THE EMBARGO ON HIDES EXPORT

Dominion, Volume 9, Issue 2864, 31 August 1916, Page 8

THE EMBARGO ON HIDES EXPORT

RESULTS CRITICISED.. Mr. W. G. Foster, chairman'of the • of the Wellington Meat .Esport Company, 1 made tho following roierenca tto tho embargo on hides ou - iWday when addressing the annual : v-ine'etinK of shareholders ' of the ' com;.^pany' ' -''During February last the export. ■ s'of hides 'over -151b. was prohibited, very •'"muoh to tho-surprise and constorna'_tiou, not only of' those concerncd in . "the purchase for export, but of those _ most vitally viz., tlio producers; but as there was obviously no sound reason or justification for this v amazing courso of'action, it was, gon- ■' orally felt that if the embargo were . "- not for some experimental its J duration would be. extremely , limited. '"Tho. cat camo out of tho bag shortly ."'".afterwards .when a conference with taniSJ ners and dealers and'one or two others ....was . held by the Minister-and disclosed -that, the Munitions Department had, '.■'•l without much (if any) investigation, ~ accepted representations of . the said 1 tanners and dealers,'to the effect that f 1 " a"shortage- of supplies necessitated the . v action with a view to reduction in price' the then value. ' I may say that "Iwas, at my own. request, as roprethis / company, invited to at--..tend this conference,* and protested , against so .inequitable a decision, but was outvoted, there. - It was stated

V< that, owing to ihe high prico of hides, >: tanners were compelled to raise their '".price for leather to; a level .that conTtraetors for hoots for military .purposes could not pay without loss on their contracts. - i . "Tho, conference r referred : to resulted in, a decision to yetain the embargo •and'fix a minimum ol lOd. per lb. for .•ox' hidesj.aiid 9d. per lb. for cow hides. 'This minimum, naturally, at onco be- . 7<&me'tlie>maximum;- Now the; Govern' ■ mcnt' coil tract was for 100,000 ■ pairs of hoots for the twelve months, and it •. wan stated by the Department that one hide is required for every four to six pairs; taking the average five pairs it would mean that 20,000 hides would . suffioo for Government requirements: . The cattle slaughtered at-export- works- ■ and abattoirs.,during, '.tho preceding twelve months amount to, viz.: — ■■ Cattle slaughtered , 350,000 v Deduct for hides under :f -.•'451b.,- say ;.... 30,000, ■" Deduct number reqnil-■'■'" " ed for Government' 20,000 ; s -—' ,70,000

- Hides thus loft under. •■•■-—'embargo. 280,000 ' "It. is obvious, therefore, that tho '..embargo was iii, no sense- necessary, J and as it meant a huge loss to tho producers. was distinctly- inequitable. ... Subsequently the Minister modified, the ■-..embargo/to 'the retention of 10 per cent..' this 10 per cent.-being handed - over to the tanner; as directed by the 7 Minister..' At this.'-, time ; -Australia, * which - required larger quantities of. " boots for military purposes, was a " keep buyer and desirous of 'securing : supplies from Now Zealand at' pre- ~ embargo- prices, but of 'course. was debarred. In consequence your company, which at tho time held a. large stock of . hidos, purchased on the higher level, - stood to lose somewhat' heavily, but •notwithstanding, although the.animal - on foot was reduced by about 10s.,

fcho company's prices were maintained. Vory many thousands of pounds have 111 conscquence been loßb to producers." A Press Association cablegram from Sydney on Tuesday states that tho Sydney Royal Agricultural Society has increased tho prize-money for the champion shorthorn bull to £dO/and for a cow £25. j