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Wheat (1) - Part 2
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crease. Others might dispose of their summer wheat in the early part of the season to the mill. Others again might ship their wheat to more favourable ports at home. Mediterranean ports are not considered good from the shippers' point of view in the way of getting increases in weight. Before making comparisons between the different firms in this way, one would have to determine to what ports the wheat had gone. In normal times a firm like that of John Darling & Sons would not sell a cargo of wheat to certain Mediterranean ports unless the bill of lading weight was accepted as final. Before the war a cargo of Australian wheat would arrive, say, at Naples, where the berthing accommodation is limited. Most of the boats discharge there in the open sea into lighters. The lighter is then taken alongside the quay and the wheat is discharged there into wagons, and these wagons take the wheat to the mill or some other destination. This involves many occasions for handling the wheat, and consequent leakage. Australian shippers always contended that they were robbed at the Mediterranean ports, though personally I think the loss was due to so many handlings of the wheat. 3853. That did not apply to some of the larger boats?—That would apply to full cargoes to such places as Barcelona, Leghorn, Naples, Marseilles, or Malta. 3854. By Mr. HARRISON: Would there not be big increases due to incorrect weighing?—If the agents took down the farmers there would be large increases in the weight. 3855. How do you account for Bell & Co. having so much larger a surplus than the other firms?—I have not gone into the matter. In normal times sub-agents buy on a limit from their principals. If they have a limit,say,at Doodlakine of 3s. 6d. and the agent pays, say, 3s. 6¼d., the extra farthing is debited to his account. If later on in the season he is able to buy wheat at under his limit this is used as a set-off against the other. In some cases firms have allowed their sub-agents to set off the increase in weight against their over limits. I have never been associated with any firm which allowed that sort of thing, because it invites the agents to rob the farmers straightaway. It has been known to have occurred in some of the Eastern States. 3856. Would the clean-up of any particular stack during the abnormally wet weather account for such a big difference between one firm and the others?—It would take a lot of wet to make up such a big difference as that. Take it on the average, one firm might ship more wheat in the winter time to the local mills than another firm would, but this in itself would not make up the difference of between one per cent. and a half per cent. It is indeed difficult to account for. When I first saw the return I thought there must be something wrong with it. I have not yet had time to go into the question of the circumstances attending the shipment of the wheat in order to find out how the differences have occurred. 3857. By Mr. BROWN: Did you ever know James Bell & Co. to adopt the setting off principle referred to you by you in any part of Australia?—I cannot say. 3858. Have you been operating with other firms than Dreyfus & Co.?—Yes. 3859. Do you know that other firms in particular have done this?—No; not in the case of any of the firms for which I have worked. 3860. Have none of them allowed their agents to go above or below the limit?▬they have allowed their agents to exceed the limits, but not excess eights toe set off against the debit on account of the over-limit. 3861. By Mr HARRISONL Do you thin the farmer would get a greater advantage by having bulk weighing where weighbridges are available instead of having individual bags weighed?▬I think the bag weighing should be accurate. 3862. Do you not agree that in each bag there is at least 1lb. draw on the scale?▬The agent certainly takes the turn of the scale in his favour, and that might be half a pound. 3863. A man would lose a bushel in 100 bags?▬Possibly h might. 3864. By the CHAIRMAN: We want to find out the approximate cost of handling this year in comparison with the handling in previous years, including the allowance for all responsibilities, etc., which the acquiring agents had to take previously, so that we can determine whether the work is costing more or less this year than before?▬I will give the Commission a comparison of the amounts paid by the Scheme for the handling of the 1916-17 and 1917-18 crops. in the 1916-17 crop the charge for complete services providing for wheat shipping was 3½d per bushel. This was based on payments to sub-agents of 1½d. per bushel, leaving 2d. per bushel fro payment of agents own services and responsibility, if any. As the payments to sub-agents for the two seasons were defined, we can now compare them and find that the average amount per bushel paid to the acquiring agents for sub-agents services for the 1916-17 crop was 1.35d. per bushel and the amount paid for 1917-18 wheat averages .866d. per bushel, showing a saving of .484d. per bushel, or practically ½d. per bushel in favour of this year. For the 1916-17 season, however, the sub-agent did duties over and above those performed this year. In view of the different years, it is a very hard matter to make a comparison. In 1916-17 the agents got 2d. for all wheat shipped (that is, over and above the 1½d. allowed for sub-agents, if incurred). For this 2d. they had to caretake for 12 months, provide stacking grounds, use of dunnage, curtains, iron, wire and timber; also check railway accounts, ship the wheat and incur re-bagging risks up to seven percent., as well as take full responsibility for certain losses. This year the sub-agents get ⅝d. simply for issuing certificates and checking weights at depots, and under the system of checking by a running bulk sample they cannot possibly incur any liability for inferiority. Taking as our starting point the ⅝d. paid to agents this year, and adding to that the estimated cost of services which the Scheme has to perform, which were preciously performed by the agents as follows:▬Amount paid to agents ⅝d. per bushel. caretaking at depots for 12 months, say, ⅛d., shipping wheat, say ⅛d., providing dunnage and roofing incurred this season, say ⅛d. rebagging previously done by agents, say 3 per cent., equal to ⅛d.▬ we find that the estimated cost for handling the 1917-18 harvest is 1⅛d., as compared with the amount paid to agents for the 1916-17 crop of 2d., or a saving on the present year of ⅞d. per bushel. There is, however, to be considered the cost of depots. the depots were specially provided so as to have fresh storage ground free from weevil, and this extra cost that has been incurred this year as against past years should be considered in the nature of an insurance against weevil damage over a long storage period. The amount of double handling this year caused solely by this system of long storage is about half the crop. The cost of all depot work to date amounts to ½d. per bushel. The cost of taking the wheat out will depend on when the wheat is taken out. If it were taken out at present it could be done for under 1d per bag, but if left there two years on account of the deterioration of bags it would certainly cost more. 3866. The average last year was 1.35d and this year it is a shade under one penny?▬Yes. Last year out rates were based on 11½d for a complete service, where the sub-agent stacked the wheat on the dunnage, roofed and screened the stack and looked after the stack for 12 months. If he had not to roof and screen, he got only 1¼d. At certain depots where he trucked away direct without stacking, he got only one penny. Generally speaking, the rates paid this year are less than last year's rates, even allowing for the fact that the sub-agent does less work this year than he did last year. 3867. By Hon. J F ALLEN: And are the results equally good this year, or are they better?▬Much of a muchness. 3868. By Mr HARRISON: Do you think the pricing at so much per bushel is a good system for country districts: so much for covering, for instance?▬One has to make it either a bushel price or a bag price. 3869. You never attempted a contract price?▬It has never been paid by contract. The shipping agents have never done it by contact. the sub-agents let
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