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Session 11. 1918. NEW ZEALAND
BOARD OF TRADE (SECOND ANNUAL REPORT OF THE).
Presented to both Houses of the. General Assembly in accordance with Section 11 of the Cost of Living Act, 1915.
To the Right Honourable William Ferguson 'Massey, P.0., President, Board of Trade. The Cost of Living Aet, 1915, provides that a report of the transactions of the Board for the year ending on the 31st day of March shall be laid before Parliament within twenty-one days after the commencement of the session of Parliament held next after the said day, and in compliance with this section we have the honour to present herewith the second annual report of the Board for the year ending 31st March, 1918. The work of the Board for the period under review has consisted mainly in inquiries into matters affecting the cost of living, and especially upon questions relating to the supply, demand, or price of commodities, and into complaints that the prices of particular classes of goods are unreasonably high. No complaint was received by the Board alleging an infringement of any provisions of the Commercial Trusts Act, 1910, and amendments thereto, and it is therefore reasonable to infer from the omission of the public to lodge complaints in this respect that the trade of New Zealand is free from the operation of commercial trusts. A " commercial trust "is defined in that Act as meaning " Any association or combination (whether incorporated or not) of any number of persons, established either before or after the commencement of this Act, and either in New Zealand or elsewhere, and (a) having as its object or as one of its objects that of (i) controlling, determining, or influencing the supply or demand or price of any goods in New Zealand or any part thereof or elsewhere, or that of (ii) creating or maintaining in New Zealand or any part thereof or elsewhere a monopoly, whether complete or partial, in the supply or demand of any goods ; or (6) acting in New Zealand or elsewhere with any such object as aforesaid." One. hundred and forty complaints have been received regarding the high prices of commodities, and these complaints have been investigated from time to time, and wherever in the opinion of the Board it was deemed desirable adjustments of prices have been effected. In addition 478 witnesses were examined by the Board in respect to the inquiries made. The main features of the Board's work in this connection are detailed later in this report. As was to be expected,|the*foo(l-supply of_the|Dominion received the Board's particular attention. WHEAT, FLOUR, AND BREAD. On the Ist April, 1917, the prices of wheat and flour were governed by the Order in Council dated 6th February, 1917, hut it was known that on account of the dry season experienced in the South Island there would be a shortage in the wheat crop, and that it was imperative that steps should be taken to supplement the local supplies by importation from Australia. As early as the 18th December, 1916, at a meeting of the Board of Trade presided over by the Hon. W. D. S. MacDonald, a resolution was carried to the effect that the Government be urged immediately to take steps to secure an option to purchase 1,000,000 bushels of Australian wheat for delivery between August and December, 1917. The, Hoard reported to the Hon. W. D. S. MacDonald, inter alia, as follows: " Our reason for urging that an option should be secured without delay lies in the fact that there is a world shortage [of wheat], due in the main to Canada's yield being less than half of what it was last year; prices in consequence are rising, and our only practicable source of supply is Australia, and during the last month [November, 1916] the price in Australia for export has been advanced from ss. to ss. 4|d. per bushel. The Imperial Government has purchased large quantities of
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Australian wheat at 4s. 9d., and if an option could be obtained at anything approaching this price it would be highly satisfactory. If the Government decide to adopt this recommendation we would stress the necessity for immediate action and for the, observance of secrecy until the option is exercised." On receipt of this report cablegrams passed between the Hon. the Acting Prime Minister and the Right Hon. the Prime Minister, who was then in London, with the object of arranging an option in London with the representatives of the Australian Government. On the 31 st January, .1917, the Hon. the Acting Prime Minister, on the recommendation of the Board, cabled to the Right Hon. the Prime Minister requesting him to endeavour to fix the price to be paid by the New Zealand Government for Australian wheat at the rate paid by the Imperial Government namely, 4s. 9d. per bushel f.o.b. On the 31st March a further cable was sent to the Right Hon. the Prime Minister stressing the importance of completing the option to purchase Australian wheat. After further negotiations the Right Hon. the Prime Minister cabled on the 20th April that the Commonwealth Government refused. New Zealand's proposal to share in the Imperial Government purchase. Consequently, on the 23rd April, 1917, the Board recommended that the Hon. W. I). S. MacDonald should visit Australia at the earliest possible moment to arrange the purchase of at least 1,000,000 bushels of wheat, and early in May the Minister left accordingly. The purchase of 1,000,000 bushels at ss. 6d. per bushel f.o.b. was finally completed, in Australia on the 22nd May, and arrangements were made by the Minister for the first shipment by the s.s. " Kauri "on the 24th May. This shipment arrived in Dunedin on the 2nd June. On the 12th June Mr. Hart, a member of the Board, visited Australia and arranged for the grading and despatch of subsequent cargoes. The second shipment arrived in Auckland on the 26th July. Further shipments were held up on account eif a strike taking place in Australia, and were not resumed until late in October. By this elate the local supplies were almost exhausted. The total harvest had amounted to only 5,051,227 bushels of all grades of wheat, and. the Australian wheat was milled as soon as it came to hand. A crisis, especially in the North Island, in the food-supplies of the people was diverteel by the narrowest, of margins, but fortunately the public was not aware of the seriousness of the position, and the regular shipments.subsequently received saved the situation until the new harvest was available for milling. Comparing this period of 1917 with a similar occurrence in 1916, the Board points out that in 1916, in the absence of Government control of the wheat position, flour-prices advanced in a few days by £3 per ton (viz., from £12 f.o.b. Lyttelton tei £1,5 at the same port), although there was enough wheat in the Dominion, according to the returns of the Government Statistician, to meet normal requirements until the end of February, 1917. During 1.917, through anticipation of the fact that New Zealand was on the verge of an actual shortage, the steps taken by the Government to control the price and augment the supply by a Government purchase kept flour constant at a fixed price, and undoubtedly saved the consumers of the country during a period of four months at least, on a comparison with 1916, £3 per ton on our consumption of Hour approximately 100,000 tons per annum —so that this resulted in a saving to the consumer of approximately £90,000. The details of the financial transactions in connection with this wheat-purchase are given in the appendix to this report, marked " A," and show a net loss of £6,689 17s. 5d., which was necessitated, by the decision of the Government to charge only such prices to millers as would allow them to conform with the gazetted prices for flour and offals, and, the Board submits, was amply justified in the excellent result achieved by stabilizing the prices of flour anel bread, and preventing a food panic on the part of the public. The quality of the wheat purchased from Australia was pronounced by experts to be the best, ever imported into the Dominion, and not one single complaint Avas received from millers; and the Australian Wheat Board has recently said that the wheat of the 19.15 16 crop (the wheat purchased) was the finest ever harvested in Australia; and New Zealand was fortunate in making a bargain that compared more than favourably with Australia's other customers, as the following comparison will show : South Africa, 6s. 4d.; Peru, 6s. 3d. to 6s. 6d.; Norway, about 6s. ; the East, ss. 9<l. As the Government had, prior to the 6th February, 1917, guaranteed to purchase in any quantities wheat grown in New Zealand during the season 1917-18 at the price of ss. lOd. f.0.b., it became necessary for the Board to devise a scheme to give effect to this proposal. Accordingly an Order in Council was gazetted on the 10th September, 1917, making it unlawful for any person to purchase or agree or offer to purchase any wheat of the 1917-18 harvest; and subsequently, on the 22nd December, a full scheme was gazetted for the purchase from the farmers and the sale and distribution among millers. The full scheme is attached in appendix marked "B" in this report. Mr. W. G. McDonald, a member of the Board, was appointed Wheat Controller under the scheme, anel an office was set up in Christchurch, with a small staff to perform the necessary work. Had the Government not guaranteed a price for the 1917-18 crop it is highly probable that little wheat would have been grown in New Zealand, on account of the fact that the; farmer can secure better returns from other agricultural and pastoral products, and the Dominion would have had to rely for its requirements mainly on importations, thus putting an unnecessary burden on the shippingspace and thereby adding to the difficulty of a position already acute. In so recommending the Government to guarantee a price the Board anticipated the policy of the United States, the Canadian, and the British Governments. As Australian wheat fit for milling at the time of the guarantee could not be landed in New Zealand under ss. lid. per bushel, even if sufficient shipping-space were available, the price guaranteed by the New Zealand Government to the New Zealand farmer under these circumstances must be deemed to be reasonable. That the policy in dealing with the wheat situation was appreciated by the farmer is evidenced by the fact that in response to the guarantee 293,000 acres were sown in wheat, the largest area, with the exception of one year, sown since 1910. The miller has benefited by the scheme, as he has been assured of supplies for gristing ; and the consumer has benefited, as to-day he is purchasing'flour and bread at cheaper rates than in any other country in the
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world with the exception of Australia. Unfortunately, the harvest did not realize expectations, on account of the unfavourable weather conditions which lasted from December to March, and the Board had once again to recommend the Government to import Australian wheat.* In order to stabilize bread-prices an Order in Council was issued in March last fixing the price of bread throughout New Zealand at the standard prices ruling as at the 4th March. The Order in Council further provided that power be given to the Board of Trade to authorize the sale of bread in any specified locality at a price exceeding the standard price by such amount as the Board thought fit. In pursuance of this Order in Council bread-prices were adjusted throughout New Zealand to correspond with the increase in the price of flour and other increases in the cost of manufacture. Even in isolated townships it was not found necessary to advance the price of bread above lid. cash per 4 lb. loaf. The prices fixed for bread in the four main centres are as follows : — Auckland—lOd. cash over counter, lid. delivered, per 41b. loaf. Wellington—lOd. cash over counter, lid. delivered, per 4 lb. loaf. Christchurch- -9Jd. cash over counter, lOd. delivered, per 4 lb. loaf. Dunedin —9|d. cash over counter, 10d. delivered, per 4 lb. loaf. SUGAR. The excellent arrangement made by the Board for the supply of sugar for the Dominion's requirements was continued. Negotiations with the representative of the Colonial Sugar Company regarding the supply and price of sugar to the Dominion for the period ending 30th June, 1919, were entered into in April last, and the arrangement finally effected between the company and the Board is briefly that the company undertakes to supply all the requirements of the New Zealand home consumption of sugar for the year ending 30th June, 1919, at the wholesale price of £22 10s. f.o.b. Auckland for the No. la--other grades in correspondence subject to the condition that nothing happens to prevent the manufacture.of the sugar or its transport to the Auckland refinery. The Board unanimously recommended the Government to accept the offer. The price quoted of £22 10s. per ton ensured the people of New Zealand getting sugar cheaper than any other country of the world. The market quotations for other countries are as follows : ; New South Wales, £29 ss. ; Victoria, £29 7s. 6d. ; South Australia, £29 15s. 6d. ; Western Australia, £31 ; Great Britain, £41 12s. 6d. Even if allowance be made for the.full amount of duty payable in Australia—namely, £6 —and in Great Britain—namely, £14 —the New Zealand price is still considerably lower than the prices paid in the Commonwealth or Great Britain. In the arrangement entered into the Colonial Sugar Company has entirely ignored the market value of sugar in determining the price, with the result that the Dominion's consumers have been able to purchase their requirements cheaper than those in any other country. Since the price of £21 was fixed in June, 1915, the companv has had to meet the following increased charges : — Per Ton. £ s. d. Export duty on raw material, Fiji .. .. .. .. ..050 Primage duty, New Zealand .. .. .. .. ..031 Extra freight on raw material .. .. .. .. ..086 Extra expenses in refining .. .. .. .. ..0119 Harbour-improvement rate, Auckland .. .. .. ..006 Special war-tax, which works out at .. .. .. ..076 £1 16 4 In the Board's opinion the price agreed upon by the company has meant a sacrifice by the company on New Zealand's consumption of £432,000 for the year. No complaints have been made to the Board as to the price of sugar, but a few complaints have been made as to shortage of supplies. These have been of a temporary nature only, and were due to difficulties experienced in shipping. MEAT. The adjustment of meat-prices in the various towns in the Dominion has engaged a large portion of the Board's time. The agreements entered into between master butchers and the Board have been loyally adhered to, and no increases in prices have been made without prior consultation with the Board. The State meat-shops established by the Board in Auckland on the 25th January, 1917, continued in operation for the agreed period —namely, twelve months. Just prior to the expiration of the period it was resolved to cease running the shops as State meat-depots, in view of the fact that the master butchers of Auckland agreed to observe the prices fixed by the Board, on condition that they could obtain supplies, when necessary, from the Imperial hooks. The retail prices of meat were reduced by master butchers as from the Ist January, 1918, and the accounts of the State meat-shops were closed and the businesses resumed by Mr. Douglas Eeid, from whom they had been leased by the Government. The loss on the year's working totalled £1,053. This loss was entirely due that the retail prices were fixed too low, and the loss would have been eliminated by a very slight adjustment of prices, g An addition of one-fifth of a penny per pound on the turnover would have put matters on the right side of the ledger. The instructions of the Board to the manager of the shops were that the prices should be kept at as low a level as possible, as it was not desired to make a profit.
* 4,000,000 bushels of wheat have been purchased to make up for this year's shortage and the anticipated shortage for the following year.
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During the year agreements in regard to meat - prices have been effected at Taumarunui, Wanganui, Christchurch, Taihape, and Oamaru. The issue of permits to draw supplies from the Imperial hooks is now in the hands of the Livestock Division of the Department of Agriculture, which acts in co-operation with the Board. FISH. During the period under review the Board has kept in close touch with the fishing industry at Dunedin, Port Chalmers, Napier, Wellington, and Auckland. The development of this important industry is greatly retarded owing to difficulties in connection with supplies of materials, due to war conditions. The enterprise shown at Auckland has resulted in that city being supplied with fish at prices which are considerably cheaper, generally speaking, than in any other part of the Dominion. The prices of fish in Auckland, have increased of latter months, owing mainly to the increased cost of almost all the equipment used in connection with the trawling industry, and, in addition, to the increase granted in wages to the workers employed in the calling, and to the fact that one of the trawlers belonging to the municipal authorities is being used in defence work. In Wellington, Christchurch, and Dunedin prices have fluctuated considerably, owing mainly to the abnormal weather experienced affecting supplies, the withdrawal of the largest trawler employed in New Zealand waters for defence purposes, and, for a time, the fact that those fishermen using motor-boats were handicapped owing to shortage of petrol-supplies. In this last connection the Board was able to render material assistance by ensuring regular supplies to fishermen at a reasonable price. The Board would emphasize the fact that the provision of cheap fish to the consumers Zealand generally is dependent upon a large expenditure of capital for the purchase of suitable equipment, trawlers, and for the provision of cool storage and insulated transport; and during the war period it is hopeless to expect that the necessary capital to provide this equipment can be secured. Indeed, it is only by very strenuous endeavour that the supplies of wire rope, nets, &c, have been secured from, abroad. Several complaints were received by the Board regarding fish-prices in the South Island. It was alleged that in order to maintain high prices edible fish was frequently dumped overboard. On inquiry these allegations were found to be incorrect, as any fish fit for human consumption could readily be disposed of, and only such as had become useless for that purpose was destroyed, this being due to the fish being kept in exposed positions owing to lack of cool-storage accommodation. With a view to assisting the industry the Board sought for information from abroad concerning nets|known as " purse-seines." This not appears to be extensively used in Canada for catching both surface and deep-sea fish, and its introduction in New Zealand would undoubtedly be followed by increased supplies. Information concerning these nets was received from the Canadian Government, which showed that " purse-seines " were largely used in the Canadian fisheries, particularly on the Pacific Coast in connection with the salmon and herring fisheries. The net was reported to be an unusually capable fishing-engine for the capture of fish that school at or near the surface. Although the cost of such nets at the present time is abnormally high, information has been received that one of the leading fishing firms in New Zealand has already made arrangements to secure a complete net for use in our waters. EGGS. The Board was asked to institute an inquiry into this industry, and to make a full and complete report as to the desirability or otherwise of prohibiting the importation of Asiatic eggs. Inquiries were made by the Board in the four main centres, and thirty-nine witnesses were examined. The suggested restriction on the importation of Asiatic eggs appeared to the Board to be a matter of very considerable importance, first from its bearing on the poultry industry of New Zealand, and secondly from the possibility of the local supplies being insufficient for New Zealand's requirements if this source of supply were cut off. jjgThe inquiry, therefore, was of a comprehensive character. Of the thirty-nine witnesses examined, eighteen represented the egg-producers, two the management of egg importers, and seventeen the bakers and pastrycooks. A full report was made to you on the 18th February last, in which it was shown that the main points in favour of prohibiting the importation of eggs as set out by the producers and the managers of the egg circles were —(1) The cheap selling-price of the imported article ; (2) the effect that this cheap price has on the production of eggs in Now Zealand ; (3) the suggested danger to health by the importation of Asiatic eggs and pulp. . The bakers and pastrycooks were unanimous in asserting that without the importation of desiccated eggs and pulp the egg circles and producers in New Zealand were totally unable to supply the demand in the winter at any price whatever. Taking the first two objections of the producers, the Board found that the price paid for the imported article was equal to about Is. 4d. per dozen or a little higher, and that it was seldom, if ever, purchased or used by the bakers and pastrycooks at any time other than in the winter months, when eggs were always selling at 2s. and over per dozen in New Zealand, and that, therefore, as there was a full demand in the winter for eggs produced in New Zealand at a very remunerative price, the importation of eggs for baking purposes had no .0n.,, the poultry industry'during the winter. It was admitted by the poultrymen that in the early summer months, when eggs were sold in large quantities at from lOd. to Is. 3d. per dozen, the competition against the egg circles came not from importation, but from farmers and others who kept fowls as a side line ; and it was stated by one of the producers that of the whole of the eggs used in New Zealand 80 per cent, was the product of the ordinary barn-door fowl.
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It was suggested by the Board that the poultrymen might combine and preserve eggs in the summer-time, when they were cheap, and that the bakers and pastrycooks could draw their supplies from this reserve in the winter. The bakers pointed out that many thousands of dozens were so preserved by themselves, and it was only when these supplies were exhausted that they required to look for supplies elsewhere. In each and every centre the bakers were willing to accept and work under a guarantee from the poultrymen that eggs would be available at Is. 6d. per dozen in the winter months in the requisite quantities, and in the event of such guarantee being forthcoming they would refrain from using the imported article. The Board's suggestion, however, met with no response from the producers, who declined to guarantee any supplies whatever in the event of the importation of foreign eggs being prohibited. Regarding the third question raised by the producers, as to the danger of health by the use of Asiatic eggs, the Board found, on the evidence submitted, that there was not likely to be any danger to health by the use of Asiatic eggs by the bakers. The Board found that the bakers, in every ease, were reasonable in the attitude they took up, and were in no way anxious to use the imported article in preference to the New Zealand article, their fear, however, being that supplies in the winter-time would be quite unobtainable if importation were prohibited. One witness gave evidence that in his business alone he was over 10,000 dozen eggs short of his requirements in the winter of 1917 even after using what imported eggs he was able to procure. The pastrycooks pointed out that if the importation of Asiatic eggs were prohibited it, would have a direct bearing on the price of cakes and pastry, the selling-price of which would have to be very considerably increased. Taking therefore into account the lack of local supplies of eggs in the winter months, and the likelihood of an increase in the price of locally produced eggs, cakes, and pastry if Asiatic eggs were not available, the Board recommended that no action be taken by the Government to restrict the importation of Asiatic and other foreign eggs. WHITE-PINE TIMBER, The Board completed its inquiry into the above industry during the year. You instructed the Board to report as to the necessity or otherwise of limiting the export of white-pine timber from New Zealand in view of the large and increasing demand for this timber in connection with the dairying industry. Sittings were held at Dargaville, Whangarei, Auckland, Taumarunui, Ohakunc, Taihape, Wellington, Westport, Greymouth, Hokitika, Christchurch, and Invercargill, and 150 witnesses were examined, comprising representatives of the dairying industry, the farmers' unions, timber-workers' unions, and the sawmilling industry and departmental officers. A review of the report is as follows : — Available Supplies of White-pine. .There are no accurate statistics in existence as to the available quantity of white-pine at present in the Dominion. Various estimates have been made from time to time by the officers of the Lands and Survey Department as to the quantities of various classes of timber standing at certain dates. The estimates, however, have not been based on correct surveys, and therefore can be regarded as approximations only. This statement does not apply to the Auckland District, where estimates furnished have been based more or less on surveys and measurements. In 1909 the Government statistics showed that there were. 2,618,457,503 sup. ft. of white-pine still standing on Crown, Native, and privately owned lands in New Zealand. On the 31st March, 1916, the estimate had been reduced to 1,117,000,000 sup, ft., and the last available returns- August, 1917 —show the probable present stand to be 985,000,000 sup. ft. It is claimed that this last estimate is more nearly correct than previous ones". The details of this estimate are as follows : — Grown Lands. Privato Lands. Sup. ft. Sup. ft. Auckland .. .. .. .. .. 115,794,744 103,566,600 Wellington .. .. .. .. .. 72,790,000 252,970,000 ' Westland .. .. .. .. ..250.000,000 65,000,000 Southland '.. .. .. .. .. 45,000,000 30,000,000 483,584,744 451,536,600 No returns were received from Hawke's Bay, Taranaki, Nelson, Canterbury, and Otago, but it is known that the supply of white-pine in these districts is very small, and probably would not total more than 50,000,000 sup. ft., giving a grand total of 985,121,344 sup. ft. As has been stated, the figures with regard to the Auckland Province are probably correct. In regard to the figures for the other provinces, the general impression amongst sawmillers and other experts is that they are underestimates. The Commissioner of Crown Lands, Auckland, furnished a return showing the average export for eight years from the Auckland Province to be 44,579,000 ft. He estimated the local consumption at 30 per cent, of this average, equalling 13,373,700 ft.; the total annual consumption, therefore, in the Auckland Province being roughly 58,000,000 sup. ft. If this rate of consumption continues, the white-pine industry in the Auckland District is doomed to extinction within four years. Rate op Consumption. It is difficult to arrive at the actual annual cut of white-pine for both local and export trade. On the 31st March, 1916, the Lands Department estimated it at 150,000,000 sup. ft. per annum. In July of this year the Department estimated it at 92,000,000 sup. ft. per annum, no allowance being
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made in either case for the quantity of timber felled and burnt on private lands for settlement purposes. The Board has attempted to arrive at an independent estimate of the rate of consumption from data and statistics furnished to it during the course of its inquiry. The export of white-pine for the years ending 31st December, 1909 to 1916, inclusive, are as follows :•■ Sup. I't. 1909 .. .. .. .. .. .. 44,056,987 1910 .. .. .. .. ..... 49,561,238 1911 .. .. .. .. .. .. 52,085,566 1912 .. .:, .. . . .. . . 60,613.339 1913 .. .. .. .. .. .. 44,129,376 1914 .. .. .. .. .. .. 53,743,069 1915 .. .. .. .. .. .. 50,739,409 1916 .. .. .. .. .. .. 42,783.369 Total .. .. .. .. 398,012,353 During the same period the Dominion exported 2,943,248 cwt. of butter, and sold locally approximately 1,600,000 cwt, Allowing two boxes to the hundredweight and 8 ft. in each box, this would represent a consumption of 73,000,000 ft. of timber. Our cheese-export for the same period totalled 4,951,896 cwt. Allowing fourteen cheese-crates to the ton and nine crates to 100 sup. ft., this would represent 38,500,000 sup. ft. It is estimated that about 68,000,000 sup. ft. have been used locally during the same period for other purposes. Adding these figures to the quantity exported (398,000,000) gives a total of 577,000,000 ft, approximately used industrially. Allowing loss in conversion at 33J per cent., it would give a total of 865,000,000 ft. for eight years, or an annual average total consumption of 108,000,000 sup. ft. (approximately). If the rate of consumption is maintained at this average, and if our remaining supplies of white-pine are all available for milling, they will last another nine years. Even if the consumption is taken at the estimate supplied by the Lands Department—viz., 92,000,000 sup. ft. our white-pine reserves will be exhausted in a little over ten years. The position is therefore serious, and the dairying industry is justified in focussing attention on a matter that so vitally affects its interests. The Nature ok the New Zealand Forests. As far as the Board has been able to ascertain, there are no large white-pine forests left standing in New Zealand, but white-pine exists in scattered patches or mixed with other forest-trees. The Commissioner of Crown Lands at Wellington supplied the' Board, with interesting figures showing the proportion of white-pine situated in the Wellington Land District, where, he was able to speak with some accuracy. The areas selected were, in his opinion, representative of the rest of the province, and are probably typical of the distribution of white-pine throughout the rest of the forestry of the Dominion.
Where in the past white-pine formed pure forests of that tree alone, it was usually found on lowlying swampy ground. Those swamps, when the forest had been removed and the soil drained, formed the richest agricultural land, of high value, for dairying purposes. The mixed forests now standing where the white-pine is the predominating tree are frequently situated on good agricultural land, and where areas of this nature of bush have passed into private hands the temptation is great to get rid of the timber at the earliest possible moment and turn the land to practical productive purposes. So strong has been this impulse, that settlers have seldom waited for the advent of the sawmiller to clear their ground, but have felled the bush in large areas, grassed it, and stocked it with dairy herds. The high values that are now being received for dairy-products will further accelerate the destruction of the bush on privately owned lands for settlement purposes. Where white-pine is still found on swampy lands, the suitability of such lands for close settlement when drained is a strong plea for the removal of bush forthwith, especially in view of the pressing demand for and limited area of first-class land in New Zealand.
No. Area. Situation. Percentage of White-pine. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Acres. 335 Between Manunui and Main Trunk line, 1,910 Vicinitv Owhango .. 165 175 „ 340 450 200 1,251 Raurimu 913 Near Horopito 742 Between Raetihi 734 Near Ohakune 258 Hihitahi . I.. 350 1,401. Kast of Mangaweka About 26 30 24 22 22 59 8 24 10 22 2 8 7 56 i
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Is Prohibition of Export practicable ? During the course of the present inquiry it was demonstrated to the Board(a.) That in working mixed bush it is impossible to leave any particular milling-trees unfelled for future bush operations, as the, felling of trees other than white-pine would damage and destroy the white-pine trees to such an extent that they would die, Even assuming that this difficulty could be overcome, the protection afforded to the white-pine by the other milling-trees would be lost, and heavy winds, to which the white-pine has not hitherto been subjected, would undoubtedly uproot them. A sudden alteration in the, environment would result in their destruction even if fire did not get into the old tops —an occurrence most likely to take place, Again, assuming that it were possible to remove the other timber and leave the white-pine behind, the subsequent cost of utilizing the, white-pine, necessitating the reinstatement of tramways or other means of access, together with the clearing-away of the debris, would make the cost so high as to be prohibitive for butter-box-making material. (6.) Even in a mixed bush where the white-pine predominates the removal of other than whitepine timber may so alter conditions that the white-pine left standing would seriously deteriorate. Instances were pointed out to the Board where, for no other apparent reason than a drain being cut, or the protective fringe of scrub surrounding the white-pine being cleared and burnt for farming purposes, the white-pine left showed a distinct tendency to decay not only at the fringes, but right in the centre of the forest as well. (c.) Owners of the white-pine already alienated from the Crown for legitimate milling purposes cannot be expected without compensation to retain their holdings until such times as the white-pine can be profitably used on the local market, and in cases where land containing white-pine has been alienated primarily for settlement purposes the owners, if exportation were prohibited, could not be expected to conserve the timber for the dairying industry, and the destruction of such timber by fire would take place to a greater extent than in the past. Even to-day settlers who have areas of whitepine on their holdings and have disposed of their timber rights to sawmillers usually stipulate that the timber be removed within a few years. If the sawmiller cannot profitably mill this timber the loss in most cases falls entirely on him, as the settlers will seldom grant an extension of time, so greatis their anxiety to make use of the land for dairying and pastoral purposes. (d.) Some white-pine is so situated that it cannot be milled profitably for local consumption owing to heavy transportation charges, but it escapes these heavy charges when exported : i.e., it would be impossible for box-factories situated in the North Island profitably to use for the local market the white-pine brought from the west coast of the South Island. (e.) The Crown in parting with its rights in timber areas to sawmillers has imposed no restriction as to export, and, moreover, it was fully aware of the fact when parting with the timber that the whitepine when cut would be exported. Relying on the good faith of the Crown, the millers have invested large sums in necessary plants, tramways, &C, for the purpose of milling white-pine, which timber, if thrown on the present local market, will have no value at all, but which finds a ready value in the export trade. (/.) The dairying-industry requirements absorb about 15 per cent, of the output of the log; the remaining portion of the output of the log is in sizes and qualities for which no ready sale exists in New Zealand, but which in the Australian market bring almost as high a price as butter-box sizes. Assuming that the export of white-pine were prohibited, and that the local market could absorb the whole of the sizes suitable for butter-boxes and cheese-crates, a large proportion of the balance of the log would find its way to the slab heap and be burnt, thus not only creating a waste but destroying a value which would have to be passed on to the remaining portion of the log. Furthermore, as the bush can bo worked profitably only if all the timbers are extracted on a face, the prohibition of the export trade in white-pine would throw the whole cost of milling on to the remaining timbers, and necessarily materially increase their cost. (g.) The policy pursued by the, Government up to the present has in effect been to foster the use of white-pine at the expense of other timbers, as it receives preferential treatment on the State railways, and can also on account of this preferential treatment be sold at a cheaper rate in Australia than timbers that might be almost as suitable for many purposes for which white-pine is used in that country. During the last few years Southland beech (Fagus Menziesii) has begun to compete with whitepine in Australian markets, in spite of the fact that it is handicapped in Australia by a duty of 3s. 6d. per ]00 as against Is. for white-pine, and by preferential concessions given to white-pine in freight rates in New Zealand : e.g., the railway freight on white-pine from Riverton to Edendale is Is. 4d., in comparison with 2s. 2d. per 100 on other timbers. If white-pine were subject to the same railway tariff as other timbers, substitutes for white-pine would compete on an equal basis. Substitutes. Although we can never expect to get any timber equal to white-pine for the packing of dairyproduce, yet other timber must be utilized, as in the near future our white-pine will be exhausted. It is imperative that experiments that have already been made with some timbers should be continued. The Board heard a good deal of evidence on the matter, and found that the following timbers had turned out quite satisfactorily under test for both butter and for cheese crates —viz., taraire, tawa, Pinus insignis, poplar, beech (Fagus Menziesii), Oregon pine, and Canadian spruce. Inquiries made in Australia from the New Zealand Government Agent showed that just prior to the outbreak of war thousands of butter-boxes were manufactured from scandia-board, a wood-fibre produced in Gothenburg, Sweden. This substitute is reputed to be capable of carrying about double the weight of ordinary
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wooden boards. Samples submitted prove that it is attractiv* in appearance and takes an imprint very well. The ends of the boxes are made of wood, as the nails will not hold along the section of scandia-board, but only through same. With white-pine ends, the cost in Sydney prior to the war and during the first year of the war was Is. 4d. ; but latterly none has been obtained on account of the increased cost of the boards and high freights. Some excellent samples of cardboard boxes used in the packing of fruit and other foods were also submitted to the Board from a firm of leading boxmakers in Sydney, Now South Wales. The cases arc made to standard sizes, and are strong enough to carry 60 lb. or 120 lb. of any class of fruit, and to stand a strain of 200 lb. to the inch. The small cases are quoted in Sydney in wholesale quantities at 7j/d. (half-bushel) each, and the large ones at Is. 4|d. each (full bushel). The use of this form of case, if the price could be kept reasonable in New Zealand, would undoubtedly tend to ease the demand for white-pine for any purpose other than for the packing of dairy-products. Recommendations. 1. That the Government should determine without delay what its policy in regard to forestry generally is to be, as it is impracticable to pursue in regard to white-pine a policy different from that applied to the other timbers of New Zealand. If the Government determines upon a policy of scientific conservation and afforestation, a course which the Board strongly recommends, no time should be lost in giving effect to such decision. Until the Government's decision be arrived at it is recommended that the various Commissioners of Crown Lands should, meet periodically and decide on a policy to be pursued in regard to leasing or withholding from sale or lease the remaining blocks of timber on Crown lands. 2. That the, Dairy Division of the Agricultural Department be requested to make exhaustive tests with various native and imported woods with a view to determining their suitability as [substitutes for white-pine butter-boxes. 3. That a bonus be offered for a suitable manufactured substitute at reasonable price. 4. That all differential treatment of white-pine in the matter of freights on railway shoulds be removed. This would mean an increase in the freight rates now paid on white-pine. 5. That the Australian Government be approached with a view to a rearrangement of its import duties on New Zealand timbers in order that the differential treatment accorded white-pine should be removed, and other New Zealand timbers be placed on an equality with it. Since this report was furnished, further urgent representations were made by interested parties for the absolute prohibition of the export of white-pine timber, so as to conserve existing supplies for New Zealand's sole use. Sharp advances in prices took place in all classes of timber, the high prices and the insatiable demand in Australia having their effect on the local trade, and subsequently led to action being taken by the Government imposing restrictions on the export of timber, ft was decided to frame regulations having for their object the control of the export trade, the 'fixation of price for timber for local use, and the gradual tapering-off of export to prevent the depletion and utter exhaustion of our native forests. These regulations wore gazetted on the 6th August, 1918. PETROL. Many complaints were made to the Board regarding shortage of supplies of petrol and high prices ruling from time to time. The Board kept in close touch with the trade, and, in view of the supplies available, had deemed it prudent not to interfere with importers or distributors. Constant fluctuations in prices were experienced, and consumers frequently complained of high prices being charged. So acute did the position become that the Board requested the principal importing companies to exercise control over the distribution of their stocks, as the hoarding of supplies by traders and consumers was disorganizing industries and leading to hardship and dissatisfaction. The position for a time improved, but as there was undoubted evidence that the distribution was still unsatisfactory, and that farmers, fishermen, and other essential users could not secure adequate supplies, it was resolved that a scheme for the control of the distribution and price of petrol should be devised in order to meet the position. A scheme was accordingly devised which provided for the equitable distribution, rationing if necessary, and fixation of price, according to locality. The full scheme is contained in an Order in Council issued on the 12th July, 1918 (see appendix marked " C "). Considerable assistance was rendered to importers by the Government at a critical time in providing freight for petrol from the United States. Generally speaking, however, importers have done exceedingly well under existing conditions in getting sufficient supplies for the Dominion's requirements. GALVANIZED CORRUGATED IRON, BARBED AND PLAIN (IALVANIZED WIRE. These commodities formed the subject of a special investigation in August last, following instructions received from you. The Board in its report showed that in July, 1916, the export of corrugated iron and fencing-wire was prohibited from Great Britain by the Imperial Government, and since America entered into the war it has become increasingly difficult to obtain supplies from that country ; consequently, to-day stocks in hand are low and will soon be exhausted, and very little hope is entertained by traders of their being able to obtain further supplies. As the difficulties of obtaining supplies increased and the demand did not appreciably slacken, importers adopted the policy of supplying their regular clients in preference to casual customers, even although the casual customer was prepared to offer tempting prices to have his wants satisfied.
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This policy continues in existence to-day. Casual offers so made may in some instances have been wrongfully quoted as selling-prices demanded by merchants. Corrugated Iron. In July, 1914, corrugated iron was selling wholesale, ex store, at £18 10s. to £20. Shortly after the outbreak of the war prices began to mount steadily, and continued rising; indeed, the maximum has not yet been reached, the landed cost from America being £77 per ton, with little prospect of obtaining supplies even at this price. Plain Fencing-wire. In July, 1914, this was selling wholesale at from £9 15s. to £10 10s. per ton, and had risen to £40 by July, 1917. Barbed Wire. This has risen in the same period from £12 15s. to £45 per ton. These prices are all ex store, Wellington. The reasons for these increases in price may be summarized as follows : 1. Shortness of supply in countries of manufacture. Manufacturing houses report that there, is meat scarcity both of materials and men. Spelter, which is used in the. manufacture of these commodities, rose in England from £23 per ton before the war to £135 per ton in June, 1915, and was unprocurable even at this phenomenally high price. Since then the price has fluctuated, but has never been lower than £60 per ton. As you are aware, most of the manufacturing plants in England have been taken over by the Imperial Government for the manufacture of war material. In one instance a firm lias sent to the. front two thousand of its men, and a great number of its remaining staff has been " starred " for Government work, and many others are waiting to be called up under their respective groups. The output in consequence has considerably decreased, and you will quite appreciate the fact that a smaller output materially increases the, cost of production. 2. The freight from England to New Zealand has increased from £1 ss. per ton pre-war to £4 I2s. 6d. per ton last shipment. In August, 1917, the freight from America, where alone supplies are obtainable, was £10 per ton. 3. Insurance has also increased from 6s. 3d. per cent, to 10s. per cent. 4. War risk has increased from one guinea to five guineas per cent. 5. The duty is still £2 per ton, but with primage added under the Finance Act of 1915 the total duty payable to-day is £2 14s. Bd., and preferential an additional Bs. per ton. 6. Expenses of marketing, which include wharfage, cartage, storage, railage, discount, advertising, salaries and wages, stationery, postages and telegrams, rates and taxes, lire insurance, &c, but not interest on capital, have increased from £1 15s. pre-war to £6 at present date, mainly because the overhead charges have to be,distributed over a much smaller turnover. The Board made careful inquiries and were satisfied that, although the prices of corrugated iron and fencing-wire, both plain and barbed, were unprecedently high, nothing in the nature of exploitation had taken place. The firms examined convinced the Board that they were not making unreasonable profits, or even profits commensurate, with those ruling in pre-war times. Possibly a good deal of the dissatisfaction that was found had resulted from the policy mentioned above, of firms supplying their own merchant customers pro rata, and restricting trade to persons who were not their customers in pre-war times. The Board saw nothing reprehensible, in this policy. You will so I .' from what has been stated above that stocks were totally insufficient to supply the existing demands, and owing to the difficulties experienced in the shipping world there is little chance of this position being relieved in the near future. GROCERIES i CONTROL 0E PRICES. The, recommendation made to you that power should be given to the Board to prevent any increase being made in the prices of commodities except with the consent of the Board was given effect, to by section 21 of the Statute Law Amendment Act, 1917. This section is an amendment of the provisions of the Regulation of Trade and Commerce Act, 1914, and enables the GovernorGeneral by Order in Council to fix maximum prices of any goods by reference to the " standard price "of such goods as on any date, that: may bo specified in the Order in Council. The, " standard price " of any goods is their " current price " as on the date fixed in the locality to which the Order in Council relates, when sold in the same quantity and on the same terms as to payment, delivery, &c. The " maximum price " may be the standard price itself, or may be the standard price plus or less any percentage thereof. While any such Order in Council remains in force no increase beyond the maximum price so fixed can be made without incurring the penalties provided for in the Act of 1914. After any such Order in Council is made it is open to the Board of Trade (or other authority) to consider representations that may be made by persons affected, and to make recommendations to the Government either for the withdrawal of the restriction or for an alteration (either by way of increase or reduction) of the maximum price. The Board decided under the provisions of this amendment to devise a scheme for restricting increases in prices of groceries, and after lull consideration it was considered inadvisable to adopt generally a policy of fixation of prices by Gazette notice, owing to the frequent and extraordinary fluctuations in prices that occurred, due to war conditions, and quite beyond the control cf the merchants concerned. In order to furnish the Board with information as to the cost of wholesale grocery prices committees of merchants were formed in each of the four centres to act as an advisory
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body to the Board, these committees to meet when necessity arose to consider prices and to advise the Board, with full reasons for any alterations,, and after full consideration of the reasons advanced the Board to decide whether the increases are justifiable or not. The Board therefore decided to control the following more essential commodities for the time being, and to add to the list from time to time as deemed advisable :— Bacon Honey Evaporated apricots Carbonate of soda Butter Golden syrup Evaporated apples Starch Pearl barley Treacle Dates Blue Cornflour Raisins Salmon Soap Sago Currants Herrings Candles Tapioca Rice Tomato sauce Kerosene Tea Sultanas Worcester sauce Matches Coffee Canned apricots Ball Tobacco Cocoa Canned pears Pepper Cigarettes Condensed milk Canned peaches Baking-powder Mullet Sugar Prunes Cream of tartar Canned meats. Jam The prices of the goods detailed in'the list were fixed on the Ist March last, and all alterations in prices have since been subject to the Board of Trade's consent. As has been pointed out to you, it is exceedingly difficult at the present time for the Board to prevent increases in the prices of imported articles, as the increases are mainly due to the ever-increasing Home cost, freights, marine insurance, and outside charges over which the Board has no control. In addition to the arrangement effected with wholesale merchants, it was decided to bring manufacturers and packers of commodities indicated on the grocery list under control. The manufacturers and packers c< ncerned comprise those dealing in pearl barley, condensed milk, jsm, honey, treacle, golden syrup, condiments, baking-power, starch, soap and candles, matches, canned fruits, and canned meats. As is the esse with merchants, these mat ufacturers are required before raising prices to submit full statistical data to the Board to justify increases proposed, and to obtain the Board's consent before doing so. STANDARDIZATION OE FOOTWEAR. •lust prior to your departure for England the question of cheapening the price of boots to Ihe nfctsses of the people was discussed, and you approved of an outline of a scheme that the Board had in mind, as follows :— (a.) An arrangement with the tanneries to supply boot-manufacturers with first-class New Zealand leather at reasonable prices. (b.) An arrangement with the manufacturer to manufacture such lines as might be selected in sufficient quantities to obtain the advantages of production on a large scale, thereby reducing the overhead and management costs to a minimum, (c.) The manufacturers to supply merchants and retailers at prices deemed reasonable by the Board. (d.) The retailers to supply the public at prices also deemed reasonable. Under this scheme the Board will be able to keep a check on all costs of standard footwear from the tanneries to the consumer, and will be in a position to guarantee that no exploitation is taking place at any step in the production and distribution of these standard boots. The Board does not piropose in any way to interfere with the, demand for and the supply of boots of sizes, patterns, or finishes now marketed. The object the Board has in view is to give the public an opportunity of satisfying its demand for footwear at reasonable prices, and still maintain a high standard of efficiency in the article supplied. The initiation of such a scheme involves a considerable amount of work, and it was deemed desirable before proceeding with the scheme to obtain from Great Britain details of the scheme in operation there, and it is expected that these reports will arrive shortly. (Note. —The High Commissioner has since forwarded full details of the British Government's scheme, and these will be of great assistance, to the Board in dealing with the regulations to be gazetted prior to placing the footwear on the market.) Imme iately after your approval was obtained for proceeding with the scheme the Board called a conference of the New Zealand Boot-manufacturers' Efficiency Committee, and after full discussion general agreement was given to the proposal, and it was decided that specifications should be drawn up to cover a reasonable range of footwear for children, maids, youths, women, and men, and that manufacturers throughout New Zealand be invited to make their own samples as near the standard as possible, and that after apiproval of the samples the prices be fixed to the manufacturer, to the merchant, and to the retailer, a Government brand or mark to be impressed on each boot as a guarantee of its quality, &c. (Note. —The Board now has the scheme well in hand, and it is expected that the standard boots will soon be available for sale throughout New Zealand.) BACON AND HAM. As the prices of bacon and ham appeared to have an upward tendency, you approved of the suggestion made by the Board that the export should be •prohibited, and later the advisability of fixing wholesale prices for pork, bacon, and ham was suggested to you In February last an Order in
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Council was gazetted fixing the maximum prices of bacon and ham when sold by the manufacturers at the'standard prices ff ruling on the Ist December, 1917—- that is to say, in respect of every locality, the current price at which on that date goods of the same nature and quality were saleable in that locality when sold in the same quantity and on the same terms as to payment, delivery, and otherwise. MILK. Very little trouble was experienced in the control of milk-prices throughout the Dominion, and, generally, prices have been fair and reasonable during the pieriod under review. In Wanganui the Board fixed the maximum wholesale Jprioe of milk at the farm-gate at lid. per gallon, and sd. per quart delivered. Later the Order in Council was amended by providing that the. price of milk should be lid. per gallon when sold and delivered, within the Wanganui district, or lOd. per gallon when sold and delivered at the dairy farm on the usual trade terms. In Wellington the Board also fixed the price of milk by Orders in Council issued in January and in March, the latter Order providing for the wholesale price to be Is. o|d. per gallon delivered at Wellington. GAS. The Supply and Price op Gas, Wellington. Following on instructions from you to the Board, dated the 2nd October last, to inquire into the quality and price of gas at Wellington, the Board instituted an inquiry and reported to you fully on the matter. The price of gas in Wellington was raised from ss. sd. net to 6s. Bd. per 1,000 cubic feet, and complaints were made by several Wellington citizens not ohly in respect to the increased price, but as to the qualitj' of the gas supplied. The gas-supply of Wellington is in the hands of the Wellington Gas Company (Limited), and its intention to increase the price of gas to 6s. Bd. net as from the 24th October, 1917, was given to consumers by advertisement and by circular. This circular set out briefly the reason for the increase as follows : — " During the year the cost of coal for gas-manufacturing purposes has advanced by more than 50 per cent, over the cost of last year ; the taxation payable by the company has been increased by upwards of £8,000, and there has been further large expenditure in many other directions. All these increases are due to war conditions. Notwithstanding this heavy additional expenditure, all of which will be still further increased in the near future, the only advance that has so far been made in the price of gas is sd. per 1,000 cubic feet in April last. It is obvious that this condition of things cannot further continue without imperilling the financial position of the company, and the directors have decided to decrease the amount now allowable as discount off gas accounts from 2s Id. per 1,000 cubic feet to lOd. per 1,000 cubic feet, making the net price of gas 6s. Bd. per 1,000 cubic feet." In view of the need for a full inquiry, the Board asked the company to suspend the operation of the proposed increase until the Board could give its recommendation, but this the company stated it could not accede to because of urgent financial considerations. On the 16th November the Board opened its inquiry in Wellington, and the principal evidence may be summarized as follows : Net Price of Gas to ordinctru Consumers, 1905 to 1918. ?™i? lio ? p^ •' a 1,000 cub. tt. a. d. From October, 1905, until September, 1913 .. . . . . ..55 From. September, 1913, until 16th April, 1917 .. .. .. ..50 From 16th April, 1917, until 24th October, 1917 .. .. .. ..5 5 From 24th October, 1917, and after . . .. .. . . ..68 Dealing with the estimated increased expenditure and income for the year 1918, the following table sets out the position :—■ Estimated sale of gas in 1918 .. .. .. .. 360.000,000 cub. ft. £ £ 1918—29,000 tons coal at 30s. per ton .. .. .. .. ..43,500 1916—31,000 tons coal at 18s. 9d. per ton .. .. .. .. ..29,166 Increased cost of coal .. .. .. .. .. .. — 14,334 Annual amount required for depreciation .. .. .. .. .. ~ 11,398 Estimated increase in wages for 1918 .. .'. .. ..' .. .. 5,300 31,032 360,000,000 cub. ft. of gas sold at increased price of Is. Bd. per 1,000 cub. ft. . . 30,000 Less by operation of sliding scale .. .. .. . . .. .. 2,500 Increased income from gas-sales .. .. .. .. .. .. 27,500 Increased profit on residuals. . .. .. .. .. .. .. 2,000 Total increased'income ... .. ~ .. .. .. 29,500 Estimated direct loss on year 1918 .. .. .. "'.. .. £1,532
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Taking each of the above items in order :-
Coal — Actual Figures.
The increase on the average cost for the half-year is therefore 4s. 3-Bd. per ton. Owing to the coal shortage the company has been compelled to take half the usual quantity of large coal at an advanced price. At the end of 1917 the company's contracts with the New Zealand State Coal Department expired, and these contracts were very favourable to the company- namely, 18s. to 21s. sd. per ton of coal, c.i.f.e., Miramar Wharf. Provided that freights do not advance, the prices the company expect to pay per ton, c.i.f.e., Miramar Wharf, for coal are as follows : Largo. Small, Average. s. d. s. d. s. d. State coal .. ~ . . 30 6 26 0 28 3 Westport coal . . . . . . 28 11 26 5 27 8 1 , . at j.l i on o cq a on ~ : present price. Newcastle coal .. .. . . 32 3 28 3 30 31 1 ' To these figures has to be added Is. per ton handling-charges into store. On the above figures the company therefore estimates the cost of coal for the year at an all-round figure of 30s. per ton, without taking into account probable increases in freights which may have to be met. Depreciation (Total, £11,398.) The evidence showed that the directors of the company had not been satisfied that a sufficient amount was being set aside to cover depreciation, and early this year a sub-committee of the directors spent some months in investigating the subject. As a result the company, after considering the report of this special committee, resolved to adopt the amount set aside for depreciation, £11,398, as recommended by that committee, whi<;h the Board of Trade, after analysis, considers to be reasonable. Increase in Wages. The increase in wages lor 1918, estimated at £5,300, appears to be a fairly accurate one, as since the Board heard evidence upon the matter an agreement has been come to between the company and its employees under the Industrial ('onciliation and Arbitration Act, making a, close estimate practicable. The. increase in wages to those engaged on the manufacturing side will equal approximately £4,178, and the balance, £1,122, represents the extra, war bonus granted on the Bth May. 1917. to officers engaged in the distribution department —viz., 5 per cent, on £22,447. Income. The estimated increased income from the sale of gas in the year 1918 upon that for the year 1916 will be— i 360,000,000 cub. ft. sold at the increased price of Is. Bd. per cubic fool . . 30,000 Less by operation of sliding scale (discounts) . . . . . . . . 2,500 Leaving a net total of .. .. ..£27,500 As will be seen from the table shown on page II of this report, (lie estimated direct loss based on these estimates for the year 1918 will amount to £1,532. Residuals. In its inquiry the Board went fully into the matter of income received by the company for the sale of its residuals- tar and coke. Tar. It appears that the whole of the tar manufactured by the company is sold to two purchasers—(a) The Restar Limited, of Wanganui, who have a five-years contract from August, 1914, for 150,000 gallons pin- annum at lid. per gallon; (b) the City Corporation of Wellington, at 4£d. per gallon. The company state that owing to the almost exclusive use of New Zealand coals this residual is expected to be considerably reduced, as less tar is obtained from local coal than was formerly the case, when a large proportion of Australian coal was carbonized. Coke. The company's price for coke has been increased from 245. per ton in 19.13 to 275. per ton in August, 1917. The selling-price in Wellington for this product has been considerably lower than in other towns of the Dominion, due in normal times to the low cost, of coal. in estimating the increased profits from the sale of residuals during 1918 it was considered that owing to the probable reduced income from tar and the rapidly increasing cost of cartage and handling coke from Miramar it would not be safe to place the increased profit for 1918 at. more than
Pe Period. eriod. Tons carbonized ,,,,,,, , . Handling1 ii ,ul Cost m „ , ,,, i , p Sin,-,, ! Cop1 l"' r '""■ charges store ' inoluded. Year 1916 Half-year 1917 31,145 . . ; 16.095 "~~ " ~ ~ £ s. d. a. <l. 29.219 18 9-1 0 5-1 18.709 23 2-9 1 1-3
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E2,000, The Board found, therefore, that very little relief could be given to gas-consumers by the sale of the company's by-products. Taxation. As the subject of taxation was mentioned in the circular issued by the Gas Company, the Board sought information from the company's witnesses on the point, when it was explained that the circular issued was not correct in respect to taxation, as in order to meet the extra taxation the company proposed to reduce the usual dividend. This has been done, in the case of the interim dividends, only 2| per cent, being paid. It was expected, too, that after taxation and other expenses were paid the dividend for the whole year would be about 5 per cent, instead of the usual 10 per cent. It is patent that in almost all the items of expenditure of the Gas Company increases have been considerable. The increased cost of coal from 18s. 9d. per ton in 1916 to 30s. in 1918 accounts for 11-54d. per 1,000 cub. ft., the increase in wages accounts for 3\53d. per 1,000 cub. ft., and the increase in allowance for depreciation accounts for 5-Bd. These increases total 20-87d. The Board is of the opinion, therefore, that, the present price is reasonable, and that the increase in price was justifiable. Quality. The calorific value of Wellington gas was also inquired into. Daily tests were, taken by the company from the 16th October up to date. Results show that the company has not yet been able to maintain tin- calorific value at 500 British thermal units net (sec Appendix D attached to this report). The company claims that this is due to a variety of causes, which may be, summarized as follows : • (I.) Damage done to the retort, settings at Miramar during the recent, strike. Such settings as it, was possible to dispense with were put out of action, but. of those retained in operation repairs were carried out as thoroughly as was practicable while working on hot retorts. One setting is now in action after being rebuilt, and another will be completed in March. 1918. Every endeavour is being made by the company to complete repairs so as to maintain the standard calorific value of the gas. (2.) Inferior quality of coal. Owing to the difficulty in securing Australian coal the company has had to use coal that has been in stock for many years. Coal stocked, especially in the open, deteriorates very rapidly as regards the quantity and quality of gas that can be obtained from it. This source of poor gas is now coming to an end, but the company is still obliged to use New Zealand coal exclusively. In normal times it is considered advisable to use two-thirds Australian coal and one-third New Zealand coal in order to obtain the best results from vertical retorts. . (3.) Labour difficulties. Suitable men for positions in the retort-house have been very difficult, to obtain. Through the shortage of labour and the unsettled conditions prevailing at Miramar the quality of the gas was affected. The company, however, has now made arrangements for a, full supply of labour, and for the appointment of a retort-house foreman, whoso main duty it will be to see that the standard of the gas is maintained at a regular calorific value. (I.) Naphthalene. Owing to the class of coal used there has been increased trouble from deposits of naphthalene crystals in the supply-pipes. This crystal blocks the pipe, and either cuts off the gas-supply or considerably reduces the pressure. Steps are taken by the company to locate the cause, and to remove the stoppage from the pipes as soon as complaints are received. The causes, therefore, of the low calorific value of the Wellington gas may be summarized as follows : (1) Damage done to retort settings during strike ; (2) inferior coal ; (3) labour difficulties ; (1) naphthalene forming a stoppage in service-pipe reduces gas-pressure, and consumer naturally concludes that gas is at fault. To remedy this the company has adopted the, following measures : (I.) One setting has been rebuilt and is in action; a second setting will be completed shortly, and three more will be rebuilt, before the winter season commences. (2.) The company is endeavouring to secure the, best coal obtainable, and in sufficient quantities to maintain an ample reserve. Owing to shipping difficulties and labour shortage in New Zealand, that reserve has not yet been commenced. (3.) A foreman stoker has been appointed with each shift, and new men are being trained as stokers, so each week there should be. an improvement, in their work, and with it better quality of gas. (1.) Naphthalene usually appears during hot weather, and is immediately attended to by the company as soon as its presence is known. Independently of the evidence submitted in this connection by the Gas Company, the Board examined the Dominion Analyst (Dr. Maelaurin) on the matter. Tests were taken on coal-gas manufactured in Wellington. Auckland, Christchurch, and Dunedin between the 16th and 26th November, 1917, and the results showed that the calorific value of Wellington coal-gas was the lowest of all, while the percentage of incombustible gas was much greater than in either Auckland or Christchurch gases. The calorific values were calculated from the analysis, and represent gross values. The net calorific value would be approximately 10 per cent, less in each case. The following table shows the result : Calorific Value. British Thermal Units (Gross). Wellington (best of three tests) .. .. .. ~ .. 186-80 Auckland .. .. .. .. .. .. .. 508-00 Christchurch .. .. .. .. .. .. .. 506-0] Dunedin .. .. .. .. .. .. .. .. 495-89
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A complete analysis made by the Dominion Analyst is given as Appendix E of this report. For the purpose of comparison three analyses of British coal-gas are given. Prom these it may be seen that the New Zealand samples contain a much higher percent age of incombustible gas and are considerably lower in calorific value than British coal-gas, The. Board recommends in this connection that the companies should be compelled to maintain the standard heating-power of the gas at 500 British thermal units net. , The Board finds that complaint as to the poor quality of gas supplied to consumers during 1917 was justified, but it will be noted from the table in Appendix D that since, the company has completed the improvements to its plant a marked increase in calorific value is shown. The Board recommends that legislation be introduced making it compulsory that the quality of gas supplied by a gas company shall, with respect to its heating-power, be not less than 500 British thermal units net. Legislation on the lines of this recommendation was enacted in Great Britain in August, 1916, by the Gas (Standard Calorific Power) Act, 1916, and in New South Wales by the Gas Act of 19,12. Regulations issued under the latter Act on the 17th September, 1913, prescribed that "' the British thermal unit shall, for the purposes of this Act, be the British thermal unit net in which the latent heat of the, vaporization of the water-vapour in the gas consumed shall be deducted from the. gross result. The result shall be corrected for atmospheric pressure and for temperature, and in such other particulars as the gas-examiner may deem necessary in order to arrive at the true measurement of the heat produced." The, British Act prescribes that where any company, authority, or person is authorized to supply gas in any area in the. United Kingdom, and the gas so supplied is required to be of a prescribed illuminating-power, the appropriate Government Department may, if they think it expedient, and subject to such conditions, if any, as they consider proper, including such variations as they may think desirable of the prescribed pressure at which the gas is to be supplied, by an order substitute for the prescribed standard of illuminating-power a prescribed standard of calorific power, and also substitute for the provisions attesting as to illuminating-power provisions as to attesting for calorific power. OTHER COMMODITIES. It will be noted from the foregoing somewhat full reports concerning particular commodities that the Board has covered a wide field of work. In addition to these articles, however, the Board had to concern itself with others of more or less importance. Chief among these may be quoted Coal. Pressure of other urgent work prevented the Board undertaking the comprehensive inquiry you wished in respect to coal-prices, but it, is expected that the duty will be undertaken shortly. The Board kept in close touch with the work' of the Coal Committees set up by Order in Council in the chief centres, which concerned themselves mainly respecting equitable distribution of supplies. Up to March last, then- were no complaints received as to excessive prices. Grass-sheds. Following information received that the price of grass-seeds was advancing, inquiry was made by the Board of Trade and an arrangement was effected between merchants and the Board whereby prices agreed upon would not be exceeded. Following the serious bush-fires in the Raetihi district, the Government fixed standard prices for grass-seeds by Order in Council, preventing merchants charging prices higher than those ruling on the 4th March, 1918. Salt. Frequent shortages of supply led to increased prices, and every assistance possible was given to importers by the Board to obtain freight-space. In conjunction with the Munitions and Supplies Department, a considerable, measure of relief was afforded by securing supplies from Australia, but the quantity obtained was quite inadequate to meet demands. The Commonwealth Government later prohibited the export of fine and dairy salt, and New Zealand has had to depend upon salt obtained from the United Kingdom and- America, the freight and other charges upon which are particularly heavy. Immediately Australian shipments can be resumed it is expected that the position will be relieved, and prices will ease. Potatoes, Chaff, Oats, and Fertilizers. Inquiries and investigations concerning the supply, price, and distribution of potatoes, chaff, oats, and fertilizers were undertaken by the Board, and arrangements were made from time to time to relieve shortages in different localities, and to prevent prices rising unduly owing to localized scarcities. The method adopted in, these cases was "by consultation and agreement with the parties mainly affected. Supplies had at times to be supplemented by importations from Australia, and in this connection the Munitions and Supplies Department rendered the Board valuable assistance in regard to the issue of priority permits wherever the Board recommended that such were necessary. GEiNFERAi, SURVEY, The foregoing is a record of the work of the Board of Trade as required by the Act, but our report would not be complete without some reference to phases of the cost-of-living question that have come under our notice during the many investigations into supply and price of commodities which were conducted during the year. Full and complete data showing the trend of retail prices
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of food ate published by the Government Statistician's Office, and the Board has asked him to furnish a comparison from the latest official records available showing how the " cost of living,'' as later defined, in New Zealand compares with the cost of living in other countries. They are as follows :
It is essential, however, to discuss the precise meaning of the term ''cost of living," otherwise its very familiarity may prove a pitfall where so much depends upon clearness and accuracy of expression. We adopt the definition given in the Report of the Royal Commission on the Cost of Living in 1912. Broadly speaking, the term means " the sum of exertions and sacrifices necessary to maintain life." Inasmuch as the common measure of such exertions and sacrifices is money, the " cost of living " in the usual acceptance means the amount of money paid out for subsistence, and " change in the cost, of living " means any variations in the volume of such payments. Thus the first obvious factor in the cost of living is price— the rate at which subsistence, may be purchased; and the figures —namely, 34 per cent, may be taken as a rough indication or index of the increase in the rate at which subsistence may be purchased in New Zealand during the war period. But clearly price is not the only factor. If the amount coming into the possession of the individual is adjusted simultaneously with any changes in price, then, given a fixed standard of living, there, has been no real change in the cost of living. The Government Statistician provides the following table showing percentage increases in wage rates from July, 1914, to July, 1918 :—
This table shows increases varying from 4| per cent, up to 37J per cent. Considering the large number of workers in the trades receiving the higher rates of increase, and secondly the fact that the increases quoted refer to minimum rates, it is safe to assume that the average actual rate of increase in earnings is probably between at least 20 per cent, and 25 per cent. Earnings, however, in turn depend upon more than one consideration. They depend not only on the rates of remuneration, but they depend quite as much on regularity of employment —in other words, on the net annual amount earned, whether as wages, salary, profit on business, or other net income of any kind. Thus, from the broad point, of view, the cost of living involves the whole gamut of relationship between the incomes and spendings over the year, and the investigation of it must takeaccount not only of the factors just mentioned, but of their relations and influences inter se, for they are not separate and isolated phenomena, but are bound up inextricably with each other, and constitute little less than the entire economic activity of the community.
i """ "• • I I Country. | Prom .Inly, 1914. to Increase per Cent, Australia, . . New Zealand United States of America Japan ■ .. Canada Netherlands Italy France (Paris) Switzerland United Kingdom Germany Sweden . . .. • Austria Norway .. March, 1918 .. March, 1918 .. March, 19.18 .. July, 1917 .. .. March, 1.918 . . July, .1.917 . . . . September, 1917 January, 1918 .. March,'1918 .. March, 1918 .. October, 1916 .. j March, 1918 .. I August, 1917 .. | March, 1918 s 30 34 51 66 70 81 88 91 96 107 109 135 173 195
Occupation. Peroentage Increase. Occupation. Percentage Increase. ■• i .'.:.'. Aerated-water workers Bakers Bootmakers (female) „ (male) Bricklayers Brewery employees Butchers (general hands) .. „ (shopmen) Carpenters Coachworkers Coal-miners Drivers Electrical workers Engineers Fell mongers Flour-mill employees Freezing-workers .. ! 8-31 .. j 20-50 14-50 .. ; 12-50 12-46 19-05 20-90 13-12 11-11 9-09 18-00 20-00 20-60 20-45 13-19 14-83 16-92 i Furniture-makers Grocers' assistants Labourers (general) Painters Plasterers Plumbers Printing machinists Seamen Shearers Storemen (retail soft-goods) Tailoresses Timber-workers Waterside workers Woollen-mill employees (female) ,, (male) 21-93 27-75 13-84 4-54 10-89 11-11 7-69 29-10 37-50 9-09 10-00 10-00 17-39 27-89 27-22 ; 19-96
M. 11
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It is possible in this connection to take a, bird's-eye view of the economic life of the community. Stated in its simplest terms, New Zealand supports its economic life by the exchange of the manifold products of its soil for the innumerable articles it imports from abroad to minister to its necessities and to its luxuries. At the request of the Board of Trade the Government Statistician has furnished a list, of the ten principal commodities exported from New Zealand, excluding gold, for the years 1914 to 1917 inclusive, showing the actual values, of products exported, and their values when assessed at the prices ruling in 1913 (see Appendix F). This shows a total increase for the four years ending 31st December, 1917, comparing the declared values at which these products were sold with the values calculated on the prices ruling in 1913. of no less a sum than £22,840,369. These figures are eloquent of the extent to which the purchasing-power of the community has grown since the beginning of the war. Has the volume of business increased at anything like the same rate ? To answer this question it is necessary to measure in some way the growth of trade.. Can this be done '. It cannot be done with any high degree of accuracy, but a rough approximation can probably be made through the study of certain statistics which typify business activity and growth. But, as pointed out by Professor E. W. Keninierer, of Princeton University, in a, recent number of the American Economic Review, the statistics used to measure business should exclude prices. The statistics used, therefore, as indices of business growth and activity should be expressed in units other than monetary units. The items chosen, moreover, should be important ones which are reasonable indices either of business activity and growth in general, or of business activity and growth in important branches of industry. Among the best items for measuring the movements of business in general, because they are factors that enter into the manufacture of so many goods of first-rate importance, are the production of coal, wheat, and the use. of mineral oils. Other good indices of general business are the number of passengers and tons of freight carried on the railways, the tonnage of vessels entered and cleared at New Zealand ports, the consumption of sugar and tea, and the production of wool, frozen meat, butter, cheese, hides and skins, tallow, and flax. As each of these has its own peculiar bias, it is safer to construct an index number which includes them all, and the index numbei so constructed should represent, in a rough way, the growth of business in general. The index numbers are as follows : Growth of Trade in New Zealand. 1908 to 1917. ... Index ~ Index Yw,r Number Year ' Number. 1908 .. .. .. .. .. 1000 1913.. .. .. .. .. 1249 1909 .. .. .. .. .. 1109 1914.. .. .. .. 1425 1910 .. .. .. .. .. 1192 1915.. ... .. .. 1468 1911 .. .. .. .. .. 1133 1916.. .. .. .. . 1449 1912 .. .. .. 1239 1917.. ... .. .. .. 1232 The statistical data on which this table is compiled will be found in Appendix G. This table shows the steady growth in business up to the end of 1913 as compared with 1908. amounting to 24-9 per cent. During 1914, five months of which we were at war, the increase was 42-5 per cent. The volume of business reached its maximum in 1915, showing an increase over the base year of 46-8 per cent. : thereafter there has been a steady decline, the volume of business falling in 1917 to lower than what it was in the year immediately preceding the war. Tn order to institute a comparison with figures relating to prices let us take 1911 as the base year, and we find that the volume of business in 1915 increased 3 per cent. ; in 19L6 the increase was only 1-6 per cent. ; whilst in 1917 there was a drop of 13-6 per cent., the respective index numJiers beingPer Cent. 1914 .. .. .. .. .. '.. 100 1915 .. .. .. .. ..103 1916 * .. .. .. .. .. 101-6 1917 .. .. .. .. .. 86-4. The Government Statistician's figures show a rise in. food-prices during the same period of 34 per cent., a percentage which in all probability is exceeded by other commodities. We therefore find during the war period there has been a decrease, in the volume of trade concurrent with an increase in general prices, and a comparison of these figures gives a. rough indication of the degree to which the currency has been inflated in New Zealand. Figures are not available showing the actual volume of money in circulation during the period, but a rough approximate estimate shows an increase of 73 per cent. Notes in circulation have increased as follows :- v Index v index Yea: '' Number. IW ' Number. 1910 .. .. .. 1000 ,1911 .. .. .. 1229 1911 .. .. .. 1032 ] 1915 .. .. .. 1.750 1912 .. .. .. 1054 1916 .. .. 2490 1913 .. .. 1030 1917 .. .. .. 3328 If the year 1911 is taken as the base, the increase up to the end of 1917 amounted to 170 per cent. The bulk- of tin' business of New Zealand, however, is effected not by cash- i.e., coin or notes but by means of bank deposit subject to cheque. Bank deposits (including the figures for the Post. Office and private savings-banks, but excluding the, interest-bearing deposits of trading banks) increased considerably, as shown by the following table :-
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Table showing the Yearly Totals of Deposits, together with a Series of Index Numbers based on the Figures for the Year 1910, which are equated to 1000. v Amount in Index xear - Thousands. Number. £ 1910 .. .. .. .. .. .. .. 30,109 1000 1911 .. .. .. .. .. .. .. 33,443 1111 1912 .. .. .. .. .. .. .. 33,299 1106 1913 .. .. .. .. .. .. .. 34,092 1132 1914 .. .. .. .. .. .. .. 37,836 1257 1915 .. .. .. .. .. .. .. 44,285 1471 1916 .. .. .. .. .. .. .. 52,771 1753 1917 .. .. .. .. .. .. .. 61,067 2028 If 1914 is taken as the base, the increase in deposit currency up to the end of 1917 amounted to 61 per cent. Thus, concurrently with a decrease in the volume of business on the one hand, amounting to 13-6 per cent., there was, on the other hand, an increase in note-circulation amounting to 170 percent., and an increase in deposits subject to cheque of 61 per cent., and these changes in the relationship that exists between volume of business and currency (in its widest sense) found expression in a general rise in prices A similar comparison made by Professor Kemmerer in America during the period 1914 to 1917 shows that the volume of business in America increased by 21 per cent., money in circulation by 39'6 per cent., and deposits by 58'2 per cent., whereas prices increased by 78 per cent. The fact that food-prices have not increased in New Zealand to the same extent as in America, although in New Zealand there has been an actual fall in the volume of business, is due to the measures taken by the Government, through the Board of Trade, to stabilize prices. For instance, the Goverment has controlled the price of wheat, and its products, flour, bran, pollard, and bread ; it has controlled the prices of meat, wool, butter, and cheese, through its system of purchases as agent of the Imperial Government.; it has controlled the supply and price of sugar by arrangement with the Colonial Sugar Company ; through the Board of Trade it has controlled the supply and price of petroleum-products under agreements entered into with the chief importing companies ; it has controlled the price of milk, fixing in some instances maximum prices where conditions warranted such a course of action ; it has controlled the price of bacon and hams by decreeing that the price shall not exceed that ruling on a particular date ; and again, through the Board of Trade, under arrangement with wholesale merchants, it has controlled and steadied the prices of fifty-seven main commodities, a great number of which are imported from overseas and are frequently in short supply : and all this at a small expenditure. This result compares more than favourably with the result attained in Australia, where the expenditure on subsistence, as expressed in the index number relating to the cost of living, shows a difference of 4 per cent, only when compared with New Zealand; and this slight difference is explainable by the fact that Australia has a superabundance of wheat, and therefore flour, bran, pollard, and bread prices are necessarily lower than in New Zealand. It must be borne in mind, too, that Australia has not taken from the forces of production man-power to the same extent as has been done in New Zealand. It is not proposed in this report to republish in detail statistical data relative to the cost of living that have already appeared in the " Monthly Abstract of Statistics " issued by the Government Statistician, but the Board desires to emphasize the fact that the continuous rise in prices—synonymous in the minds of most people with the. increased cost of living —has not been peculiar to New Zealand, but has been world-wide. Moreover, the rise has not been due solely to conditions created by the war, as the upward tendency was pronounced in 1906, and has received no serious check since. The rise, of course, has been rapid since August, 1914, and, in spite of attempts by most Governments to control and regulate prices, shows no signs of having reached its maximum. Between 1906 and July, 1914, the general price-level throughout the world increased by approximately 14 per cent. The rise was more marked in some countries than in others, and affected some commodities and groups of commodities more, than others ; but after allowing for the fact that price statistics are not always collected on. a uniform basis, and that, even where they are thus uniform the conditions of living differ so widely as to make direct comparisons but seldom possible, general trends may be distinguished with some clearness. Naturally the tendency of price-movements is towards uniformity. As Professor Irving Fisher has pointed out (" Why is the Dollar Diminishing ? " page 105), " International trade gives present-day problems of money and of price-levels an international character. If all countries had their own irredeemable paper money, and no money that was acceptable elsewhere, price-levels in different countries would have no intimate, connection .... but where two or more nations trading with each other use the same standard there is a tendency for the price-level of each to influence profoundly the price-level of the other. The price-level in a small country like Switzerland bears largely on the price-levels in other countries." It follows, therefore, that so long as New Zealand has commercial relations with the rest of the civilized world the level of prices in New Zealand will tend to approximate to the level of prices outside, allowing for cost of transit, and that the causes of the change of the level of prices are to be looked for outside our own narrow confines. While inquiry may usefully be made into the special causes of price-movements in the case of individual commodities, the upward movement of prices has been so widespread as to suggest that some few important causes are exercising their influence over the world in such a way as to uplift the price-level. The Board submits the following brief analysis of these causes : — 1. On the side of demand — (a.) The most important of these causes is probably the increase in the volume of credits. Belligerent and neutral Governments have been borrowing immense sums of money,
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and private individuals have been borrowing upon their resources in order to lend money to the Government. The disbursement of these great sums has resulted in an increase in demand for certain goods- -metals, fuel, textiles, and foodstuffs. The increase of demand has been made effective through the increase in the volume of credits ; in so far as the advance of prices has been due to the increase of credits, the advance may be expected to continue so long as the conditions which produce it continue. Every creation by the Government or by the public of fresh credits means an addition to the purchasing-power, and therefore, an increase of prices, until gradually as regards certain commodities a point is reached when increase of production must experience a, check because of the effect upon wages and upon other costs of production. It is only when credits are redeemed by an equivalent increase in saving or in extra, production that their effects upon, prices are cancelled. (b.) In so far as the credits are, necessary for the conduct of the war they must be created, although further extensions of them must lead inevitably, other things being equal, to further advances in general prices. The sacrifice imposed upon the community through the payment of these enhanced prices must be regarded as a portion of the cost of the war, and as part of the community's contribution to the cause of civilization. 2. On the side of supply (a.) The second important cause of the increase of prices has been the diminution of the available supply of some of the chief commodities. The chief manufacturing countries of the world have withdrawn from the fields of industry the flower of their manhood, with the consequence that the supply of commodities has been greatly restricted, and the price has advanced sharply. (b.) The needs of the Army and Navy have greatly depleted the available supply of efficient labour, and thereby enhanced the price of labour available for the purposes of production. The upward movement in prices, therefore, appears to have been affected by both factors — supply and demand : the increase in the latter due to war conditions, and made effective by practically unlimited Government expenditure ; while the, decrease in the supply of most commodities is also due to war conditions —reduction in the, labour force, destruction of supplies, increased loss and waste in transportation, handling, and distribution. The increased money distributed amongst people from Government war expenditure further tends to create a greater demand for the decreased supply of goods, thus becoming a factor in raising prices. High prices, then, are caused partly by the community having more money to spend (owing mainly to the creation of Government credits for war purposes) and partly by there being a less quantity of commodities for sale. Those who are loudest in their complaints of high prices are apt to overlook the real causes, and to make indiscriminate charges of profiteering and exploitation against producers and traders alike. On various dates during the year you instructed the Board to make searching investigations into these, charges, and to report to you any cases that had been brought to the Board's notice or that the Board had discovered in the course of its inquiries. Under memorandum of the 28th August, 1917, you specifically requested the Board to ascertain as soon as possible whether the general charges that had been made from time to time were correct, and, if so, to furnish you with the names of persons responsible. The Board has given careful consideration to this matter, and reported to you at length on the 4th September, 1917. In that report the Board endeavoured to answer the question whether, apart from the causes of high prices already dealt with, individual firms or companies had been guilty of so arranging market conditions as to abstract from the consuming public inordinate gains by illegitimate methods, as this, we take it, is what exploitation means. The Board stated definitely then, and it desires to repeat the statement, that its various investigations throughout New Zealand revealed nothing that could justify a general statement of this nature. Indeed, in regard to two specific complaints one dealing with sugar and the other dealing with petrol and kerosene —the methods of marketing complained of were submitted to the Solicitor-General for his opinion as to whether they were illegal, and in both cases the SolicitorGeneral advised that no statutory requirements were being infringed, and consequently no cause of action was disclosed. As you are aware, in the case of sugar, the price at which this article is supplied to the public of New Zealand is a matter of arrangement between the Board of Trade and the Colonial Sugar Company ; and although the company has at present a monopoly of the sugar trade in the Dominion, it is making no use of its economic advantage to exploit the public, as it is disposing of its product at a price considerably below its market value. If for a.ny cause the Colonial Sugar Company withdrew from the New Zealand market it is doubtful if sufficient supplies could be obtained elsewhere even at twice the sum we pay —namely, £22 f.o.b. Auckland (subsequently increased on the Ist July, 1918, to £22 10s. f.o.b. Auckland). In regard to petrol, an attempt was made by a firm not regularly in the trade to create an impression by the issue of a misleading circular that a shortage was in sight, and thereby to induce panic buying at enhanced prices by consumers. On this circular being brought to the Board's notice by you the firm concerned was interviewed by the Board, and, as a result, expressed regret that the circular issued tended to create a scare in the oil-market, and gave an undertaking that it would be withdrawn. An inquiry was made into the prices charged by the firm for petrol, and it was ascertained that, although these weTe in excess of the prices charged by regular importing companies, the firm in question made only a reasonable profit on its venture. Profiteering. The charge of profiteering has also been carefully considered by the Board. This is a term that has never been accurately defined, If it means creating an artificial scarcity by holding up supplies
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with the object of forcing up prices, then the Board can definitely state that profiteering in this sense has not been practised to any extent in New Zealand. For example, it has been alleged that some farmers have withheld their wheat from sale as they deemed the price obtainable, insufficiently attractive. There may be individual cases where this has been done, but not on a scale sufficiently large since the Board has had control of wheat-prices to materially affect the position. If, however, profiteering means taking advantage of the market to make money without any illegitimate manoeuvring, it is certain that many dealers have made money by sales of stocks which were purchased cheaply and sold on a rising market, which goods, however, could not be replaced for sale even at the advanced selling-prices obtained. The primary producers of the country have also boon charged with profiteering, and. undoubtedly the largest share of the record prices that have been received for our primary products has gone to the primary producer ; but these prices have been determined by negotiations between the Imperial and Dominion Governments, and it is now a matter of common knowledge that the prices so arranged have been below the prices that could have been obtained on the London market had the shipping been available to transport those products across the seas. In regard to butter, the consumer in New Zealand since the outbreak of war has never paid the export equivalent price. During the first two years of the war, by the voluntary action of the factories supplying the local trade, the local consumer received his butter from |d. to 1 |d. per pound lower than the export equivalent London price ; and under the scheme which the Government sanctioned in October, 1916, the local consumer received his supplies at a price representing a saving to him of approximately £300,000. A similar saving was effected last year, and during the current year it is estimated that the consumers will benefit also to the extent of another £300,000. In its report of the 4th September, 1917, the Board estimated that the primary producers had sustained during the war period a monetary disadvantage-, of approximately £9,000,000 in regard to butter, cheese, meat, and wool. The meat-prices for local consumption have been based mainly on the price received from the Imperial authorities, and this represents an average reduction of at least 2d. per pound below London parity prices, always assuming that shipping is available. RECOMMENDATIONS. Unfortunately, the burden of rising prices is distributed unevenly over the community, and calls for the greatest sacrifice on the part of those least able to bear it. Those with fixed or comparatively fixed incomes, many wage-earners, a large portion of the small-salaried classes, many of the dependants of those at the front, find the increase in the cost of living during the last two years peculiarly onerous ; but, while it is comparatively easy to point to a disease, it is not a simple matter to find a. remedy. The Government has already taken power to fix prices, but this is a remedy that can be applied only with the greatest care. The danger of fixing prices for any commodity is that the supply may greatly diminish, if not cease entirely. The general rule should therefore be to avoid the fixation of prices unless the whole supply of the commodity is controlled ; but when this can be done, the control should extend from the field of production to the point, of consumption, as has been done in the case of wheat, flour, and bread. Intermediary charges should be limited to fair remuneration for services rendered. The main difficulty in this connection rises in respect to commodities produced in New Zealand that can be marketed both within New Zealand and abroad. In this category belong all our primary products —wool, meat, butter, cheese, hides, and skins. If a price is fixed for these, commodities for consumption in New Zealand below the export value, those producers who supply the local market are placed at a disadvantage, as compared with those who are allowed to export. This disadvantage engenders a, fooling of dissatisfaction, and results in supplies being diverted from the local market to the export trade. Price-fixing alone is therefore not a remedy. Last year the Board of Trade, in attempting to regulate the price of butter, was driven by the logic of circumstances to recommend the Government to establish an equalization fund. While the incidence of the levy creating the fund may have been open to serious criticism, the Board respectfully submits that the principle of equalization. is sound, and forms, in the Board's opinion, the safest method of easing the burden which falls upon our own population because of the war prices realized by primary products. In regard to the commodities imported from abroad, it is impossible, as has been pointed out, to control the landed cost, but by an extension of the system of permitting import under license, on condition that the licensee sells at prices deemed reasonable by the, Board of Trade, much can be accomplished to control profits. Indeed, the control of business profits is the crux of the problem as far as controlling prices of articles imported from abroad or manufactured in New Zealand is concerned. The precise, determination of legitimate business profits for any undertaking is extremely difficult to assess, as allowance must be made for enterprise, risk taken, unusual skill in management. Every one knows that fortunes arc made in industries strictly competitive, and are often to be ascribed to unusual business capacity. But the difficulty of assessment is not necessarily insuperable in a system of price-regulation. After all, only rough and approximate, results can be expected. The Board suggests in this connection that the basis of " fair profit" during the war might be the pre-war profit in any given business, but power should be given to the controlling authority to vary this basis should the pre-war rate prove largely in excess of the general average or insufficient to encourage production. The Board emphasizes the fact that the time has arrived to take steps to control the manufacture and sale of goods that might be considered as luxuries. Valuable labour is expended in the production of such goods, and diverted from the production of essential commodities. One of the surest methods of reducing prices of necessities is to increase their supply, and it is possible that much valuable labour now expended upon the creation and distribution of luxuries might be employed in the creation of a greater number of articles in common demand. W. G. McDonald,^ J. R. Hart, of the Board of Trade. P. Hally, J J. W. Collins, Secretary.
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APPENDIX A. Purchase of Wheat from Australia. Statement showing— (1) Quantity of Wheat purchased and landed; (2) Summary of Receipts and Expenditure; (3) Particulars of Cost per Bushel.
APPENDICES.
20
Number of Bushels. Summary of Receipts and Expenditure. Shipment. „ j T . New Zealand y w^ V0ICe Landed Weights. Weights between Sydney and gabs to Mm New Zealand mc , udm Purchases Weights. ; Interest {if « y). f.o.b.). Freight. Grading and Marine Totel Insurance. ,. V >■' a Expenditure. Rebagging). Profit. Loss. Bush. lb. " Kauri/' Dunedin (1) .. .. 158,692 26 ' ; Kauri," Auckland (1) .. •• 158,65144 " Moeraki," Wellington .. .. 16,102 48 " Kauri," Auckland (2) .. .. 9,258 0| " Kaiapoi " (1)—Fleming and Co. . . 8,954 2; " Kauri," Dunedin and Oamaru (2) 162,162 46 " Port Melbourne," Wellington .. 74,625 57 '• Tarawera," Lyttelton .. .. 70,439 8; "Kaiapoi" (2)—Fleming and Co., 18,823 56; Ireland and Co. " Kauri," Auckland (3) .. .. 161,440 18 " Tarawera," Timaru .. .. 71,640 20 " Tarawera," Auckland .. .. 69,957 4 " Kauri," Dunedin (3), Timaru, and 160,004 36 Lyttelton " Kaiapoi " (3)—Ireland and Co. . . 8,783 31 " Kaiapoi " (4)—Ireland and Co. . . 503 18 Bush, lb.] Bush. lb. £ s. d.l £ s. d. £ s. d. 158.990 44- 298 18* 49.313 11 10; 43,640 8 5 5,315 17 3 157.317 2 1.334 42 49.128 10 8] 43,629 4 6 5,272 12 1 15.892 20: 210 28 4.966 7 1 4.428 5 5 532 6 3 9.072 59 ! 185 1 ! 2.832 11 2 2,545 19 0 303 16 0 8.954 2 .. 2,541 12 8j 2,462 7 2 160.711 16: 1,451 30 47.998 8 8 44,594 15 3 5,380 5 9 74.495 28; 130 29 23.311 8 4 20,522 2 9 2,748 10 0 69.810 32 628 36 20.938 5 3 19,370 15 3 2,337 8 2 18,823 56 .. 5,309 6 6 5,176 11 8 161,217 19 222 59 51,052 2 7; 44,396 1 8 5,505 17 3 71.303 25 336 55 21,391 0 4 19,701 1 10 2,388 0 4 69,800 40 156 24 22,103 -10 8 19,238 3 10 2,383 16 1 159,497 36 507 0 47,846 0 7 44,001 5 4 5,342 15 9 8,783 31 .. 2.452 1 4 2.415 9 4] 503 18 .. 140 10 1 138 8 2 £ s. 133 17 177 8 16 2 8 4 148 12 75 6 162 19 68 10 65 19 153 0 d. 6 0 0 7 0 6 0 2 7 0 £ s. rL| 388 4 11 137 16 6 : 19 5 4 25 17 9 211 0 1 85 15 9 85 19 2 176 15 9 53 7 6 71 0 8 101 8 2 £ s. d. 49,478 8 1 49.217 1 1 4,995 19 0 2,883 17 4 2,462 7 2 50.334 13 1 23.431 15 0 21,794 2 7 5.176 11 8 £ s. d. •• 79 5 6 " 132 14 10 £ s. d. 164 16 3 88 10 5 29 11 11 51 6 2 2.336 4 5 120 6 8 855 17 4 50.241 13 8 22.210 19 10 21,759 0 2 49,598 9 3 810 8 11, 819 19 6 344 10 6 1,752 8 8 2.415 9 4 1 138 8 2; 36 12 oj 2 1 11 Total .. .. .. 1,150,039 54Loss in transit (0-42 per cent.) .. 39 54| 1,145,174 8 4,865 46 J351,325 4,825 52 7 9^16, 260 19 7 137,511 4 111,009 19 4 1,356 11 7356,138 15 5 4,813 7 Total purchases .. ..1,150,000 0 1,150,000 0 1,876 9 Total purchases .. .. ,1,150,000 01,150,000 0 * Gain. Expenditure: Australian expenses of C. Ferrier and assistant, i I administration, exchanges, &c. Net loss (l-39d. per bushel) 6,689 17 f Cost per Bushel. s. d. (1.) Purchase-price (f.o.b., Sydney) .. .. .. .. ..56 (2.) Sydney charges (grading, &e.) .. .. .. .. .. 0 0-09 (3.) Sea freight .. ' .. .. .. .. .. .. 0 8-09 (4.) Marine insurance ... .. .. .. .. .. 0 0-21 (5.) Discharge expenses (rebagging, &c.) .. .. .. .. 0 0-20 (6.) Ferrier's Australian expenses —Administration, exchanges .. .. 0 0-39 (7.) C.i.f.e., New Zealand .. .. .. .. .. .. 6 2-98 Department of Imperial Government Supplies, Wellington, N.Z., 15th August, 1918.
21
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APPENDIX B. (Gazetted 22nd December, 1917.) Fixing the Maximum Price of Wheat. 1. In this Schedule— " Wheat," " free wheat," and " good milling-wheat " have the same, meaning as in the Wheat Trade Regulations made on the date of this Order in Council, under the War Regulations Act, 1914 : " Government price " means, in respect of wheat sold for delivery in any month, the price payable by Government brokers under the said Wheat Trade Regulations for good milling-wheat sold to the Government for delivery in the same month : " Millers' price " means, in respect of wheat sold for delivery in any month, the price receivable by Government brokers for good milling-wheat sold by them on account of the Government for delivery in the same month in accordance with the said Wheat Trade Regulations : " Nearest port " means the port of entry under the Customs Act, 1913, nearest to the place in which the wheat is grown. 2. When wheat is sold without express provision as to the month of delivery, it shall be deemed to have been sold for delivery in the month in which the contract is made, and the maximum price shall be determined accordingly. Wheat Inferior to Good Milling-wheat. 3. The maximum price of free wheat inferior in quality to good milling-wheat shall, when sold by the grower, be a price equivalent, as regards the grower, to the Government price for the same month of delivery, loss 2d. per bushel. 4. (1.) The maximum price of free wheat inferior in quality to good milling-wheat, when sold wholesale by millers, brokers, or other purchasers from the growers free on board at the nearest port on the usual trade terms as established at the date of this Order in Council, shall be the Government price for good milling-wheat delivered free on board at the nearest port in the same month, less Id. per bushel. (2.) When sold otherwise than free on board at the nearest port on the said trade terms, the maximum price shall be a price equivalent, as regards the seller, to the maximum price aforesaid. Good Milli-ng-wheat. 5. (1.) The maximum price of free, wheat being good milling-wheat (other than machinedressed seed-wheat), when sold for delivery free on board at the nearest port on the usual trade terms as established at the date of this Order in Council, shall be the millers' price for good millingwheat delivered free on board at the nearest port in the same month, with an addition of sd. per bushel. (2.) When sold otherwise than free on board at the nearest port on the usual trade terms as aforesaid, the maximum price shall be a price equivalent, as regards the seller, to the maximum price aforesaid. Machine-dressed Seed-wheat. 6. The maximum price of machine-dressed seed-wheat shall be the maximum price fixed by the last preceding clause, with the further addition of sd. per bushel. War Regulations as to the Sale and Purchase of Wheat. 1. These regulations may be cited as the Wheat Trade Regulations. 2. In these regulations, except where a contrary intention appears,— " Wheat " means wheat of any kind or quality grown in New Zealand during the season 1917-1918: " Free wheat " means — (a.) Any wheat after its purchase and resale by the Government in pursuance of the scheme of purchase set forth in these regulations ; (b.) Any wheat which has been offered to the Government for purchase in pursuance of the said scheme of purchase and has been rejected as being unmerchantable or otherwise not of the kind or quality required by the Government: " Good milling-wheat " means wheat suitable for milling and of fair average quality for the season as determined in accordance with the custom of the trade, or of a quality superior thereto : " Government " means His Majesty the King in respect of the Government of the Dominion of New Zealand. Part I. — Private Dealings in Wheat prohibited. 3? Save in accordance with and in pursuance of the scheme of purchase and sale set forth in these regulations, it shall not be lawful for any person, whether as principal, agent, or otherwise, to purchase or agree or offer to purchase any wheat other than free wheat, or to be concerned in the making of any such purchase, agreement, or offer by any other person, whether in New Zealand or elsewhere, or to be concerned in the fulfilment or performance of any agreement for the purchase of any such wheat, whether such agreement has been made in New Zealand or elsewhere, and whether it has been made before or after the making of these regulations.
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22
4. Save in accordance with and in pursuance of the scheme of purchase and sale set forth in these regulations, it shall not be lawful for any person, whether as principal, agent., or otherwise, to sell or agree or offer to sell any wheat other than free wheat, or to be concerned in the making of any such sale, agreement, or offer by any other person, whether in New Zealand or elsewhere, or to be concerned in the fulfilment or performance of any agreement for the sale of any such wheat, whether such agreement has been made in New Zealand or elsewhere, and whether it has been made before or after the making of these regulations. 5. In the foregoing regulations the terms "purchase" and "sale" include, any mode of acquisition or disposition by agreement other than acquisition or disposition by way of security only. 6. For the purposes of the foregoing regulations an option or right of purchase or sale shall be, deemed to be an agreement to purchase or to sell, as the case may be. 7. Notwithstanding anything in these regulations, it shall be lawful for the grower of any wheat to sell any quantity or quantities thereof not exceeding in the aggregate 100 bushels to any other wheat-grower for use by the purchaser as seed-wheat. Part 11.--Control of the Wheat Trade. 8. Good milling-wheat will be purchased and resold by the Government in accordance with the scheme hereinafter in these regulations set forth. 9. All purchases and sales of wheat by the Government will be effected through the agency of brokers appointed by the Board of Trade and acting on account of the Government, and hereinafter referred to as Government brokers. 10. Every broker so appointed shall hold office at the. will of the Hoard of Trade. 11. Government brokers will be, required to give, to the Government such security as the Board of Trade may require for the due performance of their contract with the Government and for due obedience to these regulations. 12. The general control, supervision, and execution of this scheme of purchase and sale will be in the hands of a. Controller appointed by the Minister of Agriculture and acting on behalf of the Government, and hereinafter called the Wheat Controller. 13. The headquarters of the Wheat Controller shall be at Christchurch. 14. There will be associated with the Wheat Controller an advisory committee to be known as the Wheat Trade Committee, and to consist of such representatives of the wheat-growers, Sourmillers, and Government brokers as the Board of Trade may from time to time appoint. 15. Every Government broker will be appointed for a particular district to be defined by the Hoard of Trade in appointing such broker, and it shall not be lawful for any such broker to purchase for the Government under these regulations any wheat grown elsewhere than in the district for which he has been appointed. Part 111 - Purchased of Wheal by the, Government. 16. Government brokers will buy good milling-wheat on account of the Government at the following prices : A. Good milling-wheat grown in the South Island : 1. Sold for delivery free on board at the nearest port — (a) In January, February, or March, 1918, sb. lOd. per bushel. (b.) In April, 1918, ss. lOid. per bushel. (e.) In May, 1918, ss. lid" per bushel. (d.) In June, 1918, ss. lljd. per bushel. (e.) In July, 1918, 6s. per bushel. (/.) In August, 1918, 6s. OJd. per bushel. (</.) In or after September, 1918, 6s. Id. per bushel. 2. Sold for delivery otherwise than free on board at the nearest port — A price equivalent, as regards the seller, to the prices aforesaid. B. Good milling-wheat grown in the North Island : — 1. Sold for delivery free on board at the nearest port, being Wellington, Wanganui, New Plymouth, Napier, Gisborne, or Auckland — The same price as that of good milling-wheat grown in the South Island and sold for delivery free on board at the nearest port, with an addition of 4d. per bushel. 2. Sold for delivery otherwise than free on board at the ports aforesaid — A price equivalent, as regards the seller, to the price aforesaid. 17. Government brokers will not purchase on behalf of the Government any wheat other than good milling-wheat: nevertheless it shall not be lawful for any person to sell wheat of any quality otherwise than to the Government until and unless it has been offered to a Government broker for sale to the Government in pursuance of these regulations, and has been rejected as unmerchantable or as not being good milling-wheat. 18. In these regulations " nearest port " means the port of entry under the Customs Act, ,1913, nearest to the place where the wheat is grown. 19. Sacks will be paid for, in addition to the above prices, at the fair market value not exceeding 10id. each. 20. When wheat is sold to a overnment broker without express agreement as to the month of delivery it shall be deemed to be sold for delivery in the month in which the contract is made. 21. When wheat is sold to a Government broker for delivery by instalments in different months or on different terms or conditions, the sale of each instalment shall be deemed to be a separate contract.
23
H.—44.
22. Save in special cases at the express direction of the Wheat Controller and on such terms as may be approved by him, wheat will be so purchased by a Government broker only on the terms that the seller will deliver the same to a purchaser from the Government as directed by the broker, whether free, on board, on rail, direct to the purchaser's store, or otherwise. Save as aforesaid, the Government broker will in no case accept delivery on behalf of the Government, or act as a warehouseman for the Government. The Government broker may, however, act at the same time as the broker, agent, or warehouseman, either of the seller to the Government or of the buyer from the Government, on such terms as may be mutually agreed upon by the parties. 23. All wheat so purchased by the Government shall become the property of the Government on delivery thereof in accordance with the terms of the contract, if the wheat is in conformity with the contract. 24. (1.) On such delivery of wheat the Government broker, on being satisfied that the wheat, so delivered is in accordance with the contract, will forward to the Wheat Controller a voucher in duplicate, in such form as the Controller may require, authorizing the payment of the contract price. (2.) The sum so payable will, bo paid by the Wheat Controller as imprestee to the seller or to any other person authorized by the seller in that behalf by a written authority transmitted through the broker to the Controller. (3.) Such payments will be made on the Ist and 14th days of each calendar month in the case of all vouchers duly received by the Controller at least seven, days before any such pay-day. (4.) If any such pay-day is a holiday, payment will bo, made, on the next following business-day. 25. Every contract made by a Government broker for the purchase of wheat on account of the Government shall be made in accordance with and shall incorporate the provisions of those regulations so far as applicable to contracts of purchase, and the rights and obligations of the parties shall be determined accordingly. Part IV. — Sales of Wheal, by the Government. 26. No sales of wheat shall be made by a Government broker on account of the Government except to persons holding a warrant issued by the Wheat Controller authorizing the holder to purchase wheat, and. hereinafter referred to as a wheat-purchase warrant. 27. Every such warrant will contain such conditions and restrictions as the Wheat Controller * thinks fit, and no sale shall be made to the holder otherwise than in conformity with these conditions and restrictions. 28. Every wheat-purchase warrant may be cancelled at any time for any reason which the Controller in his absolute discretion thinks sufficient. 29. No such warrant shall be transferable. 30. The Wheat Controller will in his absolute discretion allocate 'to each flour-mill in New Zealand its due quota of the total quantity of good milling-wheat estimated by him from time to time to be available during the year 1918, and the wheat-purchase warrants issued by the Controller to flour-millers will be based on the quota as so determined for the time being. 31. Each flour-miller will be required to purchase and take delivery of his full quota of wheat as soon as is practicable in the discretion of the Wheat Controller, and this obligation will be enforced by the Wheat Controller by withholding or cancelling the wheat-purchase warrant of any flour-miller who makes default herein. 32. Flour-millers will be required in purchasing wheat to purchase and take delivery of different kinds or qualities of good milling-wheat in such proportions as the Wheat Controller may from time to time determine, having regard to the respective quantities of such kinds or qualities available; and all Government brokers shall, in effecting sales of wheat, observe all directions given to them by the Wheat Controller in this behalf. 33. The price at which wheat is so sold by a Government broker on account of the Government shall be the price per bushel at which it was purchased by the broker on account of the Government, with the addition of 1-Jd. per bushel, together with the price of the sacks as aforesaid. 34. Payment for wheat so sold and delivered shall be made by the buyer to the Government broker on account of the Government, and the terms of payment shall be such as may be agreed upon between the buyer and the broker, being either cash on delivery, cash against shipping documents, or cash within seven days after delivery. All purchase-money in arrear and unpaid, shall bear interest at the rate of 8 per centum per annum. 35. When wheat is sold, for delivery by instalments, each instalment shall be treated as the subject of a separate contract, and payment shall be made accordingly. 36. All moneys so received by a Government broker shall be paid by him into the Public Account immediately on the receipt thereof, and all moneys not so paid into the Public Account shall bear interest at the rate, of 8 per centum per annum until so paid. 37. Every Government broker will guarantee to the Government the due payment by the buyer of the purchase-money for all wheat so sold to him by that broker, and on default made by the buyer the purchase-money, with all accrued interest thereon, shall be recoverable by the Government from the broker. 38. After delivery to the buyer the wheat shall be in all respects at the buyer's risk, but the property in the wheat shall not pass to the buyer until the purchase-money has been received by the Government broker ; and on default made by the buyer the broker or the Wheat Controller may take and retain possession of the wheat on behalf of the Government as a security for the purchasemoney. 39. Every contract made by a Government broker for the sale of wheat on account of the Government, shall be made in accordance with and shall incorporate the provisions of these regula-
H.—44.
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tions so far as applicable to contracts of sale, and the rights and obligations of the parties shall be determined accordingly. Part. V. — Terms of Employment of Brokers. 40. In respect of every contract for the purchase of wheat by a Government broker on account of the Government, the broker shall be entitled to receive from the Government a commission of |d. for every bushel delivered in pursuance of and in conformity with that contract. 41. In respect of every contract for the sale of wheat by a Government broker on account of the Government, the broker shall be entitled to receive from the Government a commission of £d. for every bushel delivered in pursuance of and in conformity with that contract. 42. It shall not be lawful for a Government broker to receive, directly or indirectly, any additional commission or remuneration from any party other than the Government in respect of the making of any such contract of purchase or sale ; but nothing herein contained shall prevent the broker from receiving from any such party remuneration for services rendered in respect of storage or otherwise howsoever in. addition to the service of making the contract of purchase or sale. 43. It shall not be lawful for any Government broker to give, offer, or promise to any person any rebate, refund, commission, allowance, gratuity, or other valuable consideration as an inducement to that person to sell or purchase wheat to or from the Government through that broker, or for the reason that he has so sold or purchased wheat. 44. It shall not be lawful for a Government broker to purchase, whether for himself or on account of any other person, any wheat of a quality inferior to good milling-wheat except under the authority of a license issued to the broker in that behalf by the Wheat Controller and in accordance with the terms of that license. Any such license may be at any time cancelled by the Controller for any reason which in his absolute discretion he thinks sufficient. 45. In all matters within the scope of their employment and not specifically provided for by these regulations Government brokers ■ shall act in accordance with directions from time to time received from the Wheat Controller. 46. Government, brokers shall from time to time make to the Wheat Controller such returns relative to the business done, by them as the Controller may require. 47. Every appointment of a Government broker shall be deemed to incorporate, as a contract between the broker and the Government, the provisions of these regulations so far as they relate to the rights, powers, duties, and liabilities of such brokers. Part VI. — Disputes. 48. When any dispute arises as to whether any wheat offered to a Government broker for sale to the Government is good milling-wheat, or when any dispute arises as to whether any wheat delivered in fulfilment of any contract of purchase or sale entered into by Government brokers on account of the Government is in accordance with the contract in respect of kind, quality, or condition, the dispute shall be determined by a Government grader appointed for this purpose by the Board of Trade, and his decision shall be final, 49. When any dispute, other than as mentioned in the last preceding clause, arises between the parties to any contract entered into by a Government broker on account of the Government, or between a Government broker and the Government, or between a Government broker and any seller or purchaser of wheat to or from the Government, touching the meaning or operation of these regulations or of any contract so entered into, the dispute shall be determined by the Wheat Controller, whose decision shall be final. 50. Nothing in the last two preceding clauses shall apply to any prosecution for an offence against these regulations. 51. (I.) Subject to the foregoing provisions as to the settlement of disputes, the following weights shall be accepted by all parties as the basis of settlement in all contracts for the purchase or sale of wheat by or to the Government: — Wheat delivered direct to a mill—flour-millers' weights : Wheat delivered free on board —customary free-on-board weights : Wheat delivered ex store either to mills or free on board —ex-store weights. (2.) The only deduction from such weights shall be 31b. tare per sack. Part Vll. — Offences. 52. Every person shall be guilty of an. offence against these regulations, and shall be liable under the War Regulations Act, 1914, accordingly, who does or attempts or conspires to do any act declared by these regulations to be unlawful. 53. Every Government broker shall be guilty of an offence against these regulations, and shall be liable under the War Regulations Act, 1914, accordingly, who commits any wilful breach of his contract with the Government under these regulations. 54. Every seller of wheat to the Government or purchaser of wheat from the Government under these regulations who commits a wilful breach of his contract with the Government shall be guilty of an offence against these, regulations, and shall be liable under the War Regulations Act, 1914, accordingly. 55. Every person who, being a servant or agent of any Government broker or of any such seller or purchaser of wheat, wilfully does any act whereby or in consequence of which such Government broker, seller, or purchaser breaks his contract with the Government shall be guilty of an offence against these regulations, and shall be liable under the War Regulations Act, 1914, accordingly.
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56 Every person who deceives or attempts to deceive a Government broker or the Wheat *Cp BX Tf i < i ,f l hi c f^ Ction 1 S Under theSe re g ulations shall be guilty of an offence against these regulations, and shall be liable under the War Regulations Act, 1914, accordingly ° 7 - hv f y P ersf >n who incites, aids, abets, counsels, or procures any other person, or conspires P 7T' *° C TTf, f" ofFenCe ai,lst thrac "gnlationß shall be guilty of an offence against these regulations, and shall be liable under the War Regulations Act, 191 accordingly 08. rWery person who fails to make in accordance with these regulations any return required r.iiereoy 0 r m pursuance thereof, or who makes any such return which is false or misleading in any KSSf' f! tf'' ty °i an ° ffonCe aff,inßt these rft g u '«t,ions, and shall be liable, under the War Kegulations Act, 1914, accordingly. 59 Every person who, whether as principal, agent, or otherwise, sells or purchases, or agrees or oilers to sell or purchase, wheat at a, price in excess of the maximum price thereof as determined for the timei being under the Regulation of Trade and Commerce Act, 1914, shall be guilty of an offence against these regulations, and shall be liable under the War Regulations Act, 1914, accordingly. Part VIII. -Returns. 60 On or before the 25th day of January, 1918, every grower of wheat, shall make to the Wheat Controller a return showing, as at the 31st day of December, 1917 — (a.) The number of acres that are under crop for wheat on his land : (6.) The estimated quantity of wheat to be obtained therefrom, showing separately the different varieties of wheat: (c.) The district where the wheat is grown, the railway-station (if any) at which the wheat will be loaded for transit to the market, or the method of delivery otherwise than by rail: (a.) The quantities of feed-wheat and seed-wheat which he requires to retain for his own use exclusively for feeding or sowing, showing each variety of wheat separately. 61. On or before the sth day of June, 1918, every grower of wheat shall make to the Wheat Controller a return showing, as at the 25th day of May, 1918 — (a.) The number of bushels of each variety of wheat grown by him and threshed but not yet sold and delivered : (b.) How much of such wheat still lies on the grower's farm : (c.) The location of any such wheat which is stored or hold elsewhere. 62. On or before the sth day of June, 1918, every grower of wheat shall make to the Wheat Controller a, return showing, as at the 25th day of May, 1918 — (a.) The estimated quantity of wheat, in bushels, which the grower has still unthreshed, the quantities of each variety of wheat to be stated separately : (b.) The probable date of threshing and delivery to the market. 63. In the case of all wheat remaining unthreshed on the 25th day of May, 1918, the grower shall, within one week after the threshing thereof, make to the Wheat Controller a return showin"' the actual yield of each variety. 64. On or before the 28th day of January, 1918, every flour-miller carrying on business in New Zealand shall make to the Wheat Controller a return showing — (a.) The capacity of his mill: (b.) His output of flour, bran, and pollard during the years 1915, 1916, and 1917, showing each year separately : (c.) His probable requirements of wheat for milling for the period between the 25th day of January, 1918, and the 28th day of February, 1919 : (d.) His carry-over of stocks of wheat, flour, bran, and pollard as at the 25th day of January, 1918 : (e.) His storage capacity for wheat. 65. Every flour-miller carrying on business in New Zealand shall, on or before the 15th day of each calendar month, commencing in February, 1918,.make to the Wheat Controller a return showing full particulars of all wheat delivered to him during the last preceding calendar month in pursuance of purchases made by him. 66. Every threshing-mill proprietor carrying on business in New Zealand shall, on or before the 15th day of each calendar month, commencing in February, 1918, make to the Wheat Controller a return showing full particulars of all wheat threshed by him during the previous calendar month. 67. In making all such returns as aforesaid the person by whom the return is to be made shall use such forms and give such additional particulars as the Wheat Controller may from time to time require. 68. (I.) livery person who, whether as principal or agent, and whether personally or through an agent, enters into any contract for the purchase of free wheat otherwise than from the Government shall, within seven days after the day of the making of the contract, make or cause to be made to the Wheat Controller a return of such contract containing the following particulars : — (a.) The names and addresses of the purchaser and seller : (b.) The date on which the contract was made : (c.) The class and quantity of wheat so purchased : (d.) The agreed date and place of delivery : («.) The price of the wheat per bushel : (/.) The price of the sacks : (</.) Particulars of any terms or conditions which are not in accordance with the established custom of the trade at the date of these regulations :
4—H. 44.
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(h.) If the contract is made or evidenced by any written document, a copy of that document: (i.) A declaration made by or on behalf of the purchaser that the price of the wheat is not in excess of the maximum price as fixed at the date of the contract by any Order in Council made under the Regulation of Trade and Commerce Act, 1914. (2.) Nothing in this clause shall render necessary a return of any contract for the purchase of wheat in any quantity less than 50 bushels, save that two or more contracts made between the same parties or substantially at. the same time, shall be deemed to be one contract for the purpose of this exemption. Part IX. — Seed-wheat. 69. Notwithstanding anything to the contrary in these regulations, a Government broker in purchasing wheat on account of the Government may, with the permission of the Wheat Controller, resell that wheat or any part thereof to the broker himself as seed-wheat at the price at which he purchased it for the Government, with the addition of l|d. per bushel. 70. No commission shall be payable to the broker in respect either of the purchase or resale of any wheat so dealt, with. 71. The Government broker shall pay to the Government the, purchase-money 7 for all seed-wheat, so purchased by him in cash on the delivery of the wheat to the broker in pursuance of the contract. 72. In all other respects these regulations shall apply to any such resale by the Government to a Government broker in the same manner as if the Government broker were an independent third person purchasing the wheat from the Government through that broker. 73. Save, with - the permission of the Wheat Controller, it shall not be lawful for a broker who has so purchased seed-wheat to dispose of it in any manner otherwise than by the sale thereof as seedwheat to farmers. 74. Any surplus of seed-wheat so purchased by a Government broker and undisposed-of by sale to farmers before the close of the sowing season of the year 1918 may be demanded by the Wheat Controller for the Government, and shall thereupon be resold to the Government by the broker at the price hereinbefore prescribed for good milling-wheat sold to the Government for delivery in the month in which such demand was made by the Wheat Controller. APPENDIX C. Regulations as to the Importation, Sale, and Distribution of Petrol. Pa,rt I. — General. 1. The regulations contained in this Schedule may be cited as the Petrol Regulations. 2. In this Schedule — " Minister in Charge " means a member of the Executive Council charged by the GovernorGeneral with the administration of the Petrol Regulations : " Board of Trade " means the Board of Trade established under the Cost of Living Act, 1915 : " Petrol" means and includes petrol, benzine, motor-spirit, naphtha, gasolene, distillate, naphthalate, and every other form or product of petroleum (with the exception of benzoline) which gives off an inflammable vapour at a temperature of less than 100 degrees Fahrenheit. 3. All powers and authorities conferred by these regulations on the Board of Trade may be exercised by any two members of that Board. 4. For the assistance of the Minister in Charge and the Board of Trade in the exercise of the powers and authorities conferred, by these regulations there shall be an advisory committee, to be known as the Petrol Committee, which shall consist of such representatives of those who are engaged in the business of importing or selling petrol as the Minister in Charge, on the recommendation of the Board of Trade, may from time to time appoint,, to hold office during his pleasure. Part II. — Importation of Petrol. 5. No petrol shall be imported into New Zealand except in pursuance of an import license issued to the importer by the Minister in Charge on the recommendation of the Board of Trade. 6. Every such, import license shall be revocable at the will of the Minister in Charge. 7. Any such import license may either relate to a specific consignment of petrol, or may be a general authority to import petrol during the currency of the license with, or without any restriction as to quantity, time, or port of importation. 8. No such import license shall be granted to any importer until the importer has entered into a written agreement with the Minister in Charge on behalf of the Crown containing the terms and conditions following, together with any other terms or conditions which the Minister on the advice of the Board of Trade thinks necessary for the due control of the importation, sale, supply, or distribution of petrol:— (a.) That the agreement will remain in force during the currency of the license and until the licensee has disposed of all petrol imported in pursuance thereof : (b.) That the licensee will, when he deals with a consumer, limit that consumer to a quantity of petrol not exceeding four weeks' supply, or such greater or less supply as may be determined upon from time to time by the Minister in Charge on the advice of the Board of Trade ;
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(c.) That the licensee will, when he deals with a wholesale or retail distributor, limit that distributor to a quantity of petrol not exceeding four weeks' supply, or such greater or less supply as may be determined from time to time by the Minister in Charge; on the advice of the, Board of Trade : (d.) That when the licensee knows or has reasonable grounds to suspect that a consumer or distributor is already in possession of more than the supply specified in the two last preceding paragraphs, he will refuse to supply that consumer or distributor with any further petrol during such period as will reasonably suffice to reduce his stocks to the quantity so prescribed : (e.) That the licensee in supplying petrol will give preference to those requiring it for essential uses as defined by the Minister in Charge on the advice of the Board of Trade : (/',) That the licensee will keep accurate records of all sales of petrol, and will permit such records to be inspected at all times by any officer authorized for that purpose by the Minister in Charge : (</.) That at the request of the Minister in Charge the licensee will refuse supplies of petrol to any consumer or distributor until that consumer or distributor has furnished to the Minister such particulars as he may require with regard to the holding, disposition, or use of supplies of petrol by that consumer or distributor : (A.) That the licensee will not sell petrol at prices in excess of those which may be approved from time to time by the Board of Trade : (i.) That the licensee will from time to time as required make to the Minister in Charge or to the Board of Trade such returns relative to the business of the. licensee in regard to petrol as the Minister or Board, may require for the purpose of the effective control of the importation, sale, supply, or distribution of petrol, such returns to be verified, by statutory declaration if required : (j.) That before the issue of any such license the licensee, will give security to the Crown for the due observance of the terms and conditions of such agreement in the sum of £500, or such lesser sum as the Minister may on the advice of the Board of Trade think sufficient, such security to be given by the deposit of money with the Minister in Charge, or in such other manner as the Minister on the, advice of the Board of Trade may think sufficient: (/,-.) That if any dispute arises between the licensee and the Minister in Charge as to the interpretation or effect of such agreement, or as to any breach thereof by the licensee, the dispute shall be referred to the Board of Trade, whose decision shall be final. Part lll. — Purchase of Petrol. 9. (I.) Save in pursuance of a distributing license issued by the. Minister in Charge on the. recommendation of the Board of Trade, it shall not be lawful for any person to acquire under a contract of sale or otherwise (whether such contract is made before or after the coming into operation of these regulations) the ownership or possession of more than four thousand gallons of petrol at one time (other than petrol imported by himself). (2.) The exercise by any person of any powers of disposition over any petrol not then already in the ownership or possession of that person shall be deemed to be an acquisition of the possession thereof within the meaning of this regulation. (3.) All petrol the ownership or possession of which is acquired by any person, whether from the same or from different persons, within any period of twenty-eight days shall bo doomed to have been acquired at one time within the meaning of this regulation. 10. A license granted under this Part of these regulations shall be revocable at the will of the Minister in Charge. 11. Any such license may be granted on such terms and conditions, whether as to the disposition of the petrol to be so acquired or otherwise, as the Minister in Charge on the advice of the Board of Trade thinks necessary in the public interest for the due control of the sale, supply, or distribution of petrol. 12. The Board of Trade may from time to time require any person to make to the Board a return of all stocks of petrol held by him, and it shall be the duty of that person forthwith to make such return accordingly, verified if the Board so requires by a statutory declaration. 13. Every person shall be guilty of an offence and shall be liable under the War Regulations Act, 1914, accordingly who— , , „ (a.) Acquires the ownership or possession of petrol in breach of the provisions of this fart of these regulations ; or (b.) Commits any breach of the terms or conditions on which a license has been granted to him under this Part of these regulations ; or (e.) Obtains any such license on a false representation ; or (d.) Fails to make any return required from him in pursuance of these regulations ; or (e.) Makes any such return which is false in any respect; or (/.) Makes any false representation for the purpose of obtaining a supply of petrol from any other person. Part IV. — Price of Petrol. 14. In this Part of these regulations — The term " Class A " means petrol, motor-spirit, benzine, naphtha, and gasolene :
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The term " Class B " means distillate and naphthalate : The term " port " means a port of entry under the Customs Act, 1913. 15. The maximum retail price of petrol at the ports named in the, following table shall be the price set out in that table. At Auckland, Wellington, Christchurch, and Dunedin : — Per Case of Per 'tin of Less than not less than not less tlian 4 Gallons. 8 Gallons. 4 Gallons. Per Gallon. s. d. s. d. s. d. Class A .. .. .. 27 6 13 9 3 6 Class B .. .. .. 22 6 11 3 3 0 At Napier and Timaru : — Class A .. .. .. .. 28 0 14 0 3 7 Class B .. .. .. 23 0 116 3 1 At Wanganui, New Plymouth, and Gisborne : — Class A . .' .. .. . , 29 0 14 6 3 9 Class B .. .. .. 24 0 12 0 3 3 At InvercargiU : — Class A .. .. .. .. 29 G 14 9 3 9 Class B .. .. .. 24 6 .12 3 3 3 16. At any place other than the aforesaid ports the maximum retail price of petrol shall be the maximum retail price fixed as aforesaid for the port from which the seller customarily obtains his supply of petrol, or where there is no such customary port of supply, then for the nearest port, together in each case with such addition to the maximum retail price for that port as is equivalent to the actual cost of transportation from that port to the place of sale.
APPENDIX D. Wellington Gas : Tests for Calorific Value. British British British British Thermal Thermal Thermal Thermal 1917. Units. |<)17. Units. 1918. Units. 1918. Units. Oct. 10 .. 460 Nov. 21 .. 510 Jan. 5 .. 445 Feb. 19 .. 506 ~ 18 .. 480 „ 20 .. 524 „ 7 .. 463 „ 20 .. 516 „ 19 .. 482 „ 27 .. 501 8 .. 464 „ 21 .. 532 ~ 20 .. 489 „ 28 .. 513 „ 9 .. 454 „ 22 .. 537 „ 23 .. 47K „ 29 .. 522 „ 10 .. 459 „ 23 „ 24 .. 490 „ 30 ..521 „ II .. 478 ~ 25 .. 535 „ 25 .. 482 Dec. 1 .. 506 „ 12 .. 483 „ 26 .. 513 „ 26 .. 481 „ 3 .. 512 „ 14 .. 509 „ 27 .. 527 „ 27 .. 470 „ 4 .. 504 „ 15 .. 509 „ 28 .. 525 „ 29 .. 520 ~ 5 .. 492 „ 16 .. 514 Mar. 1 .. 529 „ 30 ..514 ~6 .. 498 ~ 17 ..513 „ 2 .. 542 „ 31. .. 505 7 .. 509 „ 18 .. 517 „ 4 .. 533 Nov. 1 .. ■ 501 8 .. 598 ~19 .. 513 „ 5 .. 525 „ 2 .. 505 „ 10 .. 468 ~ 21 .. 493 „ 6 .. 518 3 . . 480 „ 11 .. 473 „ 22 (Ann'ver. Day) „ 7 .. 530 5 .. 475 „ 12 .. 493 „ 23 .. 494 „ 8 .. 541 0 .. 491 „ 13 .. 486 „ 24 .. 495 „ 9 .. 525 „ 7 .. 490 „ 14 .. 471 „ 25 .. 489 „ 10 ~8 .. . 504 „ 15 .. 472 ~ 26 .. 488 , 11 .. 565 „ 9 .. 493 „ 17 .. 491 „ 28 .. 474 „ 12 .. 550 „ 10 .. 474 „ 18 .. 491 „ 29 .. 459 „ 13 .. 553 ,12 .. 500 „ 19 .. 496 „ 30 .. 492 „ 14 .. 507 „ 13 .. 493 „ 20 .. 482 „ 31 .. 488 „ 15 .. 525 „ 14 .. 503 ~21 .. 455 Feb. 1 ..484 ~16 .. 539 „ 15 .. 506 „ 22 ..472 ~2 .. 476 „ 18 .. 546 „ 16 .. 499 „ 27 .. 511 „ 11 .. 456 „ 19 .. 539 „ 17 .. 514 „ 28 .. 491 „ 12 .. 472 „ 20 .. 533 „ 19 .. 504 „ 29 .. 478 „ 13 .. 459 „ 21 .. 537 „ 20 .. 513 1918. „ 14 .. 494 „ 22 .. 545 „ 21 .. 508 Jan. 2 ..487 ~15 .. 492 „ 23 .. 541 „ 22 .. 510 „ 3 .. 475 „ 10 .. 497 ~ 25 ~ 501 „ 23 .. 510 „ 4 .. 480 „ 18 .. 511 „ 20 .. 503
29
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APPENDIX E. Analyses ob New Zealand Gases Coal-gas. No. (1), Wellington coal-gas. analysed 16/11/17 ; No. (2), Wellington coal-gas, analysed 17/11/17 ; No. (3), Wellington coal-gas', analysed 28/11/17; No. (4), Auckland coal-gas, analysed 20/11/17 ; No. (5), Christchurch coal-gas, analysed 19/11/17 ; No. (6), Dunedin coal-gas, analysed 26/11/17. ANALYSES. (1.) (2.) (3.) (4.) (5.) ((>.) Carbon dioxide (C0.,) .. .. 3-77 3-38 3-08 4-24 3-80 3-09 Unsaturated hydrocarbons .. 3-51 3-38 3-57 3-50 3-30 3-33 Oxygon (0) .. .. ... 1-76 1-25 1-47 1-37 0-90 1-85 Carbon monoxide (CO) .. .. 9-41 9-37 8-50 10-84 13-80 7-77 Methane (OHJ .. .. .. 22-26 23-51 24-27 25-00 24-50 27-27 Hydrogen (H) .. .. .. 38-46 39-11. 40-14 42-57 42-00 36-07 Nitrogen (N) .. .. .. 20-83 20-00 18-97 12-48 11-70 20-62 100-00 100-00 100-00 100-00 100-00 100-00 Percentage of incombustible gas . . 20-30 24-63 23-52 18-09 16-40 25-50 Calories per cub. ft. (gross) measured at 60° F. and 30 in. pressure .. 116-52 119-43 122-62 127-96 127-10 124-91 British thermal units per cub. ft. (gross) .. .. .. 402-00 474-14 486-80 508-00 500-01 495-89 Analyses of British Casks. (1) Coal-gas supplied by a metropolitan company; (2) mixed gas supplied in the, metropolis (3) gas from Glover West vertical retorts. ANALYSES. (I.) (2.) (3.) Carbon dioxide (CO,) .. .. .. .. .. .. 1-48 1-51 1-00 Unsaturated hydrocarbons .. .. .. . . .. 3-39 5-07 2-85 Oxygen . . .. .. .. .. .. .. 0-20 0-53 0-05 Carbon monoxide .. .. .. .. .. .. 8-17 13-31 8-70 Methane .. .. .. .. .. .. ..31-22 20-17 29-05 Hydrogen .. .. .. .. .. .. .. 49-21 43-02 54-70 100-00 100-00 99-55 Percentage of incombustible gas .. .. .. .. 8-01 11-83 4-25 Calories per cub. ft. (gross) calculated from analysis .. .. 140-39 143-08 142-62 Calorics per cub ft. (gross), from calorimeter .. .. .. 144-50 143-50 1.44-30 Calories per cub. ft. (not), from calorimeter . . . . . . 129-50 127-90 129-60 British thermal units per cub. ft. (gross), from calorimeter .. .. 573-60 569-70 572-90 British thermal units per cub. ft. (net), from, calorimeter .. .. 514-10 507-80 514-50
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APPENDIX F. Principal Exports of New Zealand for the Years 1914 to 1917, showing Actual Values and Values when assessed at Prices ruling in 1913.
Item. Wool .Mutton, frozen Lamb, frozen Beef, frozen Butter Cheese Hides and skins (ealf and other) Tallow Phormium (fibre and tow) Timber 1913. £ 8,057,020 1,030,332 2,332,372 347,383 2,001,651 1,770,298 312,205 19 Declared Value. £ 9,318,114 2,115,080 2,554,517 1,029,520 2,338,476 2,564,125 412,373 .4. 1915. Value at 1913 Declared Value at 1913 Prices. Value. Prices. ' £ £ £ 9,502,382 : 10,387,875 8,472,172 1,994,740 2,893,161 2,190,924 2,462,902 3,004,051 2,570,479 790,917 1,626,157 977,450 2,403,950 2,700,625 2,326,675 2,499,940 2,730,211 : 2,365,308 369,600 573,765 j 462,"690 1918. Declared Value at 1913 Value. Prices. £ £ 12,386,074 7,995,346 2,529,971 1,895,040 2,437,100 2,070,883 2,119,057 1,277,260 2,632.293 ! 1,986,176 3,514,310 2,747,800 673,641 457,441 003,088 797,002 694,348 492,230 714,759 780,828 j 780,302 554,567 | 610,059 | 618,465 418,965 | 383,616 j 386,059 785,339 655,194 1,078,032 747,488 319,055 422,705 381,488 j 359,440 Totals 18,291,126 21,941,588 21,712,722 25,090,348 21,150,524 28,537,905 20,192,074 Item. ll) il7. Differences ct Differences each Year between Declared Valui at 1918 Prices. and Values Total of Differences for Four Years, 1914-17, between Declared Values and Valties at 1913 Prices. Declared Value. Value at 1918 Prices. 1914. 1914. 1915. 1916. 1917. Wool Mutton, frozen Lamb, frozen Beef, frozen Butter .. ('heese Hides and skins (ealf and other) Tallow Phormium (fibre and tow) Timber £ 12,175,366 2,458,172 1,366,514 2,007,393 2,031,551 3,949,251 456,308 £ 7,683,630 1,558,318 1,007,163 1,148,957 1,408,901 2,563,517 212,997 £ .-184,268* 120,340 9.1,615 238,603 - 65,374* 64,185 42,773 £ £ £ .-184,268* 1,915,703' 4,390,728 120,340 702,237 j 634,931 91,615 433,572 366,217 238,603 648,707 841,797 - 65,374* 373,950 646,117 64,185 364,903 j 766,510 42,773 I 1 I ,075 I 216,200 £ 4,491,730 899,854 359,351 858,436 622,(150 1,385,734 243,311 £ 10,613.899 2,357,362 1,250,755 2,587,543 1,577,343 2,581,332 613,359 553,016 1,232,608 367,336 602,960 20,411* - 62,337* i 20,411* 526 130,145 - 62,337* - 8,406* 331,144 185,680 629,648 295,940 890,049 408,064 358,616 3,740 3,740 - 2,443* 22,042 49,448 72,787 Totals 26,638,243 16,912,395 228,866 228,866 4,539,824 8,345,831 8,345,831 9,725,848 22,840,309 * Value at 1 1913 prices exceci 43 prices exceeds declared value.
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By Authority : Marcus F. Marks, Government Printer, Wellington.— 1918.
Approximate Cost of Paper. — Preparation not given; printing (1,000 copies), £38 10s.
APPENDIX G. Growth of Business— Index Numbers, 1908-1917.
Price 9d.]
Railway Passengers. Railway Freights. Shipping, Outwards. Shipping, Inwards. Coal-production. W heat -production. Sugar imported. Tea imported. Year. Number. I Index. Tons. Index. Tonnage.. Index. Tonnage. Index. Tons. Index. Bushels. Index. Cwt. | Index. i Lb. ; Ini 'General Index No. Index. II ! I I 1908 10.457.144 1000 5.135.408 I 1000 13.383.045 1000 13.438.887 1000 1909 11.141.142 1065 5.490.018 1069 13.228.484 988 13.212.609 983 1910 11.200.613 1071 5.863.674 1142 13.457.189 1006 13.470.927 ! 1002 1911 11.891.134 1137 5.887.908 1147 13.703.173 1024 13.749.032 1023 1912 13.123.879, 1255 6.246.128 1216 14.307,664 1069 14.304.289 i 1064 1913 13.355.893 1277 6.019.633 1172 13.202.600 987 13.244.622 ! 986 1914 13.565.772 1297 6.453.472 1257 14.115.850 1055 14.117.812 ] 1051 1915 14.201.506 1358 6.370.945 1241 12.668.510 947 12.693.107 945 1916 14.173.115 1355 6.239.172 ] 1215 11.332.473 847 11.497.346 856 1917 11.408.156 1091 5.742.968 1118 i 9.642.097 720 9.671.745 720 1.860.975 1000 8.772.790 1.911.247 1027 8.661.100 2,197.36-2 j 1181 8.290.221 2.066.073 1110 7.261.138 2,177.615 1170 5,179.626 1.888.005 1015 5.231.700 2.275.614 1223 i 6.644.336 2.208.624 1187 7.108.360 2.257.135 1213 5.083.277 2.068.419 1111 ' 6.807.536 I 1000 879.574 i 1000 i 6.471.965 987 999.810 1137 7.302.310 945 1.019.480 ' 1159 7.586.816 828 ; 1.092.108 j 1242 8.071.471 590 ] 1,202,062 j 1367 7.683,804 596 ! 1.215.477 1382 7.068.566 757 929.327 1057 9.951,774 810 1.257.235 1429 9.150,139 579 1.199.385 ! 1364 7.982.195 ! 776 : 1.317.557 j 1498 9.478,460 1000 1128 1172 1247 1187 1092 1538 1414 1233 • 1465 1000 1109 1192 1133 1239 1249 1425 1468 1449 1232 Year. _ All Mineral Oils imported. Wool exported. Frozen Meat exported. Butter exported. ! Cheese exported. Hides and Skins (Calf and other) exported. Tallow exported. Phormium and Tow exported. General ' * | i Index Gallons. Index. Lb. Index. I Cwt. j Index. Cwt. Index. Cwt. r Index. Number. Index, i Cwt. Index. Tons. , No. Index. 1908 ! 7.072.731 1000 1909 6.126.364 : 866 1910 7.889.223 i 1115 ; 1911 9.238.314 1306 1912 10.128.878 j 1432 1913 8.794.719 I 1243 1914 12.909.716 1825 j 1915 , 14,194,744 2007 1916 16.543.060 2339 1917 13,816,966 1954 162,518.481 ! 1000 2,120.303 1000 189,683.703 I 1167 2.572.604 j 1213 204.368.957 1258 2.654.196 j 1252 \ 169.424.811 1042 2.250.565 ! 1061 188,361.790 1159 2.573.238 I 1214 i 186.533.036 1148 2.578.693 ' 1216 | 220.472.898 1357 3.229.973 ] 1523 ! 196.570.114 1210 3.591,260 1694 j 185.506.859 1141 3.326.045 ' 1569 178,274,486 1097 2,446,945 1154 229,971 321. 108 356.535 302.387 378.117 372.258 434.067 420.144 358.632 254.397 1000 1396 1550 1315 1645 1619 1887 1827 1559 1106 280,798 400.607 451,915 439.174 577.070 611.663 863.776 817.256 949.416 885,743 1000 1427 1609 1564 2055 2178 3076 2910 3381 3154 282.821 1000 | 333.804 1180 293.670 1038 283.401 1002 313.563 1109 348.794 1233 412.822 1460 516.799 1827 510.936 1807 237.906 | 841 372.520 1000 484.160 1300 520.180 1396 413.120 1109 470.900 1264 454.860 1221 490.300 1316 535.260 1437 449.440 1206 251.980 676 21.249 1000 17.292 814 25.146 , 1183 20.649 972 22.029 1037 34.391 1618 23.928 1126 26.685 1256 32.252 1518 26.016 1224 1000 1109 1192 1133 1239 1249 1425 1468 1449 1232
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BOARD OF TRADE (SECOND ANNUAL REPORT OF THE)., Appendix to the Journals of the House of Representatives, 1918 Session I-II, H-44
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25,604BOARD OF TRADE (SECOND ANNUAL REPORT OF THE). Appendix to the Journals of the House of Representatives, 1918 Session I-II, H-44
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