ENEMY TRADE

Dominion, Volume 9, Issue 2880, 19 September 1916, Page 6

ENEMY TRADE

NEW ZEALAND'S PART

STRINGENT REGULATIONS ENFORCED .

THE CONTROL OF ENEMY PROPERTY

The regulations dealing with enemy trade in Now Zealand havo been amended from lime to time during the course of the war, and it has not" been easy for the layman to keep fully in. touch with what was being done by the Government. Some'of wio amendments have.: been intended to remove difficulties or close loopholes that had been, discovered by tho officials in the courso of their work; others have been made at the suggestion of the Imperial Government. The tendency of all of the changes has been to tighten the restrictions and to erect additional harriers against enemy trade iin every form. The commercial blockade of Germany, as dictated by the Imperial Government, has increasid in severity by successive stages. It may bo said to have assumed its present form far If in the present year, when the British authorities declared that any person, if he was connected with a trading concorn in an eiieinv country, or iu any way identified with any business iii an onomy country, might have his nanio placed on a statutory black list. This list has since been published from timo to time in London and has been repeated ill the New Zealand Gazetto for the information of traders in this country. Trading with any person or firm named in the black list is illegal, and renders the offender liable to very sovcre penalties. When mentioning that the black list was being published in New Zealand, the Attorney-General (the Hon, A. L. Hordman) stated two months ago that lie did not believo trading with the enemy was proceeding in Now Zealand to any appreciable extent. "Our trado with the enemy countries was not great before the outbreak of the war;" ho said, "and I have ascertained that through the vigilance with which the Customs officers and the polico have exerted themselves in this connection, the trado with tho enemy during tho war has beon practically nil. Thoro havo been a few isolated prosecutions against individuals, but I believo that even these transactions havo beon carried out without any fradulent intention." Tho position does not appear to have varied since that timo. Statements arc made occasionally to the effect that enemy goods aro reaching the country, but official inquiry has snown in practically every case either that the suspected goods were not of enemy origin, or that they had been bought from enemy firms prior to the 'outbreak of war. London wholesale houses had very largo stocks of German goods when hostilities began, and as the goods had been paid fur, their further sale ctiuld not fairly be prevented. Goods of this kind have continued to reach New Zealand in diminishing cjuaiititics. Then consignments from interned Gorman ships, bought and paid for prior to the war, liavo arrived at intervals, and enemy goods that were actually in New Zealand before tho war keep appearing in tho retail market., But the oJGcials who are eutrusted_ with tbo duty of enforcing tho regulations aro convinced that Now Zealand is not buying goods from tho enemy at tho present timo. Tho regulations governing this matter cover a groit deal of ground. Customs officers keep a very close watch on imports with tho object of detecting goods which might possibly find their way to tho Dominion via neutral countries. Goods from countries that might sorve as channola for Gorman trado are admitted to New Zealand only when accompanied by satisfactory certificates of origin, and the Customs authorities may -detain consignments when they believo there are grounds for suspicion. Then the regulations guard against tho oxport of Now Zealand products to enemy countries by providing that no goods may bo sent to a foreign country from this Dominion without a declaration from tho exporter as to their ultimate destination. Enemy trading in any form is illegal, of courso, and the definition is very wido. It is an offence to communicato through tho post office with anybody who is carrying on business in an enemy country. New Zealand firms haying correspondence with foreign firms aro required to furnish the At-tornoy-General with the names of their foreign correspondents. It is illegal to do business \ith a branch of an enemy firm in a neutral country. Tho regulations have been framed with the_ object of stamping out enemy tiading in any form it can assume, and they do not appear to leave many possibilities uncovered. No company can be registered in New Zealand i'f the share list includes any shareholder who is an enemy, and no foreign companies may be registered tho shareholders of which include enemies. Shares and debentures in New Zealand companies owned by enemies have to be handed over to the Public Trusted. Early in the war tho Public Trustee was appointed custodian of enemy property in New Zealand, and he took possession of property owned by, enemies and enemy companies in various parts of the Dominion. Some complaints have been heard ifi this connection, on the ground that enemy concerns were run by a State Department in competition with New Zealand traders, and a Dominion reporter mentioned tho matter yesterday to the Public Trustee (Dr. F. Fitchett). Explaining the position, the Public Trustee said that under tho original war regulations, put into operation in the early stages of the war, the Public Trust Office had merely taken control of enemy businesses which were then con-! ducted as active concerns. Tin's naturally meant competition with other firms. "We considered the whole matter very | carefully, and decided that it was the duty of tho Public Trustee, as trusteo for these properties, to carry on tho businesses in tho ordinary way," said Dr. Fitchett. "The position now is different. Under the new regulations wo were directed to wind up tho enemy businesses, and that we have done." Tho Public Trusteo went on to say that tho -winding-up of the enemy businesses involved disposing of the assets, and tho practice had been to call lor tenders, just as in the'case of any ordinary liquidation. Some complaints had come from competing firms, but the procedure 6cemed to bo inevitable. The rulo was to liquidate the enom.r business completely, and then hold the money ponding the conclusion of the war, when its final disposition would bo arranged. Shares and debentures shown to bo owned by enemy subjects were being transferred to the Public Trusteo by the companies concerned. Their ultimate fate would bo a matter for the consideration of tho Government. The Public Trusteo added that New Zealand was to a large extent following the guidance of tlie United Kingdom in dealing with onemv property.What was being dono in this country in tho matter was substantially what was being done elsewhere in . tho Umpire. and he understood that tho New Zealand Government was acting in concert with the Imperial Government. Tho task of the Ptiblio Trust Offico was simply to deal with tlio property placed in its bands in accordance with the regulations.