9

H.— 38

Although final settlement is made on the basis of the assay carried out in the United Kingdom, an advance, free of interest, representing 80 per cent, of the value of the tungstic acid as disclosed by New Zealand assay, is made at time of shipment to the producers concerned. WOOL. Requisition and Disposal. Greasy Clip. The purchase of the 1916-17 greasy-wool clip on behalf of the Imperial Government was, as intimated in my previous report, made on the basis of a 55-per-cent. advance on the average prices realized during the 1913-14 season. These were estimated to be as follows : — Description of Wool. Ran g e of 1 Values per Pound according to Quality. Superior merino combings ... ... From 12d to 14-^d. Medium to good merino ... ... „ 9fd. „ ll^d. Inferior merino ... ... ... „ „ 9^-d. Superior half-bred ... ... „ 12d. „ 14d. Medium to good half-bred... ... ~ 9|d. ~ 12d. Inferior half-bred ... ... ~ 9d. ~ lOd. Superior crossbred ... ... „ 10- L d. „ 12d. Medium to good crossbred ... ... „ 9d. „ lid. Inferior crossbred , . ... „ 7|d. ~ 9d. Lincoln and Leicester ... ... „ B|d. ~ 10^d. Lambs, good ... ... ... „ lid. „ 13d. Lambs, medium ... ... ... „ 9d. „ lOfd. and all wool received into store and accepted was paid for on the above scale, plus the 55 per cent, mentioned. On receipt of advice from the Imperial Government of its desire to continue the purchase of the whole of the 1917-18 wool-clip on the same terms and conditions as for the previous season, the necessary action was taken, and a Proclamation issued by Gazette notice on the 25th August, 1917, which was subsequently amended by a further Gazette notice published on the 15th October, 1917. The method of purchase followed was on the same lines as that adopted during the previous year, with some minor alterations in procedure necessitated by the previous year's experience. All owners of wool were required to deliver their wool at the stores of registered Government woolbrokers at specified ports, and the wool was there examined by expert valuers appointed for the purpose by the Government and by valuers appointed by woolbrokers. In the case of any dispute in respect of the valuation as between the two sets of valuers, provision was made for revaluation by an umpire, and this provision has been freely availed of throughout all valuations. < Payment was made for the wool to the broker as the agent for the owner, and on receipt of payment the broker took possession of the wool and held it on behalf of the Government. Payments were made to woolbrokers free of exchange on the fourteenth day after valuation had been completed, and on the same day the broker was required to account for the proceeds to the several owners concerned. Prior to payment being completed the wool remained the property of and was at the risk of the owner, but was insured against fire to its full insurable value on his behalf while in the possession of the broker and until paid for. The broker was not allowed to charge the owner any sum for services rendered with the exception of that for repacking when such was required, the intention being that the amount payable by the Government to the owner for his wool should be the net return based on the foregoing scale of prices. The brokers appointed as registered Government brokers were required to do all that was necessary in connection with the receipt, weighing, stacking,

2_H. 38.