OUR INDUSTRIES

Dominion, Volume 12, Issue 210, 30 May 1919, Page 6

OUR INDUSTRIES

THE MAKING OF CASEIN OIL PROSPECTS The Industries Committee of the H'miso of Heprcsentalives sat yesterday to hear evidence. Mr. C. A, Wilkinson presided. . The Hon. W. D. S. MacDonnld, Minister of Mines, gave evidence in camera. •0. Hoist, general manager of the New Zealand Casein Company, appeared to mako a stutemont regnrding some evidence by Mr. D. Caddie. It appeared that there was some popular misconception regarding the patent held by his company for tho lactic acid method of manufacturing casein. His company had acquired the rights from the Melbourne representative of the owners of the rights in Hamburg. One of the terms of the contract was that this firm was to send out its expert here to instruct the New Zealand company in the process. The representative of the German firm npplied for a palont in New Zealand before divulging the' process to the New Zealand company. In the end the patent was held jointly by the German firm and the New Zealand company. This obtained until the beginning of the war, when the New Zealand Company applied to have the German right? denounced, and the New Zealand company was the sole owner of the patent. There was some misapprehension also as to the use of the patent. The company had offered to sell the rights to the butter people of Tarannki. offering, also, if the buyers should wish, to leave the present capital in at 6 per cent. This offer witness considered most reasonable, but it was not. accepted by the Taranaki who preferred to work in opposition.. In view of this and in view ot the certainty of loss of supply of curd from the factory at Wanganui, the company had to ask for a royalty. Tho rate was .£2 10s. per ton. The company had spent much money and energy in establishing a market for casein in London. Formerly the product went to Germany. Messrs. Joseph Nathan niul Co. had an office in London and Messrs. Nathan assisted in making this London market. They were appointed selling agents, on a commission basis, of the company's product. It was considered that if another selling agent were appointed by the Taranaki factories the result would have been bad. In London there were few buyers, and it would have reduced the price had there been more than one selling agent, ho the provision for a double' royalty in the event of another agent controlling the output of the new venture was insisted upon by the Wnngajim. company. He did not agree that the royalty was exorbitant, and he suggested that the. matter was covered '»v the New Zealand Patents Act, which gave a right of action against a holder of a patent preventing the use of it by charging too high royalties, lhe holders of the riehts, ho pointed out, had offered to sell out on fair terms The matter was still a proper subject: for negotiation, .and the company would consider any proposal to hand over to the State or to any trroup of factories, the rights it now held if the terms were such as it could accent} The company had pushed this business for several years, and in a sale of tho rights, which had been made valuable by seven years of very solid work, the company would have to be recompensed for its work and expenditure.

He did not asree with Mr. Hornsby that the double royalty provision was in restraint of trade. All that was required was not that the product should lift sold to Joseph Nathan and Co., but I hat it should be c .old through Joseph Nathan and 'C0.,/who would not then control the market price, but, would receive only 21 per cent, commission. It had been nrewl that Nathan and Co. had showed that they wore better able to handle the product than any other firm. Also, Nathanand Co. had'paid for Ihe sole right to handle the product. He repeated that the provision was' not in restraint of trade, -but, if so, the Tarnnaki people would have a further right to Ipgal redrew in addition to that under the patent law. To Mr. Hornsby:' The chairman of directors of the company was Mr. F. J. : Nathan. ■ ' > ' , To Mr. Poland: The Waikato factories of the New Zealand Dairy Association were using the process, but they were marketing their product through lhe» New Zealand Casein Company, and so through Nathan and Co. In the Waikato there was not the same need for a royalty, because the company had no capital invested there in enterprises which might be damaged by competition. To Dr. Newman: F.o considered that he had been fair and candid when giving evidence before the committee in Wanganui. When be gave evidence there were negotiations'going on between his company and the North Tnranaki fnctories, and he considered that the action of Mr. Morton in divulging all the particulars of the negotiations was "most reprehensible."

W. G. M'Donald, chairman of the Board of Trade, gave evidence in camera., A. J. Rutherford save to the committee some" of his opinions about oil deposits', a matter which lie had discussed, 'lie said, with the Into Sir James Hector. It had been his opinion always that there would be no big beds of oil .struck near the coast of Tarnnaki owing to the violence of the volcanic disturbances that had occurred there. But further inland, beneath the great eiivelope.of papa, there might be found oil in large quantities. This papa envelope had net been pierced except on the Tarnnaki .coast, where there were little • pockets' of oil, It might be that the oil would be at a great depth, because it was accepted that the islands of New Zealand were merely the high altitudes of a great continent. He would advise prospecting inland. It would be expensive, and the work ought to be done by the Government, lie was strongly of opinion that in this, way, if at all, oil would be found, and it would be invaluable to the Dominion if oil should 'be found in quantity. To Dr. Newman: At piaces -where there were clear indications of faults in the strata there wore signs of oil. To Mr. Sidey: He would like to see the Government carry on its prospects under the advico of the best expert procurable.