BUTTER FOR CANADA.

Dominion, Volume 6, Issue 1835, 22 August 1913, Page 3

BUTTER FOR CANADA.

AGGRIEVED EXPORTERS. A SHIPPING CONTRACT CRITICISED. DOMINION HANDICAPPED. ISepresoiitativ&s of leading butter export firms, with Sir. D. J. Nathan as spokesman, interviewed the Hon. W. F. Massey (Prim? Minister) yesterday in regard, to the .shipping subsidy contract, under which i\e v Zealand exporters send butter to Canada. The deputation was introduced by Jlr. 11. J. 11. Okey. Other members of Parliament present woto Mr. C. A. Wilkinson, Mr. D. 11. Guthrie, and Sir Walter Bucha.iau. Jlr. P. S. Pope, Sec--retary for Agriculture, also attended. Jlr. Nathan stated that the butter exporters had interviewed tho Union Company last year on the subject of freights, but without getting; any satisfaction. The deputation represented the whole of the butter trade lroin Napier to Wellington on one 6ule, and from New Plymouth down on the other. The factories within this urea were all under a disadvantage of a farthing a pounid as compared with Auckland. In nearly every other country iii tilt- world tils question of freights had been taken up by Parliament. This was true of South Africa, Canada, and the United States. Jn the latter country tliore was an Intcr-State Commerce Hoard, which took up questions of this description. A similar board had just been established in the Commonwealth. Jlr. Nathan submittal that it, was ridiculous in a con.ntrv where? ro much had been spent upon development to allow one mail in Dunedin to say how and when export produce should Ik wnt away, awl also what should ba paid for sending it av.'ay.' The position was an absurdity. The country should have as much control over ocean freights as it had over railway freights. A total of 230,000 boxes of butter had been srant to Canada last year, and as much might bs sent this year, but none of tho shippers were prepared to consign under 1 tils terms and conditions laid down bv tho Unicn Steam Ship Company. In order to reserve space, shippers were required to guarantee to pav one penny per pound-it they did not use tho space. They were not allowed to use the spaco for meat, instead of for butter. Mr. Massey: Is it not a fact that the butter company representatives saw the contract before it was signed on behalf of the Government? ~ Jlr. NaHuiii: No, we knew nothing of it. Jlr. Pop?: The exporters agreed to tho terms. „ Jlr. Nathan: Not to mv recollection. The contract, ho added, was three yearsold. -He remembered 110 meeting three years ago. Mr. Pope said that the clause m question was not three ycsU'S old. Jlr. Jlassxy said that the contract had been amended, a year ago, by the inser-tion-of this clau.sc. .... I Jlr. Nathan said that the control of_the butter trade was parsing to an American lirm, operating through an English house. }i,r. Massey: What do you wish us to do? Mr. Nathan: If the contract is to bo ' carried out oh tho present lines the sooner it is turned up the better. Jlr. Jlassey: Unfortunately wo are bound for three years. Jlr. Nathan said that tho Government had considerable powers under the contract. As a. layman, he considered that it' the Government liked to excrcise its rights it could get the position altered. ijlr. Massev said that the Government would do everything it could in the intercats cf the Droducers of tillis country. Jlr. Nathan: We oro certain of that. Jlr. Jlassey: I want to know what you

desire. „ , , ... llr. Nathan: That flho whole of tho space shouiUl not go to Australia after September 1. The rate of freight wo recognise von cannot alter. JLr. jjassev: Is it a fact that up to September 1 the New Zealand producers can take the whole of -the. space if'they feel so inclined? ' , , <■ - L t Jlr. Nathan: Yes, the whole of it, for twelve months ahead. Ho explained that .the freight charge for 40 cubic feet in the case of butter was oCS 17s. 10d., while in the: case of moat the freight for this spaco would be £1 15s. If ICOO cubic feet of space were taken up and not filled, tho butter exporter would have to pay a. penalty of £147 55., 10d., and tho meat exporter a penalty of *C 43 15s. _ Sir Walter Buchanan: Supposing the Union Company take up this position: If you tiro not prepared to take up Hie space for 12 months other people are—what do r °Mf? a Nathan: I sa-v t.he Union Company are quite right, but wo are very foolish to give a subsidy. Jlr. Jlassey: Unfortunately, when this was entered" into there was no protest from the people concerned. Jtr. Nathan said that last year butter could be shipped to San Francisco. T-he Union Companv paid the froight from San Francisco to Vancouver. Tins year they would not do it. People engaged in the trade felt that it would not be worth: their w r hilo to go on under tho circumMr. jlassey: We want to'help you and wo want vou to keep'tho trade. Mr. Nathan said that the butter exporters wanted a ccrtain' amount of space absolutely freo from thirty, to sixty days before the date of sailing from New Zealand. Railway freights should be munipulated so that the southern portion of i, tho North Island would not be at- a disadvantage of a farthing a pound as compared with tho northern portion.' In the case of the butter exports to_ Bii#and freights down the coast were piiid by the Shaw-Savill and New Zealand Shipping Companies. Jlr, Massey said that he would approach tho Union Company and see if some improvement could be made on the present arrangement. , Mr. Guthrie (to Mr. Nathan): Won't tho Union Company take up the butter at Auckland and pay freights from other ports tD.Auckland? Jlr. Nathan: Not according to the circular issued this year. Either the Union Company or tho Government, ho added, should bear tho cost of taking the butter to the port of departure if tho contract was to be maintained.

Jlr. JLissey said that the industry was in a. good position. It seemed. unreasonable to ask Parliament to subsidise the industry to the extent of a farthing per pound. He would do what ho could in the other direction.

Jlr. Okey said that what was wanted was that the Prime Minister should demand that a certain amount of spaco should bo reserved for New Zealand exporters, and that this space should bo available for either butter or meat.