PRICE OF BENZINE

Dominion, Volume 14, Issue 127, 22 February 1921, Page 6

PRICE OF BENZINE

DISCUSSED BY THE FARMERS’ UNION A RECENT PRIVATE IMPORTATION From Our Own Correspondent Palmerston North, February 21. About three months ago the Manawatu Sub-Provincial Executive of tho Farmers’ Union wrote to tho Minister of Commerce and Industries drawing attention to the fact that Oho price of benzine in Palmerston North was 425. per case, while Mr. T. M. Wilford had stated in the House of Representatives that ho had imperiled it at 235. per case. Tho executive asked if there was any reason for the great difference in price in the two places. In replying, tho Minister [Klinted out that Mr. Wilford was not called upon do pay’ tho following charges usually borne by importers—storage, demurrage. State tolls, dhiarter and commission. London exchange and cost of credit. On arrival of tho petrol at this end Mr. AVilford’s charges included wharfage, primage and cartage, whereas the ordinary importer hlad to pay stocking charges, handling in and out of store, loss by leakage, reconditioning, insurance in store and interest on slocks held awaiting sale. When allowance was made for distribution cost in New Zealand it did not appear from Mr. Milford's experiment in oil importing that the retail price in Palmerston North was unreasonable. The Minister admitted that Mr. Wilford had imported 20 cases of petrol at a total cost of £23, but he had procured that quantity at a much lower cost than the usual shipments coming into the Dominion, although the prime cost at the port of shipment was equal to that paid by the importers during the period in question. The Farmers’ Union forwarded the Minister’s reply to Mr. Wilford for his remarks thereon. Mr. Wilford wrote that 'he was interested in reading Mr. Lee’s reply ilo the question. He had himself asked the same question on the floor of the House, but so far had had no reply although the session closed early in November. The Board of Trade had examined his documents and found them according Io representations made bv him in Parliament. An official of the Board of Trade had attended a’! his garage and inspected t'ho cases and tins and would admit that l!he cases were branded "Standard Oil Company, and, unlike all other cases he had seen, they were sounder and stronger, being strengthened with iron bands. The tins were of excellent quality, and so far none of them had leaked. He was glad lb notice that in Mr. Lee’s reply- it was admitted thlat he had imported 20 cases of petrol at a total cost of £-3. That admission proved to New Zealand tha a private individual could import petrol at 235. per case. The documents he held contradicted emphatically the statement that he procured this quantity at_ a much lower cost than the usual shipments coming to New Zealand He did nothing of the kind. Ho had paid a higher price retail, with no discounts than Oho importing merchants had t pav. He had purchased the petiol tail without discounts or rebates of any kind, and had paid 25 cents per gallon in America for the same, plus 10.5 cents per gallon to cover cost of dases etc. That was to say. his petrol cost him 35.5 cents, per gallon in America,, - eluding casing, while it was only cost ng at Bakersfield, to his knowledge, 4, cents per gallon to refine, and was being sold to employees of one refining company who Had cars at 6 cents a ga. - lon. To say that he procured his petiol at a lower cost! when 'he bought it retail than, say, the Vacuum Oil Company or A. S. Paterson and Co. could procure it at wholesale nates, was the veriest nonsense. Mr. Wilford concluded by stating: "The Hon. Mr. Lee admits that I paid wharfage, primage, and cartage. I also paid «»- nnce. and Customs. I am satisfied that the answer made by Mr. Lee will no,, satisfy the people of New Zealand and considering that the petrol is first class it surely speaks eloquently. I am satisfied that the public of New Zealand are not having a fair deal so far as petrol is concerned. I would point out that when the Hon. Mr. Lee raises the: question of London exchange and cm-t ot credit he must! realise that I bought my petrol paying the then rate of exchange with America, which was even lover than it is to-day. and notwithstanding this disadvantage I got,. possession of my petrol at 235. per case. The correspondence was read at. a meeting of tho executive held at Levin on Saturday, and it wa* decided to send a copy of'Mr. Wilford’s letter to the ' Minister.