LETTERS TO THE EDITOR

Dominion, Volume 8, Issue 2445, 26 April 1915, Page 3

LETTERS TO THE EDITOR

TRADING FOR THE ENEMY. Sir, —Is it not about time that tho New Zealand Government gave tho public a satisfactory, explanation regarding their actioii in carrying on "business as usual" on accouut of tho Continental Tyre Co., a purely German firm established in our midstP

After the outbreak of war, the Government appointed the Public Trustee as receiver, and naturally tho pubha expected that the operations of iliis German concern would be immediately terminated, and tho warehouse dosed until conclusion of hostilities. With the usual German foresight, the Continental Tyre Co., previous to the war, accumulated a vast stock of motor and cycle tires. The war has been going now eight months, and the stocks of the Continental Co. are still very large. Tho Government, through the Public Trustee, has taken control of the company, but instead of the company's operations being brought to a close they are going full swing, and selling their German tyres in competition with English manufacturers. Government officials, the Press, and the public are loudly proclaiming the desirability; of crushing German trade and substituting , British trade in the Dominion. This being so, then why is our Government pushing the sale of German goods, knowing full well that each article sold is so much out of the pocket of the British manufacturer?

Recently the Government put the police in possession of a Wellington firm whom they suspected of trading with the enemy, clearly demonstrating that in accordance with the law of tho land trading with the enemy is a crime. What is the difference in "trading with the enemy" and "trading for the enemy?"

It is a well-known fact that the stock of the Continental Tyre Co. is owned by the parent company in Germany, and it appears that there is no lawyer who would care to state that our Government has any legal right to hold the proceeds realised from the Continental Tyre Co.'s stock after the war. On this account, many of the Continental Tyre Co.'s old clients in New Zealand refuse to pay the accounts against them until thoy are assured of the ultimate destination of their payments. I am given to understand by several of these clients that they have received notices from the Public Trustee advising them that if the ( se amounts are not paid, they will be "sued. In other words, the law does not allow Germans at the present time to sue in New Zealand. but in this instance it appears the Government undertakes to sue for them.

It is no doubt well known that at the present time there is a great shortage of motor-car tires in New Zealand. To take _ advantage of this shortage, the Continental Tyre Co. have cut down I their discount to the. motor trade —in other words, have raised their prices. For whose benefit?

• Why is the Government keeping the goodwill of the Continental Tyre Co. fresh and green in New Zealand, so that at the cessation of hostilities the Germans can step back into a business which has been conducted without a break? Is this crushing German trado Eor the benefit of British manufacturers?

There are persisent rumours in Australia that a company is being formed to take over the whole of the Continental Tyre Co.'s business as soon as the war is over, which means that probably a more powerful German company thaa the present will be operating in our midst after peace is declared. Why is this company not . wound up, and tko warehouso doors locked until poace is declared? There is a great feeling of resentment among tho motor and cycle trades, due to the' Government's action in connection with the Continental Tyre Co.. and I think it is about time that the Government made, known .their reasons for acting as they, are. —I am, etc., L. ASHCROFT-EDWAIIDS. 21 Farish Street, Wellington, Wellington, April 15, 1915.

The statements contained in this letter wore brought to tho notice of tho Attorney-General by a representative of The Dominion, who asked the Minister to state l-he actual position in the matter. The Minister 6aid that the Public Trustee was appointed controller of the Continental 0. and G. Rubber Company, Limited, on November last, under tJie War Regulations Act, 1914, which provided, inter alia:

(1) That it shall be the duty of the controller to take or obtain possession of all property belonging to the company, and to collect, receive, and retain all moneys payable to the company (2) The controller may, if, and so far as, he thinks fit, carry on the business of the company, or allow such business to be carried on by the directors, agents, and servants of the company, under his control and supervision; and may, for this purpose, sell any stock-in-trade so taken possession oi as aforesaid.

As a consequent of that appointment, tho Public Trustee assumed tho control of the company's businesses at Auckland and Christchurch, and instructed his -local representatives in those places to take charge. The stock on hand when the 'Public Trustee took over control was approximately £20,000 at each branch. It was decided to continue tho sales of stock; proceeds of all such sales to be paid to the Public Trustee's account, but that no fresh stock was to be procured. In this connection the Crown Law Office advised that so far as selling the present stock was 'concerned, seeing that it was composed of perishable goods, it would be of some benefit to the community that those goods should be consumed rather than wasted, and therefore no doubt the controller would consider it wise to sell them; but there seemed to be valid reasons of public policy why he should not continue to purchase stock from time to timo as it was sold.

It was further found, continued the Attorney-General, that none of the staff were Germans, and that they were trustworthy and necessary to the carrying on of the business, and it would have been a hardship to them to closo the business down. There had been no cutting of .prices since the Public Trustee assumed control, and •it was not intended that there should be.

The Commonwealth Government of Australia, the Minister pointed out, appointed Mr. F. G. Wilson, of Melbourne, accountant, controller of the business of the Continental Rubber Company in Melbourne, and the order of that gentleman's appointment provided:— (a) To take possession of tho real and personal property of the said company now existing or ivhicli may hereafter arise in the course of the business of tho said company.

(b) To control the business operations of the said company so l'ar as may bo necessary or proper to secure that none of tho said property of the said company shall pass directly or indirectly to the enemies of His Majesty the King.

(c) Subject to tho aforesaid powers, the said controller sliall afford facilities to tho said company to cariy on its lawful business in the ordinary course. It will thus be seen that the business of the same company in Melbourne was still being carried on under the supervision of a controller appointed by tho Government.

All the receipts, added the Minister, would of course be held pending the directions of tho Government as to their disposal.

Shortly put, tho Public Trustee was acting as tho liquidator of an estate. Instead of allowing enemy property to go to waste the Public Trusteo was converting it info money, and tho casii Was to bo kept until a final settlement took place between Great Britain and Germany after the war was over. Tho writ?)* nf (.ho ItfWer aptisttrfd lit Uiint*' ■tilt the jitflsK fftolLflßd,

should havo been destroyed by the Government. Such a course would obviously be ridiculous.