CEMENT INQUIRY.

Taranaki Daily News, 3 November 1921, Page 5

CEMENT INQUIRY.

FURTHER EVIDENCE. COST SHEETS WANTtED. By Telegraph—Press Association , Wellington, Nov. 2. Before the Cement Commission, Mr Perry, for Mr. Masters, applied for ar order for the production of the balance sheets and statements of ’ the 1 cost ol production of the cement companies. Mr. Myers said the balance-eheeti were available, but he would not, ex cept by the order of the court, produci the cost sheets, although the sioner could see them all. These particulars were submitted to the Board of Trade when prices were increased. Mr. Justice Sim said he would not make the order asked for at present, though he might find it necessary to do so an the inquiry proceeded. Edward Boulton, secretary of the Golden Bay Co., stated, that when the price of cement was increased by the Board of Trade he was surprised. It was more than he expected. Witness declined to express an opinion whether tha. increase in price was in the interests of the company. He doubted if the cost of production could have been reduced in 1920, owing to the difficulty in getting coal, labor and materials. The price was reduced in April this year before the agreement to close the Golden Bay works. No notice was given to agents of the indention to close.

Witness said, he knew that the Milburn Company did not charge theextra 36s allowed by the Board of Trade. The manager of that company told him he did not think the rise justified. It was Mr. Luttrell who approached the Board of- Trade and gave it the information oh Vhrcß the rise was based. ’Witness did not think that even if the Golden Bay works had been, kept going the price of cement would nave been any lower than it was now. He was present at an interview between Mr. E. S. Luttrell and Mr. Robert Masters in May. He did not remember Mr. .Masters threatening that unless he wag settled with he would expose the agreement in Parliament. The Golden 1 Bay Company’s profit in the year ended [June 80, 1920, was £599. The cost of manufacture went on rising till December, 1920, when the increase in price was applied for. Since its inception in 1907 the company had only paid two dividends of six per cent, and two of five per cent. He thought it could have paid more. A large amount had been set aside for depreciation and 'spent on plant out of the profits. The shareholder© carried a liability on their shares 0f£45,000, and a large overdraft had been obtained.

Wellington, Last Night. Before the Cement Commission. Daniel Rogers, a worker at the Golden Bay works, said the men only received a few days’ notice of the closing of the works. One sold his house for £2O.

Edward Boulton, secretary of the Golden Bay Company, gave lengthy evidence regarding the personnel and operations of the company, and recited difficulties in the way of the successful production of cement last year, but added that one year was too long to remain closed. The Golden Bay Company discontinued selling in Auckland by agreement with the other companies, which he thought was more to the advantage of them. Vvitness did not think the increase oi thirty-six shillings a ton allowed by the Board of Trade justified. The company’s profit last year was £599. Its liability was £40,000.