Wheat (1) - Part 1

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553. Do you think that is fair to the owners of the 1915-16 wheat?—I would not like to say without going into that matter again. There was at the time an overdraft of some eleven million sterling.

554. But in June of last year you had £3,500,000 to your credit; of course you were not in control then?—I could not say without going into the matter.

555. As regards the wheat guarantees affecting the State, the 1916-17 harvest has not yet been entirely sold?—There is a small quantity yet to sell.

556. That is, in the pool as a whole?—Yes. In Western Australia I suppose there is a little over half a million bags.

557. Has any of the 1917-18 harvest been sold?—No.

558. I notice you have agreed to give a guarantee of 4s. 4d. at ports for wheat in future?—Only for the next harvest.

559 Not for 1919-20?—No.

560. Can you see any outlet for the sale of the wheat?— The prospects are good. That is the only thing.

561. What prospects are there?—The world is fairly bare of wheat. America has every anticipation of a record harvest, but the boards are clean in America. European countries are all out of action and producing very little wheat.

562. I suppose you are aware that Senator Russeil has stated that if peace is proclaimed this year America will have 400 million bushels of wheat to export?—America expects having that amount, but not for export.

563. A surplus of that amount?—I can hardly imagine that, because the boards there are absolutely clear now.

564. There does not seem much prospect of selling your harvest to England this year?—Oh, yes.

565. Mr Hughes said in November last that Great Britain has 2½ million bushels of wheat which she has not shifted, and next year she will grow enough wheat for herself?—Mr. Hughes was there fighting us regards finance. We were trying to get further payments from the Federal Government for the farmers.

566. Is not that a good argument that in respect of the guarantees which you are giving there is going to be a serious loss?—If we can properly care for the wheat, I consider it will be a good sound asset.

567. Replying to a deputation, Senator Russell said that in regard to future guarantees we had to be careful; that he had a statement from Mr. Hoover, dated the 11th March last, saying they were going to have a very much increased acreage in 1918, and if the climatic conditions were right would have over 1,000 million bushels, and if the war should continue it would be vitally necessary, but if the war came to an end there would be no market for 400 million bushels of their wheat, and the Government would have to find a market at a loss, which would mean a loss of from 300 million to 500 million dollars if peace arrived?—Dr. Duval, whom I take as even a higher authority than Mr. Hoover, says he fails to see how America can realise anything near that amount, even with the brightest anticipations.

568. Mr. Hoover is there in charge of the food problem?—But Dr. Duval is there as one of the leading men at Washington.

569. In view of a report such as Mr. Hoover's, and in view of the difficulty you have in selling wheat at all at the present time—you really have no sale at all for it at present—do you not think we should be cautious as regards keeping on advancing?—We have sales if we can get the shipping. We are now dealing with New Zealand for a fair-sized parcel.

570. If you could get it away at the present time; I am not contesting that?—But I think that when the war ceases, prospects will be very bright, not withstanding Mr. Hoover's gloomy forecast, which mainly applies to the high guarantee given by his Government. Look at the European countries that are out of action and not growing wheat. There is never a surplus of wheat even when they are all growing. European countries now under war conditions cannot possibly get wheat operations going again for a number of years.

571. You mean those countries which have been knocked up?—As a matter of fact, all the European countries.

572. Germany has not been knocked up much, nor Roumania, nor Great Britain. Britain was able to provide for herself before?—Britain has done the same as America has done, guarantee an extra big price for wheat.

573. It appears that the outlook is black if we do not watch our guarantees, if the wheat has to be stored here for a considerable time?—The whole thing, to my mind, is safe storage, protecting the wheat and keeping it in good condition until the market is ready for it.

574. From what you learnt at conferences, you think there is no fear of the wheat not being sold if it is properly protected?—No fear whatever. If we can deliver the wheat in good condition, there is no fear at all. I do not think the Imperial Government would make another purchase like the one they have made, taking the responsibility of the wheat from last December.

575. You considered the erection of country silos for the storage of wheat out of timber, and you came to the conclusion that timber construction would be inadvisable in view of the cost of insurance?—The greatest preventive was the rate of insurance.

576. Was the matter of insurance ever submitted to the underwriters?—Yes. We made inquiries and we found that the cost of insurance extending over a period of 20 years would more than equal the capital cost.

577. That applies to a lot of things?—That is, the extra insurance as against ferro-concrete silos.

578. By Hon. J. F. ALLEN: How did you arrive at the capital cost?—The cost of erection of the silos.

579. Where did you get that cost?—From the officers here.

580. Without plans?—They went right into the whole scheme. They got all the plans.

581. By the CHAIRMAN: How does the insurance affect the matter in Canada, where the silos are principally of wood?—The Canadians are really going out of wood into concrete. Dr. Duval is of the same opinion.

582. It is soft wood that is used in Canada?—Yes. Even then it is not a business proposition. The new silos are ferro-concrete.

583. Country silos?—Yes. All along the coast they are busy erecting silos of ferro-concrete.

584. As the result of your inquiries you do not think wood would do at all?—No. It is not a business proposition, even with the extra cost at the present time of reinforced concrete.

585. By Mr. BROWN: In connection with Mr. Keys' appointment, was there any public invitation for persons to fill that position?—No.

586. Was Mr. Keys' appointment approved of by Cabinet?—Yes. After I got him, there was Cabinet approval.

587. Were the advisory committee consulted before the appointment?—No.

588. It was purely a Ministerial act?—Yes.

589. Was Mr. Keys employed by Dreyfus up to the time of his employment by the Scheme?—Yes.

590. What remuneration does he get from the Scheme?—One thousand pounds per year.

591. Was there any fixed time mentioned in the engagement; could he retire at any time with giving a month's notice or so on?—There would have to be reasonable notice, one month, I think. The difficulty I was faced with was that first I had to get Mr. Keys to agree to accept the position, and secondly I had to get Dreyfus & Co. to agree to release Mr. Keys. It was no use approaching either the advisory board or Cabinet until I was assured that both parties would be agreeable. I was confident that I must have a man with technical knowledge, and I considered Mr. Keys one of the best men available in Australia, and after the experience of six months I have had with him, I am convinced he is the best man I could have secured.

592. When Mr. Sibbald was operating, was there any friction between the board and Mr. Sibbald or between yourself and Mr. Sibbald?— Latterly, when I thought Mr. Sibbald was not carrying out the position as I desired it there was a little friction.

593. In connection with the millers' agreement for gristing, all the mills, excepting Padbury's and the Perth mill, signed the agreement in March, and practically a fortnight ago the agreement had not been signed with these others. If the suppliers had refused to supply the Perth mill, there is no doubt the agreement would have been signed and fixed up?—I could not say.