Wheat (1) - Part 1

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their equity in the 1915-16 Pool. I might draw attention to the fact that the farmers have only just recently got their equity, while the millers were allowed it nearly two years ago. I took strong exception to that at the time. The minutes of the meetings were very short and a good deal of the business which was transacted was not recorded. Under Mr. Johnson's regime everything that was discussed at the meetings appeared in the minutes. Very often a a discussion at a meeting has a most important bearing on something which will follow at the next meeting, and consequently we were at a disadvantage. Further, I found a difficulty in getting information that I wanted. I found afterwards that the secretary had received instructions not to give us this information. I told the secretary he was not playing the game and he stated that he was instructed not to supply the information. It was quite impossible to get good work done when such a feeling prevailed. I asked for an explanation in the accounts, of £12,500 under the heading "Millers" suspense." The manager said he could not give me an explanation, and neither could the secretary. I found afterwards that it was an advance to a miller. This "Millers' suspense" gradually increased up to the time I left, and there seem to be no steps taken to alter the position. I also took exception to the carelessness of the management. I drew the manager's attention to stacks at Fremantle which were being built on dirty, weevily ground without proper steps being taken to clean it before new wheat was put there. The manager said he did not know anything about it. I also drew his attention to weevily wheat being placed against new stacks. Both these matters are very serious because weevils soon propagate in the new wheat. Another matter I found out, and about which the manager knew nothing, was that a stack of 3,500 bags at Quairading had not been covered and that 14 inches of rain had fallen on it. You can imagine the state that wheat was in. The farmers kept me in touch with all that was going on. The Committee decided that only new bags should be used. Old bags often have weevil in them, and if those bags are used weevils start at once in the new wheat. One of the greatest evils we had to fight was the weevil. I was surprised to find that notwithstanding the decision we arrived at about these bags, the Minister altered it. It is not right that all the farmers should be penalised so that a small percentage of them might benefit slightly by using secondhand bags. One of the weakest parts of this scheme was the accountancy branch; so much so, that we had to effect a change. Mr. Grogan was appointed and everything seemed to go on satisfactorily until Mr. Mitchell transferred him to the Agricultural Bank and then things went back to the old chaotic state. I drew the attention of the manager and the committee one week to the statement that there was a discrepancy of about 800,000 bushels, that this amount had been sold and held in the State over and above what had been acquired. I asked for an explanation , but could not get it. That will give you an idea of the laxity which existed when I, an ordinary farmer, was able to find out such mistakes were occurring from time to time. And we were supposed to have a statement of facts placed before us every week. I received an explanation afterwards that they had muddled up the two years' accounts. It was not only that the bushels were wrong, but the pounds shillings and pence as well, and it meant upsetting both years. Then there was another change in the Government and Mr. Baxter took charge, but he, like the previous Minister did not think it necessary to attend meetings. At this time there was a lot of dilly-dallying in connection with the preparation for the storage of the next harvest. When the Minister is not there it means no end of delay in finalising a matter such as storage. I also took exception to misleading statements made by the Minister in the Press to satisfy the farmers. It was shown that things were all right, when I knew they were not all right. Since I left I have seen in the Press a statement that Mr. Child was acting accountant. That rather alarmed me, because he was our inspector of mills accounts, and a very able officer. I have since been very anxious to know who is undertaking that work. It was work for which he had special knowledge. Mr. Berkeley went to the East, I suppose at the expense of the Scheme, to a meeting of accountants, and after his return he withdrew and Mr. Child was appointed acting accountant. All this I have heard but whether it is correct or not I cannot say. However, it is a very serious position for the farmer as to the manner in which the millers' business is conducted. By their agreement they have to show every book in connection with milling. We have had instances of their refusing to show their gristing book. When I left we were pressing them to do so, but what has been done since I cannot say. Recently, and for some months, there has been a good deal of secrecy in connection with the working of the Scheme. We never see in the Press any notices as to what wheat has been received or what the expenditure has been. Many of the farmers have everything they own in this scheme, yet they can get no information supplied to them unless they write in individually and even then, probably, they will be put off. Under an advisory system the committee is a nonentity.We found that we were consulted on trivial matters, while matters of greater magnitude were decided upon by the Minister without having been brought before us at all. A case in point: the Fremantle Harbour Trust were allowed to increase their storage charges from £500 to £1,000 per month without consulting the committee. We interviewed the Trust on the matter — they are a regular autocracy — they rather resented our interference and they would not discuss the matter with us. They heard what we had to say, and afterwards sent us their reply. I was surprised to find a statement by their secretary to the effect that they had written to us two or three months earlier acquainting us of this increase.The secretary of the Wheat Committee said he had never received such a letter. At our next meeting we wrote to the Trust asking for a copy of the letter, but up to the time I left they had not sent along that copy, so the chances are they never wrote at all. That is one of the important points upon which we not consulted. A change was made under Mr. Baxter, but he never consulted the committee on the appointment of a new manager. However good the new manager may be, I should certainly have liked a word in that appointment, because at the time we were having considerable discussions with the shippers about claims for mice damage, and Mr. Keys, as manager for Louis Dreyfus & Co., was pressing for payment for mice plague claims that we were resisting. Whether that firm has been paid that amount since I left I cannot say, but it seemed to me extraordinary that the manager of a firm which was pressing the Committee should be appointed by the Minister to the control of the scheme. As regards suggestions for improvements, I am strong on the point that the Board's functions should be changed from advisory to executive, thereby obtaining promptness in carrying out decisions and and, what is of greater importance, the continuance of a definite policy. With every change of Ministry I found that the work was impaired. The next point I would suggest is a continuous audit, which of course would be paid for by the Scheme. This would obviate all the mistakes made in connection with the accounts, and if any mistakes were made it could be at once rectified. Information came to me that a miller was receiving f.a.q. wheat at 4s. 6d. instead of 4s. 9d. f.o.b. I could not get at the books, of course, it was out of my sphere, but with a continuous audit going on we could verify that sort of thing and stop it. Such a position cannot be remedied without a continuous audit. It can become known when the audit is held by the Government Auditor, but that officer would not trouble his head as to whether the wheat was f.a.q. or whether there was a dockage. The importance of it is that if all the millers were getting that concession at the time the Imperial order was being milled by the millers, 7,800 tons a month, which at 50 bushels to the ton, at 3d. a bushel would represent just on £5,000 which the farmers could be robbed of without our knowledge, and the Government Auditor would not know that anything was wrong. However, as I have said, a continuous audit would discover this practically at once, and it could then be remedied, but under this system of auditing every one, two or