Editorial Comment

Progress, Volume XII, Issue 6, 1 February 1917, Page 865

Editorial Comment

The new year is commencing well in the building trade, though it would be hard to predict what will develop later, with the prospect of more and more men uemg taken for what, after all, is the only work to be considered at this time, the winning of the war. And that seems definitely reaching finality. The economic struggle, though a long one, requiring more patience than dash, is clearly telling in favour of the entente. The British Navy’s strangle-hold on the central powers is surely throttling them, and the leading authorities on the war now say that this year should see the end. New Zealand presents a remarkable spectacle for a nation at war. Never were its money accumulations so large, never has the general population spent so much on luxuries. The building trade itself would not be so flourishing, in spite of many difficulties, but for the fact that freezing works, hotels and picture theatres have supplied architects and contractors with ample work. Some professional men and builders have unfortunately not been able to share in the good things, as they had specialised mainly in dwellings, which have not been built in such numbers as before the war, when materials were cheap and money readily obtained. We hear much criticism of the expenditure on theatres during wartime, but cannot sympathise with those kill-joys who would materially lower the cheerfulness of the community, and its consequent resistance to the trials of the period, by putting the nation into sack-cloth and ashes. Money is pouring into New Zealand and it is a sign that it is being well distributed when the picture theatre has to cope with more patrons. Motor cars for the wealthier classes, and picture theatres for the masses, are in the same category. Nobody can throw stones at luxuries in New Zealand nowadays and none of the pained critics can even hint that we have failed to do what we ought in regard to helping the Mother Country in the crisis. We shall go on building theatres, as well as freezing works.

Business and Pleasure

The New Zealand Institute has taken quite seriously that modest little grant of £250 for scientific research wrung from a diffident Parliament by the Minister of Internal Affairs, and some useful suggestions have been put forward, having that strict regard for the immediately practical which we have advocated as being good policy in this utilitarian community. Researches are to be made into the phosphate rock of Canterbury, the cold storage of fruit, and the electrical prevention of frost in orchids. Following proposals made by Mr. L. J. Wild, the Institute has asked the Government to assist a project for agricultural research, and a soil survey of New Zealand. Professor Benham, President of the New Zealand Institute speaking at its recent annual meeting, mentioned that the Minister for Internal Affairs had expressed his intention of calling a conference which it was hoped would result in some practical steps being taken to bring the results of scientific research and methods into closer relation with some of the industries. It seemed to Professor Burnham that the institute should take a much more active part in urging the importance of a better training in science or rather in scientific methods in the secondary schools, and in urging on the industrial community the need for scientific organisation and co-operation. The movement has been well launched, it will he seen, and further impetus will be gained when the proposed new State organisation to he known as the Industrial Efficiency Board gets to work. Its scope will not be limited to settling soldiers on the land, or in other ways re-absorbing them into industrial activity. It will have to do with the whole organisation of industry on efficient lines, and will no doubt enable New Zealand to effectively co-operate with the Imperial authorities in the great scheme of industrial reorganisation which we understand is already under weigh. The Empire is getting ready for peace, and we are going to profit permanently by the tragic lessons which began in August, 1914.

Scientific Research for £250

When Parliament passed the Pair Rents Act last session we pointed out that it had a serious deficiency, but this did not matter, for the reason that the Act became practically a dead letter. It has, however, been used by a Wellington tenant to protect himself from a rise, in rent which he considered unjustifiable. A man named Ladd occupied a house in Lindum terrace, for which he paid 255. a week to Winder, Mills, and Pearson, as trustees. Ladd received notice that his rent would be raised to 325. 6d., but was later advised that in consideration of the fact that he was a good tenant, the rent would be reduced to 30s. Ladd protested against the ss. increase, and appealed to the Court to fix the rent on the capital value. Evidence was given that the Government valuation in 1913 was £SOO, while the plaintiff produced a witness who valued the property at between £6OO and £7OO. The defendants claimed that the property v, as worth over £IOOO. Owing to the difference in values, the Magistrate appointed an independent valuer, who valued the house and land at £7OO. Meantime defendants decided not to proceed further and the case was discontinued on the understanding that the rent

Fair Rents Legislation

was to remain at 255. per week. The Magistrate (Mr. W. G. Riddell S.M.) allowed costs (£3 7s. 6d.) against the defendants. Everything turned in this case upon the Government valuation, which' is often not in accordance with the current value of the proerty. But the most serious deficiency of this legislation is that the valuation, covering as it does the land as well as the improvements, is absolutely unreliable as an indication of the value of a dwelling to the tenant, as distinct from its value to the owner, who may be allowing the dwelling to remain on valuable land, hoping in the future to put up a building to return something more in accordance with the value of the section. If the ‘Wellington tenant in question had been living in a tumble-down shack in a charming and popular suburb, he would scarcely have been able to succeed in his action, for the reason that the capital value of the section would have been so large that a rent quite exhorbitant for the dwelling could have been exacted, and yet not exceed the amount of interest which, under the law, a landlord is entitled to obtain. In regulating the dealings of private individuals the State is treading a difficult oath, but Ministers, we suppose, are like ordinary mortals — they live and learnso that in view of Parliament’s known partiality for experimental legislation in the patchwork style, we may expect further amendments of what, at present is a faulty almost unworkable Act.

Standardisation.

We occasionally hear of people who hold very pessimistic views regarding distraction of industry after the war. “What is going to happen to the new munition workshops?” they ask in a pessimistic tone indicating that they firmly believe the shutters will go up. But the machinery needed in turning out shell eases and guns can, in most instances, be adopted to the output of machine parts. The renovating and “scrapping” which has gone on in Britain’s engineering workshops under the impelling necessities of war will he of tremendous benefit when peace arrives. Plans are being formed to keep all the factories going when they finish turning out munitions. Russia, its vast Eastern spaces hardly touched, is a veritable “land of promise” for the English maker of agricultural machinery, and at last he will compete in that field on fairer terms than before the war. Standardisation, and the organisation of huge outputs has been definitely adopted as the main line of policy in motor cars and steamships. In the latter case, large yards are already being laid down, to quickly counteract the losses due to Hun sea “frightfulness.” A considerable amount of information is available as to American methods of specialisation and big outputs. Almost incredible are the results of this Policy. We have it on the authority of the sales director of an influential American motor car concern that, buying in 15,000 lots, his concern obtained complete sets of electric headlights and tail lamps for 12s. the set; and tires sold to the customer at £6 to £7 can be bought by the motor manufacturer in 15,000 lots at £3 to £3 ss. British trading methods are under revision, and we hope to see the era of peace accompanied by prosperity as a result, not only of manufacturing improvements, but better and cheaper banking facilities than have prevailed under past conditions of conservative monopolism.