COOK ISLANDS FRUIT

Sun (Auckland), Volume 1, Issue 57, 30 May 1927, Page 2

COOK ISLANDS FRUIT

HOW THE GROWER FARES VIGOROUS REPLY TO CRITICS On April 30 THE SUN published an article dealing with the efforts of the Cook Island growers to fix the export prices of fruit. The article was extensively copied by other newspapers and has provoked a spirited rejoinder from Mr. W. G. Taylor, of Rarotonga, who has been in the Island fruit trade for over a quarter of a century. Mr. Taylor writes: Firstly, let me say that for years the Auckland fruit merchants have fixed the prices at which the growers may sell their fruit and with the elimination of competitors Auckland only offers the growers the choice of about three firms with which to do business, either on consignment or sale here. The result is that the A.F.M. have complete control of our fruit, working as they do through their own branches or agents here, and the growers are becoming bound hand and foot. It is somewhat difficult for the public to understand the customs in Island trading, so I will endeavour to explain. The natives are born spenders and their money goes as fast as they get it, with the result that they barter their produce to the traders. The shipping company finds it easier and to its interests to gram the bulk of the space to the traders from whom they can collect dead freight in the event of cargo falling short of space applied for. With the bulk of the space, the traders are masters of the situation, and the natives have to go to them to market their produce and as may be imagined the traders use their space in the interests of their business. I would do the same, so there is no reason to cavil at them making the most of a concession granted by the U.S.S. Coy. This concession has enabled them to buy the natives’ fruit on their own terms and when fruit is plentiful and space short they hare to take what is offered them, again naturally so. The traders decide whether the growers may sell or consign, and as may be imagined consignments go when fruit is likely to be a glut on the market. Formerly debts were not recoverable at law from the natives, and it was rarely that credit was given to them for more than a few pounds.

NATIVES HEAVILY IN DEBT In 1915 the Private Debtors Act was repealed and during the past eleven years the debts owing by the natives to the traders have accrued in the aggregate to the gigantic sum of approximately £ 100,000. some natives owing four figures and many three figures. Mortgages and such* like instruments are increasing, while, interest on monthly bah ces is charged in many cases so that the position of the growers is one of bankruptcy. When a native dies, save for such assignments as he makes, his debts are buried with him, but his ghost is passed on to the living, in the shape of high prices, thus the living have to pay for the dead. In 1924 the U.S.S. Co. placed the Ngakuta on the run and the Government in deference to the growers’ wishes, got the U.S.S. Co. to make Wellington the first port of call.

The Ngakuta proved a disaster and the growers have not yet cleared the debit notes for that year. The Auckland firms represented here did not buy f.0.b., but forced the growers to ship on consignment and sent their consignments to Wellington firms to sell instead of their own houses in Auckland. The ship cleared with 28,000 cases and landed the cargo stored below, in a wretched condit on, cases being crushed with the weight of those on top. The A.F.M. sent buyers to Wellington and bought their, fruit at a price that enabled them to land the oranges in their stores in Auckland at 7s, and this was for selected cases. The debit notes were charged up to their shippers here and are included in the huge debt owing. While this s m is dui tr the merchants it represents accumulated profits and not capital; it is the major portion of what is claimed as vested interests.

In 1925 the Flora came on the run and did much better, but in 1926 the Flora, having gone to Rotteii Row, the Ngakuta was sent and was diverted to Auckland instead of Wellington, causing another disastrous year. Last season the buyers paid 2s per case f.o.b. for oranges which did not pay labour and carting, so the growers got nothing for their oranges and their debts increased. This was the limit of patience. Notwithstanding promises of relief, the Go >rnment made no endeavours on the growers’ behalf.

A UNION OF GROWERS Hope deferred maketii the heart sick, so the growers formed a union for protection last September, and started to manage their own affairs as from January, 1927. Up till now there has been no outburst of hostility, and the prices charged by the natives were justified by results. For bananas, January. 5s 6d; February, ss; March, 4s; April, ss; mean average, 4s 10Jd per case packed in buyers’ shed. I received a mean average for my bananas on consignment, just double that of the growers’ price, namely, 9s 9d in my shed, over the same period. The price charged the buyers for oranges in April allowed a good margin of profit and lost cargo would have done likewise had it not been landed in a cooked and heated condition.

For the Waipahi, the first boat to Auckland, the comm ttee fix the price at ss, a drop of 2s on last boat, and the A.F.M. get loose with ■Shewing gum” propaganda, in order tr> influence the public against the native growers. Take 5s in packing shed, deduct 2s cost of picking, packing and carting and you get 3s a case, which averages 15 dozen dessert oranges, or about 2ld per dozen, as net returns to the grower. Take ss, add case and carting, etc., 2s 6d, U.S.S. Co. charges 4s, and you Auckland, which is ail that can be debited to the action of the native get 11s 6d per case ex-wharf in committee—lls 6d for 15 dozen oranges, allowing for decay and pillage, under Is per dozen. All further charges are debited forward and not to the grower*.

The growers accept judgment at th* hands of the general public—not Auckland fruit merchants. The buren offer 2s 6d a case, or less than half of one penny per dozen, which groven will not accept; hence all the hullsbaloo. The crop this year is under it per cent, of what it was last yar: mine is just 10 per cent. MOTOR SHIP FOR SAMOA Last year Parliament voted theco* of a motor ship to cope with the saoncomings of the U.S.S. Co., and .any our fruits to market, but we are told that she is to cater for Samoa, which place cannot support, and probably never will be able to support, the steamer. We are told that the Government has given the U.S.S. Ce. a guarantee that it will not run a boi: to Cook Island for five 3*eara; also given the U.S.S. Co. permission :o mcrease freights, in order to pay for improvements to the Waipahi. Thuswf are contracted into a liability ofabou’ £2,000 a year indefinitely, to p-ovid-a boat in the interests of the Auckland fruit merchants. The Govemmor. granted the U.S.S. Co. the right to increase our wharfage by 50 per cent t pay for the new wharf, but Samo gets £ 50,000 for a boat. If the U.S.S. Co. should sell the Waipahi thej’ will receive the enhanced value and we can expect a tether increase to cover the cost of altering another vessel for the trade. The U.S.S. Co. now demand a Govrnment guarantee of freight. In 1900 K** South Wales imposed a small duty <* Fiji bananas. Did the U.S.S. Co. demand a guarantee from the Fiji Gorernment? • No, they reduced their freight rate to cover 50 per cent o* the duty, and thus kept their horseshoe service running till the Australia Government imposed a prohibit!* duty on bananas. Is it any woodr that the growers of Cook Island shoiik become sick of promises and* organic to obtain a hearing? We need round reduction of 10s per ton ° f freights; and it is contemplatedtakJV a referendum to decide whether form a watersiders’ union to ck** mate the U.S.S. Co. They pay prewar wages and charge port-" 7 freights and passages.

POWERFUL COMBINATION In June, 1901, the New Zealand G*'; ernment took over tl ese Islan *• stated many times that they wel :. be administered in the interests o natives, and now after 26 s*e^_rß 5 * e^_ rß _ find that the whole people are . many mortgaged and plenty * while the U.S.S. Co. and frul * Y,. chants prosper. When the gro try to protect themselves - called extremists, and by tlu. Co. intimidators. _ t£c& : Instead of our traders * J] ™ - their clients and doing tbeir z f w. them, they protect the merchants and do their best This is natural, because the dealing in fruit are owned *** land and they in conjunction U.S.S. Co. are evidently 0l?r to brook interference fr.m tn , ment. Finally, let it oe the prosperity of Raro o reached a record low level a tives are no longer lookms Kuropeans for a lead, bn bits ally resorting to their old keeping to themselves.