Wheat (1) - Part 1

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managing it. We had to have inspectors to go round and officers, but there was no suggestion of appointing a manager. 27. By Mr HARRISON : Would you have been allowed to run an executive body had it not to be an advisory board?—No, each State could control. 28. If you had chosen could you have had an executive board?—Yes. 29. By Hon. J. F. ALLEN : You could have confirmed what they did?—Yes, it was an advisory board in name. 30. It was to be an executive board and an advisory board?—Undoubtedly. 31. The Commonwealth Government were financing the Scheme and the Minister had to be responsible. The executive board could not be given the full powers?—The only limitation was as to whether the State Treasurers were agreeable to it. The State Treasurer was responsible to the Commonwealth, but they could run the thing as they liked. 32. He could not have a veto?—No. The Government were responsible to him, but the Minister could have what board he liked; there was no limitation. 33. By the CHAIRMAN : In other words, the State was responsible for the money?—Yes. 34. During your time, the whole of the recommendations of the board were carried out?—Yes. 35. The board were absolutely in control?—Absolutely. 36. there was nothing done in your time in selling the wheat?—We had sold a certain quantity, but the big thing, the selling of the harvest, was subsequent. We had sold certain cargoes but nothing more. 37. Was any money loaned by the British Government at the time you were on the board?—Yes, you will remember that Mr Hughes went Home and as a result of his negotiations a certain amount of money was either loaned—it was loaned by the Imperial Government to the Commonwealth Government, so that they could relieve the banks of the pressure. We had worked out certain figures, and when we met the associated banks we found the shipping difficulties became more acute and we could not relieve the banks in the time we thought. they were carrying a larger burden than they anticipated. In all the States the harvest was more bountiful than was anticipated. The banks could not carry on; it became too big a burden and Mr Hughes negotiated with the British Government and they advanced eight millions or eleven millions or an amount to relieve the burden. 38. By Mr BROWN : For wheat purchases?—Yes, for nothing else. 39. By the CHAIRMAN : I was looking at the balance sheet and I find that there was a large amount paid for interest?—Is that the Australian balance sheet. 40. No. the West Australian. The total value of the certificates issued was £2,242,000. these were not issued all at one time. I could not understand the Imperial loan?—That, I think, was due to the fact that the shipping was not available as was expected and the harvest was greater, with a result that the amount was larger than was anticipated. There is an interesting point there, at any rate interesting to me. I advanced more than they did in the Eastern States. It was a little bit of, some people say, cleverness, but it was really good luck. We got an earlier shipment, and if the farmers and settlers had not stopped me, we would have been in a glorious position. We got more away than the Eastern States did and we started with a big balance. As soon as you load you get the cash and we had a high credit balance in Western Australia before we issued any certificates. We did not issue certificates until well in January and we started with a big credit balance. We paid 3d. a bushel more than they did in the Eastern States. They could not understand how we did it, but we had a credit balance. They could not find out what our expenditure was. It went on for a long time before they discovered we had paid more than threepence. Afterwards the other States found this out, and I was carpeted at one of the conferences because I had broken away from the agreement. When I left Melbourne I did understand that we could pay the full advance, and not deduct the handling charge. At the conference in Parliament House that question was asked, and I expressed the view that we could or we need not pay. Seeing that we had such a huge surplus, Me Scaddan agrees to my paying it. If we had got more wheat away we would have been in a glorious position; we paid less interest than the other States. 41. You made a statement that you found the wheat agents were very helpful in connection with the carrying out of the scheme at the outset?—Yes. if they had shown opposition, my position would have been hopeless. I would had had to throw myself on the mercy of the Legislative Council. 42. In your opinion do you think they should have had some consideration for the assistance they had previously rendered?—the very fact that I was thinking of making it a State concern was evidence that I thought we had carried out our obligation to them for the assistance they had rendered at the outset. 43. By Hon. J. F. ALLEN : Do you think when they placed their knowledge and experience at your disposal in the way they did, they were actuated by the semi-promise that they would be allowed to continue in the future?—I believe that is so. 44. By Mr HARRISON : There were three of these firms who did nothing but buy wheat?—That is right. 45. By Hon. J. F. ALLEN : So that no financial consideration they received could have got over that difficulty?—that is so. 46. By the CHAIRMAN : I find from the minutes that you were paying 25s. a ton for gristing?—We had great trouble in regard to gristing, but I cannot bring the negotiations back to my mind. There were several conferences with the millers. The gristing was necessary because we sold flour to the Imperial Government in addition to wheat, and each State got a proportion of what was known as the Imperial order. 47. the minutes are to the effect that as the costing of getting the flour aboard was greater here than in the Eastern States, it was decided to allow the millers a concession to enable them to compete with the Eastern States. The 25s. would only cover mill handling, gristing and profit. At the next meeting the matter of allowing the 25s. for mill handling, gristing and profit, came up again. what other charges would there be in addition?—I do not think mill handling would cover the handling of the wheat from the stacks into the mill. Then there was the getting the flour out from the mill and loading it. Mr Sutton, however, will be able to tell you all about that, because he carried out the negotiations. 48. By Hon. J. F. ALLEN : I take it there was no standing charges added to the cost?—that is so. It was generally accepted that the total cost, £2 a ton, covered everything. 49. BY the CHAIRMAN : You had a good deal of difficulty with the millers in making them pay outstanding accounts?—Yes. 50. Who is paying interest on the money which was outstanding?—I should say the farmer was. If those accounts had been paid our overdraft would have been reduced and consequently our interest bill would have been reduced. On the other hand, while it remained to the flour millers' credit it relieved them of their interest bill. right through, the millers never gave us a fair run. 51. By Hon. J. F. ALLEN : If you had had definite legislation at that time, you would have been in a different position?—I would have put the millers in their place, there is no doubt about that. 52. Why was there a difference in the method of buying the 1915-16 harvest between this State and the other States? In this State it was optional whether farmers sold to the Pool, but in the other States it was compulsory?—I would have compelled them here, but I did not have the legislation. 53. Was the difficulty with the millers in regard to the £40,000 in dispute also caused by want of legislation?—Absolutely. They would not have had any wheat at all; we would have taken the lot. We would have compelled them to put the wheat through the Pool. The millers would have hung onto all theirs. they said they bought it in anticipation of flour commitments. 54. Your reason for not introducing legislation was fear of hostility on the part of the Legislative Council?—Yes, and the consequent delay. I would have had to wait for legislation to go through and try to negotiate at the same time.