M 



ROYAL COMMISSION ON AGRICULTURE. 



15 



, 1919.] 



ALLISON, Js*., McNicoL, STIWABT, DAVIDUM, 



[CoMtiniifil. 



.ubmilted those financial results to hm. toted tin- 

 ts mill probably to have hud a |>.irti.il aiulil 

 in in order tn eliminate it<-iiK wliirli pr..p.-il\ 

 peaking were not a charge against tin- trading. 

 At we had n.it time to do that wo delayed our 

 financial results in onl.T to ascertain the wish of tin- 

 Commission on the matter 



14.S57. If it was th.- desire of this Commission in 

 regard to its future sittings wjiich might have 

 greater application to what might be termed a 

 permanent poli.-y rather than a temporary position 

 would it bo possible to have, balance sheets placed 

 before ua of farms?- Wo think NO. and in raara where 

 balance sheets do not exist we were prepared to make 

 those up from the formers' records. 



14.358. In regard to the tables of figures with refer- 

 ence to the trading account you make an allowance 

 of 15 per cent, for depreciation on implements? 

 Yes. 



14.359. You also include all repairs and renewals. 

 Do you not think if you aro going to bring in all 

 your expenditure under repairs that 15 per cent, is 

 a high figure for depreciation? In taking a figure 

 for depreciation I have had to be guided by the 

 experience of practical farmers with those imple- 

 ments, and notwithstanding that repairs and renewals 

 are allowed for, it is the usual practice to allow a 

 sum for depreciation. One has always to bear in 

 mind the application of obsolescence to those 

 implements. 



14.360. Has that arisen very much in farming? 

 The general opinion is that your implements do 

 go out of date very rapidly. That is the experience 

 also in other industries. 



14.361. I thought that there had not been that 

 development in mechanical science so far as agri- 

 culture is concerned to bring the implements on to 

 a level in that respect? I cannot speak as to that. 



14.362. Would you agree as an accountant that 

 15 per cent, is a generous figure to put forward after 

 having allowed for nil repairs and renewals? No, 

 I would not think it was generous; I think it is a 

 reasonable figure in view of the fact that these imple- 

 ments are out of doors and there is a more rapid 

 depreciation on articles of that kind than machinery 

 which is under cover. 



14.363. One is always surprised to hear this because 

 at some of the sales that have taken place one has 

 heard farmers state how well they have sold their 

 implements after they have had them for a number 

 of years. That does not look as though agricultural 

 implements depreciated very rapidly? That is com- 

 mon to all things at present, because of the reduced 

 value of money. 



14.364. But still if the implements fetch a greatly 

 enhanced nriep it does not look at though they 

 depreciated very quickly? Provided the implement 

 is not obsolete. 



14.365. With regard to Statement No. IX on page 

 7, you hare " Allowanced 200." Would you givo us 

 an explanation of what that refers to? That refers to 

 allowunew in kind which are made to the farm ser- 

 vants. It is a credit to the trading account on tin* 

 one side and a dohit on the other. You will aee under 

 wage* the allowance* of 200 have been included. 

 Those hate been made up as accurately aa possible 

 taking the actual quantity of goods allowed to the 

 ploughmen and servants in Scotland nt the cost price. 



1 I :W>. Look at the next item, food consumed by 

 bone*. On what basis do you value, that; is it at 

 market price or at cost? We have endeavoured to 

 value it at close to cost price; it is not intended to 

 value it nt market price. 



14,367. What if. this actual figure based upon? It 

 is baaed upon the farmers estimate of his cost price 

 of the foodstuff consumed that is the foodstuff grown 

 on the farm. 



14,968. It is on an estimate of cost, not on market 

 price f Yen. 



14.369. Mr. I'nrkrr. I notice in the first paragraph 

 of your evidence yon say you rave been responsible 

 during the part vear for the audit of the accounts of 

 many farms? Ye. 



1 1.1)70. Doe* that moan that no accounts have been 



k.-pt helot.- hist vear'r That is so. 



14.371. What is it that is indiiiing farmers to keep 

 IK i. unit-, inm:- The payment of Income Tax on 

 double their rent that it* their n-ason. 



14.372. Then-lore. \uu have not much evidence to 

 gi\e us \\ith ii-gard to th,> past? None so far a 

 these farms that I speak of are concerned. 



1 l :CH. Some of the gentli-mon who have associated 

 with you have touelu.l ujxni tin- deteriorat ion of the 

 land in their evidence. Have you, in estimating 

 futur. M-ider<-d nt all what t!ia; nn -.; 



we have not taken that into account; we have been 

 dealing with the costs of 1918. 



1 1.374. Has Mr. Stewart or Mr. Me Nicol con- 

 sidered that point? Have vou considered owing to the 

 deterioration of the land how much per acre it will 

 cost to restore it to its pre-war fertility? -(.Mr. 

 Stewart): That is very difficult to say; it would 

 matter of estimate. 



14,375. You would agree there is a great deal of 

 cleaning of the land to be done, and fertility to be 

 restored by the greater use of manure? I agree. 



14.37G-7. Which would cost considerable sums in 

 the next two or three years? Yes. (Mr. Allison) : In 

 making enquiry into this one or two farmers gave me 

 an estimate of the position with regard to deteriora- 

 tion. One farmer says it will take 150 to get his 

 drainage right it has deteriorated to that ex 

 That is a sheep farm, 43 acres arable and 531 pasture 

 In another case the farmer says the land has become 

 more foul and that the steadings require attention. 

 Ho says 200 will be required to put it right. That 

 is a farm of 440 acres, 240 of which is arable and 

 200 pasture. There are one or two others I can give 

 if they are of any interest to you. 



14.378. From the evidence you have collected it is 

 clear that considerable sums will be required to restore 

 the land to pre-war fertility ? Yes. Here is a farmer 

 who farms 946 acres. 500 arable the remainder pasture, 

 who says that the arable land will require an average 

 expenditure of at least 6 per acre to bring it up 

 to pre-war condition. 



14.379. Mr. McNicol also touches upon the shorter 

 hours of labour. Have you considered at all what 

 that means in the future cost of production?- -(.V r. 

 .Vi-.Y/W) : We have considered it to a limited extent. 

 We do not know what the proposals are, whether the 

 hours are to be shorter or longer or remain the same. 

 We have had experience this year of a reduction of 

 hours, and we find that the shortage is already 

 increasing the costs to a certain extent. 



14.380. You have not considered what the 

 percentage is? No. We have not gone into it in 

 percentages. 



14.381. You know it must increase your cost, but 

 you cannot give us the percentage of the iner- 



We have not attempted to do so in the meantime. 



1 1.332. Further with regard to future costs has 

 anvone considered what the increase of rates will 

 me. in the education rate for instance? (Mr. 

 Mlixon): No. that has n;>t been taken into account. 



14,383. That is going to be a heavy burden, is it 

 not? (Mr. .Ve.VicoJ): Yes. 



11.334. The fact that farmers have been buying 

 their own land is common knowledge among farmers. 

 nnd it has been pointed out that the purchase of a 

 farm by tho tenant will reduce the available capitM 

 for working the farm? Yes. 



14,385. That is a serious matter, is it not? Very 

 serious. 



14.3^6. Have you considered at all what guarantee 

 would satisfy Scotch farmers and induce them to 

 keep their land under the plough? Do you mean a 

 guarantee of price? 



11.337. Yes? Mr. Gardner has already touched 

 upon that, and so far as the Union is concerned, we 

 abide by what he has already said. I do not think 

 t lii-re is a general call for a guarantee of profit. 



11.338. No, but have you considered what figure 

 tin- guarantee should be for wheat and oats? Under 

 what circumstances? 



14.389. If the Government say that they wish the 

 land kept under tho plough and wish to see a larger 



