Ihe iMU'.il'actui'ci's in the wav they did. Air. Walter Hill, the head of the valuers, had staled that the wool was going In the manufacturers on a lirewar basis, which meant that (he mauuiactni'ers could not get more than they got before the war. It was said to them so as io allow a profit of 2i per ceiil. - He did mil think (hat Mr.'T.vsnar hail proved his point. Air. Jones had said that he had no fear of shipping for the future. The president's opinion ivas Unit the ships had a tremendous contract afler the war. Not only would they have to bring back our troops, but the American troops, the Indian troops, and so on. There could be no doubt that I'.ie.v would have a very great deal to do. There were considerably more than 500,1100 bales of wool in New Zealand at the present time, and there was :. ;t iil to be double that: quantity in Australia. Further, there was all the meal, butter, cheese, tallow, and low to carry. We were told that we were going to get a certain number uf vessels, but the stores would be verv full at the end of this season. He had 'heard that (here was .£1,000.000 worth of tallow in Sew Zealand. He looked on the oiler by Ihe linpurial Government as a very generous one. and wo would be very foolish not to nceepl it. Alter considering the great benefits they had received li.om the British Government, to quibble about whether (hey would have the wool sold by auction or disposed of in some other wav was, to bis mind out of the question. He thought fhev ought to accept the offer. It would be a serious thing for the conference Io let it go forth Io the public that they were haggling uv ,. r conditions of sale.' The bheepowwrs' Eederaliou had met that morning, and had passed a resolution agreeing to the (erm- ami also a S veein» to Air. \ewmnn-.s proposal. "I caution you,' he concluded, "before vou are earned away by what Mr. Ly.s'nar has said, to think very carefully about if -Mr. Anderson (I'elorus) Ihom-hi [|, e chairman h ll( | put his linger on the weak spot when he mentioned shipping! Air. Lysnar had made out a good /ease but in Ihe circumstances it would be a good thing if the Imperial Governments offer were accepted. Mr. C. L. Alarshall (Marton) said (hat He welcomed the president's address lie thought that Ihe "Iwelve-monlhs-after-the-war clause should be accepted If the union turned it down he would' be ashamed (o go back to his district. "A Large Amount of Profiteering Going On." Air. J. T.ilbot (Teinuka) said that when the original contract was made they were tout vlia: it any variation was proposed it would bu Mib.nittcd to al,con-u-reuce. That had net been done. He thought they should have contracted only tili the end of the war*-at the most lor only three months alter Ihe war They Miould have taken their chance trow then, and he felt sure thev would have done all right as there would have been ample demand all over the world lor wool. Air. J. Boddie (Te Kniti) doubted if the conference was cumveseiil to deal Willi the question. He I nought (hat in view <>l the very conflicting evidence put uciore the conference, and the varying opinions expressed, it was hopeless' tor the conference in expect to arrive at n decision of value. Mr. .Matheson disagreed with the contention that the coiiierence should not express mi opinion. He said also liial the contract was being looked ■ at as thought (his were a time of peace.' Captain Cnlheck (Auckland) supported Air. Lysnar's motion. "Tin- imperial Government altered lite terms of the agreement, and that is not right and not business." Air. H. I). Vavasour (Aiaiiboroogh) -. It seems there is not the slightest doubt that there is a large amount of profiteering going on. The farmers have never objected to having their produce comma mleered al: a low price. What we do object to is the amount of exploitation that is going on with our products. If the ptofits were to go entirely into the hands of the Imperial Government for the good of (he Umpire there would be rn cavil. We hud a great example of the profiteering which went on in the meat business early in the war. We emphatically protest against I lie Government of the country and the British Government allowing this profiteering, which i.s undoubtedly being carried on. Air. (I. W. Leadley (Ashbttrton) said (hat in the south (hey had had a very severe visitation, and, at a low estimate, there would be a loss of a million sheep. Added to that there would be n less valuable clip and a less valuable crop of lambs. So were they justified in agreeing here to hand over to others a possible prolit belonging to the men .affected by the visitation? He could see nothing unpatriotic if the conference decided in favour of linking up the wool contract with the meat contract. Air. J. Hegg (Otago) said that he had all ended the S'ncepowners' federation meeting, and that they were unanimous in the decisions mentioned by Sir Janus "Wilson. At Unit meeting he had represented some of ihe men affected by the re'jent bad weather in the south. He thought lh.it (he wool contract was a gum! one, and he hoped they would accept it without demur. In the past the contract had been well kept by the Imperial Government, though some small matters might have been varied. Mr. Lysnar's Motions Carried. . Air. G. Wheat (Dunsandel) asked: "Why has Air. Alassey made the same bargain this year as the one which could 'not be carried out last year?" He maintained that Air. Lysnar had proved his case up to Ihe hilt, just as he had done when he had raised a howl by saying that the meal: barges of London were rotten and when he had been pooh-poohed for declaring that Ihe Aleat Tru?t was in our midst. He did nut mind surplus money of his going In the Imperial Government, but he objected to some people making huge, extortionate profits from the clips. Air. R. Duxfield (Horoliu) said that Air. Lysnar had presented a very thorough case, and it should be treated respectfully. The matter should be treated on a business basis. Mr. J. Christie (Balclutha): The only question is whether we should take I ho chance of getting our wool away or be sure by selling for twelve months after (he war. I say take .Ihe sure way. The president: That is the point. Air. K. A. Campbell (Wanganui) contended that the shipping position was very uncertain. "Tho easy remedy is: (he Government, having a list in its offices of all the woolgrowers in New Zealand, should get from them direct whether they are agreeable or not to the contract, and those who are not, let them keep their blooming wool. I am on for Ihe sure, thing, and I want the Government to keep my wool for a year after the war. I would not mind if thev kept it for two years, and I am one of the oldest sheopgrowers you bavo hero I might say that t do not think the Government at Homo is anxious to get our wool-that they lmvo moro than (hey need—but they have taken it under pressure from the New Zealand Government owing to tho circumstances the Dominion is in." , "A bird in the hand is worth Iwo i u

(he bush," was I his view bv Ah'. A. .1. Mchul (Mnillaiul); and in "this Air. J. i'atersnn (Olaia) concurred. "I unreservedly support. Air. Lysnar," was the attitude of Air. W. Cornier (Alataui'a Island). Air. .It. Dvnns (ICaiapoi) said 1 liar a great deal had boon intuit- by the fact that Hit- Imperial Government had paid the iW Zealand growers for the wool. "They have paid ns with our own money," ho declared. Air. I!. Dunn (Aurou) said Ilia! if wo had not sold our produce- to (be Imperial Government we might not have got it away, and through lack of money there would have been chaos. Air. l.ystinr said that immediately afler Ihii war then- would bo ample shipping, though a year or su later there might hi! u short-ago. Our shortage of shipping io-diiy was due 1o loose control at 'the Oilier end. There was more insulated tonnage in ilritnin now than before the war. Australia was better off for shipping than .\cw Zealand was. Her stores wire emply and ours were full. Aust: aI in had got as much produce away this year as last year. A delegate: What about wool? Air. Uysnar: The same. "Tile people of London are too clever for you," continued Air. Lysnar, ".My advice to you is keep away from London." The lirilish Government had lint time to worry about "your paltry bit of wool": they were busy over the war. Let the contract stand till three months after the war, but then it war! our duty to relieve the Government of the contract. The Government were not seeking this contract; it was the manufacturers who sought if. The president had said that ho would like to soo proof of what he (Air. Lysnar) had said. His facts were (alien fvcm official sources, and ho challenged anyone to show that they were not correct. He regretted that tile president had quoted the opinion of Air. Waller Hill, who, as a wool-buyer, was an interested party. AVlicn the mutter went to the vote Atr. liobinson's amendment was defeated, and Atr. Lysnar'* motion (first portion) was carried by 1!) votes to 12. The second portion of Atr. Lysnar's motion was carried by a good majority. Afr. Xcwman's proposal was referred to the branches, who are to renort to the provincial executives.