§ Mr. MORRELLasked the Minister of Munitions whether the Government buys nitrate of soda through a single firm exclusively on a fixed commission basis; whether this firm, while employed by the Government as buyers, are at the same time allowed to carry on their own business as shippers and dealers in nitrate; whether he is aware that nitrate producers pay brokers through whom the nitrate is sold one-half per cent. commission; whether there is any reason why the Government or any other buyer should pay a commission for the purchase of this article; and in case such a commission is now paid, what is the amount of it?
§ Dr. ADDISONThe Government has purchased and still purchases its supplies of nitrate of soda chiefly, but not wholly, through one firm. This firm has for some time past practically discontinued its ordinary European trade in nitrate, confining its operations to purchases on behalf of the British and Allied Governments. It is understood that producers do not pay brokerage on sales made in Chile. It is considered that His Majesty's Government is quite justified in paying a reasonable commission to the firms who act for it. The rate of commission is in the nature of a sliding scale with a maximum of l½ per cent. on the purchase price (in Chile), which commission covers purchasing, financing, shipping, supervising, receiving and storing, and in general acting as the Government's buying agents, storekeepers, and distributing agents.