NEW ZEALAND PRODUCE

Wairarapa Age, Volume XXV, Issue 10713, 21 February 1913, Page 6

NEW ZEALAND PRODUCE

PROPOSAL TO SHIP TO WEST OF ENGLAND POETS. ADDRESS BY Mil W. 1). LYSNAR. Mr W. 1). Lysnar, of Gisborne, who hasHaken a very keen interest in recent years in the question of better handling of New Zealand produce in the Home Markets, addressed a meeting of fanners in Murray's Hall, Masterton, last evening. There was a representative gathering, and the chair was occupied by Mr H. Morrison, President of the Masterton A. and P. Association. Mr Lysnar, who recently returned from a visit to England, obtained a number of photographs when at Home, and with these h c illustrated his remarks. He stated that the handling and marketing of the Dominion's produce, was one of the most important problems they had to face at the present time. I'n the movement that he and others had started, the cooperation, inquiry and aid of the whole of the mercantile community was invited. Nothing that was proposed would, he said, in any way conflict with the bankers and mercantile men. On the contrary, it would assist their business. The producers of the Dominion wore losing several millions of pounds every year for the want of better facilities for the handling and marketing of produce. The N.Z. Producer's Association had been formed with the objects of collecting data and disseminating information regarding the difficulties under which the Dominion was labouring, and they were now able to come to the producers with a proposition which, when understood, would carry away from on e end <.f the Dominion to the other. The disadvantages of the present system aided only the speculator and the c.i.f. buyer.

THE POUT AUTHORITY. Mr Lysnar then dealt with the weaknesses of the present Port Authority. He said that, as a result of investigations, they must regard London as hopeless. Long and insistent requests had been made for reform there, but without result. Two years ago the New Zealand committee, which investigated the matter, decided to recommend the producers of New Zealand to divert their trade from London to the West Coast ports. On the earnest request of Lord Devonport, chairman of the Port of Xjondon Authority, the matter was delayed on a promise being made that the producers would be given all they desired in London. The promised , improvements were no nearer to-day than they were two years ago. The whole of the blame was attachable to the London importer, a cablegram was received by Mr F. G. Shelton from the Port of London Authority, stating "Importers desire new scheme, and meat 'business kept Victoria Albert docks." On June 27, the Authority wrote to the Association's London representative as follows: "Whilst you were in 'New Zealand, pressure was brought upon the Autharity to provide the additional facility at the Albert dock in substitution of the Victorian dock proposal. Influential interests have expressed a wish that the Albert dock scheme would be a permanent measure." Mr Mr Lysnar stated that, after consulting Lord Devonport and others, he had come to the conclusion that the London importers were to be considered first and the .producers afterwards. SOUTH WEST INDIA DOCK. With an illustrated plan of the London docks before him, Mr Lysnar went on to give a detailed explanation stating that all the New Zealand produce was discharged in the Victoria and Royal Albert docks, and about 75 per cent, was taken in barges up the Thames and the balance carted to uptown freezing stores, many of which were situated in most inconvenient and out of the way places, opening into the most congested parts of London. Mr Lysnar stated that if the South West India dock were used, the road journey to SmitMeld. market would be reduced ,by one^half ', and the river journey from 13 miles ro 3J miles. He criticised, the large "system that was at present in use, and dealt at some length with the opposition of the Association North Island Freezing Companies to the South West India dock.

SMITHFIELD MARKET. Dealing with the subject of the disadvantage of Smithfield nia:ket, Mr Lysnar said, .it was used to the detriment of .producers, who shipped produce Home on their own-account. Mr Lysnar quoted the following from his report, made in l!>10, and confirmed by the new committee:— "Upon inquiry it seemsl that there is no co-operation and there is a great lack of system in order to regulate and control the orices of moat from day to- day on the Smithfield market, consequently there is a '-apid fluctuation continually in operation to I he great detriment and loss of the producer. By the present system the prices are fixed by the salesman of each stall, who is a freo agent to sell at" any price he thinks tit. By this means the market price is fixed by the weakest holder or salesman instead of it being held up to what the strongest salesman thinks it should be. The present system lends itself to a system of under-cutting, and it must be acknowledged that it" is illways easier to transact business by selling a little under the day's value. What is required is for the produceto be controlled in stronger hands and some co-operation should be made bv the strong and big holders to fix and maintain a standard of prices, in the way, I understand, the American meat companies do to their credit and advantage." AT A LOW EBB In order to give a practical demonstration of the way in which New Zealand prices were kept at a low J ebb on the Smithfield Market, Mr Lysnar produced and quoted from charts of prices issued bv the different

London firms for 1909-10-11. New Zealand mutton, lie said, was better than Scotch mutton. In 1909 Scotch mutton was up to 7\d, while New Zealand was down below 3d. In 1910 Scotch mutton was up to 8| a round and Sew Zealand 3|d and, for one day only 4 5-8 In 1911 Scotch mtittor averaged 6 7-Bd, aind New Zealand 4 1-Sd. During all this period retail prices remained practically the same. "The reason is," said Mr Lysnar. "that the Scotchman is there to look after his rights and the New Zealander is not." The market was rigged to suit the buyers at Home, and not to suit the producers. If they allowed that condition of affairs to go on, they were not doing their simple duty to themselves or to the Dominion. Prices were influenced by the weakest holder and Smithfield was simply used for the purpose of meat buyers at Home, who were acting as agents and .buyers at the same time, so that there might be a semblance of fairness in the deal. The producers should stop the c.i.f. selling, and get the organisation going. SPECULATOR'S OBJEOTION The objection raised by the moat speculator that nearly all the meat was sold at this end and that therefore the producers should not interfere, was not well founded. Figures showed that over 50 per cent, of meat in the North Island was shipped on owner's account. He asked, "Are not those who do ship and would ship, if better facilities were available, entitled to consideration. He claimed that the dairy and other producers were entitled to some consideration. The meat buyers had not a total monopoly of the export trade. This year the great bulk of the dairy produce was being shipped on factories' account. These factory owners should not be denied hetter facilities because the meat speculator objects."

THE HANDLING OF WOOL. The conditions under which wool was handled was most unsatisfactory. Bales were dumped on open wharves and it was left for days, and .sometimes weeks, with tarpaulins over it. The dumps were broken, to facilitate handling, and it remained in that condition, waiting for barges. The wool was often made wet on the wharves and sometimes by leaky barges. The producers thus got a reduced price as a. result, and did not know it. The producers, Mr liysnar said-, could not do better than utilise Liverpool for their wool. The consolidated charge was 4s 4d and 5s 6d for London and 2s 4d for Liverpool. They had facilities to show 20,000 bales at a sale in Liverpool and sell it in a, day, They were prepared to put Wapping dock shed, containing a well-lighted saleroom, at the disposal of New Zealand. DAIRY INDUSTRY. Did the dairy farmers get the fullest value for their produce? No, they could not depend on getting j'uli value as matters now stood. The heads of the various firms now met in Tooley Street and fixed prices. He only knew of one firm in London which did not handle produce in a speculative way. The firms met every week to fix the prices. The producers were not protected at as most of the firms were buyers. The Danish system in regard to their produce was a good one. They met and said: "We want so and so for our butter, and you cannot get, it below." The Danish butter was always taken, and they 'would notice it was always above New- Zealand prices. New Zealand butter was as good and even better than Danish. He maintained that the West Coast ports provided better distributing facilities and were better situated than London. Mr Lysnar pointed out the advantages of Bristol, Cardiff, Liverpool, and Manchester, and even Glasgow, in the respects he had stated, with the assistance of a map of England. THE NEW PROPOSAL. It was proposed to establish an association called the "Bristol and Dominion's, Produce Limited," with a capital of £IOO,OOO, to be increased from time to time. The objects were of a wide scope. To do anything with, the buying and selling of our produce, freezing and handling it, shipping and carrying it, with power to make advances to any cus- ' tomer. There would be 100,000 shares at £1 each, 30,00 to be issued right away, 10,000 for Bristol, 20,000 for New Zealand, 10,000 to be taken up here before the commencement of operations, the balance available to be taken up later. It was suggested that there should be two banks, the "Capital and Counties' Bank" at Home, and the Bank of Australasia in New Zealand. The Chairman of Directors was Mr Joseph Holman, a grain merchant of the head office would be iit Bristol, with branches at all the " principal West Coast ports and Lonion. Special direct shipping facility es were being arranged. It was'suggested that Australia should be

brought into the movement, and he saw no reason why she should not be included, because the seasons wore different and spread over different periods. Besides, it would add strength to the movement. It was proposed to set aside for Australia a similar number of shares as for New Zealand. By co-operation, they would protect themselves from the middlemen who were feeding on them like leeches in the London market. They desired the merchants to assist the movement, and it was a simple matter for them to do so. The Association was prepared to let the mercantile, men and bankers come in with them It was suggested that facilities i-liouid he given to all the merchants to act as agents for the Association. It was not desired to alter the ordinary ehannels in use at this end, but what was desired was to control it at the Home end. Mr Lysnar himself had agreed reluctantly to go on the directorate of the Association to assist with the work more particularly at this end, with an advisory committee, and to supply London with all the information necessary.

_ A series of pictures, vividly descriptive of tlie undesirable conditions existent in London for the handling of our produce and showing the apparently better all-round state of i flairs on the West Coast, wer e . projected from a powerful lantern and warmly appreciated.

After several questions had been ■satisfactorily answered, Mr Lysnar was accorded a hearty vote of thanks for his interesting address.