On The Sheep's Back

 

The rise and fall of the Robertsons of Struan was relatively swift. Their pastoral dynasty 'achieved' in two generations what took others three or four.

Between moving the first of the brothers' cattle and horses onto the New Country in 1844 and his death at Struan House in 1880, John Robertson forged a squatting enterprise that had few equals. Left to his four sons, John, Alec, William, and James, it shrank to a few thousand acres and a grand homestead taken over by the government in 1949.

To fully appreciate the enormity of its collapse, it is necessary first to chart its growth in the nineteenth century -- to examine the economic factors that contributed to John's progress towards prosperity. His was a lifetime's work of 35 years, but he bequeathed a legacy that could not be sustained.

Without access to the original 'station books', assuming that they even existed in the early days of the run, it is not possible to be precise. Information can only come from what has survived or the experience of similar stations. This article should not be read as what actually occurred in year 1 or year 10. It may, however, be understood as revealing the movement of events, what probably occurred from year 1 through to year 10. This is an attempt to recreate from available sources a reasonable impression of some of the external realities defining John Robertson's world -- to envision the 'industry-environment' that he operated in and the practical options open to him.

STOCKING RATES

An obvious advantage for squatters taking up large tracts of 'unstocked' land at 'next to nothing' was that they could increase wool production by breeding up their sheep numbers. It was a gradual process, starting with as few as 2,000 ewes, but the reserves of grass were virtually endless.

Claiming 60 square miles under Occupation Licence in the 1840s, and 135 square miles under Pastoral Lease in the 1850s, Robertson had a massive resource. It meant he could 'breed his way out of trouble'.

The situation reached by 1851 is implied by a survey of the run drawn up in that year, the 'Sketch of Musquitoe Creek Sheep Walk, County Robe, South Australia, In the occupation of Messrs W & J Robertson, Contents 89,827 Acres, 140 Sq M...'

In addition to the 'head-station', there are at least 6 'huts' marked across the 'sheep walk'. The usual rate of conversion applying in the Western District of Victoria about this time was 1 hut-keeper supporting 2, possibly 3, shepherds, with each shepherd responsible for a flock of 500 to 1,000 sheep. Expanding on this 'structural' information, the number of sheep shorn on "Musquitoe Creek" could have been upwards of 12,000 at the start of the 1850s.

The Sketch was drafted in the year that Licence No. 64 transferred to Lease No. 169, which gave Robertson fourteen more years of land use at minimal cost. In his case, 15 shillings per square mile (640 acres), plus a penny per head for a theoretical 100 sheep grazing on it.

Growth in sheep numbers by the 1860s can be estimated from the well kept records of Clyde Co., whose principal George Russell of Golf Hill and his managers, Philip and then William Lewis, held Elderslie Station. This property was just over the border from Struan.

Initially, when that run was 'squatted on' by William Wallace in the 1840s, no one really had a good idea of where the border between the colonies ran. Elderslie was originally 37 square miles. After official survey, part remained in Victoria, Elderslie, and part in South Australia, Boanadine or Wrattonbully. 

Robertson bought Wrattonbully circa 1858 and Elderslie circa 1870, presumably because they were 'adjoining land' and contained similar country to much of Struan. The same location and similar standards of managerial 'professionalism' give the properties a reasonable measure of comparable relevance.

Russell and Lewis had Elderslie for 10 years. When they took possession in January 1857 they mustered 19,417 sheep and 750 cattle. In September 1858 Lewis wrote to Russell that he had "26,000 shepherded". In November 1858 he reported "we will shear a trifle over 26,000". Earlier in the year he had mentioned good seasonal conditions. Mosquito Creek had been flowing "pretty strong" in August and Kuranto Swamp maiden ewes had 75-80% lambs.

[Max Neale, 1984, Red Gums and Hard Yacca: A History of Elderslie and Langkoop 1843, pp 28-40]

With sensible management and plenty of rain, the 35,420 acre Elderslie run was apparently capable of carrying 26,000 sheep, including 12,500 ewes, plus cattle. This indicates a stocking rate of 3/4 of a sheep per acre. When cattle and horses are taken into account. nearer 1 sheep, or 1 dry sheep equivalent (dse), might be more accurate.

According to the 1851 Sketch, Struan was 89,827 acres, a mixture of black soil plains, dry sandy scrub, and Red Gum country ("Open Forest"). Even if a 15% allowance is made for unproductive Stringy Bark ranges (net 76,353 acres), at 3/4 sheep per acre the original run had a potential carrying capacity of 57,265 dry sheep equivalent (dse).

From a base of 12,000 sheep in that year, including 6,000 ewes, a 60-70 average lambing percentage, with wethers retained, and an estimated annual replacement cost of 200 dead per 1,000 sheep, the South Australian run could well have had 58,818 sheep by the middle of the 1860s.

Year 1: 6,000 ewes X 65% = 3,900 lambs ÷ 2 =1,950 ewe lambs.

      1 year lag for ewe weaners to grow out into maiden ewes for joining

Year 6: 12,133 ewes X 65% = 7,886 lambs ÷ 2 = 3,943 ewe lambs

Year 11: 29,251 ewes X 65% = 19,018 lambs ÷ 2 =9,509 ewe lambs

Over little more than a decade, a flock of 12,000 sheep, equally divided between 6,000 breeding ewes and 6,000 wethers, could potentially build by natural increase (plus 65% lambing less 20% morbidity) to 58,818 sheep, with 29,259 ewes.

Modelling of this type is theoretical. Such an increase may have taken 15 or 10 years to achieve. For example, in practice, wethers could be fattened and driven east to the goldfields to be sold for their meat value. Dry seasons and bushfires would also have an effect. Nevertheless, shearing 50-60,000 was achievable. That does not mean that the most economically rational decision, to maximise wool production, was always taken.

The effect of cattle and horse numbers on carrying capacity is more difficult to calculate. John Robertson's management policies were likely influenced by his early experience of agriculture in the Scottish Highlands. The clans-people in Badenoch were often criticised by 'improvers' for holding numbers of "black cattle" and "small ponies" far in excess of their ability either to keep them well fed or usefully employed. Horses were particularly important in that context for the cultural status they bestowed on their otherwise impoverished owners.

The first mob of stock bought over to the New Country from the Port Phillip District in 1844 was reported to be a large mob of cattle and horses. At one time the combined Struan-Wrattonbully-Elderslie operation was said to be stocked with 60,000 sheep, 2,000 cattle, and 500 horses. It is probable that John Robertson saw horses, and perhaps cattle, as part of his 'personal wealth', valuable for their own sake, and worth the feed and attention they consumed. (It is hard, though, to imagine more than 30 or 40 horses 'in work' on the station at any one time. 500 "pedigreed thoroughbreds" appears eccentric.)

SHEEP BREEDING

The profitability of Merino sheep is determined by the quality, and quantity, of their wool. Breeders are also influenced in their choice of rams by the type or style of sheep that is best suited to different climatic conditions; wet-cool, hot-dry, and so on. In the nineteenth century three main strains of Australian Merino were developed:

     1. Saxon -- Finer wool, lighter fleece -- Tasmania, Victoria, South East of South Australia

     2. Riverina -- Medium wool, medium cut -- New South Wales, Queensland

     3. South Australian -- Stronger wool, heavier fleece -- northern and pastoral regions

The principal characteristics of the Saxon Merino were refined in Van Diemen's Land by importing stock from fine wool breeders of the original Spanish Merino in England (eg King George III) and Germany (eg Elector of Saxony). Their progeny were shipped to Port Phillip by early squatters in the late 1830s. This style of sheep came to dominate the Western District of the Colony of Victoria and the South East District of the Colony of South Australia.

John Robertson's son Alec noted in 1929, that "Struan flocks were bred up from the best Tasmanian blood out of the Late Mr James Gibson's Bellevue stud" and "became well known for their quality and their covering of beautiful fine wool".

A newspaper supplement marking the Melbourne International Exhibition in 1880, observed that the most recent change "in the breeding of sheep in Victoria was the large [additional] infusion of merino rams from the leading stud flocks in Tasmania". It cited the sale of "celebrated ram Sir Thomas, bred by Mr James Gibson, of Bellevue, Tasmania...sold by auction in Melbourne, in 1871, for the sum of £714, the purchasers being Mr. Wm. Cumming of Mount Fyans, and Mr. T.T. Cumming, of Stony Point". The point being that at "the principal shows in Victoria nearly all the leading prizes are taken by sheep having a large infusion of Tasmanian blood".

['The Wool Industry of Australia: Melbourne International Exhibition', The Melbourne Argus, Monday 11 October 1880, p 19]

 And thereby hangs a tale!

    "The most important exhibitions for wool held in Australia were given by two firms of wool brokers in Melbourne, the first by Messrs R. Goldsborough and Co. in 1878, the second by Messrs Hastings Cunningham and Co. in 1879. At the former show...prizes were for the greatest value per fleece, and to the intense astonishment of all sheep breeders, South Australia stood first in the list. Mr W.E. Pitts, of The Levels...Riverina was placed second...Mr Lachlan McBean, of Woorooma...Mr J.L. Currie, Larra, Victoria was third..."

This result was not acceptable. It was time to change the rules.

    "At Messrs Cunningham and Co.'s show the conditions were better understood. Prizes were given for the highest value per pound. Messrs W. Gibson and Son, of Scone, Tasmania took first place for the most valuable 50 fleeces of washed wool unskirted...Mr Philip Russell of Carngham, Victoria took the prize for 50 fleeces in the grease at the highest value per lb. Mr Thos. F. Cumming, of Stony Point, Victoria was placed first for the most valuable 50 fleeces in the grease unskirted....Messrs W. Gibson won the prize for the most valuable wool per pound in the grease..."

Pride was restored. The trophy silver was returned to its rightful owners south of the Murray River. But at a high price. These 'amended' awards for best wool had the effect of 'cementing-in' the fiction that only the quality of wool mattered. 

The financial flaw in the Saxon Merino myth was belatedly recognised on Struan. In 1908 the Robertson flock, (according to son Alec in 1929), "was strengthened by the introduction of a number of rams from Eli Elwah in Riverina. This tended to maintain the size of the frames with satisfactory results..." In other words, small sheep may be cutting fine wool, but they don't produce very much of it. A larger 'frame' was a common sense way to return fleece weights to more profitable levels.

John Robertson followed the fashion prevailing in the Western District throughout his life, and it is likely that he yielded similar results. For example, on Elderslie George Russell averaged 2½ lbs per head at the 1858 shearing. On Terrinallum in 1856, the wool cut from 22,693 sheep averaged 3 lbs a fleece, while at Golf Hill 40,641 sheep averaged only 2 lbs 15 ozs per head. To be fair, these were early days and the low figures were from "washed wool", not greasy.

WOOL PRICES

The number of sheep carried and the amount of wool shorn per head are important fundamentals, but the ultimate predictor of profitability is price.

At a macroeconomic level, production increased from the the 1840s through to 1880. Sheep populations in Victoria rose from 3,888,000  in 1845/49 to 10,235,000 in 1875/79. Wool exports lifted from 2,727,000 lbs in 1840/44 to 77,155,000 lbs in 1875/79. Not that some of the  improvement in the weight exported is because of the chang in clip preparation from 'washed' or 'scoured' to all 'greasy' (including lanolin, dust and burrs).

[A. Barnard, 1956, 'The Development of the Australian Wool Market 1840-1890', PhD thesis, Australian National University, Tables V & VI, pp 19, 21. <openresearch.repository.anu.edu.au/handle/1885/9585>]

The microeconomic picture on Struan generally tracked this upward trend. The amount of wool produced was determined by natural increase of flock numbers rather than growth in individual sheep productivity. This meant that when the run was 'fully stocked', production plateaued. At this point, price received came into dramatic focus.

The data presented in the graph below contains too many assumptions about its collection to be an accurate guide to what the John Robertson actually received for his wool. However, it tells a great deal about the movement of prices over time --"the general course of prices in the long run".

Annual average prices reported in London for a general category of Victorian wool called "Average Good Merino Greasy" reached a peak in 1866 before plunging in the latter part of the decade. A rapid recovery saw a high of 15½ pence per pound reached in 1873, before a long period of relentless deterioration, ending in an all-time industry low of 8 pence per pound in 1894. In contrast to the pattern in the 1860s, the downward slide that followed was "remarkably consistent. There was no real check to it, nor even any appreciable change in the rate of fall until an upward movement was initiated in 1895."

The period of decline was protracted and required a major readjustment to pastoralists' spending. The 1890s were consequently years of bitter industrial dispute between capital labour. Shearers and wharf labourers were targeted as woolgrowers tried to 'share the pain'.

John Robertson, dead in 1880, did not have to endure this difficult 'long run'. His experience was of relatively bouyant conditions. His extraordinary self-confidence was neither dimmed nor wearied.

In the 1870s, when production prices had both leveled off, expenditure did not. Construction of Wrattonbully Woolshed and Struan House, the conversion of leasehold land into freehold (Strangways Acts 1868-69), and the cost of replacing brush fencing with post and wire, defied the pressure of funding it all. 

The advice of his consigning agent on where to sell his wool may have already become secondary to the lines of credit that local wool brokers were prepared to extend to him. Either way, the management of Struan was about to become much more complex.