Wheat (2)

Image 7
image 7 of 52

This transcription is complete

the offal bags. That is, one and three-quarter dozen. There are 16 bags containing wheat, and in ordinary seasons on every ton of flour roughly about five fresh bags have to be obtained for each ton of flour. Under the circumstances, where wheat has been stored for some considerable time, that five has been increased by just as many bags out of the 16 which contained wheat as have become rotten. 7450. You were for some considerable time an inspector of the mills before taking on the accountancy? — Yes. 7451. Could you then get into possession of any of any particulars which would lead you to know the cost of gristing? — I was in a position to form an opinion. 7452. Did Mr. Sibbald discuss this matter with you at all prior to this agreement being entered into? — No. The first notification I had of the agreement being in any way finalised was from the newspapers. 7453. You know that the agreement was finalised after Mr. Sibbald left? — The details were. I presume the whole of it was finalised after he left,but in any case the first I knew of the main points which were finalised was from the newspaper. 7454. By Mr BROWN: In connection with the 2½ per cent. on the 25,000 parcel, which was unmilled, what service did the millers render the scheme for the money? — None, so far as I know. 7455. And yet there were 25,000 tons at £11 or £10 18s. 6d., and 2½ per cent. upon that? — Yes. While I had nothing to do with the framing of the gristing agreement, it is my opinion that the representatives of the Scheme at the time of the agreement was entered into were in a difficult position. They had on the one hand wheat being badly damaged by the weevil. The only way out was to get it gristed. On the other hand the millers considered they were in a position to force terms, which in my opinion they did, on the scheme's representative. 7456. By the CHAIRMAN: Then you agree that there is only one other operation, and that is to take the mills? — Probably before that was done, if the scheme representatives at the time had been in a position to do it, the millers would have come to different terms. 7457. You think that the millers held a pistol at the heads of the officials of the scheme, and would not move so far as the price was concerned. In effect they said "We have you in a hole and are going to keep you there," and demanded an expenditure of about £20,000 more than they should have asked for? — In my opinion they considered that they held the whip hand and so forced the position. 7458. You have seen the file containing the accounts which Mr. Sibbald made up estimating the cost of wheat under the Imperial gristing order prior to the ordinary gristing order, when they used to purchase the wheat and sell it to the Scheme in the shape of flour? — Yes. 7459. You will notice that Mr. Sibbald points out that the millers margin ran to £1 9s. 9d. per ton? — Yes. I worked on that calculation a little time ago, and made it about £1 8s. 7d., a little lower than his. I think that the estimate taken on the net realisation of the offal was a little high. I have had extra time on which to base the realisation of the offal.When Mr Sibbald made that up he could not foretell what the offal market would be, whereas in working the amount back I would be able to say approximately what a particular mill had realised. 7460. That is a reduction of 1s. 2d.? — Approximately. 7461. Now the millers' margin runs to somewhere about 35s. 6d under the present agreement, plus 2½ per cent. local sales? — It would do so for local sales, but that is worked out on imperial flour. 7462. The whole lot is gristed? — It is necessary to take the local and the Imperial separately, owing to the difference in the valuation of the flour. It is roughly, 35s. 6d. for local and Imperial. The 2½ per cent. is on local sales, but not on Imperial. 7463. According to the millers' gristing agreement, there is a margin of 35s. 6d. plus 2½ per cent. on local sales? — Yes, but not plus 2½ per cent. on Imperial. 7464. You agree with Mr Sibbald that from your observations when inspector the price he offered of 6d. per bushel on the 50 bushels to the ton, and the payments for bags at 5s. per ton, which equals 30s. per ton, was a reasonable price? — I am of that opinion. If they used 50 bushels of wheat to make a ton of flour, the Scheme would lose very heavily, because of the extraction. 7465. By Mr. BROWN: It is not a matter of value, but of gristing expenses? — If you reduced the number of bushels to 48 you also cut a further 1s. out of the gristing allowance. 7466. By the CHAIRMAN: Most of the weevily wheat they are gristing at present goes 50 bushels to the ton? — Some, but not all. All that you see with over 40 extraction would be under 50 bushels. 7467. By Mr. BROWN: From 48½ to 49 bushels? — Yes. For every bushel less there is so much less remuneration. 7468. Every bushel that is milled is 7d. and 7s. 6d. per bag, and there is just the same quantity of bags to a ton of flour? — If you mill one ton of flour from 50 bushels you get 50 sixpences, but if you mill only 48 bushels you only get 48 sixpences, and on every ton of flour you therefore get 1s. less. 7469. You are not working out on the flour basis? — Yes, to get these costs. They are worked out at per flour ton. 7470. The miller is not being paid gristing on the flour ton basis? — No, but the costs are worked out on the flour ton. If Mr. Sibbald takes 50 bushels he gets 1s. more margin on his estimate than if he took 48. 7471. When the first estimate was made was it based on a one shift turnover, or a three-shift turnover? — On a three-shift turnover in reality, but I think a mill could afford to work some broken time even on that. 7472. By the CHAIRMAN: This was considerably higher than the millers were getting prior to the war? — I don't know. With regard to the question of margin, according to the number of bushels to the flour ton in your estimate, so the remuneration to the millers alters. 7473. Did Mr. Sibbald discuss with you this estimate? — We frequently had a chat in connection with costs. 7474. You realise that the basis of fixing the price of Imperial flour previously was on a 25s. gristing charge? — That is so. 7475. But the millers had to make arrangements for their own bags? — Yes. 7476. The estimated value of the work made up by Mr. Sibbald was based on what was allowed in the price of flour under the old arrangement when the millers purchased their wheat? — Yes. Naturally he based his estimate of what he should pay them on what was considered a fair remuneration under the old wheat purchasing conditions. 7477. Mr. Sibbald had a conference with them after that? — I had nothing to do with the negotiations. 7478. You were not accountant? — No, I was inspector of agencies. The accountant had nothing to do with it either. 7479. From your position as inspector of mills you are of the opinion that Mr. Sibbald's price was reasonable? — I am of opinion that 30s. was sufficient. 7480. You are taking every care that the flour for the Imperial order is up to standard? — Yes, we have periodical tests. The milling inspector is making constant inspections. 7481. By Mr. HARRISON: Have you made any recommendations to the scheme as to cleaning up and getting anything definite as to the stocks they had? — We have made arrangements. They have been discussed. I will go through them again if you like. 7482. I suppose a portion of the mills at a certain date is cleaned up and then another portion at other times? — We cannot arrange for particular dates because owing to ordinary milling troubles you cannot estimate too far ahead. 7483. I thought you made arrangements weeks ahead so that to keep local demand fully met and clean up the mills? — There will be no trouble in fulfilling any trade requirements. So long as the products stacks are properly stacked there is no trouble in counting them. 7484. Are all the mills falling in with your views and stacking according to instructions? — We have had replies only from half the mills saying they will do so: the other half we have received no reply up to this morning. 7485. They are offering no obstacle? — No. (The witness retired) The Commission adjourned.