I—l 7.

78

[W. W. MULHOLLAND.

Was there a corresponding reduction in the price of bread and flour as a result ? —No. As I pointed out, the fluctuation was of too short a duration for its effect to reach the distributing end of the industry. The result of this wheat pool has been to give a distinct advantage to those growers who were under financial obligations ?—Yes, a very distinct advantage. And you have made periodical payments somewhat on the basis of the dairying industry, have you not ? —Yes, that is a fair analogy to our methods. When did you make your first payment ? —We made our first payment immediately the returns in connection with the receipt of the wheat could be put through our office —generally running about twenty-one days. That was our aim —to make the payment within twenty-one days after the receipt of the wheat. You have made payments on over 50 per cent, of the value of the wheat ? —Yes ; with the present payment which is going through, it will amount to close on 75 per cent, of the value of the wheat. Close on 75 per cent, of the value of the wheat has been paid out already ? —Well, the latter payment is going through now. Now, this institution is merely a selling organization ? —Yes. Before, you had six thousand sellers and only a comparatively small number of buyers ? —That was the position. Is it any part of the aims and objects of your association to unduly inflate the price of wheat ? —No ; that would be fatal to our organization for several reasons. In the first place, we would immediately get public opinion against us, which would be very detrimental to us. A more certain result would be that if we raised the price of wheat unduly a large amount of wheat would be grown, and we would have a very large surplus to deal with, which would mean trouble for the wheatgrowers and for ourselves. Now, you say that this year you have largely eliminated the element of speculation ?■—Yes, we claim that. And that, instead of the profit going into the pockets of the speculator, you have endeavoured to so operate that it shall be retained for the grower—reasonable profit for the grower ?—That is our main object. You know the causes that have led to the setting-up of these pools in Canada ?—Yes ; I have frequently studied their figures, and they are most striking. And you know that those pools had a striking influence upon speculation in the Chicago wheatpit ?—Yes, and influence contributing towards the stablizing of prices ; and while we have cables reporting wild fluctuations on the Chicago market, the price of actual wheat has not fluctuated as far as the Canadian growers are concerned, to anything like that extent. The capital of your company is £50,000 ? —Yes. And every grower is a shareholder—it is a purely co-operative concern ? —That is so ; every grower has an equal say in the management of the association, an equal vote, no matter how big or how small he may be. A very democratic organization ? —Yes. You said you had not taken out the cost of growing wheat, but that at a meeting you obtained a number of costs from representative farmers ?—Yes. And these costs —possibly they can be put in later ?—Yes. Hon. Mr. Cobbe.] Mr. Hewlett, in his evidence yesterday, submitted figures showing that, taking land in the Ellesmere district at £40 an acre, it would cost ss. 7fd. a bushel to produce wheat. I see that that is for an average of 35 bushels to the acre, but I note that you say that at Darfield the average was 30 bushels. I presume the land would not be so good there ?—No, it would not be so valuable. I would say that the value of my place would be about £28 for some of it, and I would put the average at about 30 bushels. lam not sure whether that is not rather high. You know, our ideas have been put out of tune during the last few years, but I think that would be pretty right. But you think that the cost would be about the same as Mr. Hewlett's costs ? —Yes. I have at different times roughly costed out my wheat and the wheat in the district. These costs, which I will put in later, and which Mr. Wright has referred to, were costs which were obtained at a meeting of farmers at Darfield. They were fairly representative of the district; but, of course, in preparing costs you have to take a suppositious case. We took a suppositious case of 30 bushels to the acre, and worked out the costs on that basis. I think they were ss. 44d. on truck, Darfield ; that would be about ss. Bd. f.o.b. You have figures showing that in certain instances it is an advantage to grow wheat, and you understand the price of lambs. Ido not quite understand the gross price per pound for your lambs 1 —I did not take it on that basis. They were on figures which I had obtained. It would be about £1 9s. per head. Of course, you recognize the importance of the poultry industry to New Zealand ? —Yes. Do you not think that something must be done on behalf of the poultry man to bring down the cost of the offal, and the cost of the bran and pollard to the man raising pigs ? —Well, sir, it is a question of what can be done. You cannot possibly reduce it by doing away with wheat-growing. I did, for my own information, rough out the cost of landing in store Australian pollard for five years in Auckland compared with the prices given in the Abstract of Statistics for local pollard, and the average was 2s. or 3s. a ton more than the average of our local prices. I admit that at times Australian pollard could be obtained quite a bit cheaper. Australia is a land of great extremes of production of stock-foods, and while at most times they may have a drought in some districts, there are times when they are having a good season everywhere, and then they must find some outlet for