Part 8

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appear to have made more money in handling wheat than the agents, and this is probably due to the fact that the farmers delivering the wheat were all willing to help the co-operative companies. The first balance sheet showed as a result of eight month's trading a profit of £948, and for the second period of 11 months a profit of £5,260. That was to the 3rd of may, 1916. Another year's operations will conclude at the end of this month. The next annual meeting will deal with several notices of motion to provide that a proportion of the profits shall be distributed amongst non-shareholders. The directorate have given this matter consideration and are supporting the principle, and very many shareholders have notified their intension of supporting it also. I think we can safely assume that the principle will be adopted.

9009. By Mr. PAYNTER : Do you think that the principle of co-operation can be applied on the eastern wheat belt in any other direction, such as working the farm ? - We think there is tremendous wastage in overstocking each farm with implements, and where the local companies are formed they will probably buy a grader and such implements that are only used for a matter of days and lend them to their members.

9010. Do you think it is feasible to go so far as to standardise machinery ? - I certainly do.

9011. By the CHAIRMAN : With your co-operative institution, do you find that you have been able to reduce the price of commodities ? - Yes.

9012. By Mr. VENN : When did you pay your first dividend ? - We paid 7 per cent. last year and the directors advised the distribution of £1,000 on a patronage basis, but the shareholders were anxious to build up the company and they wanted the amount to be placed into the reserve account. Many of the local co-operative companies were formed just in time to handle the wheat this season and they did their work very well without, almost, an exception. We had one million bags under cover when the March rains came.

9013. At Wyalcatchem ? - At Wyalcatchem all the wheat was covered but one little section.

9014. By the CHAIRMAN : There was one between Trayning and Wyalcatchem ? - That was Korrelocking, but it has turned out all right. We undertook to protect the Government from loss and all the loss that was incurred was £20. At Wyalcatchem there was no loss ; it turned out all right. These local co-operative companies are anxious to build up a capital out of which they are going to save and make money by doing their own business, acting as their own agents, receiving and despatching their wheat, and with that object in view we suggested that they should arrange amongst themselves to load the wheat into the trucks and they took the idea up heartily. At one of the first places to start they formed themselves into groups of members, three gangs, one to work on Monday and Tuesday, the next Wednesday and Thursday, and the other Friday and Saturday. They ordered their trucks a week ahead and they thought that they would load 10 trucks a day. On Monday morning the gang turned up but instead of having 10 trucks, they only had three. They had to make other arrangements. The idea is not to have them work for nothing, but instead of taking cash in payment they were to take share certificates, and some will do it yet. Although these particular companies were disappointed at the start, they are not discouraged. They are keen, eager and anxious to help themselves, and they look to the movement to help them out to make a living on the land and to make a living for themselves and their families.

9015. By Mr. PAYNTER : Their idea is to establish local general trading concerns, co-operative concerns, for handling their own wheat ? - Yes, we are doing the retail business, and as they become strong enough to take it on they will make the retail profits, and we will deal with them as wholesalers. One of the companies already has made £300 out of the business year, or they expect to make it.

9016. By the CHAIRMAN : Is there any contingent liability ? They stack the wheat, and are responsible for it ? - Yes, the same responsibility as a paid agent.

9017. By Mr. VENN : You are handling more wheat this year than ever before ? - We have handled to date 1,650,000 odd bags. Last year we handled 650,000. We have beaten that by a million. In developing this company we copied the methods prevailing in some of the continental companies as well as Irish - Canadian, and if our locals will do half as well as the local companies in other countries we have taken for a pattern, there will be no end to the possibilities of the movement. We have received a good many letters lately from the local companies asking us to make representation on their behalf to any bodies that can help in the bulk handling scheme.

9018. The farmers as a whole are very strong on bulk handling ? - Yes. A little while ago we felt it our duty to make representatives in the matter of the tariff, and before we imported our last season's cornsacks we wrote the Minister for Customs, and asked him to agree to allow us a rebate when the bags were exported. He would not agree. We drew his attention to the many rebates allowed on lines where the justification was not nearly as good as in the case of cornsacks, but he was not to be moved. We later approached Sir John Forrest, and asked his help in having the tariff lifted, especially the duty on cornsacks, and the last approach to Sir John Forrest was in March last, when we sent him this telegram :- Since last election farmers have begun to realise that the tariff is largely responsible for their many troubles. They want free bags from India, free twine from New Zealand, free tools of trade as in States, Argentine, New Zealand. It seems possible before elections for your Government to abolish tariff on these necessaries, and so make reasonable margin of profit possible. If no relief given farmers will probably organise in each State, and demand similar protection given all other industries. They will also judge candidates on past tariff attitude. Can you promise relief indicated and discuss our previous correspondence ? To that Sir John Forrest replied on the 15 th March - In reply your telegram 7th inst., it is impossible reopen tariff at present. All that is possible to be done is to ratify collections under it so as to protect revenue ; without such ratification the millions collected could not be secured. The Government has arranged in connection with next wheat crop that duty on bags will not be paid by the farmers today . We sent our telegram after we got some information from one of the Federal members. There members. There was no