CURRENT TOPICS

Taranaki Daily News, Volume LIII, Issue 103, 9 August 1910, Page 4

CURRENT TOPICS

PROTECTION OF INDUSTRIES. Protecting industries that do not exist is very much like "doing a favor" to a friend by stealing his money. If a prohibitive tariff were placed on windowpanes because a New Zealand manufacturer or two threatened to enter into the trade in ten or twenty years' time, the people who wanted panes of glass for the next decade would be penalised. Many industries that are in their infancy in New 'Zealand, and which have not a hope of reaching fighting dimensions for a long time are well protected, and this, of course, means that although people buy imported articles they pay heavily for them. Free trade in such articles would 1 obviously be of benefit to the people at large until the local manufacturer gotvinto fighting trim and the necessity for importing ceased. Seeing, however, that most of the manufactures the people of New Zealand need are sentto them from abroad by people who know the last thing about them, it is very difficult for local manufacturers to get a market for goods for which they will require a larger price than would be asked for the imported goods. The New Zealand ironfounding industry is not in the infantile stage that most other manufacturing industries are. New Zealand manufactures splendid boilers, locomotives and stationary engines, stoves, ploughs and many other essential goods in iron and steels, including wharf and railway cranes. When, therefore, a country which is pledged to a protectionist tariff does not protect the iron industry, which is at present in a languishing condition, it certainly should not' protect goods of a class that maybe manufactured here some day, but which are now an unknown quantity. The other day a company which is applying to the Government for a large loan accepted the tender of an English firm for sixteen tube machines. These machines, as was pointed out by the ironfounders' deputation to the Minister of Customs, can be imported free under the tariff. The Government both makes its own locomotive engines, and keeps a private northern firm well supplied with orders for making tihem, and it seems feasible that as it supports local industry and finds that the engines supplied by the private firm are satisfactory, that it should hesitate in helping corporations that do not help the country. There is no doubt at all that, with judicious encouragement, the iron industry would thrive in New Zealand. There is every facility—including ,the raw, material—for the making of miniature Pittsburgs here. The industry is already established in the' various centres, and outside them, but we believe we are right in saying that only one foundry in this country is at the moment employing a full complement of men. Indeed, the town in which that foundry thrives is largely supported by it, and were it not for the industry the place would be of little importance.

RAILWAY MONOPOLIES. The great railway companies of Canada have been prime factors in promoting rapid development and expansion, but the people of the great North American dominion are not entirely satisfied with the position. They give full credit to the companies for enterprise, but realise that vast monopolies have been created. The money spent on construction has been returned or will be returned, within a few- years by the sale of great land I grants given by the 'State, and there is a growing difficulty in securing low rates ' and the reasonable limitation of profits. i The Canadian Pacific Company, which I represents Canada's greatest railway enterprise, is exempted by its charter from any regulation of rates until its profits exceed ten per cent, on the actual working expenditure incurred. The Toronto World declares that the company is already paying its shareholders fourteen per cent., but the financial operations undertaken by the directors have made any calculation on the subject enormous-' ly difficult. New stock has been issued at various prices, and branch enterprises have absorbed railway profits while pro-' ducing rich returns on their own account. .Lately a proposal has been put forward for handing over .the land business to a separate rompany, and this step would complicate the position still further. The London Financial News estimates that the real sum of the profits last year was over £5,000,000, and in that case the public is probably entitled to reduced rates. It is not at all likely that any reduction will be made. "The resources of companies in handling pnofits are-so vast," remarks the Toronto Globej "that it seems questionable if the Canadian Pacific will ever become teeiinically within the limits of rate reduction, but no means of deception, evasion or diversion should be allowed." Many Canadian people are asking whether it would not be possible for the Government to acquire the railways before the companies become still more, wealthy and powerful.