OUR INDUSTRIES

Dominion, Volume 12, Issue 114, 7 February 1919, Page 6

OUR INDUSTRIES

FUTURE DEVELOPMENT PARLIAMENTARY COMMITTEE OF INVESTIGATION TOBACCO, HATS, TOYS AND CEMENT INTERESTING EVIDENCE The Parliamentary Committee appointed to inquire during the recess into matters tending to benefit and encourage the industries. of the Dominion met at 10 a.m. yesterday in the Joint Committee room, Old Parliamentary Buildings, and commenced its investigations. With reference to the committee's programme of work, the Budget of last session stated: "It is intended that the Industries and Commerce Committee should hold sittings during the recess in various parts of tho country, with the object of making inquiries' land taking evidence from persons who are well qualified to express an opinion as to the direction in which legislative action should be taken. The Government by that means hopes to obtain the very best advice, possible before bringing in legislation in connection with this very important matter." The committee, as originally appointed, consisted of the following members of Parliament:—Messrs. C. A. Wilkinson (chairman), J. Craigie, G. W. Forbes, J. T. M. Hornsby, ft. Hudson, J. P. Luke, G. V. Pearce, H. Poland, T. K. Sidey, W. A. Veitch, Dr. A. K. Newman, and the Right Hon. Mr. Massey. All the members except Messrs. Forbes and Pearce, and, of course, the Prime Minister, were present yesterday. The- Tobacco Industry, The committee first heard the evidence

of representatives of the New Zealand Tobacco Company, of Napier, upon the development of, the tobacco industry in New Zealand. F. C. Hartshorn, commission* agent, Napiar, stated that in 1914 the company started growing tobacco on 110 acres of land in the Hawke's Bay distri#. In the first season the company grew and cured 42,0001b. of tobacco. Ttie yield averaged out about 8001b. per acre. In another two seasons, it grew and cured 181,6401b. of leaf. Tobacco leaf, if properly grown, was worth from Is. to 2s; per lb, Thus if the price were put at Is. per lb. it meant a return to the grower of per acre. This was a much higher return than to be obtained per

acre from any other commercial product grown in New Zealand except, perhaps, flax. Tobacco in New Zealand was a blight-resisting plant, and if the growing of it were taken up to any extent by farmers in New Zealand the company would instruct them in growing and

curing, and would supply the seed. During the pnriod over which the company had been manufacturing it ..had paid in excise duty .€5300. Manufacturing was commenced in 1916. The company thought that the Government might assist in the industry in New Zealand to the extent of refunding that excise duty. A. B. Fallover, of Hastings, manager for the company, supplemented the etatements of the previous witness. In reply to questions Mr. Hartshorn stated that some farmers had taken up the growing ;of tobacco at Nelson, but so far the company had not seen the results. The coastal districts and places having a, warm climate were best suited to the industry. Quite poor land would gfow tobacco. The land on which the company etfirted had been previously used for grazing cows and sheep. . The company had had a little trouble, and had not grown during the last season; and it was just asking for something to tide, it over tV the present. The' industry was one that would not always have to

be bolstered up, but 'would ultimately stand on its own feet if assisted now. At the local tobacco enjoyed a preference of 2s. 6d. per lb. over imported ■tobacco in the matter of excise duty and Customs tariff. Tho imported tobacco

paid .Is. Gd. per lb. to the Government and the local tobacco Is. The New Zealand Company wanted more protection, to prevent it being pushed out of the market by powerful competitors. The company had £14,197 of paid-up capital, and a total authorised capital of ,£25,000. What the company wanted by way of protection was that the Government should g/ve it preference over any foreign company coming into New Zealand and growing tobacco with foreign capital. , The chairman: One thing you ask is that the Government should refund the whole duty paid; the other is that the Government should grant you a loan to assist you in developing the work? Mr. Hartshorn replied that if ,tbo excise duty were refunded that would be sufficient. In reply to a further question as to whether a loan would not be as good as a refund, Mr. Hartshorn said that of course the company would prefer the granting of a refund. Tajk of a.Trust. Mr. Fallover. said that only one company of any importance was operating outside tlie big Trust in Australia. The Tobacco Trust had. taken a place in Wellington and installed in it machinery for the manufacture of tobacco, and its officers were inspecting various parts of New Zealand with a: view-to selecting tobaccogrowing land. To Mr. Hornsby: Owing to the operations of tho Trust the New Zealand Company was unable to obtain the very latest machinery for tobacco manufacture.

Dr. Newman: In disposing of your tobacco to shops, are certain shops closed against you by reason of the Trust? Mr. I'Villover: At one time we heard a whisper of that, but we found no trouble about it eventually. • J. W. G. Brodie (representing tho British Empire Trading Company) said that his company was very anxious to see tobacco-growing flourish in New Zealand. He would like to suggest that tho Government should consider the question of fostering the industry by grants for curing barns and the provision ( of an expert. Turning from the crowing to the manufacture of tobacco, Mr. Brodie said that his company was establishing a factory in Wellington. He urged that 'some move be made to eliminate the duty of Is. Gd. per lb. that had at present to be paid on machine-made as opposed to hand-made cigarettes. Mr. Luke: You consider that the tohieco-growing industry would offer splendid inducements to returned soldiers and men not absolutely equal to kavy work?—" Yes, undoubtedly." Witness went on to point out, however, that at certain seasons tobacco-growing required a good deal of labour. In reply to a question as to what way of fostering the tobacco-growing industry .the company would suggest, witness said that valuable data concerning the suitability of various parts of New Zealand for the growing of the plant might bo obtained by the establishment of experimental plots here and there. Dr. Newman: Is it a fntft that if a New Zealand company wanted to import the latest machinery it could not buy that machinery in America owing to tlie operations of a trust?—" Not to my knowledge. The company would have to wait its turn, but that is all." Mr. Oaigie: ,You call yourselves the British Empire Trading Company. Is it really a British company, with allBritish capital?—" Every cent, of it." Mr. Craigie: What have you got to do with America?—" Nothing at all." In reply to further questions, witness slated that his company traded only in New Zealand, and was not affiliated with other companies. It was not registered in New Zealand, but in London. It wan nn English company. Jlr. Sidey: It has been suggested thai your company is really part of u huge j trust, all leagued iosjollht. Do you ! know anything of thai ?—"There is nothing in it. It is ridii:u:mit,. It is ;i suggestion which cannot be ba-ed on any facts at all, because the facts don't exist." llr. Sidey: What is your capital?—"l Ihink it is £120,0,10." '. The chairman: I would like to ask Mr. Brodie what brands of tobacco come into New Zealand other than those his company controls? Mr. Brodie: "I can'give you any number of them." Mr. Brodie proceeded to enumerate various brands, and'said that

30 per cent, of every tobaconist'e window was full of them. The Felt Hat Industry.

John Nicol, director of the National-Eat Mills, tendered evidence as to the state of the. felt hat industry in New Zealand. Every effort, he said, had been made to make the industry a success, but the net result of all the expense and combined effort-had been that although the New Zealand manufactures compared most favourably with the imported manufactures, they could not compete in the mattre of price; and an indication that the industry was going down hill was afforded by the fact that whereas there had formerly been six factories engaged in it in New Zealand, there were now only three. He suggested that an alteration in the present tariff which would favour the local industry should be made, and re would then undertake that the industry would be built up to a nourishing condition. The tariff, he thought, should be raised to Australian rates from the United Kingdom. He recommended that hat-makers' machinery, tools, and raw materials should be placed upon the free list. iMr. Nicol, in answer to questions, eaid lhat under the tariff alteration proposed,' the hat would be dearer from the manufacturer, but not necessarily dearer to the "consumer." In his opinion, if the Government adopted a recommendation that the tariff should be altered as suggested, it would not be necessary for it to regulate the price of hats. That would regulate itself, as the competition was very koen. Concrete Instead of Timber, • Kobert W. de Montalk, architect, waited upon the committee to urge the claims of concrete as a substitute for timber and corrugated iron in house building and in other things. He maintained that on one condition a concrete house could bo placed within tho reach of anyone; and the condition was that sufficient capital was forthcoming to provide adequate machinery and labour to produce concrete on a scale commensurable with that on which timber was produced at present. He suggested that the Government should take the matter up, and adopt concrete in substitution for wood in all the building work it carried out. The Government should make it obligatory that within a, certain number of years all houses erected should be fireproof- Concrete commended itself to the Government and local authorities for roadmaking, as weJJ as building. He had been working for years to 6ee if tho people of New Zealand . could be provided with far better houses than they had at the present moment. The Concrete Road. In reply to questions regarding his proposals for concrete roads, Mr. Montalk said that road blocks could be made in a factory, carted to the site .qf the road, and put together on the spot. The road would immediately be ready for traffic. A road seven feet wido would cost .£I7OO or .£IBOO per mile. If the country parts were provided with one. good single track like that, they would 1)0 far better off than with any of the roads they had now. In an explanation'to Mr. Craigie, ha said that his house-building scheme was a scheme of boards, studs, raflei's,, etc, made of concrete in a factory, . and taken on to the job. Mr., Montalk further stated that in his opinion it would cost about JJIO.CCO to provide a good plant for the production of concrete iu tho way and for the purposes ho suggested. . ! The chairman said that the committee would hear Mr. Montalk further when he ' could lay bofsre it more definite proposals than he had to offer at present. A Photographer's Lament. L. Mence, photographer, Featherston, came to the committee to tell it that he had been taking kinenia pictures of New Zealand subjects, but had found that he could not. get his films shown. His object was simply to get those pictiirse shown if he could. He thought the business ought to be made; a New Zealand industry, as it was a great industry in America. So far as 'he personally Was concerned he was Jiot very much troubled about the refusal to accept New Zealand films, as he had his general photography to depend upon.

The chairman said that the matter would receive consideration, though it seemed, to be rather-out of the province of the committee.

New Zealand Toys, i J G. Baker, indent agent and manager of the Dominion Toy Manufacturing Co., said that his company had been manufacturing toys since the beginning of last February, and had had fair success. The company's products hud been able to compote with imported articles owing to tlie high rate of freights; but this would, he understood, sgon be considerably reduced. Hβ would suggest that another 10 per cent, of duty be put upon imported toys, which, he believed, were, at present subject to a charge of 20 per cent. He thought that nn added 10 per cent, would cqver the decrease in the cost of freight.' Mr. Baker handed to the committee a number of samples of tlie toys that his company was turning out. The proposed extra duty, lie said, should be put on the imported .manufactured article, but not, of course, on the raw vrV. L erial, large quantifies of which his company had to import.

The committee adjourned at 4.30 p.m. It will resume its sessions this morning.