DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES. REVIEW OF OPERATIONS COVERING THE PERIOD FROM THE 1st APRIL, 1918, TO THE 31st MARCH, 1919, INCLUDING AN APPENDIX SHOWING RESULTS TO 23rd AUGUST, 1919.

Appendix to the Journals of the House of Representatives, 1919 Session I, H-38

H.—3B

1919. NEW ZEAL A N D.

DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES. REVIEW OF OPERATIONS COVERING THE PERIOD FROM THE 1st APRIL, 1918, TO THE 31st MARCH, 1919, INCLUDING AN APPENDIX SHOWING RESULTS TO 23rd AUGUST, 1919.

Laid on the Table of the House of Representatives by Leave.

Sir,— Wellington, 23rd August, 1919. In continuation of my last annual report, dated the '24th April, 1918, I have the honour to submit a review of the operations of the Department of Imperial Government Supplies during the period Ist April, 1918, to the 31st March, 1919. As previously intimated, the Department commenced its operations on the 3rd March, 1915, and was primarily constituted for the purpose of controlling the purchase of the output of frozen meat on behalf of the Imperial Government. The organization established for that purpose has since been extended, and now handles all produce requisitioned on behalf of the Imperial Government, including wool, sheep-skins, hides, butter, cheese, " Glaxo," frozen and canned rabbits, condensed milk, scheelite, and such other individual contracts as are from time to time made by the Imperial authorities with New Zealand producers. In addition to the work undertaken on behalf of the Imperial Government the Department has also at different times completed arrangements in connection with various matters on behalf of the New Zealand Government; and included under this latter heading may be mentioned the butter-fat levy imposed under the provisions of the Order in Council dated the 16th October, 1916, the purchase of butter and cheese for use in camps and on. transports, the internal arrangements in connection with the sale and shipment of kauri-gum, and the accounts in connection with the original purchase of wheat from the Australian Government. In addition, at the request of the Dominion Butter Committee the Department has supervised and controlled the arrangements in connection with the Equalization Funds established in connection with the butter-outputs dur ng 1917-18 and 1918-19 seasons. FROZEN MEAT. The requisition of frozen meat on behalf of the Imperial Government commenced on the 3rd March, 1915, and has since then comprised all beef, mutton, and lamb in store or produced at freezing-works available for shipment. The preliminary arrangements in connection with this requisition were made at conferences convened by the Prime Minister and attended by representatives of the industry, and the schedule of prices and general arrangements necessary in connection with the requisition were agreed upon and subscribed to by all parties interested. This original schedule was adhered to until the 20th October, 1916, when a revision of the rates was agreed to by the Imperial Board of Trade, and has since remained operative.

I—H. 38.

2

2

The two sets of rates are furnished below for the purpose of comparison :—

The conditions applying to the increase granted on the 20th October, 1916, provided that the prices should operate for at least three months after the termination of the war, and that as from the Ist November, 1916, the previous storage rate of -|d. per pound per month, with a maximum of three months, should be reduced by 25 per cent, to 3 \d. per pound. In May, 1917, these storage rates were again reviewed, and the maximum of three months removed; and the position now obtaining is that freezing companies are entitled to storage at the rate of per pound per month in respect of frozen meat after it has remained in freezing-chambers for a period of one month until shipped. On the 29th November, 1917, an amended agreement governing the terms and conditions of purchase of meat by His Majesty's Government was completed with all freezing companies; and under these amended terms the Imperial Government accepts the ownership of all meat so soon as it is placed in the companies' freezing-chambers in good and merchantable order and condition, and on such delivery into freezing-chambers the meat becomes the property of and at the risk of the Crown in all respects, subject to the obligations of storage, insurance, and delivery imposed on the company under the terms of the agreement. The principal provision of this agreement in respect to insurance is that all frozen meat so purchased shall be covered by the freezing company for a period of four months, at its own cost and charges, under an accepted policy covering loss or damage caused by fire, and loss or damage caused by changes of temperature resulting from the total or partial destruction' or disablement for a period of not less than twenty-four hours of any portion of the refrigerating plant by fire. At the end of the period of four months referred to the responsibility and liability for all frozen meat in freezing companies' chambers is accepted by the Government, subject, as mentioned above, to the freezing company exercising all due and reasonable care. Provision is also made in the agreement for the withdrawal of meat for local consumption; and in respect of such withdrawals it is provided that the storagecharges shall be based on the principle of "Last in first out" that is, that the meat withdrawn for local consumption shall be deemed to have been the meat which last entered the freezing company's chambers. In January, 1919, a cablegram was received from, the High Commissioner for New Zealand, London, stating that the Imperial Government had agreed to the extension of the contract for the purchase of meat to the 30th June, 1920, on the condition that if there is any accumulation of meat in store on that date the meat

Description. Prices operating from 20th October, 1910. Prices operating from 3rd March. 1915, to 19th October, 1916. rVethers, first quality, 72 lb. and under ,, „ over 72 lb. and up to 85 lb. ,, „ over 85 lb. and up to 98 lb. (subject to special approval by Inspector) „ second quality .. iwes, first quality, 72 lb. and under „ „ over 72 lb. and up to 85 lb. ,, second quality jamb, specially prime and Canterbury quality, 42 lb. and under „ first quality, 42 lb. and under „ ,, over 42 lb. ,, second quality Beef, prime ox .. ,, second and heifer „ boning in quarters . . „ cow, prime.. ,, ,, second ,, boneless button, legs .. . . .. „ shoulders ,, loins ,, haunches Per lb. d. 5| 4| '""■ Per lb d. 4-1 4 ±i 4| 4f 6* 61 5 41 4i 4f 4i 51 6| 5| 5f 4 3f 3| 5| ■ «* 5i 51 4f ** 4 ** 4 5 5| 4| 5

3

H.— 38

purchased by the Imperial Government shall have preference of shipment over meat killed subsequently to the 30th June, 1920. This amendment to the original agreement has been accepted by all freezing companies throughout the Dominion with, one exception, and correspondence is now being exchanged with that company regarding the matter. Another important variation, of the original agreement has been in regard to the payment for meat which up to June, 1918, was made only when shipment had been effected. During that month, in response to representations which had been made by the Dominion's representatives in London, an authority was received from the Imperial Government to make an advance of the sum of £3,000,000 against meat in store; and a distribution of this amount was immediately undertaken, payment of 75 per cent, of the value of all old season's meat being made to those companies holding such meat, and the balance apportioned pro rata over all companies on the basis of the quantity of meat held. This latter payment represented 42-91 per cent, of the value of the new season's meat in store. In September, 1918, a further telegram was received from London authorizing an advance of 75 per cent, of the value of meat in store after it had remained therefor a period of six weeks, and immediate arrangements were made to give effect to the authority. The payment of this advance has proved of inestimable benefit to the various freezing companies throughout the Dominion on account of the accumulation of meat in store, and some idea of the assistance granted may be gained from the fact that on the 31st March, 1919, the outstanding advances amounted to £4,772,033. The authority to permit the shipment of mutton, and lamb to Canada in refrigerated space available in steamers now trading with that Dominion has been continued, and several shipments, principally by Auckland companies, have been made under this arrangement. The total quantities of meat purchased and shipped from the 3rd March, 1915, to the 31st March, 1919, were— Beef (quarters) .. .. .. ..2,452,259 Mutton (carcases) .. .'. .. ..8,392,329 Lamb (carcases) .. .. .. .. 9,864,344 Other meat (in 60 lb. carcases) .. .. .. 254,549 The total payments for meat to the 31st March, 1919, including storage and advances, amounted to £32,869,318 2s. 4d., which was distributed as under : — £ s. d. £ s. d. Auckland .. .. .. 2,750,870 12 0 Poverty Bay .. .. .. 3,448,313 6 6 Hawke's Bay . . .. ..3,481,884 0 10 Taranaki .. .. .. 1,323,001 8 7 Wellington .. .. .. 9,897,561 14 6 North Island .. .. 20,901,631 2 5 Marlborough .. ..' .. 262,243 18 2 Nelson .. ~ . . 142,112 11 3 Canterbury ... .. .. 7,057,771 11 11 Otago . . .. .. 2,408,518 10 9 Southland .. .. .. 2,097,040 7 10 South Island .. .. — 11,967,686 19 11 Grand total .. .. £32,869,318 2 4 The quantities of meat which had either arrived at destination or were en route as at the 3.lst March, 1919, were— Beef (quarters) .. .. .. .. 2,433,430 Mutton (carcases) .. .. .. ..8,269,155 Lamb (carcases) .. .. .. .. 9,758,719 The balance is accounted for by quantities of meat then on board steamers loading in New Zealand, and by losses in steamers " Clan MacTavish," " Rotorua," " Westmoreland," and " liurunui." The work of inspection, grading, and checking weights, and the certification of statements furnished by freezing companies in respect of meat in store, is carried out by the Inspectors of the Live-stock and Meat Division, Department of Agriculture. The respective quantities of meat shipped from each port from the commencement of the requisition to the 31st March, 1919, are set out in the following table :■ —

H.—3B

4

Statement showing the Quantities of Frozen Meat shipped at each Port from the Inception of the Scheme— i.e., 3rd March, 1915— to 31st March, 1919.

1914-15 Season. 1915-16 Season. 1916-17 Season. 1917-18 Season. 1918-19 Season. Total. Port of Shipmc - Beef. Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Beef. J. Mutton. Lamb. Beef. Mutton. Lamb. I I I Whangarei Auckland Whakatane Tokomaru Bay Gisborne Napier Waitara New Plymouth Wanganui Wellington Quarters. 23.694 52,533 I 6.463 25.024 34.802 46.612 Carcases. Carcases. Quarters. Carcases. Carcases. Quarters. Carcases. 41,457 11.323 3.222 25.067 4.271 41,264 74,983 186,587 42,975 108,104 76,063 22,942 58,460 41,897 8,950 107.846 67.526 7.742 33,186 220.038 101.073; 62,261 325.172 165.752 33,933 143,881 208,775 151.982 64.802 377.599 301.282 33.092 248.209 49.485 28,250 77,680, 54.929 44.126 34,608 13.918 8,531 12,761 95.713 38,012 26,783, 88.569' 67.766 56,011j 65.784 610,073 411,351 166.931' 734.540 782,383 88,287| 395.542 Carcases. Quarters. Carcases. Carcases. Quarters. Carcases. Carcases. Quarters. Carcases. Carcases. 3.155 34,595 9.991 1.079 16,166 .. .. 140.979 25.585 7,45< 9.464 146.239 30.534 40.040 32.659 3.643 932 494.081 141.358 233. 52J 6.721 .. .. 7.580 .. .. 14.301 4.071 50.905 .. 7.647 22,794 43.758J 34.873 273.191 153,18: 13,562 35.811 190,555 100.023 29.662 44.474 33.705 186.691 924.120 414.11? 88.516 30.702 263.763 211.958 23.632 99.525 77.199! 187.0301,197.871 830.93' 13,389 61.543 33,832 26.198 13,430 6.673 18.324 233.873 158.837 130.28^ 2,567 12.952 9,043 9.345 14.770 4.174 7.573 36.253 25.978 19,481: 24.004 57.900 176.227 121.674 25,519 32.648 34.822 184,025 458.941 286.27* 402,350 134.810 420.894| 257.605 38,759 234.311 147,998] 487.766-2. 395. 360 2,001, 68' 17,812 58,979 Total North 265,919 1,283,808; 847,548 635, 45111,742, 953,1, 540, 161 363,334 940,494 557,007 525,3441,185.744 767,922 209.824 448,242 364,3111,999.8725.601,2414,076,94! Nelson Picton Lyttelton Timaru Oamaru Dunedin Bluff 521 11,128 2,618] 10.312 22.410 244,750 153.374 29,871 85.884 156,552 20.549 31,035 772.152 623,925 97,868 214.387 282.044 4,763 38.162 7,624 22,246 61,634 16,623 27,650 274,884; 102,373 10.095 102.716! 144.396 21,563 42,392 770.312 334,357 32,402 189,680 217,847 4,256| 52,205 15,507 30.388 52,018 1.671 17.592 237,954 158.713 9.541 107.912 101,723 1.684 23.217 352.344 248.520 2.527 54,700 75.507 2.646 1.099 37.049 7.038 8.316 31,455 8.526' 25.419 312.976 88.455 61.636 82.697' 105.744 10.324; 23.690 588.620 283.701, 28.670 112.692 1 55.8251 3.681 484 6.435 36.806 32.875 91.746J 42,508; 114,6751 5,40l! 8.050 1,420! 23,584' 15.867 37.132 1 54.120 1.583 99.506 157,140 J 38.544 1.103. 439 2.575, 174 32.787| 545.4231,605.178 111.143 161.467 72.826 384.610 579.509 190.780 509.8351 654.807 11,876 45,673 Total South ;2,041, 960 134,429; 678,737|1,608,553 1.103.522 : 4,165 452,387J2, 791. 088 5,787, 395 71,816 703,153; 154,374; 635,106 758,499; 87,603 685.453; 88,639, 274,861 Grand totals 337,735 1,986,961 2,889,508 769. 880 2,421, 69013, 148. 714 517,708 : 1,575,600;! ,315, 506 612,9471.871,197j 1,871,444 213,989 536,8811 639,172 2.452. 259 8.392. 329'9, 864. 344 i I I

5

H.—3B

System of Payment for Meat. The system of payment for meat adopted at the outset of the scheme has been considerably altered as a result of the payment of advances under the authorities mentioned above. When the requisition originally commenced no payment was made until the meat had been placed f.o.b. ocean steamer, but since June, 1918, the payment of advances has necessitated an alteration in this arrangement. At present debit notes are received from freezing companies in respect of meat killed and remaining in store for a period of six weeks, and an advance representing 75 per cent, of the value of all such meat is paid on due date. When shipment is subsequently effected 25 per cent, only of the value thereof is paid to the freezing companies, and the balance is applied towards the reduction of the advance already made. In some cases, by direction of the Imperial Government, certain classes of meat have been given preference of shipment, and as a result meat has been shipped which has not been in store for the full period of six weeks necessary before advances are due. Under such circumstances the payment of the full value of the meat is made at time of shipment, and the advance is accordingly reduced when it subsequently becomes payable. There has been no change in regard to the submission, of documents for shipments, and freezing companies are still entitled to draw on. the Department free of exchange in respect of any shipments made. They are also entitled to show in their shipping invoices the apportionment which they desire should be made of the total amount of the invoice, and cheques are remitted direct to the freezing companies' clients, thus avoiding the payment of exchange and the duplication of documents which would otherwise be considerable. A similar arrangement has also been made in connection with advances, and in cases where freezing companies desire payment direct to clients a direction accordingly on the relative debit notes receives the attention of the Department. Funds for purchases and for advances are obtained weekly from the Imperial Government, and the method adopted is for the Controller to make an estimate of the amount which will be required during each subsequent week and to advise the Treasury, which cables the High Commissioner to obtain the amount from the Imperial Department concerned and credit the New Zealand Public Account. These requests are promptly honoured, and little difficulty is experienced in obtaining the funds required for payments due from time to time. The following statement furnishes particulars of frozen meat in store and of shipments made in 60 lb. carcases from the inception of the requisition to the 31st March, 1919 :— In store on— 1915-16. 1916-17. 1917-18. 1918-19. April 30 .. 1,792,362 2,304,258 2,946,781 4,082,323 May 31 .. 2,048,454 2,642,362 3,290,072 4,794,787 June 30 .. 2,165,342 2,480,846 3,483,324 5,230,000 July 31 .. 1,865,283 1,892,504 3,383,235 5,314,602 August 31 .. 1,410,167 1,396,540 2,949,545 5,233,308 September 30 .. 665,992 816,933 2,873,277 4,970,053 October 31 .. 199,936 367,975 2,557,881 4,576,942 November 30 .. 140,836 161,311 1,890,489 4,446,726 December 31 .. 597,817 451,361 1,915,451 4,293,315 January 31 .. 1,093,300 1,137,438 1,954,490 4,992,719 February 28 .. 1,575,336 1,901,085 2,609,618 5,766,815 March 31 .. 2,152,250 2,409,541 3,398,364 6,567,871

H.—3B

6

Shipments during— 1915-16. 1916-17. 1917-18. 1918-19. April .. .. 498,971 540,204 340,374 490,339 May .. .. 389,223 500,097 338,507 365,688 June .. .. 302,293 605,890 239,793 94,855 July .. .. 761,641 740,845 229,402 75,290 August.. .. 602,647 555,630 453,178 98,327 September .. 795,766 609,362 96,059 264,780 October .. 474,055 465,983 321,127 394,722 November .. 282,450 321,497 743,065 133,486 December .. 241,734 235,316 394,941 369,577 January .. 514,036 440,168 904,810 217,749 February .. 498,964 272,910 369,043 317,679 March .. .. 542,586 800,539 335,303 549,936 5,904,366 6,088,44! 4,765,602 3,372,428 It will be noticed that the maximum quantity of meat in store to the 31st March, 1918, was 3,483,324 60 lb. carcases on the 30th June, 1917, and that this quantity has been very considerably exceeded by the maximum quantity in store on the 31st March, 1919, which was 6,567,871 60 lb. freight carcases. The shortage of shipping-facilities has again necessitated an extension of the freezing-accommodation throughout the Dominion. When the Department originally commenced the storage capacities of the various works amounted to 2,200,000 freight carcases. In my previous report I referred to the increase to 4,400,000 freight carcases, and a further increase to 6,336,399. This latter figure has now been increased, and the total refrigerated accommodation amounts to 7,405,272 60 lb. carcases, including 4,896,561 in the North Island and 2,508,711 in the South Island. These figures represent the capacity for uncut carcases, and the arrangement whereby freshly killed carcases of mutton and lamb intended for export are specially cut and packed considerably increases the capacity of the various works. Freezing companies are paid an extra per pound for all meat so specially treated, and it is estimated that the saving in space as a result-of the adoption of this process averages from 25 per cent, to 30 per cent. CHEESE. The requisition of cheese on behalf of the Imperial Government has been continued, and the following is a brief summary of the conditions of the contracts which have governed this purchase since the inception of the requisition : — During the 1915-16 season one-third of the first-grade factory cheese produced in New Zealand was purchased by the Imperial Government on the basis of 7jd. per pound f.o.b. During the 1916-17 season the whole of the output of first- and second-grade factory cheese was purchased at the rates of 9|d. and 9|d. per pound f.o.b. respectively. During the 1917-18 season the prices were fixed at lOd. and 9fd. per pound for first- and second-grade factory cheese respectively, and, in addition, dairy cheese was purchased at 8-|-d. and Bd. per pound for first and second grades. Arrangements were also completed to enable the shipment of third-grade factory cheese on the condition that it would be valued on arrival in the United Kingdom, and purchased at a price not exceeding 9|d. per pound. This condition was accepted, and the subsequent valuation of the cheese in London enabled the Imperial Government to authorize the payment of 9|d. per pound, instead of the maximum of previously fixed in the negotiations. During the present (1918-19) season the whole output has again been purchased, and the prices fixed at Iofd., 10|d., and lOd. for first-, second-, and third-grade factory cheese respectively. Dairy cheese also has been purchased at 9|d. and Bfd. respectively for firstand second-grade quality.

7

H.—3B

The following table shows the number of crates and the value of all cheese purchased to the 31st March, 1919, during the several seasons mentioned above : — r, . Number of Amount, beason. „ „ Crates. £ 1915-16 .. .. .. 189,502 917,748 1916-17 .. .. .. 518,326 3,295,557 1917-18 .. .. .. 751,863 4,948,367 1918-19 .. .. ~ 679,296 3,576,380 2,138,987 £12,738,052 The figures for the 1918-19 season include 461,359 crates awaiting shipment on the 31st March, a portion of which had been advanced against in accordance with the conditions of purchase. Of this total quantity of cheese purchased and shipped it is interesting to note that only two shipments have failed to arrive at destination as a result of enemy action, and that the total quantity carried by the two steamers was 62,846 crates. The conditions of purchase for the 1918—19 season apply also to all cheese manufactured up to and including the Ist July, 1920, and provide for the payment on delivery of the cheese f.o.b. ocean steamer, subject, however, to an advance of 90 per cent, in the event of the cheese remaining in store for. a period of fourteen days prior to shipment. All insurance risks up to the point of shipment are borne by factories, but the Imperial Government accepts the liability for storage if the average period during which the cheese remains in store exceeds two months. BUTTER. The requisition of butter on behalf of the Imperial Government has also been continued, and the present arrangements provide for the requisition of all butter manufactured in the Dominion up to and including the 31st July, 1920. The 1917-18 output was purchased at the following rates : — Creamery Butter. —First grade, 1575. per hundredweight, with a reduction of Is. per hundredweight for each grade point by which the butter fell below first grade. Whey and Dairy Butter. —First grade, 1335. Bd. per hundredweight, with a reduction of Jd. per pound for second grade. Milled Butter. —First grade, 1245. 4d. per hundredweight, with a reduction of Jd. per pound for second grade. In addition to the prices mentioned above it was also agreed by the Imperial Government that the New Zealand producers should participate in any profits resulting from the sale of the butter in the United Kingdom, and these profits were subsequently assessed at 345. per hundredweight, of which the New Zealand factories received 50 per cent. The total amount available under this heading was £307,997 Is. 6d., which was credited to an Equalization Fund, the administration of which is explained later in this report. During the 1918-19 season, after prolonged negotiations, the following prices were fixed : — Creamery Butter. —First grade, 181s. per hundredweight, with a reduction of Is. per hundredweight for each grade point by which the butter falls below first grade. Whey and Dairy Butter. —First grade, 1625. 4d. per hundredweight, with a reduction of Jd. per pound for second grade. Milled Butter. —First grade, 148s. 4d. per hundredweight, with a reduction of Jd. per pound for second grade. No provision was included in this latter contract regarding any division of profits, and the prices quoted above represent the final payment to the exporting factories.

H.—3B

8

As in the case of cheese, arrangements were made for the payment of advances in respect of produce which had remained in store for a period of fourteen days, but all insurance risks are borne by factories until the butter has been placed f.o.b. ocean steamer. The Imperial Government also accepted liability for storage beyond an average period of two months based over all consignments throughout the season. The total quantity of butter purchased and shipped during each season to the 31st March, 1919, was as follows :— c Number of Value, roeason. -r. 0 .Boxes. t 1917-18 .. .. .. 724,699 2,931,529 1918-19 .. .. .. 647,139 2,720,090 1,371,838 £5,651,619 The value shown against the 1918-19 season includes the amount advanced against a portion of the 93,729 boxes which were awaiting shipment on the 31st March. The only loss of butter as the result of the enemy's submarine campaign was that shipped per s.s. " Hurunui," comprising 49,847 boxes, of a value of £194,953. Equalization Funds. Considerable difficulty has at various times been experienced in connection ,vith. the supplies of butter for local requirements, and when it was ascertained that the provision in the contract for the purchase of the 1917-18 season's output for the participation in profits earned on the sale of the butter in the United Kingdom would result in a substantial return to exporting factories, a number of factories which had previously supplied the local market decided to withdraw and to export their output in anticipation of realizing better prices. This action on the part of factories necessitated action by the New Zealand Government, and steps were accordingly taken to release a portion of the butter purchased on Imperial Government account for sale to local retailers. When the 50-per-cent. profits, amounting to £307,997 Is. 6d., were subsequently received from the Imperial Government the Dominion Butter Committee met and discussed the position, and decided to approach all butter-factories with a view to obtaining their consent to credit the amount to an Equalization Fund, and apply the fund towards the equalization of prices as between factories which exported and those which supplied local requirements. This proposal of the Dominion Butter Committee was agreed to by all butterfactories throughout the Dominion with the exception of three, and at the request of the Committee arrangements were accordingly undertaken by the Department to administer the fund in accordance with the proposals of the Committee. An interim payment, representing ljd. per pound in respect of all creamery butter exported, and of Jd. per pound in respect of butter sold locally, was authorized by the Committee, and on receipt of the necessary particulars from the butter-factories concerned was distributed by the Department. This distribution absorbed the sum of £164,031 to the 31st March, 19.19, and further claims are being regularly received from the factories interested, and paid on receipt. It is anticipated that a further payment of |d. per pound will be available for all factories, both exporting and local, when the returns already furnished have been audited and the final distribution can be undertaken. During the 1918-19 season a provision was inserted in the conditions of purchase for the establishment of an Equalization Fund for the purpose of equalizing local and export prices, and the insertion of this provision has automatically brought all butter-factories into the scheme for the present season. The equalization applies to creamery butter only, and funds are provided by paying all factories shipping creamery butter the sum of Is. 6d. per pound and crediting the Equalization Fund with the balance of the value of the shipment. From this fund an interim payment has been authorized by the Dominion Butter Committee of Id. per pound to factories supplying the local market and T 7 7;d. per pound to factories exporting.

9

H.—3B

The payment of these two rates has the effect of equalizing the returns of both sets of factories, as under the Gazette notice issued on the 16th April, 1918, local factories are already entitled to charge Is. sd. per pound for bulk butter at factorydoor, while under the conditions of purchase exporting factories are receiving Is. 6d. per pound as quoted above. The difference between these two prices, plus the rates of compensation authorized as an interim payment by the Butter Committee, represents the cost of transferring the butter from factory-door to f.o.b. A further small distribution will probably be available for the 1918-19 season when all butter has been shipped, and the returns furnished by factories on which the interim payments have been made audited. CONDENSED MILK. During the year ended the 31st March, 1919, 7,509 cases tit condensed milkwere purchased on behalf of the Imperial Government by the New Zealand Munitions and Supplies Department, and payment arranged for on behalf of the Imperial Government by the Department of Imperial Government Supplies. The value of these purchases amounted to £7,884 95., and the total shipments and payments to the 31st March, 1919, are 66,666 cases, valued at £70,955 2s. 4d. " GLAXO." Arrangements were again made by the Imperial Government for the purchase of 2,000 tons of " Glaxo " from the manufacturers in the Dominion, and during the year 107,645 tins were purchased and shipped, valued at £412,384 2s. 3d. This quantity and value included the balance of the contract for the previous year, and the total quantity of " Glaxo" now purchased by the Department on behalf of the Imperial authorities amounts of 163,923 tins, valued at £660,768 13s. 6d. SCHEELITE. The purchase of scheelite commenced on the 20th September, 1915, and has been continued during the period under review. The preliminary contract provided for payment at the rate of £2 15s. per unit of tungstic acid in respect of ore assaying at least 65 per cent., with a reduction in cases where the assay fell below that point down to 50 units per ton. On the Ist January, 1917, an additional allowance was made to shippers, representing the difference between the cost of freight and insurance at the commencement of the requisition and the rates being charged at that date. This arrangement continued throughout 1917. and on the Ist January, 1918, the price was increased to £3 per unit, with an allowance of 3s. lOd. per unit to cover the cost of increased charges since the requisition commenced. A further increase was made by the Imperial Government in respect of shipments despatched from New Zealand on and after the Ist May, 1918, bringing the price to £3 Bs. per unit, which includes the allowance previously made to cover the increased cost of charges. The following are particulars of shipments to the 31st March, 1919 : Tons. Shipped and lost in transit . . . . . . . . 18 Arrived at destination. . . . . . . . . . 648 En route to Great Britain . . . . . . 24 690 The total payments to the same date amounted to £135,212 195., representing advances against consignments, final payments, and charges in connection with shipments from the following districts :-— £ s. il. Glenorchy . . .. .. .. 66,678 1 4 Macrae's Flat .. .. .. .. 28,247 7 8 Otago Central . . .. . . . . 5,997 2 0 Marlborough .. .. .. .-. 26,286 19 11 Charges .. .. .. .. .. 8,003 1 £135,212 19 0

2—H. 38.

H.—3B

10

The losses as a result of enemy action were the s.s. " Rotorua," which sailed in March, 1917, with 8 tons of ore, and the s.s. " Hurunui " in May, 1918, with 10 tons. Final settlements in respect of purchases of scheelite are made on the basis of the assay carried out in the United Kingdom, but advances representing 80 per cent, of the value of the scheelite as determined by the assay made in New Zealand prior to shipment are made to producers free of interest. The contract in connection with the purchase of scheelite was made for the period of the war and for six months after the termination thereof, but on the 21st March, 1919, a, cablegram was received from the High Commissioner for New Zealand stating that the Ministry of Munitions had decided to cancel the contract for scheelite from all parts of the Empire, and to accept only that shipped up to the end of March, 1919. It was proposed to take this action in view of the fact that stocks in the United Kingdom and afloat were sufficient for requirements for a period of eighteen months, and the Ministry was of opinion that if the contracts were continued and production thus stimulated stocks would accumulate to such an extent that the position at the expiration of the contract would have the effect of automatically closing the Home market to Empire producers. In arriving at the decision to cancel the contract the Ministry expressed its desire to deal fairly with producers, and promised that full consideration would be given to a statement of any loss sustained as a result of the cancellation. On the 26th March a further cablegram was received from the High Commissioner stating that in order that producers should not have any cause for complaint with regard to short notice of cancellation the Ministry of Munitions had agreed to substitute " 30th April " for " 31st March " as the latest date on which shipment could be made on their account. The contents of these two messages were advised to the scheelite-producers throughout the Dominion, and as a result of meetings convened at the various centres interested a telegram was despatched to the High Commissioner stating that the producers refused to agree to the cancellation of the contract unless positively assured that full compensation for loss entailed by cancellation would be made. It was pointed out in this message that many producers, in order to meet the wishes of the Imperial Government, had increased their output and entailed considerable expense in extending their works, and that the cancellation would result in serious loss on this account if producers were deprived of the benefit of the balance of the contract. Further information, which it is hoped will form the basis of a satisfactory settlement of the matter, is now awaited. RABBITS. The contract for the purchase of rabbits of the 1917 pack has been completed during the year under review, and the total shipments have amounted to 91,480 crates, of an f.o.b. value of £85,762. The contract price for the purchase of rabbits was fixed at 19s. per crate f.0.b., all storage and insurance charges being borne by the seller ; but in some instances the condition in which the rabbits were shipped was so unsatisfactory that 10 per cent, of the value of the shipment was withheld when making payment of the proceeds, until such time as a report had been received from London regarding the state in which the rabbits had arrived at their destination. Correspondence is now being exchanged with the High Commissioner with a view to arriving at finality in connection with the matter of these deductions. To the 31st March, 1919, 34,639 cases of canned rabbits have also been purchased and shipped on behalPof the Imperial Government, the value, including freight, amounting to £67,332. In addition, 18,601 cases of corned beef and mutton have been purchased on behalf of the War Office, London, and shipped to the Director of Supplies, Egypt; and the total payments in respect of these purchases, including freight, amount to £82,390.

11

H.-^3B

WORK UNDERTAKEN FOR THE NEW ZEALAND GOVERNMENT. In addition to the arrangements made in connection with the purchase and shipment of the various items of produce requisitioned by the Imperial Government, the Department has also been called upon to undertake the supervision of certain matters on behalf of the New Zealand Government. Butter-fat Levy. This levy was imposed by Order in Council dated the 13th October, 1916, with the intention of providing a fund from which the sellers of butter for local consumption could be compensated in order to bring their returns to a, parity with the price obtained by factories exporting on private account. The levy represented |d. per pound on all butter-fat consumed in the manufacture of butter and cheese during the months of September, 1916, to June, 1917 ; and export licenses under the provisions of the Order in Council were only issued to those factories who made application accordingly, in which application they accepted liability for the payment of the levy referred to. The total amount collected and credited to the fund amounted to £309,198 I s. 9d., and as this amount was considerably in excess of requirements an interim refund, representing j# s d. per pound on all butter-fat on which the original levy had been paid, was made to the contributors, and absorbed £49,452 Bs. 2d. A further refund was made when the fund was finally closed, and amounted to £3,196 6s. 6c1., representing one ninety-sixth of the original levy. The rates of compensation paid during the several months for which the scheme was in operation were as under :— p or p ounc ] September, 1916, to January, 1917 . . .. . . 3|d. February, 1917, to June, 1917 .. .. .. 2jd. July and August, 1917 .. .. .. ..3d. A statement showing the weight of butter sold and the compensation paid lor each month during which the/scheme was in operation is given hereunder, and represents the final figures after the audit had been completed by the special auditors appointed for the purpose of verifying factories' returns : — ~ ~ Number of Compensation. MontL Pounds. £ s. d, 1916 September .. .. 1,211,660 16,436 0 7 October .. .. 1,466,60(1 22,762 17 S November .. .. 1,446,448 23.324 10 1 December . . . . 1,522,369 24.547 0 10 1.917 -January .. .. 1,573,643 24,794 14 (i February .. .. 1,731,192 16,239 3 0 March .. .. 2,064,689 21,328 (i (i April .. .. 2,392,444 24,835 2 5 May.. .. .. 1,942,714 20,194 14 8 June .. .. 1,629,209 16,921 2 11 July .. .. 1,515,473 18,737 19 7 August .. .. 1,823,102 22,327 5 3 20,319.549 t252,448 18 0 It is interesting to note that expense of the audit, amounting to £1,837 2s. 10d., was very considerably exceeded by recoveries obtained as a result of the inspection. Butter for Local Consumption. The purchase of butter by the Imperial Government during the 1917-18 season was completed at the contract price of 1575. per hundredweight, but with an undertaking on behalf of the Imperial Government to return to the Dominion 50 per centof any profits which might subsequently be earned as the result of the disposal of the butter on the United Kingdom market. This provision in the contract caused a good deal ol disturbance in the minds of the factories responsible for supplying the local market, as it was contended that

H.—3B

12

exporting factories would be placed in a, much better position than those which continued to supply the local market, and it was accordingly decided by a number of factories throughout the Dominion to withdraw from the local market and export their output. To meet the position created butter was supplied to retailers and others concerned in the retail butter business from Imperial stocks held in cool stores, and under these arrangements 15,473 boxes were sold, with a total value of £61,598 17s. lOd. A similar position has not arisen in connection with the purchase for the 1918-19 season, in view of the fact that the arrangements in connection with that season provide for the establishment of an Equalization Fund and obviate the possibility of any exporting factory obtaining a better return than the factory which supplies local requirements. Butter and Cheese cor Defence Department. In co-operation with the Dairy Division of the Department of Agriculture the Department: has arranged for the supply of butter to the New Zealand Munitions and Supplies Department from stocks held on Imperial Government account, and to the 31st March, 1919, 10,109 boxes of butter, valued at £38,626 15s. 10d., and 10,454 crates of cheese, valued at £64,983 16s. 7d., have been supplied under these arrangements. PURCHASE OF WHEAT FROM AUSTRALIA. The original contract in connection with the purchase of 1,150,000 bushels of wheat from Australia was completed early in 1918, and the total amount expended on these purchases was £356,139. Delivery and distribution of the wheat was undertaken by the Board of Trade, the Department rendering all invoices on receipt of an advice from the officer supervising the discharge of the various steamers, and keeping the accounts in connection with the whole transaction. TOTAL DISBURSEMENTS. The total disbursements by the Department from the 3rd March, 1915, to the 31st March, 1919, were as follows:— £ Frozen meat .. .. .. .. .. 32,869,318 Cheese, 1915-16 season . . .. .. .. 917,748 Cheese, 1916-17 season . . . . . . .. 3,295,557 Cheese, 1917-18 season . . .. .. .. 4,948,367 Cheese, 1918-19 season . . .. .. .. 3,576,380 Butter, 1917-18 season . . .. .. .. 2,931,529 Butter, 1918-19 season . . .. .. .. 2,720,090 Scheelite .. .. .. .. . . 135,213 Wool.. .. .. .. .. .. 36,814,755 Freezing companies'slipe wool .. .. .. 3,660,957 Sheep-skins .. .. .. .. .. 1,581,413 Hides .. .. .. .. .. 725,339 "Glaxo" .. .. .. .. .. 660,769 Butter-fat levy .. .. .. .. 256,549 Purchase of wheat in Australia .. .. .. 356,139 Miscellaneous .. .. .. .. .. 459,477 £95,909,600 The salaries, expenses, and stationery, and all other incidental charges connected with the internal administration of the Department since its inception to the 31st March, 1919, have amounted to £41,863 4s. lOd.

H.—3B

13

SHIPPING. The question of shipping is one that has necessitated much thought during the past year, and has been the cause of very many lengthy communications with the High Commissioner and the Imperial Government Departments concerned. Reference was made in my previous report to the decreasing number of steamers available for the Australasian trade, and a further marked decrease is noticeable in connection with the year 1918. The following statement shows the number of insulated steamers which have sailed from the Dominion during the five years 1914-18 inclusive, together with their total insulated carrying-capacity, and furnishes a clear indication of the difficulties which have been experienced in connection, with this matter :

Every effort has been made to obtain additional relief, both by cablegram to the responsible authorities in London, and through the New Zealand Overseas Shipowners' Committee to the London Tonnage Committee, and also by urgent persona! representations by the Dominion's representatives attending the conferences in London. On various occasions attention has been drawn to the accumulation of produce in the Dominion, and comparisons made between the space allotted to Australia and New Zealand, and protests have also been entered against the diversion of steamers to other trades. To a very large extent these diversions and transfers have been due to the absolute necessity of obtaining the maximum use from the number of steamers available during the currency of the war, and there is little doubt that the utmost effort has been made by the Ministry of Shipping to relieve the congestion which has at different times been so noticeable in the Dominion ports. During August, 1918, an intimation was received from the Ministry ol Shipping that it was anticipated that 5,800,000 cubic feet of refrigerated space would be available from New Zealand to the United Kingdom during the period July to December, 1918, and that 26,000,000 cubic feet would be available to Australasia during the year 1919. An attempt was made to obtain from the High Commissioner an intimation as to the probable allocation of this latter quantity as between New Zealand and Australia, but it wa,s not found possible to obtain it, as the subsequent allocation of the space depended entirely on the Food Ministry's subsequent requirements. During the latter months of 1918 further urgent efforts were made to increase the quantity of insulated space then being made available, and on the 25th January, 1919, a, despatch was received from the Secretary of State for the Colonies stating that the cessation of hostilities had released tonnage previously engaged in military, naval, and munition services, and ended the war losses, damages, and convoy delays. Under these circumstances it was found possible to restore to their original trades the majority of liners withdrawn in pursuance of the policy of consolidating all available tonnage on, the shortest routes, and the hope was expressed that from February onwards New Zealand would gradually begin to feel the effect of this restoration.

Y ! . Number of i Steamers. Total Insulated ('apacity : 601b. Carcases. 1914 .. .. .. .. .. 99* 1915 .. .. .. .. .. 84 1916 78 1917 .-. .. .. .. .. 62 1918 .. .. .. .. .. 52 ■8,800,700 7,682,000 7 ; 322,500 5,626,350 4,926,300 * Including eight steamers used as transports for the New Zeala October, 1914, only a small portion of tin- insulated capacities of wl Zealand produce. u h ud Expeditionary Force in lieh was available for New

H.—3B

14

This hope has been realized in so far as the provision for the carriage of general cargo has been concerned, and the number of steamers recently available have been sufficient to make a most satisfactory clearance of the congestion which had previously existed throughout practically every port in the Dominion. The same relief, unfortunately, was not forthcoming in the case of refrigerated cargo, and the congestion in respect to frozen meat has been very Severely felt. The main factor causing the shortage of insulated tonnage is referred to in the reply from the High Commissioner to one of the very many cablegrams despatched on the subject:— Cablegram sent to High Commissioner, dated 20th February, 1919. Insulated tonnage : Position oi freezing industry is becoming very serious owing shortness of shipping facilities. A number of freezing-works are already closing down, and there is a large quantity of stock available, which must suffer deterioration unless it can be properly treated. Please make urgent representations to Shipping Controller to provide additional insulated tonnage at earliest date possible and telegraph reply. Would also appreciate a forecast of tonnage to be made available for loading in the Dominion during April, May, and June. Cablegram received from High Commissioner, dated 2olh February, 1919. Insulated tonnage : With reference to your telegram 20th February, have made representations to Ministry of Shipping, and am verbally informed that programme given my telegram 18th January remains unaltered, and thatj space mentioned will be available, but that delay occurring owing to labour troubles and epidemics. Same causes prevent reliable forecast tonnage likely to be made available for months mentioned. lam informed that up to end April sixteen insulated steamers will be diverted to Australasian trade. It is fully anticipated, in view of the statement in the latter message to the effect that the programme outlined in January last remains unaltered and that the space mentioned will become available, the position will steadily improve, and the quantity of meat in the various stores throughout the Dominion be so reduced by the end of the year as to permit of killings next season proceeding without serious interruption. On the 15th February, 1919, the liners from requisition by the Ministry of Shipping commenced, and vessels became entitled to release on the first occasion after midnight on that date on which they had completed discharge of a cargo in any Home port. The release of any such vessel to an owner was made subject to las prior notification of the acceptance of the terms and conditions for the release of vessels under requisition, and it was provided by the Ministry of Shipping that the release did not in any way impair the powers of the Government to continue or reimpose the requisition should the national interests require the adoption of such a course. In addition, the Government control over the insulated space in vessels on their homeward voyages was continued in effect until terminated by three months' notice, and as regards vessels in the Australasian and South American trades the insulated space will continue to be allotted according to the instructions of His Majesty's Government. The New Zealand Overseas Shipowners' Committee, which has been responsible for the allocation of space in steamers loading in the Dominion since the requisition of steamers commenced, has met regularly during the past year, and the personnel of the Committee is as follows : Messrs. James Findlay (Chairman) and A. E. Pearce, representing Shaw, Savill, and Albion Company (Limited) ; Messrs. A. VV. Bennett and G. B. Bullock, representing the New Zealand Shipping Company (Limited) ; Messrs. W. Wallis and R. A. Anderson, representing the Federal Shire Line ; Messrs. J. R. Roper and H. Beauchanip, representing the Cunard Line ; and Mr. R. Triggs, representing the New Zealand Government. This Committee meets daily, and although at times the number of ships available for allocation has not been great the amount of business conducted has been very considerable, and every endeavour has been made to allocate the space available according to the requirements of the various districts. The Department is in close co-operation with this Committee, and furnishes the information regarding the quantities of meat held in store at the various freezingworks, and the quantities of greasy, slipe, and scoured wool available for shipment, on the basis of which the allocations are undertaken.

15

H— 88

Loss op Ships. The losses of insulated tonnage since the commencement ol the present war represented in terms of 60 11). carcases of meat, are as follows : a . Capacity: steamer. ~,,,-, ',-, •' 1)0 lb. Carcases. S.s. " Kaipara " .. .. .. .. 96,500 S.s. "Otaki" 95,000 S.s. "Rotorua" .. .. .. .. 99,000 S.s. " Tongariro " .. .. .. .. 83,500 S.s. " Rangatira " .. .. .. .. 97,800 S.s. " Tokomaru" .. .. .. .. 82,000 S.s.'" Middlesex" '... .. .. .. 102,000 S.s. " Port Nicholson " .. .. .. .-. 113,000 S.s. " Port Adelaide" .. .. .. .. 113,000 S.s. " Marere " .. .. .. .. .. 86,000 S.s. " Clan MacTavish ". . . . .. . . 48,000 S.s. " Turakina" .. .. .. .. 120,000 S.s. " Somerset" .. .. .. .. 95,000 S.s. " Roscommon " .. .. .. .. 100,000 S.s. " Cumberland" .. .. .. .. 123,000 S.s. " Delphic " .. .. .. .. 93,000 S.s. " Limerick" . . .. .. .. 100,000 S.s. " Port Kembla " .. .. .. .. 65,000 S.s. "Hurunui " . . . . .. .. 125,000 1,836,800 In my report for the previous year the s.s. " Westmoreland " was included in the foregoing list, but it has since been ascertained that this vessel, although suffering as the result of enemy action, was subsequently repaired, and re-entered the Australasian trade. Of the vessels mentioned in the above list only the s.s. " Rotorua," " Clan MacTavish," and " Hurunui " carried produce consigned to the Imperial Government, and the values of the cargo lost in each of these steamers were as follows : "Rotorua.'' "Clan MacTavish." " Hurunui." £ £ £ Meat .. .. 89,991 47,558 86,738 Wool .. .. 221,625 Cheese .. ..102,318 .. 302,069 Butter .. .. .. .. 194,953 Scheelite .. .. 1,641 .. 2,085 Ginned rabbits .... . . 7,953 Frozen rabbits .... . . 4,759 £415,575 £47,558 £598,557 The quantities of meat, cheese, and butter in store on the 3.lst March, 1916. 1917, 1918, and 1919, are given below, and show clearly the increase due to the shortage of shipping referred to above : —

The decrease in the number of boxes of butter held on the 3.lst March, 1919, was due to the exceptionally heavy shipments made during the months of February and March by direction of the Imperial Government.

31st March, 1916 31st March, 1917 ■ 31st March. 1918 31st March, 1919 Date. Frozen Moat (601b. Caroasos). 2.152.250 2,409.541 3,398.364 6,482,529 ( heese (Crates). 73,927 185,417 363,790 474.754 ' Butter (Boxes). 87.078 224.506 350.315 93,729

H. -3K

16

WOOL. Requisition and Disposal. Greasy Clip. The purchase of the 1917-18 greasy-wool clip on behalf of the Imperial Government was made on the same basis as the purchase of the previous clipviz., 55 per cent, advance on the average prices realized during the 1913 14 season, which were estimated to be as follows :— o, ,- jnT , Hanee of Values per Pound Description of Wool. n ~ , „ * .. , ' according to Quality. Superior merino combings .. .. From 12d. to 14|d. Medium to good merino .. .. ~ 9|d. ,; ll|d. Inferior merino .. .. .. ~ Bsd. ~ 9-Jd. Superior half-bred .. .. .. ~ 12d. ~ I4d. Medium to good half-bred .. . . ~ 9|d. ~ 12d. Inferior half-bred . . . . . . 9d. ~ lOd. Superior crossbred .. . . .. ~ 10^cl. ~ 12d. Medium to good crossbred .. .. ~ 9d. ~ lid. Inferior crossbred . . . . . . ~ 7-fd. ~ 9d. Lincoln and Leicester .. . . . . ~ B§d. ~ lo|d. Lambs, good . . . . . . . . ~ lid. ~ 13d. Lambs, medium . . . . . . ~ 9d. ~ lOfd. and all wool received into store and accepted was paid for on the above scale, plus the 55 per cent, mentioned. In addition, the Imperial Government undertook to return to tNew Zealand wool-growers half the profits made on wool sold for other than military purposes. The Imperial Government has not yet been in a, position to indicate the profits that have been made, but when any proportion becomes available it will be distributed to growers through brokers in proportion to the value of the wool purchased. The Imperial Government having intimated its willingness to continue the purchase of the 1918-19 and 1919 20 wool-clips on the same terms and conditions as for the two previous seasons, and wool-growers generally having expressed the desire that the offer should be accepted, the necessary action was taken, and a Proclamation issued by Gazette notice on the 2nd December, 1918, by which all wool clipped in New Zealand at any time not later than the 30th June, 1920, is requisitioned on behalf of the Imperial Government. The method of purchase followed for the 1918-19 clip was on the same lines as that adopted during the previous years. All owners of wool were required to deliver their wool at the stores of registered Government wool-brokers at specified ports, and the wool was there examined by expert valuers appointed for the purpose by the Government and by valuers appointed by wool-brokers. In. the case of any dispute in respect of the valuation as between the two sets of valuers, provision was made for revaluation by an umpire, and this provision has been freely availed of throughout all valuations. Payment was made for the wool to the broker as the agent for the owner, and on receipt of payment the broker took possession of the wool and held it on behalf of the Government. Payments were made to wool-brokers free of exchange on the fourteenth day after valuation had been completed, and on the same day the broker was required to account for the proceeds to the owners concerned. Prior to payment being completed the wool remained the property of and was at the risk of the owner, but was insured against fire to its full insurable value on his behalf while in the possession of the broker and until paid for. The broker was not allowed to charge the owner any sum for services rendered with the exception of that for repacking or submitting wool to the adjudication of an umpire when such was required, the intention being that the amount payable by the Government to the owner for his wool should be the net return based on the foregoing scale of prices. A reduction of one-half of the minimum fee payable on appeals was made as from the Ist January, 1919. The brokers appointed as registered Government brokers were required to do all that was necessary in connection with the receipt, weighing, stacking, cataloguing,

17

H.—3B

displaying, and countermarking in accordance with the instructions issued by the Government, and their remuneration for this service was fixed at per pound of wool for all wool purchased through the agency of these brokers in pursuance of the scheme. An additional allowance of 6d. per bale was made to brokers to cover the cost of preparation of shipping documents. The wool - broker was required to provide storage free of charge for the wool for a period of twenty-eight days after the date of valuation, and on the expiration of that period storage was paid by the Department of Imperial Government Supplies at the rate of 4d. per bale per week or portion thereof for the months of October to April inclusive, and at the rate of 2|d. per bale per week or portion thereof for the months of May to September me usive in any year. The Government also accepted liability for freight, stamp duty on bills of lading, and all wharfage, lighterage, and railway charges from the store to the carrying steamer where such were incurred. Valuation. The services of the overseas buyers and others as valuers utilized for the valuation of the previous clips were, with some alteration in personnel, retained for the valuation of the 1918-19 clip; and the remuneration for their services was fixed at £45,000 plus actual locomotion expenses; and £1,500 for clerical assistance and office accommodation, and a further £1,500 for additional, expenses in valuing freezing-works slipe wool. In addition to valuing the greasy clip and slipe wool produced at freezing-works, all scoured and slipe wool produced at wool-scouring and fellmongery works is valued as required without extra remuneration. Valuations have been carried out with a minimum of friction and with general satisfaction to growers, the number of appeals against valuations being infinitesimal in proportion to the number of lots valued. Wool bought and shipped. Since the commencement of the requisition the following quantities of wool have been disposed of as under : — Total number of bales valued (as per valuation certificates received) 1,531,473 Number of bales lost in transit .. .. .. .. 9,668 Number of bales arrived at destination (in 1.16 steamers) .. .. 566,502 Number of bales en route to Great Britain (in 20 steamers) . . 128,997 Number of bales shipped on account of other Governments .. 115,318 Number of bales of greasy wool available for shipment, or scouring, or delivered to scourers .. .. .. .. .. 710,988 1,531,473 Number of bales of greasy wool delivered to scourers for treatment. . 233,451 Number of bales of scoured wool shipped .. .. .. 121,994 Number of bales of scoured wool available for shipment .. .. 84,306 Total number of bales paid for.. .. .. .. .. 1,518,591 For the 1,518,591 bales of wool paid for as mentioned above, the sum of £36,814,755 has been disbursed. The wool-valuing centres under the scheme were : Auckland, Tokomaru Bay, Tolaga Bay, Gisborne, Napier, Waitara, Wanganui, Wellington, Nelson, Blenheim, Christchurch, Dunedin, Timaru, Oamaru, Invercargill. Wool for other Governments. Acting under instructions from the Imperial Government, the following wool has been selected for other Governments during the past year : — From the 1917-18 clip :— For France .. .. .. .. .. 24,152 bales. For United States of America . . . . . . 20,676 ~ From the 1918-19 clip :— For France .. .. . . . . .. 24,446 „ For United States of America . . . . 59,635 ~ For Canada .. .. .. .. 3,875 „

3—H. 38.

H.-38

Shipments from the above and from selections made during the previous year have been made as follows :— France . . . . .. . . 49,207 bales. United States of America . . .. .. 44,373 ~ Canada .. .. .. .. .. 21,738 „ The prices charged for these shipments were arranged by the Imperial Government. The selections for Canada and the balance of selections for France and America were subsequently cancelled, and the wool held for shipment to the United Kingdom. Wool for Local Mills. The Department has also arranged for the continuance of the supply of wool required by local mills, and this has been supplied at the Imperial Government schedule rates, plus the cost of valuation. The representatives of New Zealand woollen-mills are required to make their selections prior to valuation, and in the case of any dispute arising as between two mills preference is given to the one which has first intimated its requirements to the broker concerned. Wool-soouring Arrangements. The arrangements made for scouring locks, pieces, lambs, and heavy conditioned fleece wool were continued as in previous years. For the 1916-17 season to the 31st October, 1917, 80,951 bales, and for the 1917-18 season from the Ist November, 1917, to the 31st October, 1918, 107,739 bales, of wool were distributed to scourers for treatment ; and for the portion of the 1918-19 season from the Ist November, 1918, to the 31st March, 1919, 93,320 bales of wool had been distributed to wool-scourers or set aside for subsequent scouring. This continued increase has been by the instructions of the Imperial Government to save shipping-space, and also as a direct result of the satisfaction expressed by the Imperial Government at the quality of the work carried out by wool-scourers. The quantity of wool now scoured in the Dominion is more than double the quantity scoured annually under private trading. The credit for the satisfactory work performed is largely due to the great care and attention given by the Inspectors of Wool-scouring works, and also to wool-scourers, who have improved their plant and methods to the requirements of the Department. Scourers were required to sort, classify, scour, dry, and pack the wool to be treated by them, and their remuneration was fixed at the following scale : l|d. per pound for fleece on scoured weights; lfd. per pound for bellies, locks, stained pieces, and second pieces on scoured weights ; with Jd. per pound advance in each case for merino wool ; and payment for such charges is made within fourteen days on receipt by the Department of Imperial Government Supplies, provided the inspectors' and valuers' certificates required are properly completed. The result of scouring for 1917-18 season showed that 108,682 bales greasy wool, of an average weight of 378-39 lb., equal to 41,124,629 lb., were reduced to 91,631 bales scoured wool, of an average weight of 291-33 lb., equal to 26,694,456 lb. —a saving in shipping-space required of 17,051 bales and 14,430,173 lb. weight. The average yield of scoured wool was 64-91 lb. per 100lb. of greasy wool. The amount paid to wool-scourers for treatment of this wool was £192,933 18s. lid. Condition of 1918-19 Clip. Auckland. —While the wool in this district came forward in good condition, the clip did not show the length and character of the previous season. It was less affected by seed than usually, except at the later valuations. Indifferent skirting and poor classification are the chief causes of complaint. Poverty Bay (including Tolaga Bay and Tokomaru Bay).—Complaint is general re the indifferent skirting and classing of the clips throughout the whole of this district. Gisborne. —There was a slight improvement in the character and condition of the clip as compared to the previous season, but no marked and outstanding lines

18

19

EL—3B.

of superior wool. Seed appeared to be later in ripening, and was not in evidence to the same extent in the earlier valuations. Hogget wool showed evidence of the adverse season, and came forward generally in poor condition and short. Lambs' wool is suffering for want of classing, thereby causing it to be more or less secondary, and there were very few choice lines. Tokomaru Bay wools were not up to the standard of the previous year. Ha-wke's Bay. —The wool submitted in the early part of the season was generally good, but not so well grown as usual. Some good lines came from southern Hawke's Bay. Hogget wool was short and tender. The majority of the lines of lambs' wool were short and secondary, and showed want of care in preparation. Seed was later than usual, and did not appear to any extent until the later valuations. As the season advanced the condition became heavier. Wellington, Wanganui, and Waitara. —While the condition in these districts has been fair, there have not been those outstanding lines of superior condition and growth generally seen. Hogget wool was poor, and frequently tender and short. Late-shorn clips carried the usual percentage of seed and condition. Marlborough. —The clip here could not be said to be generally as good as the 1917-18, though a few lines came forward in better condition. A little more care in preparation would make things more satisfactory both for growers and valuers. Nelson. —Compared with, the previous clip the wool did. not come forward in such good condition, being shorter, off colour, and heavier in condition. There is little attempt at classing, and consequently lines are generally of a mixed character. Christchurch. —In most cases the winter had left traces of its severity on the wool, and, while there were a few lines equal or better than the previous season, most of the choice lines of North Canterbury wool were this season of only medium character and condition. Because of this, valuers have not been, able to get up to the previous season's prices. In consequence the number of appeals have been increased. Besides the worse condition there is evidence of want of the usual care in preparation, which in case of public auction would in many cases affect the competition from those wanting straight and well-got-up lines of wool. Timaru. —The severe winter had left its traces on much of the wool submitted for valuation, and generally the clip was not in so good condition as the previous year, being only an average clip. There were a few good lines in three-quarter-bred wools. Oamaru. —The condition of the clip was decidedly inferior when compared with the previous year's wool. Here were some good lines, but generally the clip was only in average condition. Dunedin. —The clip here had suffered considerably through the severe winter, while some clips were in better condition than the previous year. Those clips' from snow country were exceptionally light, though wanting in growth and character, many lines being very tender. Invercargill. —Except for station wools the condition and character of the clip was much as usual —in good condition, but there was a large proportion of tender wool. ' London Appreciation. Evidence of the high opinion held in the United Kingdom of the arrangements made in the Dominion in connection with the wool-purchasing scheme has come to hand in a letter recently received from the office of the Imperial Ministry of Munitions (Contracts Department), an extract of which reads as follows :— " We think we are voicing the general opinion when we say that the standard of work on your side was very high. The wool trade as a whole can now appreciate in a manner hitherto impossible the thoroughness of your scheme, and the amount of hard work which has been put into it both by the originators and those who have carried it out." Losses by Fire. ' During the year a fire occurred at Messrs. J. R. Mills and Co.'s wool-store, Port Chalmers, which resulted in the partial destruction of 223 bales of wool, valued at £5,329. A portion was recovered in a damaged condition, and this after scouring and reconditioning was valued at £1,257. The net loss to the Imperial Government after paying scouring and incidental charges was £4,282.

H.—3B

20

By a fortunate occurrence a large shipment of wool had been made from Fort Chalmers immediately prior to the fire occurring, otherwise the loss would have been very large. A smaller fire occurred about the same time in a wool-store occupied by Messrs. De Pelichet, McLeod, and Co., Port Ahuriri. No wool was destroyed, but damage by water resulted in a loss for reoonditioning-expenses and depreciation of £505. Previous losses of wool by fire had been — March, 1917 —Dewe and Sporle's wool-scouring works, Feilding, 482 bales greasy and scoured wool, £10,566. June, 1917 —Wilson and Canham's fcllmongery works, Auckland, 77 bales slipe wool, £2,060. Freezing Companies' Slipe Wool. In accordance with arrangements made with the Imperial Government, valuations of slipe wool have been made periodically at freezing-works during the year, 011 the basis of a schedule of prices equivalent to the net average prices realized in New Zealand during 1913-14, plus 55 per cent. At the greater number of freezing-works the slipe wool has been displayed for valuation on the premises, and 2s. 6d. per bale has been allowed for the extra labour involved. Freezing companies who have not suitable accommodation, on their own premises for this purpose have displayed their wool for valuation at approved shipping stores, and in such cases an allowance of ss. per bale has been made. Payment for slipe wool valued has been made on the fourteenth day after the date of valuation, and has been held thereafter on behalf of the; Imperial Government, storage at the rate of 3d. per bale per week being paid to the freezing companies. Out-of-pocket expenses for wharfage and lighterage incurred in placing the slipe wool on board ocean steamer, together with the cost of the bills of lading, have been defrayed by the Government; all other charges up to the point of shipment on board ocean steamer have been borne by the freezing company concerned. In case of any dispute in respect of the valuation between the valuer appointed by the freezing company and the valuers appointed by the Government provision was made for revaluation by an umpire, but no appeal against a valuation has been made by any freezing company during the year. To the 31st March, 1919, 68,959 bales had been purchased subject to valuation in the United Kingdom under regulations ruling to the 31st March, 1918, and of this quantity 65,130 bales had been shipped to the United Kingdom and 1,795 bales to other Governments. 63,201 bales have been valued and purchased in New Zealand, and of this number 18,440 bales have been shipped to the United Kingdom and 7,604 bales to other Governments. The total payments for freezing companies' slipe wool were £3,660,957. The Imperial Government, in accordance with the wishes of the owners, having agreed, to extend the purchase of slipe wool on the same basis to be coterminous with the purchase of greasy wool, the necessary action was taken, and a Proclamation issued by Gazette notice on the 25th January, 1919, extending the purchase of freezing companies' slipe wool up to the 30th June, 1920. SHEEP-SKINS. The purchase of sheep-skins on the basis of 55-per-cent. advance on 1913-14 prices has been continued on the same conditions of purchase as obtained to the 31st March, 1918. The scale of values on which sheep-skins are purchased was fixed as follows :—

Merino Skins. Half-bred Fine Crossbred Coarse Crossbred Skins. Skins. Skins. Three-quarter to full-woolled sound skins Half-woolled sound skins Short to quarter-woolled sound skins Shorn sound Lamb-skins, sound d, 104-iii 8|~ 9f 7*- 8* 5f- 6f I V. (I. d. d. 13 -14 .12 -13 llf-121-11 -12 10J-11| 10 -11| 91 lOf 9J-10| 84-10f 8-9 8*- 9| 8 -10 11^124

21

PL—3B

All skins with damaged or faulty pelts are valued at prices proportionate to those shown above. In valuing green, or salted sound skins allowance is made for the extra value of the pelts as compared with dried sound skins of similar quality. Seedy.skins are valued at lower values according to their condition. Black skins are valued according to their proportionate value to ordinary skins of the same class. Wherever the conditions are suitable skins from sheep slaughtered at abattoirs are valued daily on the abattoir premises, and treated on the same day at ileighbouring fellmongeries. Fellmongering . Sheep-skins are allocated to fellmongers by the Department immediately after valuation, and are during treatment under close inspection by Inspectors of Fell-mongering-works specially appointed for the purpose. The resulting wool and pelts after valuation are required to be redelivered to the Government through the Government agents at the customary shipping ports, baled or casked, and branded as directed. Fellmongers have been paid for their services at the following rates :— Fellmongering . . . . 2}d. per pound on weight of wool. Curing pelts '. . 3s 9d. per dozen (casks extra). To the 31st March, 1919, 4,082,415 had been purchased, at a cost of £1,581,413. Results for the 1917-18 season show that 1,935,722 skins, valued at £652,419, an average cost of 80'89d. per skin, were issued to fellmongers for treatment. The average pull of wool was 4.*03 lb., and the average percentage of valueless pelts was 10-36. The amount paid to fellmongers for sliping wool and curing pelts was £99,316. The standard of the work carried out by fellmongers continues to be well maintained, and the results are distinctly satisfactory to all concerned. It is worthy of remark that this very large business of wool-scouring and fellmongering, treating an aggregate of £2,622,010 worth of raw material annually, and distributing in wages, material, railages, &c, £472,120 per annum, has been carried out by the Department with great advantage not only to the Imperial Government, but to the manufacturers and workers in New Zealand. More than double the quantity of wool has been annually sorted and scoured in the Dominion than in any year prior to Government control, and all the sheepskins produced have been fellmongered locally, no export being permitted. This, with careful distribution giving consideration to the capacity of works and the quality of the work done, has contributed to a continuity of well-paid work to all employees. Under private trading a few of the wool-scouring and fellmongering works undoubtedly did first-class work, but the .output of the majority was second rate. Under Government control the best methods and workmanship have been acquired by all, fullest advantage having been taken by wool-scourers and fellmongers of the knowledge and experience freely placed at their service by the Department's experts in each particular line. The reports of the users of New Zealand scoured and slipe wool and pelts are that the general standard of work is immeasurably higher than in previous years. Hides and Calf-skins. The purchase of hides and calf-skins on behalf of the Imperial Government ceased at the 28th March, 1918 ; only those hides and calf-skins produced from stock slaughtered on or before that date have been purchased in the current year. The total purchases of hides and calf-skins were 370,508, for which £725,339 was paid. At the 31st March, 1919, 43,941 were still held at the disposal-of the Imperial Government.

EL—3B

22

STAFF AND ORGANIZATION. It will be gathered from the foregoing that the work entrusted to the Department has continued to increase, and, in addition to undertaking the arrangements necessary in connection with the requisition of produce on behalf of the Imperial Government, the Department has at different times been called upon to institute general inquiries regarding other matters, and has endeavoured to constitute itself a Department for the collection and distribution of information of general interest to the commercial community. In this connection the organization of the Department has been freely consulted by business people in matters of commercial interest, and its endeavour has always been to render the fullest assistance possible. The policy has all along been to conduct its business on commercial lines, with the free utilization of modern methods and mechanical appliances essential to systematically and commercially handling business of such large dimensions so that the fullest measure of efficiency might be obtained. The special telegraphic code devised by the departmental officers has been revised and large additions made; and the Department now possesses a very comprehensive code, comprising some twenty-five thousand ciphers, which will have the effect of saving some thousands of pounds in the exchange of cablegrams with the High Commissioner and the Imperial Government Departments concerned in the various requisitioning schemes. The regular issue of the printed bulletin showing its operations, which has been prepared and furnished for the information of Ministers, the High Commissioner, all Departments of the Dominion Government concerned, the New Zealand Overseas Shipowners' Committee, representatives of the associated banks in New Zealand, the Board of Agriculture, and others, has been continued by the Department, which has also kept the Imperial Government fully informed regarding the quantities of produce available for shipment from time to time. I have pleasure in again placing on record the indebtedness of the Department to wool-brokers, freezing companies, and others with whom it is in close touch, for the co-operation and willingness at all times to assist the Department in its administration, and I am also glad to acknowledge the thoroughness of the continuous audit conducted by the Controller and Auditor-General through a special staff attached to the Department for the purpose. When the Department was originally constituted in March, 1915, to handle the arrangements in connection with the purchase of frozen meat the staff consisted of five officers, including an officer in charge, two clerks, a typiste, and a messenger. On the 31st March last there were sixty-one officers employed, including executive officers and clerks (49), typistes (9), Burroughs ad ding-machinists (2), and a messenger. The staff suffered seriously as a result of the recent influenza epidemic, and this rendered the work of the administration staff particularly severe and arduous, and I consider it was largely due to the special efforts and co-operation displayed by all officers in the discharge of the duties entrusted to them that the work of the Department was successfully carried on during a very trying period. I have, &c, Bobert Triggs, Controller. The Bight Hon. Minister in Charge, Department of Imperial Government Supplies, Wellington.

23

H.-38.

(1.) WOOL— 1916-17, 1917-18, AND 1918-19 CLIPS. Statement showing Particulars of Total Wool requisitioned (and either purchased by the Imperial Government or Local Woollen- mills) during the above Years ended 30th June, and Average Values in each Valuing Centre.

APPENDICES.

Auckland. Tokomaru Bay. Tolaga Bay. Gisborne. Napier. Waitara. Wanganui. Wellington. Number of bales valued — 1916-17 1917-18 1918-19 Weight in pounds — 1916-17 1917-18 1918-19 Value — 1916-17 1917-18 1918-19 Averasre value per pound — 1916-17 .. .. .. ■ 1917-18 1918-19 Average value per bale — 1916-17 1917-18 1918-19 Average weight per bale, in pounds — 1916-17 1917-18 1918 19 35,929 4,584 43,046 7,799 40,518 7,779 12,'601, 067 1.792.508 15.397,618 3,235,486 14.664,236 3,215,217 £764,017 18 4 £110,411 14 4 £913,960 15 11 £191,531 2 6 £883,788 4 5 £189.811 18 6 14-55d. 14-78d. 14-24d. 14-2L1. 14-46d. 14T6d. £21 5 3 £24 1 9 £21 4 8 £24 11 2 £21 16 3 £24 8 0 351 391 358 415 362 413 3,969 36,349 6,934 40,816 6,350 42,133 1,483,856 13,685,819 2,575,937 15,499,303 2,351,052 15.644.606 £88,965 13 2 £809,666 10 9 £155,477 10 3 : £913,088 15 9 £142,812 8 7 £945,598' 11 8 I4-39d. 14-20d. 14-48d. 1414d. 14-58d. 14-50d. £22 8 4 £22 5 6 £22 8 5 £22 7 5 £22 9 9 £22 8 10 374 377 371 380 370 37 1 ! 1 89,267 85,169 86,096 33.982,491 32,433,780 33,022,811 £2,037,142 14 8 £1.952,774 14 5 £2,018,401 18 7 14-39d. 14-45d. 14-67d. £22 16 5 £22 18 7 £23 8 10 380 381 384 6,586 24,945 115,390 8,221 34,389 115,119 8,330 40,418 110,718 2.370,527 9,641,697 44,659,733 3,101.635 13,369.531 44,706,351 3,243,214 15,900,283 43,264,398 £132,063 0 4 ! £560,018 7 1 £2,746,053 3 3 £179,591 16 1 £791,327 17 5 £2,763,361 4 5 £194,964 12 3 £972,240 9 0 j £2,701,185 2 2 13-37d. 13-94d. 14'75d. 13-90d. 14-20d. 14-83d. 14-43d. 14(i7d. 14-98d. £20 1 (1 £22 9 0 £23 15 11 £21 16 11 £23 0 3 £24 0 1 £23 8 1 £24 I 1 £24 7 11 360 386 387 377 389 388 389 393 391 Marlborough. Nelson. Christchurch. Timaru. Oamaru. Dunedin. Invercargill. Total (Dominion). Number of bales valued — 1916-17 1917-18 1918-19 Weight in pounds--1916-17 1917-18 1918-19 Value — 1916-17 1917-18 .. :. 1918-19 Average value per pound — 1916-17 1917-18 1918-19 .. '.'. Average value per bale — 1916-17 1917-18 1918-19 Average weight per bale, in pounds — 1916-17 1917-18 1918-19 8,136 15,083 16,600 2,710,586 4,987.041 5,472,730 £176,823 6 2 £341,451 14 8 £376.537 7 1 15-65d. 1643d. 16-51d. £21 14 8 £22 12 9 £22 13 8 333 330 329 6.130 65,303 26,096 7.644 72,316 29,726 7,818 71,863 33,290 2.064.103 22.412,468 8,982,870 2.539.155 24,197,602 10,192,050 2,619,688 23.995,426 11,487,781 £124.247 6 6 £1,462,069 1 0 £578,799 12 7 £154.427 1 11 £1,652,354 3 5 £691.412 0 7 £164,163 17 2 £1,670,673 13 1 £790,122 12 8 14-44d. 15-65d. I.r46d. 14-59d. 16-38d. 16'2Sd. 15-04d. 16-7L1. 16-51(1. £20 5 5 £22 7 9 £22 3 7 £20 4 0 £22 17 0 £23 5 2 £20 19 11 £23 4 11 £23 14 8 337 313 344 332 335 343 335 334 345 | 10.119 49.674 30,565 513,042 12,619 54.047 33,554 566,482 12,469 51.437 31,560 ' 567,379 3,546.554 16,244,522 9.485,008 185,663,809 4,270,560 18.254,534 10,817,838 205.578,421 4,171,331 16.940.372 9,378,141 205,371,286 £211,342 16 7 £1,020,376 15 3 £582.912 2 0 £11,404,910 2 £271,231 18 1 £1,153,073 7 6 £681.521 18 8 £12,806,586 1 £269,080 8 8 £1,100,485 18 11 £624,893 1 11 £13,044.760 4 14-30(1. 15-08d. 14-75d. 14-74H. 15-24d. 15-16d. 15'l2d. 14'95d. 15-48d. 15-59d. 15'99d. 15'25d. £20 17 9 -£20 10 10 £19 1 5 £22 4 7 £21 9 10 £21 6 9 £20 6 3 £22 12 2 £21 11 7 £21 7 11 £19 16 0 £22 19 10 350 327 310 362 338 338 322 363 335 330 297 362 N.B. —Freezing companies' slipe wool is not included in above return.

H.—3B

24

(2.) WOOL— 1916-17, 1917-18, AND 1918-19 CLIPS. Statement showing Particulars of Purchases on Imperial Government Account during above Years ended 30th June, and Average Values in each Valuing Centre.

I Auckland. Auckland. Tokomaru Bay. Tokomaru Bay. Tolaga Bay. Tolaga Bay. Gisborne. Gisborne. Napier. Napier. Waitara. Waitara. Wanganui. Wanganui. Wellington. i_ j I i Number of bales valued — 1916-17 1917-18 1918-19 Weight in pounds — 1916-17 1917-18 1918-19 Value — 1916-17 1917-18 .. .. .. i 1918-19 .. .. ..I Average value per pound — 1916-17 1917-18 191S-19 Average value per bale — 1916-17 1917-18 1918-19 Average weight per bale, in pounds — 1916-17 1917-18 1918-19 34,871 42,563 40,043 12,238,489 15,210,941 14,495,275 £745,221 8 1 £904,596 1 6 £875,945 7 2 14-61d. 14-27d. 14-50d. £21 7 5 £21 5 0 £21 17 6 351 357 362 4,584 7,799 7,779 1,792,508 3,235,486 3,215,217 £110,411 14 4 £191,531 2 6 , £189,811 18 6 14-78d. 14-21d. 14-16d. £24 1 9 £24 11 2 £24 S 0 391 415 413 3.969 6,934 6,350 1,483,856 2,575,937 2,351,052 £88,965 13 2 £155,477 10 3 £142,812 8 7 14-39d. 14-48d. 14-58d. £22 8 4 £22 8 5 £22 9 9 374 371 370 36,349 40,816 42,133 13,685,819 15,499,303 15,644,606 £809,666 10 9 £913,088 15 9 £945,598 11 8 14-20d. 1414d. 14-50d. £22 5 6 £22 7 5 £22 8 1 377 380 371 87,947 84,157 84,906 33,467,148 32,034,484 32.569,111 £2,011,280 18 6 £1,932,519 8 3 £1,993.748 10 4 14-42d. 14-47d. 14-69d. £22 17 5 £22 19 3 £23 9 7 380 380 383 6,586 8,221 8,330 2,370,527 3,101,635 3,243,214 £132,063 0 4 £179,591 16 1 £194.964 12 3 13-37d. 13-90d. 1443d. £20 1 0 £21 16 11 £23 8 1 360 377 389 24,945 34,389 40,418 9,641,697 13,369,531 15,900,283 £560,018 7 1 £791,327 17 5 £972,240 9 0 13-94d. 14-20d. 14-67d. £22 9 0 £23 0 0 £24 1 I 386 389 393 114,261 114,717 110,375 44,235,643 44,548.682 43.135,776 £2,722.346 19 8 £2.755,056 16 1 £2,693.582 16 7 14-77d. 14-84d. 14-99d. £23 16 6 £24 0 4 £24 8 1 387 388 390 I Marlborough. Nelson. Christchurch. Timaru. Oamaru. Dunedin. Invercargill. Total (Dominion). I Number of bales valued — 1916-17 .. .. .. 7,878 6,130 59,746 1917-18 .. .. .. 14,794 7,644 65,366 1918-19 .. .. .. 16,038 7,818 65,241 Weight in pounds — 1916-17 .. .. .. 2,619.519 2,064,103 20,465,800 1917-18 ,. .. .. 4,892,032 2,539,155 21.839,388 1918-19 .. .. .. 5,281,265 2,619,688 21,796,762 Value — 1916-17 .. .. .. £171,021 9 5 £124,247 6 6 £1.340,929 9 3 1917-18 .. .. .. £333,266 12 6 £154,427 1 11 £1,493,925 16 10 1918-19 .. .. .. £360,929 7 8 £164,163 17 2 £1,510,545 8 5 Average value per pound — 1916-17 . . .. .. 15-67d. 14"45d. 1573d. 1917-18 .. .. .. 16-35d. 14-59d. 16"42d. 1918-19 .. .. .. 16-40d. 15-04d. 1663d. Average value per bale — 1916-17 .. .. .. £21 14 2 £20 5 4 £22 8 11 1917-18 .. .. .. £22 10 6 £20 4 0 £22 17 1 1918-19 .. .. £22 10 1 £20 19 11 £23 3 1 Average weight, per bale, in pounds — 1916-17 .. .. . . 333 337 343 1917-18 .. .. . . 331 332 324 1918-19 .. .. 329 335 334 24,139 9,820 26,917 11,673 30,707 11,222 8,285,467 3,438,868 9,223,335 3,951,117 10,611.537 3.725.853 £537.302 0 1 £204,266 14 8 £617.607 19 6 £248,558 1 7 £726,095 14 0 : £237,778 19 11 15'56d. 14-25d. l6-07d. 1511d. 16-42d. 15-32d. £22 5 2 £20 16 0 £22 18 11 £21 5 10 £23 12 11 £21 3 10 343 350 342 338 345 332 44,961 46,755 46,018 14,554,925 15,666,880 15,117,917 £922,807 7 9 £987,492 19 2 £979,427 5 7 15-22d. 15-13d. 15-55d. £20 10 0 £21 2 5 £21 5 8 324 335 328 30,035 496,221 33,045 545,790 31,180 548,558 9,292,473 179,636.842 10,626.145 198,314,051 9,242.691 198,950.247 £575,707 1 1 £11,056,256 0 10 £673,807 17 1 £12.332.275 16 5 £618,681 4 7 £12,606.326 11 5 14-87(1. 14-77d. 15-22(1. 14-92d. 16-06d. 15-21(1. £19 3 4 £22 5 7 £20 7 9 £22 11 11 £19 16 10 £22 19 7 309 36i' 321 .-ilili 296 363 N.B. —Freezing companies' slipe wool is not included in above return.

25

H.—3B

(3.) WOOL- 1916-17, 1917-18, AND 1918-19 CLIPS. Statement showing Particulars of Wool sold to Local Woollen-mills during above Years ended 30th June, and Average Values in each Valuing Centre.

4—H. 38.

Auckland. Napier. Wellington. .Marlborough. Christchurch. Timaru. Oamaru. Dunedin. Invercargill. Total (Dominion). Number of bales valued — 1916-17 .. 1917-18 .. 1918-19 .. Weight in pounds — 1916-17 .. 1917-18 1918-19 .. 1,058 483 475 1,320 1,012 1,190 1,129 402 343 258 5,557 1,957 299 4,713 289 6,950 2,809 946 7,292 562 6,622 2,583 1.247 5.419 530 16,821 509 20,692 380 18,821 362,578 186,677 168,961 515,343 399,296 453,700 424,090 157,669 128,622 91,067 1,946,668 697,403 107,686 1,689,597 95,009 2,358,214 968,715 319,443 2,587.654 191,465 2,198.664 876.244 445,478 1,822,455 £5,801 16 9 | £121,139 11 7 £41,497 12 6 i £7,076 1 11 £97,569 7 6 £8 185 2 2 £158,428 6 7 £73,804 1 1 [ £22,673 16 6 £165,580 8 4 £15 607 19 5 £160,128 4 8 £64,026 18 8; £31,301 8 9 £121,058 13 4 192,535 6,026,967 191,693 7,264,370 135,450 6,421,039 £7,205 0 11 £348,654 1 2 £7,714 1 7 £474,310 5 2 £6,211 17 4 £438,433 13 3 Value — 1916-17 .. 1917-18 .. 1918-19 Average value per pound — 1916-17 .. 1917-18 .. 1918-19 .. Average value per bale — 1916-17 .. 1917-18 .. 1918-19 .. Average weight per bale, in pounds — 1916-17 .. 1917-18 .. 1918-19 .. £18,796 10 3 £9,364 14 5 £7,842 17 3 12-44d. 12-04d. 1 l-14d. £25,861 16 2 £20,255 6 2 £24,653 8 3 1204d. 12-17d. 1304d. £23,706 3 7 £8,304 8 4 £7.602 5 7 13-41d. 12-64d. 14-18d. 15-29d. 14-93d. 1428d. 1577d. 13-86d. 20-67d. 16-12d. 18'28d. 1704d. 15-.35d. 19-56d. 17-474 1753d. 16-86d. 15-94d. 8-98d. 13-88d. 9-66d. 15-67d. ll-00d. 16-38'd. £17 15 4 £19 7 9 £16 10 3 £19 11 10 £20 0 4 £20 14 4 £20 19 11 £20 13 2 £22 3 3 £22 9 9 £21 16 0 £21 4 1 £23 13 4 £20 14 0 £28 6 5 £22 15 11 £26 5 6 £23 19 4 £22 14 2 £27 15 5 £24 3 8 £24 15 9 £25 2 0 £22 6 10 £13 11 10 £20 14 6 £15 3 1 £22 18 5 £16 6 11 £23 5 11 343 386 356 390 394 381 375 392 375 353 350 356 360 358 329 339 345 338 355 341 332 339 357 336 363 358 376 351 356 341 N.B. —Freezing companies' slipe wool is not included in above return.

H.—3B

26

(4.) SHOWING RESULTS TO 23rd AUGUST, 1919. FROZEN MEAT, SCHEELITE, BUTTER, CHEESE, WOOL. SHEEP-SKINS, Etc. MEAT. (Operations commenced 3rd March, 1915.) Boot' Mutton Lamb (Quarters). (Carcases.) (Carcases). 1. Shipped per steamers lost in transit .. .. 18,829 106,260 91,080 2. Arrived at destination in 284 steamers .. .. 2.491,650 9,113,456 10,778,040 3. En route to destination in 10 steamers .. .. 104,268 344,662 228,231 4. Meat aboard steamers now on loading-berth .. 5,394 27.737 4,047 5. Total payments made to date, £40,088,444. 6. Totals .. .. .. 2,620,141 9,592,115 11,101,398 7. MEAT TN STORE on 31st July, 1919, for which no space has been allocated in overseas steamers — North Island .. .. .. .. .. 4,537,277 South Island .. .. .. .. .. 2,686,036 Total in 60 lb. carcases .. .. . . 7,223,313 Total shipments to date — During 1914 15 season .. .. '.. 337,735 1,986,961 2,889,508 "During 1915-16 season .. .. .. 769,880 2,421,690 3.148,714 During 1916-17 season .. .. .. 517,708 1,575,600 1,315,506 During 1917-18 season .. .. .. 612,947 1,871,197 1,871,444 During 1918-19 season .. .. .. 381,871 1,736,667 1,876,226 Totals .. .. .. .. 2,620,141 9,592,115 11,101,398 CHEESE. (Operations commenced 4th November, 1915.) 1915-16 season — Urates. 1. Total shipped and arrived at destination.. .. .. .. .. 189,502 2. Total payments made, £917,748. 1916 17 season— 3. Shipped and lost in transit .. .. .. .. .. .. 16,440 4. Total arrived at destination .. .. .. .. .. .. 501,886 5. Total payments, £3,295,557. 6. Totals .. .. .. .. .. .. .. 518,326 1917-18 season — 7. Shipped and lost in transit .. .'. . . .. .. .. 46,406 8. Shipped and arrived at destination . . .. . . . . .. 709,189 9. En route to destination 10. Total payments, £5,008,056. '11. Totals .. .. .. .. .. .. .. 755,595 1918-19 season— 12. Shipped and arrived at destination .. .. .. .. .. 383,873 13. En route to destination .. .. .. .. .. .. .136,178 14. On board steamers now on loading-berth . . . . . . . . 43,410 15. Total payments to date, £5,396,922. ' 18. Totals .. .. .. .. ~, .. .. 563,461 16. CHEESE IN STORE awaiting shipment on account Imperial Government on 18th August, 1919— Crates. North Island .. .. .. .. .. .. .. 157,275 South Island .. .. .. .. .. .. .. 21,941 Total quantity in crates '.. .. .. .'. - 179,216 BUTTER. (Operations commenced 20th November, 19J7.) 1917-18 season — Boxes. 1. Shipped and lost in transit .. .. .. .. .. .. 49,847 2. Shipped and arrived at destination .. .. .. .. .. 674,852 3. Total payments, £2,939,250. 4. Totals .. .. .. .. .. .. .. 724,699 1918-19 season— 5. Shipped and arrived at destination .. .. .. .. .. 662,827 6. En route to destination .. .. .. .. .. .. 3,223 7. On board steamers now on loading-berth. . 8. Total payments to date, £3,009,375. 9. Totals .. .. .. .. .. .. .. 666,050 T

27

H.— 38,

BUTTER— continued. 10. BUTTER IN STORE awaiting shipment on account of Imperial Government on 23rd August, 1919 Boxes. Boxes. North Island .. .. .. .. .. .. 125 South Island Total in boxes .. .. .. .. .. .. 125 SCHEELITE. (Operations commenced 20th September, 1915.) Tons. 1. Shipped and lost in transit .. .. .. .. . . . . 18 2. Arrived at destination . . . . . . . . .. .. .. 660 3. En route to Great Britain .. .. .. .. .. .. 96 4. Total payments made to date, £153,157. 5. Total .. .. . . .. .. .. .. .. 774 WOOL. (Operations commenced Ist December, L 916.) 1. Total number of bales valued (as per valuation certificates received) .. 1,582,302 2. Number of bales lost in transit .. .. .. . . .. 9,668 3. Number of bales arrived at destination in 148 steamers .. .. 731 ,338 4. Number of bales en route to Great Britain in 30 steamers . . . . 240,106 5. Number of bales shipped on account of other Governments .. 119,282 6. Number of bales of greasy wool available for shipment, scouring, or delivered to scourers .. .. .. .. .. 481.908 1,582,302 7. Number of bales of greasy wool delivered to scourers for treatment .. .. 278,583 8. Number of bales of scoured and fellmongers' slipe wool shipped .. .. 205,275 9. Number of bales of scoured and fellmongers' slipe wool available for shipment '76.235 10. Total payments, £38,505,706. 11. Total number of bales paid for .. .. .. .. 1,582,302 SLIPE WOOL (Freezing Companies). (Operations commenced 31.st March, 1917.) Purchased for Valuation in United Kingdom. > 1. Total number of bales advanced against .. .. .. .. .. 68,959 2. Number of bales shipped .. .. .. .. .. .. 67,114 3. Number of bales shipped on account of other Governments ... . . . .■ I ,795 4. Total payments to date, £2,001,910. Purchased under New Zealand Valuations. 5 Total number of bales .. .. .'. .. .. .. .. 117,009, 6. Total number of bales shipped .. .. .. .. .. .. 58,970 7. Number of bales shipped on account of other Governments . . , . .. 7,604 8. Total payments to date, £3,276,790. SHEEP-SKINS. (Operations commenced sth February, 1917.) 1. Number of skins purchased and distributed to fellmongers .. .. .. 4,944,442 2. Total payments to date, £1,929,613. HIDES. (Operations commenced 19th March, 191.7.) 1. Number of hides purchased ' .. .. .. .. .. .. 370,509 2. Number of hides shipped .. .. .. .. .. .. 149,442 3. Number of hides sold .. .. .. .. .. .. .. 232,627 4. Total payments to date, £735,663. PAYMENTS. (Total to date.) £ Frozen meat.. .. .. .. .. .. .. .. .. 40.088,444 Cheese, 1915-16 season .. .. .. .. .. .. .. 917,748 Cheese, 1916-17 season .. .. .. .. .. .. .. 3,295,557 Cheese. 1917-18 season .. .. .. .. • .. .. .. 5,008,056Cheese, 1918-19 season .. .. .. .. .. .. .. 5,396,922 Butter, 1917-18 season .. .. .. ~ .. .. .. 2,939,250 Butter, .1918-19 season .. .. .. .. .. .. .. 3,009.375 Butter equalization funds .. .. .. . . .. .. .. 391,971 Scheelite .. .. .. .. .. ... .. .. .. 153,157 Wool .. .. .. .. .. .. .. .. .. 38,505,706 Freezing companies' slipe wool .. .. .. .. .. .. .. 5,278,700 Sheep-skins .. .. .. .. .. .. .. .. .. 1,929,613 Hides .. .. .. .. .. .. .. .. .. 735.663 Other business ~' .. .. .. .. .. .. .. 1,735,305 Grand total .. .. .. .. .. .. ..£109,385,467

H.—3B

28

Statement showing the Quantities of Frozen Meat shipped at each Port from the Inception of the Scheme— i.e., 3rd March, 1915— to 23rd August, 1919.

By Authority : Mabctjs F. Marks, Government Printer, Wellington.— 1919.

Approximate Cost of Paper. — Preparation, not given : printing (1,050 copies}, £32 10s

Price 9d.l

1914-15 Season. 1915-16 Season. 1916-17 Season. 1917-18 Season. 1918-19 Season. Totals. [ Beef. I Mutton. Lamb. Beef. Mutton. Lamb. Beef. j I Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Quarters. , C Whangarei .. 23.694 Auckland .. 52,533 Whakatane .. i Tokomaru Bav 6.463 Gisborne '. . 25,024 Napier .. 34.802 Waitara .. 46,612 New Plymouth Wanganui .. 17,812 Wellington .. 58,979 Carcases. 41.264: 58.460 220.038 208.775 49,485 95.7131 610,073 Carcases. Carcases. Quarters. C 41.457 41.264 74.983] 186,587 58.460 41.897 8.950 220.038 101.073 62.261 208.775 151.982 64.802 49,485 28,250 77.680 95,7131 38.012 26.783 610,073! 411,351 166, 931 j Carcases. Quarters. 41.457 74.983] 186,587 41.897 8.950 101.073 62.261 151.982 64.802 28,250 77,680 38.012 26.783 411,351 166,931] Carcases. 11.323 42,975 107.846 325,172 377.599 54,929 88.569 734,540 Carcases. Carcases. 11.323 3.222 42,975 108.104! 107.846 67.526' 325.172 165.752 377,599 301,282; 54,929 44,126] 88.569 67.766 734,540 782,383 Carcases. I Quarters. 3.222 25,067j 108.104; 76.063 67.526 7,742 165.752 33.933 301.282: 33.092 44.126! 34.608 8,531 67.766 56,011 782,383 88.287 Carcases. Carcases. Quarters. Carcases. 4,271 3.155 34,595 9.991 22.942 9.464 146,239 30.534: 6.721 33.186 .. 4.071 50.905 143.881; 13.562 35.811 190.555 248.209 88.516 30.702 263.763 13,918 13.389 61.543 33.832 12,761- 2.567 12.952 9.043 , 65,784! 24.004 57.900 176.227 395,542 ; 402.350 134,810 420.894 Carcases. Quarters. 1.079 24,767 40.040 77.601 23.550 11.049; 100.023 55,765 211.958 34.290 26.198 16.026 9.345 22.222 121.674 28.051 257.605 56,471 | Carcases. Carcases. 62.330 50.156 11.596 478i 47.814 49.581 143.574 60.120 380.779 155.324 38.143 35.823 8.367J 13.075 83.215! '127. 246 452.865! 345.184 Quarters. Carcases. 149.580 25.585 539.023 200.045 30.271 11.596 38.275 298.211 212.7941.023.220 197.6881,479,125 236,469 190.307 43.705 30.171 186,557 509.508 505.478 2,613.914 Carcases. 7.456 282.747 478 159.004 440.530 909.062 147.786 24.987 378.702 2,198.873 . i 1_ ' Totals, North j 265,919,1, Island ports , j— 1,283,808! ,283,808! 847,548 635,4511, i t^zt 847,548 635,4511,742,953,1,540,161 363,334 ,742,9531,540,161 940,494 557.007 525,3441 1.185, 7441 767.922 349.792 1,228,6831 836.987i 2,139,840 6,381,6821 14,549,625 Nelson .. \ 521] Picton Lyttelton .. 11.128; Timaru .. j 2,618 Oamaru Dunedin .. 11.876 Bluff .. | 45,673 10,3121 20.549 4.763: 22.410 31.035 244.750J 772.152 38,162 153.374 623,925 7.624 29,871: 97.868 85,884 214.387: 22.246 156,552 282,044 61,634 10,312 22.410 244.750J 153.374 29,871; 85.884 156.552 20.549 31,035 772.152 623,925 97.868 214.387! 282,044 4,763: 38.162 7,624 22.246 61,634 16,623 27,650, 274.884' 102,373 10.095 102.716 144.396 1 16,623 21,563 27,650, 42.392 274.884' 770.312 102,373 334.357 10.095 32.402 102.716 189.680 144.396 217.847 I 21,563 42,392 770.312 334.357 32.402 189.680 217.847 4,256 52,205 15,507 1.671 17,592 237.954 158.713 9.541 107.912: 101.723 1,684! 23.217! 352,344 248.520 2,527 54.700 75.507' 2.646 1.099 37.049 7,038 8.316 31,455 8,5261 25.419 312,976] 88.455 61.636 82.697 105.744 10.3241 23,690! 588.620 283.701 28.670 112.692 55.825 : 3.681 484 9,892 1,596 16 r 426 36.610 41.942J 194,125 467.459] 161,637: 325.373 28.110 64.551 87,502! 139,914 15.867 37.132 1.583 129.681 148.4361.264.689 34.383 664,552 111.143 72.826 407.319 207,206 595.917 54.120 162.276 2.950.887 1.815.876 161.467 636.010 771.137 30.388 52.018 i_ Totals, South 71.816 703,1532,041,960 134,429; 678.7371,608,553 154.374: 635,106 758,499 87,603] 685,453! 1,103,522 32.079! 507, 984] 1,039,239! 480,3013,210,433 6,551,77: Grand totals S ■ ■ ■ - -, — . 337.7351, 986,961J2, 889, 508, 769,8802,421,6903,148.714 517,708 1,575, 600 1,315, 506 612,947Jl, 871. 197 1.871,444| 381.871 i : 1,736,667 1,876,226|2, 620. 141 9.592. 1 15 11,101,391