NEW ZEALAND INDUSTRIES.

Taranaki Daily News, 15 April 1919, Page 6

NEW ZEALAND INDUSTRIES.

fcARLIAMENTARY COMMITTEE AT NEW PLYMOUTH, The Parliamentary Industries Committee commenced its sittings in New Plymouth yesterday, at the Borough Council Chambers, taking evidence on matters relating to the industries peculiar to the New Plymouth and Taranaki districts.

Mr. C. A. Wilkinson (Egmont) is the chairman of the Committee, and the other members are: Dr. A. K. Newman, Messrs. H. Poland, T. K. Sidey, J. Craigie, R. P. Hudson, J. T. M. Hornsby and A. W. Veitch. WELCOME. On behalf of the citizens of New Plymouth, the Mayor (Mr. C. H. Burgess) welcomed the members of the committee to New Plymouth. He appreciated the fact that the committee had found time to stop in this district. The evidence that would be placed before them would be of great interest not only to Taranaki but to the whole Dominion. He referred to the effect of the -war on industries generally which necessitated a big effort being made to catch up the leeway that had been lost, and in this New Zealand must not lag behind. He stated that if after taking evidence the committee desired to visit any place of interest, either in connection with any of their investigations or otherwise, he would be prepared to place himself Rt their disposal.

Mr. P. S. Johnß, president of the Taranaki Chamber of Commerce, welcomed the committee on behalf of the business community in particular. He stated it had been remarked that the rcBult of the committee's inquiries would be the same as all other commissions, and nothing would be done. He thought, however, from what he knew of the chairman of the committee, that would not be the case. The condition of the world at the conclusion of the war necessitated that industries everywhere should be built up, and he believed the committee's work would do much in that direction for t£j New Zealand industries, and for that reason he welcomed the members to New Plymouth. The chairman, in acknowledging the welcome, said the committee was pleased to extend its enquiries to the fertile province of Taranaki. He admitted that there was no intention of coming to Taranaki when the Committee first set out, but the invitation from the Chamber of Commerce had appealed to the members, and he felt that when they had gone away they would have a better opinion of the province than they had before. He mentioned that the committee was not a commission in the ordinary sense, who would report to the Governor-General, but a committee of members of the House of Representatives, to whom they would report, and he thought the members would have on opportunity of pushing any decisions' they might come to.

IRON INDUSTRY. Mr. W. J. Pcnn, chairman of directors of the New Zealand Iron Ore Smelting, Co., gave evidence in respect to the needs of that industry. He briefly surveyed what had been done up to the present time, and stated that the company, which had been formed about two and p.-half years ago, had now come to the position of not being able to secure further capital for carrying on, unless some reliable expert opinion could be acquired to state that there were reasonable prospects of the project developing into a payable concern. He stated the difficulties in regard to fuel supply and labor, which had delayed operations in regard to actual smelting.. An expert had been secured from Broken Hill, and after making the alterations to the plant suggested by him, including a larger furnace, a run of iron had been obtained, and this had found a ready market at a price of about £ls to £lO per ton. At present, in consequence of the company's capital being practically exhausted, they were able only to work intermittently. The term of the expert's, engagement had expired, and inducements had resulted in his returning to Australia, and the company was now carrying on with its metallurgical engineer. The iron produced was capable of being used by itself or would take up from one to three parts of scrap iron, and the foundries all required an iron with which they could use up their scrap Iron. The tests that had been made showed the iron produced was far above Government standard requirements. It was of great strength and richness. The difficulty of getting supplies of coke made it impossible to have a run with the furnace for more than a week or ten days at a time. The company was handicapped through not having its own coking apparatus. The facts, briefly stated, were that until they could establish confidence in the future of the industry they were unable to raise any more capital. If the opinion of the expert, which it was hoped the Government would "get and report on the prospects and the method of working, was favorable he did not anticipate any further difficulty in raising money. All that was asked at present was that the services of, an expert should be secured by the Government. He could not un- - derstand why there had always been opposition to the Taranaki iron sand industry. The iron industry was the foundation of nearly every other industry, and he thought the company was entitled to some assistance from the Government.

In reply to the chairman, Mr. Penn said the nominal capital of the company was £05,000, £35,000 of which hail been paid up. To Dr. Newman: He was satisfied there were millions of tons of iron in the sand here. Their main wish was for the opinion of a satisfactory expert, who could tell them whether there was a reasonable prospect of a payable product or whether they should abandon the industry.

In reply to Mr. Hudson, Mr. Penn said the prices quoted for iron were war prices. He estimated a normal return for their product would be about £5 2b 3d per ton, at which figure it would pay. There was at present a proposition on foot for the Parapara Company to put a quantity ,of ore through the local furnace. To Mr. Craigie: The company.had beach rights for seven miles south and three miles north of the breakwater. The coke question was the biggest item in the cost of production, being about 48 per cent,, and labor was about 17 per cent.

To Mr. Sidey: The furnace here was of sufficient capacity to supply the demand of the whole Dominion. In regard to the problem of obtaining titanium from ironsand, Mr. Penn stated that deposits of this had been found in the furnace after smelting, and Mr. Heskett (nwtallrfrgist) was now experimenting with a view to drawing this oft 11l Wit MB&Mt Of IUMMt. 8*

had said that the question of going in for titanium by itself was worth pursuing. The company had boon advised that the Minister of Mines had instructed the High Commissioner to endeavor to obtain an expert such as the company desired.

Mr. Wilkinson raised the question of the analysis of the company's product, and asked if Government assistance'in this direction would be of service, or if it had been asked for. Mr. Penn replied that the company's metallurgical engineer was quite able to make the analysis, only he had not the time to carry it out when smelting was being done. He thought Government assistance would be of service. Mr. J. Smithf asked for assistance from the Government for the development of an iron smelting process, by means of which pig iron could be produced for £3 10s per ton. The syndicate he represent* ed had spent about £IOOO in experiments, and the reports of assayists were very satisfactory. In addition to the iron, the by-products of the process included gold, silver, and platinum in payable quantities. They were also able to make slag cement at a cost of £1 per 20-ton block, compared with £l4 for ordinary cement blocks. With the aid of electrical furnaces, they could also produce different qualities of steel, samples of which were placed before the [committee. All the results had been obtained under test conditions. The chairman remarked that it was surprising that no assistance was forthcoming to bring the thing to a commercial profit. Continuing, Mr. Smith said they used Taranaki coal, which, with a very small proportion of gas-works coke, was quite suitable for smelting purposes. He stated that they had been able during the morning to arrange with the Minister of Mines to give a demonstration before officers of his department. Mr. Hornsby: Why not get the Government to prove the product, then you would be able to get all the capital necessary, couldn't you? Mr. Smith said that' was exactly what was wanted. He would be quite satisfied with that, though he thought the Government might take' the thing over as a national scheme.

In reply to a question by Mr. Sidey, Mr. Smith said he did not know what the other companies were doing, but he did not wish to say anything about their system, except that all the patents of the last twenty years in connection with ironsand smelting were an infringement of his company's patent. I reply to Mr. Hornsby, Mr. Smith said the cost of production of basic slag was £2 10s per ton. They could make a very payable line of it if it were sold at from £4 10s to £5. Mr. Smith assured Dr. Newman that they had overcome the difficulty of the titanium deposits' in the furnace. In reply to a further question by Mr. Sidey, Mr. Smith said he did not think there was any chance of the two companies combining. The position, to him, seemed to be that they had the process and the other people had the plant.

LEATHER TANNING, Etc. Mr. C. D. Lightband, who said he«had had a life-long association with the leather industry, appeared before the committee to aak for Government assistance in the matter of manufacturing fancy leathers from the paunches of sheep and cattle. He had discovered that there were large quantities of material of this character going to waste —or, as he put ft—not being put to their best use. He had produced from one cattle paunch as much as from 15ft. to 20ft. of leather. He stated that from supplies produced by him in Hastings he had a very good- return, though war conditions had interfered with his undertaking. The demand was unquestioned. HiR difficulty was in the dyeing and finishing processes. He came before the committee to try, if possible, to secure the industry for New Zealand, as he liad given a London company an option over his proposition till August, but was anxious that it should be retained for the Dominion. He contended that when it was shown that waste products could be put to useful purposes by experts assistance should be given by the Government. He was handicapped by the freezing works companies refusing to guarantee him more than a threeyears' supply of the raw material, though he had offered a 10 per centi advance on the present value of the paunches to them. What he wanted was at least a seven-years' supply to justify the expenditure of the amount of capital involved. He also stated that large supplies of >glue and glycerine were also to be had from the residue of material which at present was converted into manures by the freezing works. There was scarcely an ounce of material now going into the manures that could not be put to more valuable purposes as animal foods.

Mr. Lightband here submitted some samples of a fowl food produced and also a sample of dessicated tripe. What he wanted was facilities for getting the raw material from the freezing works. Dr. Newman stated that he had seen something of the waste in the direction pointed out by Mr. Lightband many years, ago, and was surprised that it was still undeveloped.

WASTE FROM SAWMILLS. Mr. Lightband then' went on to urge that something should be done to utilise the by-products from the sawinilling industry. He stated that not more than 25 per cent, of the fallen timber was used. From these products alcohol, acetic acid, creosote tars, and potash were available. A plant capable of dealing with 100 cords of timber in a twentyfour hours' day could have been purchased in pre-war days for about £OOOO, plus the cost of buildings, and the estimated value of the products was about £1 per cord. He proceeded to deal with the value of New Zealand barks for tanning purposes, and said New Zealand | was, in this respect, one of the richest • countries in the world. The possibilities in this connection would be worth hundreds of thousands of pounds per annum if properly taken up. All this raw material in the country should be developed locally, instead of being exported and then brought back here to be worked up. With the development of the raw material there would follow the growth of manufacturing industries.

In reply to a question by Mr. Sidey, Mr. Lightband stated that the tanning quality of the barks was the essential thing, more than the quantity of material secured.

The matter of the production of glycerine from waste fats from households was referred to as being of assistance in tanning and also in the production of explosives for local commercial purposes.

OIL BORING INDUSTRY. Mr. E. Griffiths, chairman of the Blenheim Oil Company, stated that his company's well was now down to a depth of about 5300 feet. The plant was capable of drilling down to 6000 feet. The opinion of experts was, that if oil was found it would be at a depth of about 5000

feet, and the directors believed they were now approaching the main supply source. The company had spent about £20,000 on drilling, and had received about £6OOO on loan from the Government. The grant authorised was £1)000, and the company was receiving £350 per month. The capital had all been locally subscribed, and there were no foreign shareholders. In the event of the company getting oil in a payable quantity the Government would not get a percentage of the profits, but merely the repayment of moneys loaned, with interest.

Mr. Fedorowicz, manager of the com"pany, gave lengthy evidence on the methods .of working. He stated that from his experience on the continent of Europe he felt pretty confident that there were good prospects of oil being discovered in good quantities in this district. He said it was not proposed at present to drill further than 6000 feet. He was hopeful of not having to go as far is that. The cost at present was abqut £G per foot. Mr. C. Carter, representing the Taranaki (New Zealand) Oil Wells Company, after recounting the experiences of the company/ said they had spent about £150,000 on the project. The No. 5 well, which had been sealed for some time, would be re-drilled after Easter, and he was confident that oil would be found as before. He stated that none of the wells Under the company's control had ever ceased to yield oil, except through defect of the mechanical means. He then referred to what the Government had done for the company, and further to the disposal of the refinery plant to the AngloPersian Company. He also explained that the Anglo-Persian Company, which was controlled largely by the British Government, had been negotiating with the New Zealand Government, and the representative of the company in the Dominion had said they were prepared to join with the New Zealand Government if the local oil fields warranted the step. He thought the Government should take the matter up.

In reply to a question by Dr. Newman as to the advisability of allowing an outside company to come in, develop and reap the profits from an industry which the country could develop, Mr. Carter stated that he thought in the present case it would be a good proposition, as he understood that when the field was established the Anglo-Persian Company would be prepared to dispose of their interest.

HYDRO-ELECTRIC DEVELOPMENT. Mr. R. H. Bartley, electrical engineer to the New Plymouth" Borough Council, detailed the council's proposals for the development of a scheme capable of producing from 6000 to 8000 h.p. By this it was expected to meet the needs of New Plymouth (about 3000 h.p.) and distribute the balance over the industries of the district.

In reply to a question by the chairman as to what assistance was sought, the town clerk (Mr. P. T. Bellringer) stated that the borough thought it would be useful to the committee in their investigations relating to the needs of bcal industries to know that such, a source of power as that to be provided •.was available.

Replying to Mr. Sidey, Mr. Bartley stated that Mr. Parry had not been consulted in regard to the present or the proposed borough schemes.

In answer to Mr. Craigie, Mr. Bartley said the scheme would be a standard one, and could be linked up with the Government'" scheme whenever it came along. There was no other source in Taranaki that could be developed as economically as that from the Waiwakaiho.

4n reply to the chairman, Mr. Bartley said no definite arrangement as to price had been arranged with likely outside consumers of current. It was expected to be able to sell power from the new scheme in about eighteen months. Mr. Blair Mason, engineer in connection with the civil part of the undertaking also supplemented what Mr. Bartley said. He assured the committee that there was no doubt as to the supply of 8000 h.p. He thought, also, by a scheme of linking up some of the btreams coming down from Mt. Egmont, still more power would be available. BANKING EXCHANGE, Etc. Mr. D. J. Hughes, as a private citizen, brought under the committee's notice the matter of the exchange ordinarily paid to the banks in connection with the disposal of New Zealand produce and also the commission paid to buyers, and urged that something should be done to eliminate these, what he thought, unnecessary expenses. He stated that through the purchase by the Imperial Government of New Zealand-produce last year the country had been saved about f63,750 in exchange. The saving to Taranaki alone had been £10,500. °Had the produce been disposed of in the open market the amount of commission paid to buyers would have been £170,000, Taranaki's share being £52,000. Mr. Hughes also urged that some action should be taken in the direction of compelling shipowners to properly light vessels trading to ports where work had to be done at night. In reply to Mr. Hudson, he said he did not altogether advocate the Government handling the produce, but thought a board might be set up in London, through which the producers could'deal direct. His aim was to bring the. consumers and the producers into closer touch, and to eliminate the middlemen and their profits.

Mr. Craigie asked if Mr. Hughes favored a State bank as a means of getting over the exchange difficulty, but Mr. Hughes admitted he had not gone into the matter sufficiently to say exactly what the remedy was. but hoped that by bringing it under the notice of the committee, it would receive consideration.