Virtual Volunteering - Wheat (1)

Wheat (1) - Part 2

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4243. By the CHAIRMAN: The 7d. per bushel would be quite a different proposition if the mills were getting f.a.q. wheat similar to what you are shipping ?—I do not think that would affect the gristing to a great extent, whether they had f.a.q. wheat or inferior wheat.

4244. But they could grist for a less price per bushel if they had f.a.q. wheat than if they had second quality wheat ?—I would not say that. They probably say to you that with the inferior wheat, and especially the weevilly wheat, they want a bigger commission on account of the weevil getting through their mills, and obliging them to go to large expense in order to keep their mills clean.

4244a. They would not put up the case that they had to mill a larger quantity of wheat to get the same quantity of flour ?—That does not affect them at all. They get paid on the quantity of wheat gristed; not on the quantity of flour extracted.

4245. How is the quantity of flour turned out from the wheat; is it very satisfactory ?—In some mills it is very satisfactory. As to other mills I am not quite satisfied that they are giving us as good a run as they might. The quality is all right; in fact, it is too good a quality. The millers are making their flour too clean. Let me say that they are not putting enough pollard back into the flour.

4246. Are you over-supplied with bran and pollard just now ?—No. Our stocks are just about nice. There is no surplus. The mills have just about enough for their particular requirements.

4247. Has the whole of the bran and pollard been absorbed in this State ?—No. We exported a few hundred tons.

4248. By Hon. R. G. ARDAGH: Recently ?—Not since the demand crept up here. I suppose the last shipment was made about the end of April.

4249. By the CHAIRMAN: Mr. McGibbon also complained about the commission in the gristing charge for the farmer ?—Mr. McGibbon's evidence would lead one to suppose that the miller deducted the 3¾  per cent. from the farmer. But the miller does not do any such thing. The miller charges the farmer with the usual gristing rate. Various mills have various rates for farmers' grist. The Geraldton Mill, for instance, debits the farmer with 8d. per bushel for gristing. The miller takes off the rail freight on the six ton basis from the place where the farmer delivered the wheat to the mill. The farmer gets the minimum rate of rail freight. Then the miller takes off any bag charges. He has to supply out more bags than the farmer put in. The miller also takes off any other charges such as cartage from the siding to the mill. Then the miller has to work out his product, and return the farmer on the basis of whatever he wants for the wheat supplied. Mr. McGibbon said it was simply a calculation. This (produced) is the calculation necessary, when a miller receives wheat from a farmer, to work out exactly what products the farmer has to get in exchange: Farmers' Grist—Farmer delivers to Agent at Siding, who issues Grist Receipt and forwards wheat with other to the nearest depôt. On production at the mill of the grist receipt the mill would make out a grist note showing the quantity of wheat received, and the equivalent amount of flour, bran, and pollard due, the quantity of product delivered, the charges due for gristing, railage inward and outward, cartage, and cost of extra bags.

To ascertain the product due the following methods would be adopted:—

Cash transaction.—The amount of the wheat actually received would be reduced from bushels to lbs., and apportioned in flour, bran, and pollard, on the basis of so much flour, bran, and pollard to each bushel. It frequently happens that a farmer requires a certain product in place of another, in which case the exchange is worked on the prices applicable for the respective products. For instance, a farmer with 100 bushels wheat would be due to receive, say, 4,000lbs. flour, 1,200lbs. bran, and 600lbs. pollard, but if he required, instead, 2,000lbs. flour and the balance in half each bran and pollard, the value of flour and offal would have to be calculated, and allocated to the respective products.

Wheat received = 34 bushels 54 lbs.

Flour. —    Bran. —     Pollard.

Product due    ...   ...   ...   ...     —         1,396  —      419     —       209

Less Flour delivered   ...   ...     —         1,000 
                                                                             
Balance of Flour to transfer to Bran and Pollard — { 396

{396 =— 415 — 415

834 — 624

396 lbs. Flour at £10 10s. = £2 1s. 6d.

Bran           —                       = £4 —10 —0 per ton.

Pollard        —                     = £5— 10 —0

2— 10— 0 —0 ÷ 2

= £5— 0— 0 per ton of Offal.

1 ton Offal = £5 0 0.—  £2 1 6 = 830lbs. Offal ÷ 2 = 415.

415lbs. Bran at £4 10 0  —   = £0 18 8

415lbs. Pollard at £5 10 0— = £1 2 10

£2 1 6

Wheat retained for charges.—In many cases the farmer desires the miller to purchase sufficient wheat to pay the expenses. The miller would, therefore, only charge for the wheat gristed equivalent to the product supplied, and for the wheat retained an allowance of 4s. 9d. per bushel, f.o.r., Perth, is made (less railage to Perth and less 1¾d. acquiring charge). It is, however, a difficult matter to ascertain the exact quantity of wheat to be deducted, for, as a rule, it is not possible to arrive at the exact total costs until the products have been despatched by rail. It sometimes happens, therefore, that a separate advice has to be sent by the miller to the farmer, giving full particulars of the goods forwarded, and the grist note with details of expenses is sent as soon as the railage charges, outward, are known, together with a remittance of the difference due to the farmer when wheat is retained to a greater value than the expenses incurred. The calculations would be dealt with as follows:—

All expenses incurred would be totalled and an approximate amount added thereto for the outward freight, wheat to this value would then be deducted from the quantity received, and in order to ascertain the quantity to be gristed, and the quantity to be retained for the gristing charges, the balance would be reduced from bushels to lbs., then multiplied by the amount per bushel charged for gristing, and the result would be divided by the value of the wheat per bushel plus the gristing charge per bushel. Thus—
Example—

Received 100 bushels wheat.

100 bush.

Deduct for expenses    —        9 bush. at  4s.  6d. = £2  0s.  6d.
                                             
91 bush.

x 60
                                             
5,460 lbs.

Gristing charge  —   10d.
                                        
                                64d.) 54,000  ÷ 4s. 6d. plus 10d. = 853lbs. = 
                                                              14 bush. 13lbs.

14 bush. 13 lbs. at 4s. 6d. = £ 3 4 0
 9 bush.             at 4s. 6d. = £2 0 6
———————                   ———
23 bush. 13 lbs.                   £5 4 6 Total to deduct.
———————                   ———
Received as above -            100 bush.
Less deduction for expenses  23 bush. 13 lbs.
                                             ————————
Net for grist -                       76 bush. 47 lbs. at 10d. = £3 4 0
Sundry expenses -                            -                       = £2 0 6
                                                                                   ————
             -                                            -                       = £5 4 6
Retained for charges -         23 bush. 13 lbs. at 4/6  = £5 4 6
                                            ———————
                                           100 bush.  0 lbs.
                                            ———————

Product retained for expenses.—In this case the total amount due for expenses would be ascertained and flour and offal retained to that value. As in the case of wheat, it is difficult to ascertain the exact charge until the goods are railed. The calculations would be based on the market (selling) price of the product.

Storage of Product.—In many cases the farmer only takes a small quantity of product and the balance is stored free of charge at the mill until it is required, which necessitates further grist notes being made out for the additional deliveries. For such transactions a special ledger is used in which is re-

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