THE HARVESTER TRUST.

Press, Volume LXII, Issue 12322, 12 October 1905, Page 8

THE HARVESTER TRUST.

. * NEW ZEALAND MANUFACTURERS MEET MEMBERS. A SLIDING SCALE SUGGESTED. (SPECIAL TO "THE rRESS.") WELLINGTON, October 11. A meeting of membens of Parliament, arranged by Mr C. Lewis, was held this afternoarj. "for the purpose of hearing the representatives of the New Zealand implement makers at present in Wellington, on the subject of protection from tho American Harvester Trust. Sir William Russell was voted to the chair, and somo thirty members wero present. Mr P. Trolove, of the firm of Booth, Mncdonald and Co. (Christchurch), who first addressed t'ho meeting, admitted that the question of how to cope with tho Trust was both a momentous and a difficult one. If the Trust were allowed to go on unchecked, tho whole of the indu-tries of tho colony would bo adversely affected, and widespread ruin and suffering would follow. Tho implement makers found tho farmere wer© afraid, or rather suspicious, of them, and it was the business of tilio manufacturers to show that their interests wero identical. If tho manufacturers could get tn© whole of tho home trade, instead of only an uncertain proportion of it, manufactures would bo carried on on an increased scale, and os tho ivsuk or an incresicred output, there would be a reduction in price. They were not asking for tho imposition of a. duty on atl implement-, but caily on mots© inanuiao-Ui-d in competition with the imported article; that was to aay, tney aid not ask for a duty on harvesting machinery, engines, mid things or that kind tuat oouLd not bo n_ui_ in tne country. In regaid to onter machinery manufactured in the colony, they proposed getting over tho difficulty by means ol a tsha.ng sca-lo in the t-ainif. Ho wished to impress upon memoens tho gravity of the Mtua-t-ion, and he felt sure th© Government would, as m duty bound, protect tho local industry if tho farmers agreed that something should bo done. If nothing were aone, tho man-u-'acturew felt that they muse succumb, and even-, tually the tanners, ground under tho" yoke of the Trust, would bitterly repent that they had been s-o blind to their own interest*. Mr bcaven, of the firm of Andrews and Beaven, Christchurch, explained what they proposed in regard to th© slicing tariff scale. They recognised that the New Zealand farmers were not going to help them, unlets* they could prove to them tliat they (tho mamrfiaot'urers) would not, in their turn, _et up a monopoly. The tariff question, however, seemed the only solution of t'ho difficult.*/, and they now proposed that, for every £1 they reduced tho price of an implement, a sum of £4 should bo put on as duty on the imparted article. Thus, If they reduced tho piioa of a £20 three-furrow plough by £1, they 'wished a duty of £4 put on a i.imilar iniplement. That would en__.ii. a fair pnoo to the farmer, and would, at tho sam© time, protect the manufacturer. Th© local prices wero at present fair, and left a fair margin of profit. But if they had on increased output, through getting tho whole of tho trade, they wouldT-o able to mak© a reduction in present prices. They did not nsk for the imposition of amy duty links* thoy mad© a reduction in price. Ho referred briefly to the magnitude of tho Trust, with its £20,000,000 capital, its control of 90 per cent, of tho manufiaoturens of America, and its capacity of credit. ,His firm, in _5 years, Jiad sued only two farmers, but they could not give such terms cf o.cdit as an enormous body like this Trust. When tho Tariff Commission went round th© country some yeans ago, the implement makers declared- for fr.otradc, pointed out tho nee:66_ty there was for admitting the saw material duty free. Some of th© raw material needed in th© manufacture of implements still had to pay a duty, and ho hoped tho Parliament wou.d do something this session to remove th s disability under which tho colonial manufacturers laboured. They only asked tli© Parliament to help them in, regard to those things they manufactured thome-lves. On theso implements, when they reduced th© price by £1, they wanted' a duty levied to the extent cf £4, viz., £4 of duty for every £1 of reduction. If, on the other hand, th© locail manufacturers wished at any time to increase prices, they proposed that they should give six months' notice of their intention so to do, and then th© Government could make a corresponding proportionate reduction in the duty. It was necessary to do something, ate otherwise in twelve months th© local manufacturer- might bo half ruined, and they would not know what to do in regard to next season's requirements. Mr Thus. Mackenzie: Is it the case that the wo;*__n_. at present aro in tho habit of limiting the output of some of tho machines you us© in your works? Mr Beaven: No; we "have had no trouble- whatever with our men. Th© Amalgamated Society of Engineer, some seven, years ago. attempted to interfere with our business, but wo mi.do a big fight, and our own men were so much with in, tliat, after a time, the demand.-, of the Amalgamated' Society of .Engineers were put on one side, and wo havo sine© been working without a,n award' of th© Arbitration, Court, except in some minor matters. Mr Mackenzie: It lias been represented to mc that a machine, capable of turning out 1203 parts a day, has been prevented, by the action cf tho men, from turning out more than 400. Aro your men prepared to do a. th© Americans do, and work up to tho full output of the mnohines, or, in ether word*?, k there likely to be any re.-ti lotion of output? Mr Beaven: As a rule our men <_o a very good day's work. Indeed, if wo did not feci that the men were with us. we should not make, this offer. Mr Trolove agreed with this. He had origin.r.'.'ly been a farmer, and when he went into the implement business ho mis impressed with the way the men, worked. Mr Mackenzie: But supposing the price of labour rose, or the cost wai increased in other ways, what th.311 would! be th. attitude of the manufacturers? Mr Beaven: We reckon we should have to take our chances of that. We must take a certain amount of risk. In answer to other question.-, Mr Beaven said it was only within tho last month, that tho manufacturers anticipated any danger from the Trust. When they found that fifteen men hr.d been put on to canvass Canterbury, th-.y thouglit- it was time to cct. * Mr Lewi*?: Have thoy made any attempt to increase the price of anything they have been importing? Mr Beaven: It is difficult to ray. Formerly there were four or five b"_ider.. on sale. Now, practically speaking, there is only one. The McCormick binder is outside the Trust at th* present time, but at the termination cf an agreement .is to its sal© in tho 00! any. it &\se will bo in the Tru : t. Mr Lewis: Can you give any guarantee that, if you reduce tha price, you will rrot tako reduce the quality? Mr Beaven: If you ore afraid of that, by -ill means set 'up some guarantee ap*ainst it. Mr Hardy: Are the importers' charges and profit, end tho freight, not a suifi- j cient protection for you just now? Mr Beaven: No. j Mr James Allen said it appeared to him that they could not do very much in the direction indicated, unless all tho I implement manufacturer- in the cdony were united. If there were others who 1 would not come in, what was the Par-

liament to do? "Suppose Parliament agrees to your request for. two, or throe, or five years, what guarantee is there that fresh manufacturers will not start, so that your increased business would b© taken away from you, end you would again find yourselves in th© sam© position as you now are?" Mr Beaven: V© have to take our risk of that. If we reduce our prices we shall get the trade. Mr Allen: And what will the position of the man who is not able to make a reduction be ? Mr Boaven: He can still sell at the samo price if he wants to. Mr Allen: But he might not b© able to do it so well as a stronger firm. Mr Beaven: That is so. . Mr Alien: Can you speak for the whole P Mr Beaven: Yes, I will undertake to get a meeting in Christchurch on Friday or Saturday, and let you have the whole thing on Monday. Mr Bennett suggested that if the Parliament took the step suggested the Trust might start a manufactory in the colony. Mr Trolovo said the local manufacturers would have to risk that, but ho did not think the Trust would leave the country where tho raw materials were so cheap and plentiful. However, if it did come here, the local manufacturers could say nothing, because th© Trust would have to manufacture under the samo conditions as to labour, etc. (Hon. members: "Hear, hear.") In answer to another question, Mr Beaven said they got their idea of a sliding tariff scale from the English corn Jaws. Sir Joseph Ward (who was present) was asked whether, if it was agreed *© take action in the direction indicated, tho Government would give iacihties for putting a Bill through this session. H© replied that he could not _ay, the matter being ono for the consideration of tho Cabinet. It. could only be done if membeis agreed hot to move any amendments. . An lion, member said it would be impossible to bind the House to do. that, and tho meeting terminated without coming to any decision.