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236

S. REID

S. Reid, Sales Manager, Wilson's Portland Cement Company (Limited), examined. I represent the cement companies of the Auckland District, also the other cement companies in New Zealand. The following is an extract from Christchurch Press of Wednesday, 19th February, 1919: "M. P. Murray, representing the Textile Bag and Sack Company (Limited), stated that if a 10 per cent, or 15 per cent, duty were imposed on hessian and jute goods, which were admitted from India free, they could be manufactured in New Zealand. At present his company were importing these lines of goods." I desire to say that from the producers' point of view it looks as if this is a proposal to establish a machine-sewing industry at the expense of those primary producers in New Zealand who are users of jute, manure, cement, and lime bags, and, we understand, all bags below the size of corn-sacks and woolpacks. We do not quite understand what Mr. Murray means by the statement that bags could be manufactured in New Zealand, for we believe that they could simply be sewn. From a trade point of view the proposed tax must ultimately create a monopoly and extinguish the present open market and free competition. So far as we know, the Textile Company are the only people who go in for the sewing of bags, and as there are very few of the mills in India making such a small bag as the cement and lime bags it is quite probable that they would soon go out of the market altogether. With regard to labour, the industrial conditions in New Zealand do not warrant the establishment of such a business. There would be but few men required to operate the machines (the probability is that such would be done by boys and girls), but, on the other hand, the cost of labour would be very much greater than that in India. We have always been given to understand that the manufacturing of bags which was once largely carried out in Scotland was stopped, and the mills transferred to India, where labour and ail the other charges were much more favourable. Under present conditions a 10-per-cent. duty on the above bags would add Is. 3Jd. per ton to the cost of cement, and a 15-per-cent, duty would add, practically, 2s. to the ton of cement. To Mr. Veitch: We think that the Textile Company would have the business in its own hands, and would make its own prices. If we were assured of Government regulation of prices to prevent undue profits we would not be satisfied : what we desire is the opportunity to buy in the Indian market. The mills there sell through agents, who speculate on the jute crop, and we prefer to be in the speculation. To the Chairman: The price of cement has always been to a certain extent regulated by the price of imported cement. There is uo imported cement at present, but the Japanese Cement Association has actually written to us for full particulars of the cement industry in New Zealand. That -association sells largely in Australia. The freight on cement from Britain to Australia is 12s. per ton, and British cement has practically always set the price. Comparing the selling-price in New Zealand and other countries, we are slightly below them. The Australian tariff on New Zealand cement is £1 10s. per ton. They have an 18s. advantage. We had an inquiry for 2,000 tons of cement for Australia, but we could not look at it on account of the duty. We do not fear competition with Japan unless they alter their standard of quality. Our prices have been inquired into by the Board of Trade, which agreed that they were perfectly reasonable. The shipping companies increase their freights at a moment's notice. Recently there was an increase in the freight between Onehunga and New Plymouth. The purchaser of cement at the side ports is at the mercy of the shipping companies at present. The present rate on cement from Onehunga to New Plymouth is 17s. 6d. per ton. Before the war it was about 10s. From Auckland to Wellington the freight is 155., and to Lyttelton and Dunedin it is the same. The cost to Blenheim is about £1 125., as the cement has to be transhipped at Wellington. G. E. Alderton, Parenga Gumfields (Limited), examined. 1 wish to speak to the Committee about the extraction of oil from kauri-gum. From the material we work with we extract 75 gallons of oil to the ton. [Samples produced.] Under another process, when we found we were losing the bulk of the oil, we tried the experiment of mixing the material with a solvent oil, and instead of getting 24 gallons to the ton we got 75 gallons. From an acre of ground we can get 250,000 gallons. That is particularly rich ground. Seven acres of ground have been turned over to a depth of 14 ft., exposing the layer of material with which to work. We have also 8,000 tons of material lying on the surface ready to treat, and we are putting up oilworks as fast as possible. Our plan is this :We put the whole of the material through in a body in retorts and get the oils. This is the first crude oil. [Sample produced.] We refine it, and get motor-spirits, solvent oil, paint-oil, and varnish-oils. The timber in the picture [produced] will run 110 gallons to the ton. We sent some of the wood to America to see what machinery we could get for breaking it up. Previously this stuff had been burnt. What I desire to suggest to the Committee is that, considering the importance of the matter, a Board of experts ought to be appointed by the Government to go thoroughly into the matter. Apart from private enterprise, the Government own 100,000 acres of swamp lands, and there is enough value in the oils in the swamp lands to pay off the whole of the war debt. Our examination has convinced us that the rich kauri swamp land will pan out at from £22,000 to £32,000 per acre, and the oil can be produced at low cost. The trouble is this :itis a new industry, and there is great opposition to it. We have received no assistance from the Government, but quite a lot of opposition. We applied to the Government for a bonus of £10,000, but it was refused. Everything we have asked for from the Government has been refused. I have also asked the Government to inspect the place, but nothing has been done in that respect. Here is another point : Dr. Maclaurin, the expert of the Government Department, has invented a process for cleaning and dealing with this class of gum, and his process has been taken up by the Government. Money has been found to work it, and he claims that his process of dealing with the gum is right, and that what we are