FIXING FRUIT PRICES

Sun (Auckland), Volume 1, Issue 37, 6 May 1927, Page 9

FIXING FRUIT PRICES

ISLANDERS AFTER HIGHER VALUES UNION COMPANY’S BOAT TO SAIL -,ro„ Althol i?. h t . h , e . fruit ‘ trade dead lock in the Islands is still in P 9?-’ Union Steam Ship Company's vessel, the Waipahi, will leave Auckland about Tuesday for the Cook Islands. .. . Cen 9 rowers > n the Islands have been incessant In their demands for higher values, and complain that the prices - , y u NeW ea * anc * merchants have not compensated them for their labour. .. P u r ! C \ c ® n trol committees in the Islands have been formed with the object of forcing the New Ze a land importers to pay higher prices for the fruit. These committees have not allowed the natives to sell below the price fixed, or to ship fruit to New Zealand on consignment. Although the Government has not consented to guarantee the Union Steam Ship Company in running the Waipahi to the Islands, the Auckland importers have guaranteed a certain proportion of any loss which may occur.

The following statement lias been supplied by the Auckland merchants: There hase been a very grave difficulty about running the Waipahi at •all owing to price control committees in the Cook Islands having been formed throughout the group with the object of forcing New Zealand importers to pay fancy prices for their fruit. The Union Steam Ship Company, after learning of the position in the Islands, requested the Government to put up a guarantee that the fruit would be shipped if the vessel sailed. The seriousness of the position lay in the fact that the committees used intimidating measures to prohibit those who wanted to ship from shipping their fruit. The committees would not allow the natives to sell below the prices fixed, nor would they let them ship on consignment. From advices received from Rarotonga neither the Resident Commissioner, Mr. H. F. Ayson, nor the Director of Agriculture, Mr. E. A. Reid, were in sympathy with the committees and used every effort to dissuade the natives from their extreme action. SERIOUS LOSS The Auckland merchants, who have very large interests in the islands, realised what a serious loss it would be to both New Zealand and Cook Islands trade should the steamer service be cancelled, especially after the strenuous efforts made by the Auckland importers during the past 12 months in arranging with the Government and Cook Islands’ authorities for improved packing and grading regulations, and they were responsible for the Union Steam Ship Company eventually agreeing to place a specially fitted oil-burning steamer in the Auck-land-Cook Islands service. A deputation visited Wellington on April 26 to interview the Union Steam Ship Company and the Prime Minister and the Minister for the Cook Islands. The Union Company intimated that it would not send the boat without a guarantee from either the importers or the Government. The Resident Commissioner at Rarotonga had advised that he did not know how far he could intervene and the Prime Minister was asked to give the commissioner, Mr. Ayson, full power to

take whatever action he considered necessary to end the deadlock. After the deputation had returned to Auckland word was received from the Resident Commissioner at Rarotonga that as a result of a conference, convened by the Government, consisting of representatives of the native committees, shippers and buyers, the native committees refused to reduce the prices or negotiate.

DEPUTATIONS TO WELLINGTON As the Waipahi was arriving in Auckland this week, without any solution of the deadlock, a further strong deputation, representing Island merchants and New Zealand importers, left for Wellington on Wednesday evening to interview the Prime Minister and Minister for the Cook Islands and also the Union Steam Ship Company. At the interview with the Prime Minister, Mr. Coates intimated that the Government had decided not to make any guarantee to the Union Company as it was their policy not to interfere in trade, but gave an assurance that everything possible would be done to assist the importers and traders to keep the Auckland-Eastern Pacific service running.

The deputation later interviewed the general manager of the Union Steam Ship Company, Mr. D. A. Aiken, with Mr. Jeffreys, manager of the Pacific and Island services, and it was finally arranged that in consideration of the Union Company running the vessel the Auckland importers would guarantee a certain proportion of any loss that might ensue. The Waipahi has a cargo capacity of from 18,000 to 20,000 cases of oranges and the market can readily absorb this quantity.

The merchants have now done all that is possible and have arranged for the vessel to run. The onus is now on the Cook Islands to keep the vessel in the service in the interests of all concerned. The natives are not compelled to accept prices offered, but have the option of shipping on their own account and take the risk of the market. Should they wish to ship in this way cases will be supplied by the Island merchants as usual.