H,— 3o

Mention was made earlier of deterioration in storage of cheese due to heating. Since we made contracts for cheese, all chambers are properly insulated and ample cooling is provided, so that such claims as arose in 1926 are eliminated, and it is by these reforms that insurance rates have been reduced on cheese by 38-2 per cent., and on butter by 33-6 per cent, since 1924. In estimating the savings effected by the contracts made from time to time, it is considered that the cost to the New Zealand dairy companies is usually covered by the first and second week's rate, any further storage being generally borne by the buyer, and as the consolidated rate for London covers all New Zealand produce discharged at that port, the following gives an approximate idea of the economies effected, presuming all butter had been handled in the same manner as is now being done. As previously mentioned, much of the produce was not cool-stored prior to 1926. The actual reductions secured under contracts made in London were as follow :—

London. —Comparison op Rates at Different Periods. The consolidated rate, as set out below, includes the following services : Taking delivery from ocean vessel, stowage in insulated river-craft, barging from docks to Hay's Wharf (approximately seven miles), discharge from barge to cool sorting-floor, sorting to marks and sub-marks, transfer to and piling in cold store, redelivery to land conveyance, and one week's rent from first day of landing : —

Butter, per Ton of 35 Boxes.

Cheese, per Ton of 13 Crates.

160

v I Reduction per Ton, Gross Tons Savings effected Fourteen Days. landed. over 1926 Rates. 8. d. £ 1928 .. .. .. 6 2 63,257 19,504 1929 .. .. .. 6 2 68,581 21,145 1930 .. .. .. 6 2 74,074 22,838 1931 .. .. .. 8 3| 91,977 38,132 1932 .. .. .. 8 Hi 90,392 40,393 1933 .. .. .. Extension of free storage term 52,500

, 7 First Second Third ! Fourth Year " Week. Week. Week. I Week. Remarks. | | i 1 ; s. d. s. d. s. d. s. d. 1926 25 2 33 2 40 2 46 2 No contract. 1928 21 0 27 0 32 0 37 0 First contract signed with Hay's Wharf. 1931 .. 18 10-5 24 10-5 29 10-5 34- 10-5 Second contract from the 1st April, 1931. ]932 .. 18 2-75 24 2-75 29 2-75 34 2-75 Reduction due to general reduction in wages. . f .. 17 9-03 23 9-03 28 9-03 This rate to apply from the 1st May to the 31st J, October, inclusive. 1933 j iq 9.Q3 23 9-03 28 9-03 33 9-03 This rate to apply from the 1st November to the 30th April, inclusive.

Year. *** S ™°f ™ r , d ¥ ° ul f | Remarks. Week. Week. Week. Week. s. d. s. d. s. d. s. d. 1927 19 1 21 4 23 7 25 10 No contract. 1928 16 6 17 6 18 6 19 6 First contract, Hay's Wharf and P.L.A. This (Winter 1 Rates.) rate applies from the 1st November to the 31st March, inclusive. 1928 18 6 20 9 23 0 25 3 This rate applies from the 1st April to the (Summer! Rates.) 31st October, inclusive. 1931 .. 17 5-1 19 2-1 ! 20 11-1 22 8-1 No definite contract; arranged only. 1932 .. . . . . . . .. The port dues were further reduced by 2| per cent., equal to 045d. 1933 .. 16 4-65 18 1-65J 19 10-65 21 7-65 A new contract entered into. The rates are for temperatures not below 46° F. Should 40°46° F. be required, an additional charge of 6d. to second and following months will be added.