BASIS OF WOOL COMMANDEER PRICES

Dominion, Volume 13, Issue 265, 3 August 1920, Page 5

BASIS OF WOOL COMMANDEER PRICES

Sir,—A kind friend has sent mo n. cutting' from your. paper "of 29th July, containing a report of Sir. Jlas6ey's speech in tho House, in regard to wool prices under tho commanded - , made by )»o in a letter which appeared in your issue of 20tli July. Ido not suppose that yours is a verbatim report of Mr. Massey's speech in replv to Jlr. Field's questions, and although ho has ; corroctly quoted tho cables which passed between tI)D Ilomo and our Governments, according to copies in my possession, and relating what probably took i placo here, while negotiations were pending, I cannot see that ho has dealt with ! the question at issue. : It is quite likely h- wis in to'jeh 'l with irfs lieutenants hero while rha nono- i tiatio-is wcro in prog-ess. but I •ov assert that he has been furnished with | wrong data to enable him to judge whether rev view of this vexed question J is "sound and arguable." ' Although I am accused by someone '! of "barking up tho wrong tree," I main-, J tain that my view is sound and arguand that tho Imperial Wool Com- j missioner, whom it is reasonable to suppose was not working in tho dark or ■ making blind or sporting offers for tens of millions of pounds worth of wool, had data before him carefully prepared, to cnnble him to form businesslike opin- ; ions on the prices lie was offering,. and the?e prices were manifestly on a higher scale than those which wo now lenrn 1 were framed by New Zealand brokers, on tho basis of the prices they obtained at the Dominion wool sales, of half tho 1913-14 clip. I quote the two cables to and from the New Zealand Government, on which the contract was clenched, and a critical examination of tho wording j will show how tho mistake has arisen: ! Imperial Wool Commissioner to New Zealand Government. ' ; Offor increase to 55 per cent, on

average prices realised for each qual- •. ity of New Zealand's wool during ; season 1910-14, New Zealand Government to Imperial Government, November 22, 1916: Accept offer, provided it was based . on following figures to be taken a* i the average for 1913-14. X will not burden the letter with tho lonj list of figures quoted by Mr. Mas. 6ey, but those for half and crossbred as showing the difforenco between London and New Zealand 6cale of prices for these descriptions of'tho 1913-14 clip;' Now Zealand London . v - ' 6cale. gtialo Medium to good halfbred 9id. to Is. Is. 5Jd. Medium to good crossbred 9d. to lid. Is. 4d. Even pieces and skirtings of the 1913-11 dip of the above descriptions sold in London at IOJd. per lb., which is higher than tho price fixed by our Government, under the contract, for medium lieece wool. So much for our brokers' ideas of value, and it appears now that theso gentlemon form my court of appeal, as they are evidently regarded as tho supremo authority of our Government. I would only add thai they have apparently not been unmindful of their own interests in the matter, as according to Mr. Maesey's statement in the Houso their charge for receiving and dolivering, and selling 204,831 bales nt auction of the 1913-14 clip, was iC127,797,..0r its. 7}d. per bale, while tho charge for receiving and delivering and only exhibiting the bales to the assessors under the commandeer, is 16a. sd, per balo for tho same weight of bales, or for tho whole of the 522,324 bales forming the 1917-18 clip, the total is .€426,64.1; an annual- income not to be eneezpd at, and which does not include rent or storage, which was stated at million pounds by Mr. Massey long ago.' All these pickings are dcductablo from onr half profits, and no wonder wo have advocates for the continuance of the commandeer.—l am., etc., •WILLIAM MILNE. •• P.S.—lt will be soen' (that) I have stressed the words "New Zealand" in ths Wool Commissioner's cablegram ' given above, which shows, I think, ho had taken London prices as his guide.

If he had Dominion prices in his eye tho words "New Zealand" wore surplusage, which had to bo. paid for at cable rates. We had no othor than our own wool to soil. In tho case of London tho distinction had to be made. W.M.