Wheat (1) - Part 1

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to frame the Pool as we now know it. In this Mr. Sutton played a very important part. I had had the pooling scheme in the back of my head from the start. Mr. Sutton accompanied me to the conferences and he and I discussed it while travelling, and afterwards we, to a large extent, influenced the Prime Minister and State Ministers to our way of thinking. Then we discussed it in conference, and it was agreed that the officers attached to the various Ministers, as Mr. Sutton in my own case, should draft a rough scheme. We adjourned one afternoon to enable them to devote the afternoon and evening to it. Next morning they came with their rough scheme. That was amended, mainly by myself, to broaden it a little. The officers had not provided for following the wheat to the extent I thought advisable; they had not made the Pool as big and wide as I thought essential. The present Pool was ultimately decided upon at that conference. That pool provided for the co-operation of Commonwealth and States for the purpose of chartering, buying, shipping, and selling of the wheat on given lines, each State to make its own arrangements as to how it would operate. Before leaving on return I pointed out that we in Western Australia would have difficulty for want of legislation to enable us to do that which the Pool outlined, whereas in other States they had the legislation or the power to pass it, or at least anticipated no difficulty in passing it. Here I was fearful of the Legislative Council. I did not think they would deal with the question in a manner that would provide expedition or even practical results. I was honestly of opinion that the Council would view the legislation with suspicion because it came from the Labour Government, and more particularly because it came from me. I say that because of their attitude in regard to certain legislation that had been honestly framed with the object of helping the producer. I told Mr. Hughes and the conference that I was not prepared to go into a big scheme such as that proposed in which expedition was the main essential, that I was not prepared to attempt to do it by legislation. When I came back to Western Australia I had to open up negotiations with the wheat buyers. I think I had previously discussed the subject with the wheat buyers or agents, and as far as I remember they were favourably disposed to the pooling suggestions. I had no difficulty in arranging for them to undertake the handling of the harvest on given lines at a given price. We then set to work to frame that agreement which has been the subject of inquiry by select committee. I am almost sure we were the first State to get the agreement drafted and framed, and signed by the wheat buyers. Then it became necessary to divide the scheme under two heads. We had to deal with the wheat buyer who would buy for shipment overseas, and we had also to deal with the wheat buyer who bought for local gristing. In other words, we had to deal with shippers and flour millers. The wheat buyers for overseas were sympathetic, helpful, and reasonable in all our deliberations, but the flour millers were quite otherwise. I do not wish that be accepted as a general statement, because a number of the millers were undoubtedly anxious to assist. In that regard I must mention Mr. Sibbald, who was particularly helpful, and who did not display any hostility whatever. But others as I have said, were not at all favourably disposed. I had no legislation, nothing to enable me to compel them to take a reasonable view. I simply had to be as tactful and diplomatic as I could be. It is true that Mr. Hughes had promised me that in the event of the millers showing active hostility sufficient to possible jeopardise the working of the scheme in Western Australia, he would take such action as would make them sorry for their attitude. I conveyed that intimation to the millers, and told them that if they did not meet us in a reasonable spirit I would have to report it to the Prime Minister, in consequence of which there would be something doing. That had some influence upon the recalcitrants among them, and ultimately we got an agreement fixed up. That agreement covered the wheat shippers, who did the handling of the grain for export, and the flour millers, who did the handling for the grain for local consumption, some of whom handled also for export. The Scheme worked fairly well. There was one grievance I had, and which indeed I still retain, against the Farmers and Settler's Association. At the outset I could see that we had a good deal of shipping arranged for December, and I knew that if we liked to make an effort we could get our wheat to the shipper earlier than could be done in the other States. Therefore, I made a special appeal that the farmers should get in their wheat as early as possible, so that we might get so much more away in December. My object was to absorb the available shipping. Particularly was I anxious for Geraldton, where I knew they would have a great difficulty with weevil, etc. I went to the extent of interviewing the newspapers, because I was worrying somewhat about this. Whilst I got a lot of encouragement from the editors, there was not a great deal done so far as the Press was concerned. It is true that Mr. Lovekin started it, but he became cool when the Farmers and Settlers' Association began to criticise and question the wisdom of the farmers rushing into the Scheme. The result was that the Farmers and Settlers' Association showed sufficient hostility to prevent me from accomplishing what I wanted, namely, to get the big bulk of the wheat which was available in December. We actually got practically nothing away. I did the best I could in the circumstances but received very little encouragement. The Scheme then went on. The agents got to work and we were not very late. There was some little criticism about the time of starting, but subsequent events proved that we were remarkably expeditions. From memory I should say that we were ready in December. I think the Commission will find that although we were severely criticised, and I myself was severely criticised, in regard to our want of expedition, the delay in making a start and receiving the wheat, and issuing certificates, comparing that year with subsequent years, we were wonderfully successful in getting a start during the first year. The Commission have had the result of the investigations in regard to the contract wheat. I have already given evidence before the Select Committee, and I need not repeat that. I am satisfied that every flour miller understood exactly what the clause in the agreement meant, and that everyone understood as I understood it. Some of the millers wilfully misled me as to the legal position. I have repeatedly urged that the matter should be determined before a court of law, and I trust that the Commission will see that the matter is thoroughly investigated in this manner. I have urged this not only from the Pool point of view but from the personal point of view. It has been stated that through want of capacity, limited commercial training, and all that nonsense of which we hear so much in politics, I lost £40,000 to the Pool. There is only one way of settling that point and that is to remove it from the sphere of politics and let the courts deal with it. It is a big amount to be let go without a thorough investigation. There is no question but that this £40,000 should be in the Pool if honesty is to govern our commercial concerns; but whether the legal position will enable men to take that from the Pool or not is a matter which will have to be determined elsewhere.

2. What was the intention of the general conference in Melbourne in regard to the handling of wheat after the interview with the agents and the wheat buyers? Was any principle laid down as to how the wheat should be handled, and was there any understanding in the matter?—After the interviews with the wheat buyers and the others, the conference discussed the whole phase of the question, and the officers prepared a draft of the scheme. The conference put it into shape, and this clearly laid down exactly what we intended, namely, that we were going to charter, to handle through agents or in any way that the States thought best, that we were going to ship, and that we were to sell. A board was appointed, whose duties were to administer the Scheme between conferences, and particularly to attend to all sales of wheat. The board was composed of three gentlemen, a representative of Dalgety Ltd., Mr. Darling, and Mr. Bell of Jas. Bell & Co. These three men were commonly called the Wheat Board, but I always referred to them as the Selling Board. They looked after all sales for the whole of the States.

3. By Mr. HARRISON: Were they a superior board for the whole of the Commonwealth?—Yes, they were a Commonwealth board, and sold for the whole of the Commonwealth.

4. Had they any power over any of the other State