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MINUTES OF EVIDENCE.

Wednesday, 27th September, 1905. Irven Willis Raymond examined. (No. 1.) 1. The Chairman.] What is your occupation ?—Merchant, Invercargill. 2. You desire to give evidence before this Committee on the flax industry?— That is so. 3. Will you be good enough to place your evidence in as concise a form as possible, and afterwards members of the Committee, if they desire, will ask you questions. I had a telegram sent to the Invercargill Chamber of Commerce with regard to this matter? —Yes, and I might say that I appear here on behalf of the Chamber of Commerce, in the dual capacity of an exporter of fibre and a manufacturer. Last year I was a very large exporter from the South, and had also six mills of my own working in connection with the manufacture of fibre, so that my evidence will not be in any way biassed towards the millers or towards the fibre-exporters. 1 think it would be well if I gave a little information as to the condition of the industry last year in Southland. 1 have not travelled in the North Island sufficiently extensively to speak about the conditions of the industry there. Last year was the "boom " year in Southland in so far as the flax industry is concerned, and 1 am satisfied that unless the replanting of flax is very vigorously pushed forward, Southland will never reach the output of last season. There were seventy mills working in Southland last year with an export from the Port of Bluff of 6,100 tons—that is, up to the 31st March'— while 300 tons went northward, making altogether 6,400 tons of fibre produced in Southland. This represented a value of £167,000. I notice that the Department of Agriculture has placed the value at £26 per ton, and I take it that this information is gleaned from the Customs export entries. Well, it seems to me—if I may say so—an excessive value, because a great quantity of the fibre shipped from the Port of Bluff was " fair," and no " fair " netted £25 per ton f.0.b., a large proportion only reaching £23; but that is by the way. There were over twelve hundred men emplo3 r ed in the industry, so I think members of the Committee will see that as far as Southland is concerned it is a very important industry, and apparently a money-making one. However, when I tell the Committee that not more than 15 per cent, of the mills paid, and that no one miller earned over £1,000 —that with a fair approximation fully £20,000 was lost in milling, instead of £20,000 being won —you will see that it is time this Committee or some other Committee took the matter up and endeavoured to stop the leakage, because the expenditure of this money, while very advantageous to the employees and plant-manufacturers, means ruination to the millowners, and this falls to some extent on the community. The question naturally arises, what is the cause of this great loss in handling the raw material? 1 think tbe primary cause is incompetency in management, and yet I know—and I am speaking from experience—one of the most practical millers I had in my employ—a man who had been fifteen years in the industry, and who could turn out 90 per cent, of " good fair " grade —made the greatest loss for me. So there was a case of an experienced miller, and yet a man incapable of making a financial success of the undertaking. It may be argued that the Government have nothing to do with a private enterprise such as the fibre industry, but I take it that it should be considered much on the same lines as the dairy industry, and I am convinced that some steps will have to be taken to remedy the existing condition of things. There are so many matters of detail in the management of a mill, and it is in matters of detail that the losses take place, so I am satisfied that the time has arrived when the Government should appoint say, two instructors —men possessing a full knowledge of the complete working of a mill, and all the minutiae, in connection therewith. The men to be appointed should, in addition to being practical men, have made flax-milling a financial success on their own account. That is a material point. Of course, to secure such men a substantial salary would have to be given, because a man who can make a success at milling ought to make his £800 to £1,000 a year. Some of these men may have cut out their areas of flax and may be devoting their energies in other directions, so the Government might be able to secure such a man at a fair salary. I do not think the services of good men should be lost for the sake of a few pounds when the life of the industry is, to a great extent, at stake. These instructors should have a full knowledge of the class of fibre or standard of fibre required by the Home or foreign consumers and manufacturers. It is no use the Department here creating ideals of their own. I may have something to say about grading a little later on ; if not, the Committee may question me thereon. The instructor shoidd be able to go into a mill and inform the man in charge exactly how to set his machine in order to bring out the class of fibre required, and he should also be a thorough master of gearing—that is to say, he should know exactly how to set his machinery to secure the maximum amount of power with the minimum cost of fuel. In the South lam satisfied that thousands have been lost during the last year or two owing to an imperfect knowledge of how to set up the machinery. Such an instructor would inspect the leaf in connection with the respective mills, and advise the miller of the class of fibre his mill ought to turn out therefrom. A number of " raw " millers contract to supply " good fair " from diseased or short leaf, with the result that a very large proportion of the fibre goes into the tow-box—to the loss, of course, of the material—which should have gone into fibre. If a miller has an inferior leaf it will never pay to attempt to turn out a high-grade fibre. Then there is the setting-up of the mills. Suitability of sites, as to water, and paddock ground, and carting, is an essential towards the success of milling. Tn this direction lam satisfied a capable man would be of invaluable assistance to