KAURI GUM BOARD OUTLINES POLICY

Sun (Auckland), Volume 1, Issue 109, 29 July 1927, Page 13

KAURI GUM BOARD OUTLINES POLICY

WORKING WITH MERCHANTS IMPROVEMENTS SOUGHT Some improvements can be effected in the methods of sale of kauri gum, states the Control Board, in a statement of policy published to-day. The board, however, does not deem it advisable to interfere with the set avenues of trade through the brokers*, and merchants, and thus cause a further disruption of market values. The board has recommended to the Minister of Lands that no holder of a kauri gum broker’s licence be entitled to hold a gum buyer's licence, and that all kauri gum buyers’ and brokers’ licences be issued by the board. Further recommendations have been made that proceeds of a client's gum be paid by the broker to a trust account and account sales be rendered and amount paid to clients within 30 days of sale, and also that clients be entitled on request to a copy of entry in buyer’s gum purchase book referring to the gum sold. SUGGESTIONS TO DIGGERS Following on a request from the board for information as to the best lines to be followed by diggers when grading their gum for the Auckland market, the following suggestions were received from the exporters:— That unscraped gum should be well washed. All gum thoroughly dried. Separate all white from black. This applies to every grade from nuts to dial. Scraped gum should have all pieces scraped according to the grade it is intended to make. For example, rescraped gum should not contain any 5 or 2 scraped; g should not contain any 2 or rescraped, and so on. It is advisable to separate the sound steel from ordinary black. Faulty steel put in a class of its own. Chips should be thoroughly washed and dried, and freed as far as possible from foreign matter. ADVANCES TO PRODUCERS Recommendations have been made to the Minister referring to the conditions under which advances should be made, and regulations are now issued dealing with the case. Genei’ally, the conditions on which advances can be made are:— That no gum will be received by the board or any advance made on it unless the board has first agreed with the individual to take his gum and make advances against it and permission given him to forward his gum. That the producers be invited to form committees, such as those which dealt with the division of Government moneys last provided, to advise the board as to the persons to whom advances should be made. Producers living in districts where such committees have been formed should apply to the committee in the first place, and the committee will communicate with the board. In scattered districts where there is no committee, persons in necessitous conditions should apply direct to the board, and, if requested to do so by the board, shall interview either the nearest policeman or postmaster, from whom a report will be obtained by the board. That the gum shall be delivered to the board’s agent and shall be valued by the board’s valuer at current rates for the particular class or classes at the place of delivery with power to the board to reject any gum which is of no saleable value. The advance shall not be more than 50 per cent, of the value as fixed by valuation as above, less forward freight and charges paid on same by the board. The board shall have power to sell to best advantage the gum against which advances are made, and no reserve selling prices shall be stipulated. Account sales will be rendered and the balance paid to the holder of the delivery certificate on surrender of same. If the delivery certificate shall have changed hands a copy of the account sales will on request be forwarded to the original holder. Brokerage on sale at 5 per cent, and ordinary charges according to the custom of the trade for storage and other items will be charged against the sale price of the gum. It is impossible for the board to make advances generally on gum, or of a larger proportion than indicated. It must be apparent that a genera! system of high advances against gum or the purchasing of gum by the board is not judicious, as giving a false impression of the demand existing, and would mean accumulating heavy stocks in the boards’ hands until the. market improved considerably. ACCUMULATED STOCKS The Government stocks have been handed to the board for the purpose of realisation, and the board while pressing reasonably the sale of accumulated stocks, desires to co-operate with the merchants and exporters in preventing the depreciation of the current prices as far as possible. The board is not in favour of entering into the business of general gum bhyers at the present time, but it is prepared to act as a broker in the sales to exporters of producers’ gum (against which no advance will be made), in addition to so acting in those necessitous cases where advances are made as mentioned above. The exporters are prepared to buy from the board, dealing with it as a broker for the gum placed in its hands. Examination is being made into improved processes for the cleaning of kauri-gum. and the utilisation of the present waste products of the gumfields, principally of the large deposits of kauri timber and the gum and resin content of same. In this direction inquiries are being made in America; and the Scientific Research Department of New Zealand is making investigations and tests for the board.