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Wheat (1) - Part 2
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Wheat (1) - Part 2
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4214. By the CHAIRMAN: Are not these fixed under the Arbitration Court award?—I think they are in accordance with the schedule compiled under the regulaions of the Harbour Trust. I cannot think that they were ever intended to be applied to large quantities of wheat. 4215. I thought the charge was only five-eighths of a penny?—Yes if the wheat goes direct to the ship from the truck. If the truck to the stack and thence to the ship, I think it is 1⅞d. But that 1d. for rehandling would still apply to any bag they touched. 4216. When it goes direct from the truck to the ship the charge is five- eighths of a penny?—I think it is seven-eighths. 4217. It seems they are charging 2⅛d. for stacking as a first charge?—Yes. The through rate is 1⅞d. They charge us a through rate at the time the wheat goes in. 4218. By Mr. HARRISON: You also have the rent of the space occupied?—Yes. 4219. How is that arranged?—There was an arrangement which which expired at the end of November last, by which they were being paid £1,000 a month, twice as much as they should have been paid. 4220. It was reduced to £500 a month, was it not ?—I think so. That was before I had anything to do with the Scheme. 4221. is it on account of the lack of shipping that they are trying to make what they can out of the Scheme?—They say they are only charging an amount to provide for interest and depreciation on their North Wharf. I feel sure they are making more money out of the Wheat Scheme than ever they did out of any other wheat. 4222. By the CHAIRMAN: Does that depreciation of cost apply to the whole of their machinery?—It would apply to the machinery and the shed. I have been told they charge us considerably more than the amount necessary for depreciation. 4223. Mr. Hammond said it was 2s. 9d. per ton profit?—I do not know what profit they are making. I should like to have the contract. We have only been making progress payments and have several thousand pounds held up. Some day the Minister will have to refer the matter to Cabinet . The next point, dealing with Westralian Farmers, Ltd., is as to the loading up of the 1916-17 stack. We pay them ten per cent. At the beginning of the year the work was not too good. We objected to a number of their contractors, and refused to give contracts to these men again. We told them they must give in the names of the men they intended to employ before we allow them to make contracts for shifting of the wheat. We now have the wheat moved by men who know how to do it. That has been of material importance. We had a lot of trouble with these contractors who sent down inferior wheat to the mills, and mixed it up with the good wheat instead of keeping it separate. The mills were complaining about the matter. It is hard to say exactly what is millable and what is not millable wheat. In these particular cases there was no doubt. Very often one only had to use one's nose to discover that the wheat was bad. The position has now improved. 4224. By Mr. HARRISON: Would the inspector at the port decide whether wheat was millableor not?—Any of pour inspectors should be competent to say whether the wheat was millable or otherwise. 4225. It has to pass an inspector before being sent on to the mill?—Not the wheat coming directly from the country. 4226. By Hon J. F. ALLEN: If it is not f.a.q. it is either sent to the miller or the wharf?—It should be sent either to the Perth markets or to the wharf at North Fremantle. 4227. But weevilly wheat?—That we send to the mill. 4228. That would not be f.a.q. ?—Except for the weevil it is good wheat. The miller can not say that wheat is unmillable according to our agreement by reason of its being affected by weevil alone. 4229. If the country agents decide that wheat is not first class it is not sent to the depots?—You are referring to the 1917-18 wheat, and my remarks are confined to the 1916-17 wheat. Of the 1917-18 wheat we accept a certain quantity up to 6d. f.a.q. at depots. Over that amount the wheat goes to Fremantle, but not necessarily for re-conditioning. We have a stack of inferior wheat down there, which later will be put on the local market. We are at present cleaning up country stacks. 4230. By Mr. HARRISON: In view of the charges by the Fremantle Harbour Trust, it would not be cheaper to have a depot for the inferior wheat somewhere else?—Possibly, but whilst we are incurring a certain charge we might as well make use of as much land as possible. The fact of stacking 30,000 bags of inferior 1917-18 wheat at Fremantle is not likely to affect the charge we are paying for rent. The next item is in regard to the miller's agreement. 4231. By the CHAIRMAN: That agreement was fixed up before you came into the Scheme?—The terms were fixed up, but I had the drafting arrangements to look after. 4232. You had nothing to do with the price?—No. A lot has been said in regard to the amount of 7d. per bushel paid for gristing. Mr. Gibbon stated that this amount was not arrived at with the knowledge of the Minister or the general manager. I notice that he was told several times by the Commission that I was not the general manager then. He made the same remark at a deputation that waited on the Attorney General, who told him that the 7d. was paid on the recommendation of Mr. Sibbald. Notwithstanding this he digs up the old story here. 4233. Was it paid?—Yes. 4234. I think Mr. Sibbald's last remark was that it was 6½d.?—Mr. Hall states that just before Mr. Sibbald left he had stated that the only thing to do was to give the 7d. 4235. Is this on record?—Not unless it was in writing. Mr. Sibbald might also have informed the Minister or Mr. Sutton. Incidentally, the 7d. was paid by the Foodstuffs Board composed of Messrs. Monger, Gorrie and Sutton. They paid this amount for gristing the wheat which the Government took over during the drought year. I think it was largely owing to that the millers insisted on being paid the 7d. this time. 4236. That was inferior wheat?—Yes. It was not equal to the Australian wheat. The bulk of it was Argentine wheat, and I think it went about 61lbs. to the bushel. 4237. Mr. McGibbon also complained about other charges in addition to the gristing charge?—There was 2½ per cent. selling commission, and 7s. 6d. per ton bag allowance. These are the main continuous charges. I notice Mr. McGibbon says that 90 per cent. of the bags are re-issued and charged for at 7s. 6d., that he runs a mill himself and knows what he is talking about. Mr. Morrison informed me that Mr.McGibbon ran the Perth mill for about a month and made a loss. He has been attorney for the owner I believe, but I understand that he only ran the mill for that time. 4238. By Mr. HARRISON: He also said that he had something to do with the York mill?—About that time the millers had deputation and brought up the question of the bags and complained that they were losing on the 7s. 6d. a ton. I told them if they were losing now they would be making a little during the summer, That I thought the agreement was a good one, and that they should not press the point. I said I would not recommend any allowance being made, but if they pressed the point I would bring it before the Minister. 4239. Did they mention any percentage of bags which they could use a second time?—I admit that the bags they are getting now are pretty rotten. 4240.They do use more bags?—Roughly speaking for every 16 bags which go into the mill, 21 come out. At present about three quarters of the flour being made here is for the Imperial Government, and nearly all of that is either being put in new cornsacks or new hessian bags. 4241. Do the millers get the 2½ per cent. commission on the Imperial sales?—No. They get it on the uncompleted portion of the Imperial sale. They get nothing on the Imperial sales now. 4242. Would the average wheat they have been receiving since your administration be under f.a.q. standard?—Considerably: with the exception of perhaps two or three mills which are so situated geographically that they have had a fairly good run of wheat.
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