COST OF LIVING.

Dominion, Volume 5, Issue 1487, 9 July 1912, Page 2

COST OF LIVING.

WEST COAST TRADEALLEGATIONS BY AN AGENT. OTHER EVIDENCEMINES, MEAT & SHIPPING. The Cost of Living Commission continued hearing evidence iu "Wellington yesterday. Mr. K. Tregear presided. SHIP AGENT.. C.I.F. BUSINESS, OR WHAT? Fergus Ferguson Munro, shipping agent, oY Westport, who was before the Commission twico last week, attended and made the following statement:— "With regard to further precise' statement as to a vend, or combination, of coal-ownors and shipping companies,. iu restraint of the coal trade on the AVest Coast of New Zealand, I have no hesitation in stating that- from my experience an arrangement exists, controlled by the Union Steam Ship Company, and affecting all the smaller shipping companies now- trading' in'-New Zealand, to carry tho.output of the mines at rates of freight arranged between themselves (i.e., tho shipping companies), and that tho arrangements of the shipping combine with tho coal companies specify that tho combine's ships are to bo given preference in trading. F.o.b. shipments are to be discouraged by any possible, excuse. The, mines controlling the price and date of loading "can, nnd, I believe, do, absolutely discourage competitive trade as regards sea-borne coal. The preference of loading to the combino steamers can, of course, be carried to suc.li an extent that the outsider will be subjected to such a delay in trading: that any ordinary freight would bo unremunerative. So that, without the aid of the coal companies to place prohibitive prices on the coal, or, to absolutely refuse to supply F.o.b;, the combine can effectively stifle tho introduction of other shipping into tho trade. • . ■ : ■.- ",■ ■'

"It sometimes appeared to me ti'at the State Colliery-.rit .Soddonvillo is in a similar' predicament.' On one occasion, when tho State;mine was'working very poor time, and , . tho : miners were clamouring for work, I had opportunity to place 1000 to 1200 ■ tons of Stale coal. Mr. Crowther, tho,-then agent for the State mine.; gave mo" .a satisfactory quotation, and instructed;-,the, mine manager to pet ready to deliver. " But an hour or two later he informed me that tho coal could not bo supplied. Alleged" FfesuhsVof-.Alleged Combine. "I firmly believe that this combination .has. brought about the following , , results: — v' "(1) Tho people o£ tho Dominion pay. considerably more for their coai than would obtain under freedom of trade. .., '. '■' •• "(2) The coal measures of the Do- < nunion have been hampered in their development.'.- . ■• "(3) That much industrial unrest is . created by the condition of trade. "Kesult.l 'is'.'obvious;'-results 2 and 3 ■aro ) worthy %f special inquiry and would, perhaps,-bo too intricate to detail at this , stage. The suggested -remedy that coal owners having leases from the' Crown should compulsorily supply every ship in turn at market rates ..f.o.b. would result ma general -lowering, not only of tho price of -cool., b? t of all sea freight end passages in tho Dominion, and this unquestionably, would cheapen our present cost of living. It is, to W the least unique that tak-ing Westpe#n£w?nstance with'.au.okpnt of coal getting on towards three-quarters of a million 'tons per annum, and steadily approaching the million, tons, tho f.o.b. price of coal is not aPt r j of . common knowledge. I havo ..not heard of- a. similar instance in the world. Were tho people engaged .in the industry acquainted with this, a big factor in the wages question under present conditions could then be reasonably argued, and, possibly, arranged on more' certain basis than,at:present..,:lt is my-'Opinion that with closer , supervision of' the , trade as conducted-, to-day there would be no I 0 ™*"™ to «« n d New Zealand monoy to Australia to buy Newcastle coal. In this respect the Government of the Dominion have consistently set a bad example for our State rajlway supplies. "Wages at the colliery districts may appear very good, but if the full time is not worked it gives the matter a different complexion; and tho cost of living, in proportion to tho amount earned, js calculated . to cause unrest, when the Government of tho Dominion is expending the railway revenues in employing miners in a neighbouring State to obtain their.fuel. "As far as coal entering into the cost of living, , for domestic purposes, I might add that there is a largo bed of lignite coal extending from ten miles to the south of Westport to a point fully .fifteen miles further south, from which a very fair household coal could ho mined and shipped and landed in New Zealand ports at about half the cost of .bituminous. It is itnworked for want of railway communication. '. ■ . • Letters in Support. "I now hand you," concluded Mr. Munro, , "letters—not for publication— which I believe are authentic copies of originals, and which support what I say from experience how tho coal trade of the. West Coast is conducted, showing clearly that a combination in restraint of trado is in existence in tho coal which directly or indirectly enters largely into the cost of living of the peoplo. The letters aro between the head of the shipping combine and one colliery, and maybe taken as typical for tho other mines." Mr. Tregear: Do you really believe that this combine, if it does exist, and you say that it does, is inimical to the people of Westport and tho West Coast? Sir. Munro: Undoubtedly; to the whole of New Zealand.

Mr. Sl'Donald: Can yon remember any instance where the preference, clause lias frozen out any ships coming to the port? Mr. Miinro: I remember ships having to go away in ballast. ':'.'. He'remembered a barge," .'.after having discharged a cargo and waiting about a long time, took ballast aboard and /went away to Newcastle, and there leaded coal' fen , Java. •

HEAD OF MEAT DIVISION. The evidence which was given to the commission on Saturday by Charles John jßenkes (Director of the Live Stock and Meat Division of the Department of Agriculture) was handed to tho press yesterday. • ■

Mr. Reakes staled that Vie had V,cen connected ivith tli-e Department for fourteen or fifteen years. During that time there had bepn an improvement in the stock of the country, and the number of slock had increased. The yield of milk and butter-fat had increased considerably. Farmers were improving in their methods. There had .been, great increases in the prico of land, which increases were healthy signs, so long as tlio price did not go above paying value. , ;. Land speculation was not for the good of tho country, and there had been such speculation in some districts. There was nothing in the conduct of rural affairs which would tend to increase, the cost of living to the general public. In most cases the dairyfarmer worked, and so did his wife and family, and really the condition? under whieli (hut claw of farming was carried on were such as to reduce the working expenses to a pretty low figure. In some cases, lie thought the conditions under which labour was obtained might l>e better adjusted, to the benefit of the whole community. One heard complaints sometimes of the difficulty of obtaining- the right class of labour. The conditions of farm work were in a large number of cases good. and comfortable, and the country man had tetter opportunities of saving' money than the town man had. He had seen'nothing to show that children suffered physically from farm work. On the whole, the meat used for local consumption was of quite as good quality as that whicli was exported. He did not think that it. could correctly be ?aid that intermittent employment, was the cause of (ho shorlnijo of blinnr in (ho rural districts.

DEPARTMENT CL'ERK. ■Forte:-:cne William Thomas Rowley, chief clei'K to tlio J)cpartmcnt of Labour, was callctl. Hr undertook to supply the commission with information compile! from materUd in the Depw-trueat't poj»«ion,

In reply to a Mr. Rowley said that in almost bvery trade the number of horns' worked had been reduced, and one could only conic to the conclusion that this had brought alxnit a decrease in the quantity of goods produced. Mr. M'Douald: And an increase in their pn'ce. Mr. Rowley: And an increase in price-, 1 piesumo.

MANY CHARGES. BY Jilt. MOORE, OF JOIINSONVILLE. 1\ T. Moore, of Jolmsonvillo, said that he would like to say a few words under the heading of finance and commerce in legard to tno manner in which "bankers added greatly to tlio cost of living." Hankers, .said Mr. Moore, used the great power in their hands to ttirthcr the interests ot the big traders in all branches of commerce, and pi-event small men competing on level'terms. Bankers refused financial accommodation to small traders, forcing tho latter to <lral with certain large houses and pay these merchants their own price for goods, and a high rate of interest for credit when required. Big traders were therefore able- to get .two profits on ono deal—one on the sale price, of the goods supplied, and another by charging 8 or more per cent, for credit,, which should be obtained from bankers at a per cent. The payment of these two charges has got t; bo loaded in the price the public pay for commodities, adding greatly to the cost of living. This treatment was meted out to all classes of traders, making it imperative to establish a State Hank, winch would, show no favouritism, but afford equality of opportunity to all, and savo the public from tho payment of an unjust super tax levied by the commercial community oiiievery necessity of life. .The excess interest charged imposed on traders amounted to .£1,000,000 per year, or XI per man, woman, or child per year. 'When this million was added to the millions of profit annually made by the bankers, meat companies, shipping companies, and general mercantile firms, a tax of .£lO per head on our totnl population was levied. The whole of this gigantic taxation would be saved; and'tho- cost of living reduced by this huge snm if the State took into its own hande the business of supplying the community with the primary means of life. ' • • • ' '. ' •' ■'-/ Alleged Meat Ring. On tho subject of the meat trade, Mr. Moore said: "About twenty years ago n combino was formed of meat companies in tho North Island of New Zealand for tho purpose of fixing thei prices to bo paid growers of cattle, sheep, nnd lambsi This combino was established on a very complete basis. It was arranged that in the., event of any company in the'combine securing a greater number of stock than a quota of tho year's output, the surplus, or the profit, on the same should bo shared pro rata. For ten years this system was..in.operation in.a very open manner, but. during later years, the method, of operation was conducted very secretly. There are no documents in use now, and no special fund into which money is paid as a guarantee of good faith. •> In place, of the agreements that once existed a secret understanding is. relied upon, which, though thin air, is'as strong as steel.

"I. was works manager for one of the firms in the ring when the combine was formed, and, in conjunction with tho then general manager, supervised this firm's buying operations. Consequently, lain thoroughly familiar with every, detail in connection with the method of operating. Sometimes sheep were purchased for less than half the money' the carcasses realised on re-sale to London, c.i.f. buyers and Wellington retail butchers. ' The skins, fat, and offal .of the slieop paid the co=.t of freezing and shipment to London. With- the hugo profits derived in this way tho companies woro able to scrap all their original buildings-and plant,- iind erect entirely new structures of au everlasting nnt.urc.-cos'ting hundreds of thousands of pounds, and, at the same , time, pay handsome dividends-and bonuses to shareholders. In some"years .tlic,'aggregate'profits on the purchases , of the companies comprising tho 'trust,'- amounted to' £1,000,600. . . :, : ■■•■ ,■ '■ >■■■. •'

Another Alleged Ring. • "Soon after tho formation of ;the meat; freezing combine, a-ring of 'retail ■■master, butchers was formed "for tho'purpose of fixing the prices at which meat should be sold to tho.public in New Zealand. The freezing companies, wanting the best, possible'price for rejected 'carcasses,encouraged'the: formation of this Master Biitch-. ers' Association, and made the local combine a means whereby even better prices could bo got in New Zealand for rejected carcasses than was obtained in London for prime selected lines. Tho bond of selfinterest holds these combines;; together, and, doubtless, will continue to do so until the peoplo of this country.rcalise, that in order to obtain snpplies of meat at tho minimum of cost tho whole industry must be nationalised. "Although do documentary evidence can bo produced to prove tho existence of meat trusts in this- country to-day,- the fact that buyers for tho largo firms offer growers similar prices, and charge retailers similar raies, is proof enough that there is a secret understanding whereby uniform buying and selling tariffs are arrived at and adhered to. ■ Should any new dealer enter the meat trade, obstacles aro put in his way, making it difficult for him to get supplies at minimum cost,.

"Tho directors of tho large meat companies conspired with auctioneers to put high reserves on all fat stock yarded for safo by public auction, forcing Ilie independent buyer to pay an exorbitant price. Should any stock fail to fetch the- fictitious value placed upon it, it is passed in, and privately sold to tho freezing company at figures far below what was asked a't auction. TJicso conspiracies between the largo meat companies and the auctioneers enable trade to be monopolised and free competition completely prevent-

Middlemen worn always on the 'Watch to corner supplies of stock in times of shortage continued Mr. Mooro, and he. had heard individual .speculators boast of makins .£IOOO on one (lay's sales in the. markets of Wellington and district. "U'ho trust system," he wont on, 'loads to tlio grossest, corruption and abuse in the pavmont of favoured rates to favoured persons. This nefarious practice is of common .occurrence, and is a way whereby companies conceal profits made •and provent their balance-sheets showing too much excess profits.. I have known .favoured owners. to be ■ secretly paid an extra £1 per head for .cattle, a.nd an'ex-, to 4s. per head for steep. .. : . ■ Mr. Mooro thought that the only way of remedying this alleged-state, of affairs ■teas "to nationalise the whole lmhistrj. To Dr.- Eight: Tho price, of meat • at Home did not affect the' price of meat to the N«w Z'Mland consumer. The price obtained in I/radon for -W Zealand meat mishifnot bo M per cent, of the amount "ho conibinc might beable to oxtrac from: tire Sow Zealand public for local meat. ■Mr Hall- If a forme-vis not satisfied with "■ the priced be is gelling from- .the freezing companies he can ship onhis own a tt"°Mo«*: Wand-then .he Vat; the mercy of the ring at Home, who buy.unprotected shipments. ■ •. . ■

STATE ARCHITECT. Wcburn'Temple, architect tor workors' dwellings, said that .in tho lastfwo years there bad been an increase, or o per cent, in tho price of bu Mine material. There had been a slight. riM in the> rate cf ivn°-e<: but ho did not think that that had affected tho trade, as good men worked more conscientiously, and with tho shorter hours did (juilo as much work. Ho considered that tho.erection of Government dwellings had had the efleot of cheapening rents in Wellington. Ho stated that design 7 (a very popular one) co*t .£350 in Auckland, £393 in Wellington, .£350 in Christcliurch £195 in Dunedin, and <E372 in Timaru. The dinerenco in the. . prices was owing ■ chiefly to different methods of construction common to the districts (Auckland andChristohurch were'the cheapest in JCew Zealand), to 'builders'discounts,, and to whether ov not the.builder was busy. Mr. Tregear: -Hnve you evw heard of nn architect taking fees from.both sides? Mr Temple • I know from what I have hoard that it is n fact, but 1 am not prepared to K ivc ft ". v evidence, because I could not verily it. Mr. Tregear: Of course, there can be no guarantee as to the, qllrtjity ill' I he material if an architect is aelins for both sides and receiving money from both. Mr. Temple: Xono whatever. Mr. Tomnlc ntldcd that hf: understood that the practice was employed mostly in Auckland. A man was very ill-ad-1 vised'.to follow Mich a practice, and. in EiigUad ho would b« nrunuitad out of the profession.. Architeats received com. J

mission for specifying the uso of particular materials in buildings.

CITY ELECTRICIAN. Stunrt liicllardsnn. tramways and electrical engineer, stated that in 1900 the α-vurngo . wit of lighting a live-roomed house was 7s. per month, and that now it was about 4s. per mouth. This reduction was principally duo to the advent of the metallic filament lamp, which was largely used now in (lie place of tho old carbon lamp. 'Pramway wages had increased by 20 per cent, since 1900. Although wages had been increased, and timo worked shortened, light could now bo produced cheaper, awing to better machinery. ■ BOOT OPERATIVE. John Jlutchcson, secretary of the Wellington Boot Operatives' Union, said that although the public wero demanding the local boots more now than formerly, Hie sellers were trying to push the sale of imported goods more than ever for the reason that the latter wero soon back to bo repaired. It was diflieuit to know bv wnom certain locally-made boots were manufactured, .because of tho absence of brand. JIo thought that boots which included shoddy" in their composition should l>e branded, so as to clearly reveal the fact. The Territorials' boots, which wero made in Christchurch; cost the Stale 103. 51&., niul the Government charged tho men lls. Gd. The same kind of boots were sold in "Wellington for from 15s. lid. to lCs. Gd. . FRUIT AUCTIONEER, ' Frederick Townsend, of Tmrnsond and Paul, fruit auctioneers, stated that the auctioneers kept fruit-growers informed ot market prices and conditions-by means of weekly reports sent to; the, growers mid telegrams sent to tho newspapers published in tho fruit districts. Truit was sold in, absolutely open markot. Sacks of vegetables could always l>o emptied on to the floor. Thore was no need to-export New Zealand fruit; wo had tho markets here. Canning and cool storage' should bo made use of. In the last 25 years, seventeen firms in his line of business had "thrown in the sponge." , CABINETMAKER. THE RISES IN TIMBER. ■ Alfred James 13ishop, wholesale cabinetmaker, stated that in 181)2 dressed rinui cost 12s. per hundred, in 1901 145., in 1907, 10s. Gd., 'and-in 19(2 lGs. Gd. In heart rinm there had been a clear rise of 100 per cent. Medium double-dressed kauri had risen from lGs. to 325., and clear pine from sd. to Old. per foot. There had not been much rise in Oregan piiic. Bevel plato glass and mirror plate glass had decreased 20 per oent._ Other-things in connection with furniture-making were cheaper now than twenty years ago, and simpler designs were gone in for. : BACK COUNTRY TROUBLES. : Charles K. Wilson, M P., general farmer, stated that in the back country living'had become enormously dearer. Tho food for the back country people could bo. taken to them for at least a quarter of the present cost if there were good means of getting it there. It was a great pity that the fruit which was grown in the country, and was wasting there, could not bo got to the people in the towns at a lessc'r cost of transport. COAL MANAGER.

William Alfred Flavell, branch manager in Wellington for tho Westport Coal Company, was called. He mentioned that one. of tho directors of his company had already given evidence, in Dunedin. To Mr. , MDbiuild: It was'not possible for tho Wcslport Coal Company to supply v the 'Now Zealand < Railways with, all ;t:he>coal the railways needed, because the -Department" specified . for screened coal, '■and! the supply of that was limited. If people .would only take their.cdal as it came from tho mine, jtho cost to them ;would be very-much cheaper. OTHER WITNESSES. Kobert Sampel Alward, manager of the Trawling and Fisheries Company; Alfred Longinore, land and estate agent; anl Malcolm Frasory .Government ■Statistician,' also gave evidence. The commission will .conlihue'* its sitting to-day.: v .f ; ■'..' :■■ i : ; ;.,