THE ROYAL COMMISSION.

Press, Volume XLVIII, Issue 14380, 13 June 1912, Page 10

THE ROYAL COMMISSION.

THIRD DAY'S SITTING IX CHRISTCHURCH. The Royal Commission enquiring into the causes of the increased cost of '' living, resumed at the Provincial Council Chambers yesterday. Mr E. Tregear ■presided, and all the other ■members of the Commission were present. COST OF CART AUK. Arthur Smith, of .Messrs J. M. Hoywood and Co., carriers, stated that since 1882 lie had experience of railway and other carting work, and had been connected with the firm tor 22 years. Twenty years ago the cost of. -wholesale cartage was Is Id per ton dead weight and Is '.id measurement; tin; prices now were !Jd and Is. Previotisly when the Railway Department let the cartage by contract the Department was the biggest sweater in the Dominion, charging the merchants lid for what cost the Department 9d, which meant an annual profit to the Department of between £1000 and £1100. Now, there was a Iree and open market, merchants beinj; able to engage any carrier they liked. The present i-atas -were the- result of competition. Ho was satisfied, after losing £000, that motor traction was not I cheaper than horse traction when delivery was within a radius of two miles. Wages of drivers twenty years ago were at tho rate of 6s per day. The same men were now earning 8s per day. An express waggon, 20 years ago, cost £35; now the same vehicle cost £•">■ There was no combination of employers?; it was a case of every man for himself, owing to the competition of outsiders who were under no restrictions as to conditions of labour. A man who had been with tho firm for 35 years told him that when lie was earning 6s per day he was able to build two houses; now, when ho was getting 8s per day. he could not afford to paint them. Witness attributed the, increase to the cost of luxuries, homo comforts, arid conveniences. He did not, blame people for -wanting such luxuries as pianos and bicycles. To tho Chairman: Drivers -worked 47i hours per week for tho weekly wage, and in addition worked 7 hours per -week attending horses, but they were paid for holidays and broken time. His firm now paid £220 in rates and taxes, as compared with £10 twenty years ago. Probably, he (witness) had to live cheaper than some of his men, being an employer and not an employee. I " ABOUT THE MERCHANTS' ASSOCIATION. A. C Nottingham, representative, ol J eyes' Sanitary Compound, stated that Jio had thirty-six years' experience of Chrisiclmrch. He did not think that the cost, of the bare necessities of life had increased. He did not belong to the Merchants' Association, and sold his goods to anyone. The Merchants' Association wanted him to tariff certain articles and sell them at a higher price. The negotiations were by letter and by interview; he could produce tho letter or a copy of it. The request in tho letter he simply referred back to the Association, and told the Association to fix the matter up themselves. but he-intended to sell tho article- at the prico he was in tho custom of selling it. The president of the Association called on his principals in London and endeavoured to get them to sell oniy to tho Association t>r to appoint the Association the distributors in tha Dominion. His principals referred tho matter to him, and he decided to go oa as he had been going, and to stay outI side the Association. Mr Fairbairn: If Jeyes , fluid had been scaled, who would have paid?— Tho public would have- borne tho increased COfit. Is it within your knowledge, that Mr Harold Beauehrimp/ -until recently chairman of the Bank of New Zealand, chairman of the Merchants' Association of "Wellington, and the head of tho firm of Bannatyno and Co., called on your principals in 1/ondon in order to get exclusive control of their manufactures in the Dominion? —Yes. THti BOOT TRADE. William Williams, boot machine operator, and vice-president of the No-iv Zealand Federated Boot Trade Workers, stated that the increased prico of boots and shoes was not duo to increased cost of production, but to increased cost of materials. Twelvo years ago, under the log, or piece system, the labour cost of a pair of boots was 4s, divided up as follows,: 2s for j benching and 2s for finishing; under tho present system the wages cost would not exceed Is Od; this boot would sell for 20.5. The last three years was the only period during the'past thirty-five- years that he had had constant employment. He "had no time" for the retail portion of the trade, -is most of the increased cost to the public as far as boots are concerned was due to the retailers. The Chairman: Plea.se speak of your own knowledge. You are not in tho retail trade. _ "Witness: No, but I have experience of its methods, and I know that what I say is absolute fact. To* Mr Veitch • Witness had seen exhibited in a retailer's window boots which bore a. ticket describing them as "Clark's Celebrated, 22s Gd £er pair. 1. On examining them ho found to bo of local manufacture, and to have cost. 10s 6d; there was no local firm named Clark. The New Zealand workfer in eijxht hours' work pVotluccd more than the British worker in ten hours. The British worker received 36s per week, and the New Zealand worker 46s (id. To tho Chairman: There was one New Zealand factory which produced good work, but stamped their boots with certain brands for no other purpose than the exploitation of the public. Tlie purchasers, swing how tho boots were branded, and appeared to (x> high grade American or British boots, were prepared to pay the prices asked, whereas the boots "wore made in a New Zealand factory. The manufacturers in so stamping their goods, were out for business, but it meant that no matter how the New Zealand worker exerted himself he got no orixljt. instead of tlit: boot manufacturer being

the dominant factor in the boot trade, i the retailers wero the dominant factor. EVIDENCE OF A BOOT MANUFACTURER. M. J. O'Brien, boot manufacturer, ] stated he had been in the business twenty-three years. The increased ; cost of boots and shoes was due partly ! to increased cost of labour., and partly I to increased cost of material. The pre- j vious witness's estimate of the cost of j labour (which did not include stitching) j was not iiuite accurate. A boot, the I wholesale price of which was 15s. would i cost for lynching, twelve years ago, from Is Kkl to 2s. and for finishing Is Gd to Is Sd, or an average of 3s od, instead of -If, the price nowadays would be about 3s 3d. benching being the same and finishing Is. to Is 2d. There was no demand for cheap boots. To Mr Fairbairn: New Zealand manufacturers could comnete with tho best imported article. Referring to tho brands put on New Zealand boots (mentioned by the previous witness), ho stated that this was a demand created by the public and by the retailers. Manufacturers anticipated, when tho tariff was last altered, that all that would be left to them would be the cheaper class of Ixxits, but the opposito I had been the effect.

THK BITTER INDUSTRY,

Chas. P. Agar, secretary of the Tai Tapu Dairy Company, stated that his company possessed a main factory and two creameries. The company was a co-operative one. He detailed tho method of dealing with the. milk supplied. The whole of the proceeds of the na!e of butter, plus working expenses, was paid back to the suppliers. The Chairman : What becomes of tho surplus produced in the summer ?— During the first few months there was always risk, as the keeping quality of tho butter was unreliable. Once they got on to reliable butter they kept as much as they could in store, but could never hold sufficient for local requirements. Tho price of butter was regulated by the prico in London, .South Africa and San Francisco. To Mr Hal!: Tho Ix>ndon price for last season averaged Is per.lb. That was an exceptionally good year, and the price obtained was ljd higher than usAial. To Mi , Robertson : The, price of butter for local consumption was based on the ratio'of the amount of butter in storo to the requirements of the market. ■ To Mr Fairbairn : Last winter butter was sold locally at Is Gd retail, but at that price it did not pay the company, ;vs people could not eat butter at that price, and his company had never recovered the ground then lost. Tho companies kept the local price of butter at such a prico that prevented oomi>etition on the part of North Island factories. Last winter North Island butter was sold in Christ-church nt Is s<l, but Id per lb was . not the difference in price between fresh and stored butter in winter time: anyone who is a judge of butter would takestored butter in winter in preference to fresh butter, the last-mentioned pos-. set-sing food flavours in winter. The company did not refuse to supply retailers who did not. sell at the prico fixed ; at the present time some retailers were making butter a ''cut" line. To Mr Hall: Farmers' butter was 2d per Jb cheaper than factory. A GENERAL LABOURER'S TESTIMONY. Harry Arthur Campbell, a general labourer, stated that he was appointed by the General labourers' Union to give evidence. His opinion was that the increased cost of living was duo 'to land speculation and to the everincreasing price of land. Hβ had been a farmer and.also a land and commission agent. Eight years ago he came to the Dominion and settled in Tamriaki, and during two years, dairying land went up in price £4 per acre; since then the same land had increased in price 30s per acre per annum. During eighteen months that he -was a land and commission agent in Taranaki many farms were in his hands for sale, and in many instances the owners had mortgaged their properties and wero payiiig interest at (3 per cent, and 7 per cent. In view of this farmers couid not afford to engage labour, and had to employ their own children to work. In Canterbury, during the period he had lived in tho district tho value of agricultural and pastoral land had increased, and tho land closer to town had more rapidly increased. No man could get a house in Christchurch •worth living in for less than 12s 6d per week, and a general labourer could nob afford that, when he was only earning Is »er hour whilo at work.

The Chairman: What does a general labourer's wages average, allowing for wet days?— About 32s per week. Of this 12s goes for rent, leaving 20s for food, clothing, and other necessaries. Ho could assure the Commission that there was a largo number of general labourers in Christchurch who wero living below a fair living—they wero not living as human beings ought to live, and were not being provided with sufficient food, clothing, and shelter. Witness (continuing) suggested that a remedy for the rise in the cost of living was to stop land speculation, and tho way to do that was tor the State to take the difference between the price paid for land and the price at which it was subsequently sold, less tho cost of improvements. Thero should be a higher land tax, especially on land held byf monopolists. To Mr Veitch: He knew of scores of general labourers (particularly married men) anxious to go into tho country if tkey wen* assured of a fair living and of getting a comfortable house. They objected to going out to live in barns, as .some of them had to do in the past. THE FLOUR-MILLING INDUSTRY. W. It. Gardiner, flourmillcr, Cust, stated that he had run his present business for seventeen years. Tho price of wheat was manipulated by operators in Chicago, San Francisco, New York and London, and these operations might • cause an increase in the price of wheat in New* Zealand of 2d or 3d per bushel. The area, in wheat in New Zealand this year was, roughly, about one-third less than during the previous year. In the milling trade wanes had increased from 10 to lo per cent., and the hours of lalwur had been reduced. The Chairman: Who iixes the price of your flour at nresent?—We are guided at present by tho New Zealand Flournrllors" Association, of which our firm was at one time a member, but ceased to be since last October. We aro guided by the prices fixed by the Association, but there is no common understanding. At present the flourmilling industry is in a most peculiar position. The profit on an expenditure of £9 9s id is only 4s Bd, or, roughly, 2\ per cent. After producing a ton of flour the miller »ets 4s Bd, and has to provide out of this for.-dcprecjatioji of i>lant, interest on capital, rates and taxes, and other .>har£es. Witness (continuing) gave the following details of the cost of manufacture of a ton of flour, and tho receipts therefrom: — £ s d 4S bushels of wheat at 3s 8d 816 0 10 sacks to bold the flour ... 0 010 r> sacks for the offal ... 0 2 6 Railage and cartage ... 0 7 6 Cost of manufacture (labour and coal) ... ... 010 0

Total £10 1 10 £ a d 1 ton of floor, £8 10s ; less 5 per cent. ... ... 8 16 SQOIb of bran ... ... 126 Sixth of ton of pollard ... 12 6 Tot - a, ... ... £10 6 6 This state of things had obtained since last November, and owing to these peculiar circumstances millers were not holding, their own. Present conditions were due to several millere

breaking away from the Association, which had, thereupon, started to cut. During last harvest wheat was at 3s od per bushel, and until this was milled they would be milling somewhat cheaper than the ii:rures above-given indicated. To'Mr Fairbairn: When the Flourmillers' Association controlled his firm they had to submit to the rules of tho Association, and had to regulate output and charge the prices fixed by the Association.

Witness, continuing, stated that in some parts of the I nited .States a, | bounty was given on all w.lieat ex-; ported, whilst in New Zealand the railways charged for the carriage <it flour 10 per cent, higher than f»r ■wheat. Loss through had debts amounted, in the Klourmillers' Association, to i per cent., which was not so very heavy on a turnover of threequarters of a million sterling per annum, but it was heavy to a small man. The possibility of competition lrom Australia steadied prices in New Zealand, for despite the 20s duty, the much larger plants in Melbourne and .Sydney could produce, an enormous tjiiantity, ami the greater the quantity produced the less.was the cost. The freight by sailing vessel from Melbourne to Lyttelton was 9s per ton % the same rate charged by the Union Company between Auckland and Lyttelton. He was informed that Adelaide dealers were prepared to land flour in Auckland at 10s above the present and ruling price in tho Dominion, which was about 30s below tho Australian priceIt was customary for Australian flourmillers to dump'their surplus into tho Dominion, it circumstances wero favourable. TIMBER MERCHANTS' EVIDENCE.

William Goss, timber merchant, stated that during the past twenty years the cost of timber had increased, but, owing to tlio short notice received, he was not prepared with any figures. The causes wer o tho increasing inaccessibility of bush areas, the increased cost of transport, and the increased cost of labour. Ho did not know of any combination that tended to keep up tho price of timber beyond a paying price. An association of timber merchants existed, but several, merchants did not belong to it. Ho himself was a member of tho association. 'Hie members came, to an understanding as to the selling rates of timber, which were settled amongst themselves, but there was nothing binding on the menibers. Ho did not think there was a possible chance of tho association fixing highly profitable rates, because it was so easy to start a timber yard; if the merchants wished to "unduly increase prices they could not do it.

'E. W. Waller, timber . merchant, director of John Waller and Sons, Ltd , stated ho had been in business' for thirty-four years.- For-tho'last few years •'he -timber' business in Christchurch had been anything but prosperous. Competition was keener than in other times. His firm belonged to the association, .which benefited the public-by fixing a- standard price for timber. Ten years ago the timber supplied for two cottages (four and live rooms) totalled £164; for- the samo buildings tho timber now -would cost £190- Compared with ten years ago, tho price of timber f .o.b. at tho port of shipment had increased l<s yjcr cent., freight from 19 to 20 per o?nt., railage and wharfage 4 per cent., cartage (approximately) 20 per cent., and labour from 12i to 15 per cent. THE FARMERS' VIEWPOINT. David Jones, farmer; stated that tho price of land had increased very much. The rate of interest falling had been ono cause. Seventeen years ago a farm was bought at £17 per acre, money- boing at 7 per cent.; two years ago-tho same farm was sold-at .£35 per, acre, money being at 5 per cent. He did not know a single articlo that was increased in prico as the result of the increased cost of laud. One factor in tlie rise in the price of land was that the quality of the stock is greater. He handed in figures relating to tho price of wheat, ' and stated that the increase- of the prico of land did not aifect the ; price of wheat- Forty bushels of wheat, tho product of« 1J acres, at 3s (3d per bushel, would .bo £7: tho flourmiller produced 1680 lbs of flour, and 720 lbs of bran and pollard valued at £8 19s 3d from wliioh had to be deducted los for various charges; tho baker could make 571 -lib loaves, tlie value of which would be £1-1: os. These figures went to show that as far as the producer is. concerned ho is producing as cheaply as he can. Practically tfeo whole of the prico of a loaf of bread represented labour. Tho export of wheat from Xew Zealand was steadily declining. In the last 20 years practically the whole of Southland had gone in for grain growing yet the area in wheat was decreasing. Tho present year had been the most prolific in Canterbury, and but for that they would be importing wheat. They would bo importing next year, as the area - was not sufficient to meet local requirements. The problem in regard to wheat raising was the insufficiency of labour. In. tho Greendale district a lot of land which ought to be growing wheat was not doing so because of the insufficiency of labour. It was stated, sometimes, that farmers did not pay .sufficient wages to induce labour to go into the country, but during tho past twenty years the wages of farm workers had increased by at least r >o per cent. Eighty per cent- of tho farmers in Canterbury to-day had been farm labourers —men who had worked for wages. If sufficient labour'had been available at the proper tini". potatoes would not have been over £2 per ton. There were a- number "f four and six-horse teams running in the paddocks because men were not available to drive them. Bacon was likely to be dearer owing to no boy labour being available. TJr; Government had blocked farmers in connection with getting more Sedgwick boys. Five hundred boys could be taken from the place where they are at present and absorbed by the farmers of the Dominion. AVitness had bought apples at auction from ]d per lb to lid. It a householder wanted to live cheap he could live as cheaply as he did 20 years ago if he bought produce at auction where the produce was sold at the farmer's price, plus 10 per cent, the auctioneer's commission. Unless the scarcity of labour was removed tho cost, of living would increase still further. Farmers at present were building houses for men who were going out into the country, but more should be done in this matter. Recently a Templeton farm of 1000 acres "was" settled by the Government with ten settlers, and though the production would be greater, the export would be decreased, because there would be more consumers in the country. If workers' dwellings were provided in the country

workers could save on milk, butter, vegetables, and cheese, which represented- 37> per cent, of .the cost of his household; Twenty years ago witness's father sold mutton from hi* cart at 2Jd per lb for forequnrters. 3d for sides, and 3Jd for legs: to-day, by buying for cash and taking it trohr the shop meat could be bought at tin- same price. For wether mutton farmers received 'l\d per lb, on the hooks, and for ewe mutton barely ljd. The price of mutton delivered to the shop ol a large butcher iv Christehurch had Wn:—In"15110, wethers 2.17 per lb : ewo 1 17 per lb: IHII. wether 2.83 per lb. ewe 1.01 per lb; 15)12., wether 3.10 per lb, ewo 1.91 per ll>. With the rise in the price to its highest ]x>int in the three years a cheap shop was started, and it'dealt largely in ewe mutton, in which there, was no competition with the. freezing works. In 1912 the price was hitjh. as a result of a dry season the yenr before last. Two-thirds of the trade-in Christchurch was ewe mutton, purchased at no more than 2d per lb. In the difference between the wholesale and retail prices a big cut went to labour. If the protection' on wheat were removed the price of bread would be much higher inside five years. Boots in his family represented !K) per cent, more than bread, and cost of lMHits was pressing hard on irrowing families. In a hou.se built in ]S!)7. 181 per cent, went lo labour, and in 1911 labour took 32 per cent. Land could \m purchased within iU miles of ; Cathedral square for £11.4 per acre. The figures ho had given the Commission showed that the New Zealand producer was producing as cheaply as any producer in the world, '«nd that the price of land did not enter into the question of the increase in tho cost of living. To. Mr Robertson:' A<= the _do iryiny business extended prolxibly pig-raising would increase. : To Dr. Hight: It would encourage farmers to provide dwellings if they got some-relief from the'-rraduated tax when they provided such dwellings. Iv theory, farmers l got-exemntion for improvement, but in practice-they did not. and njt present the more a farmer improved his' farm the higher was his taxation. As a practical farmer, he did not believe if is possible to arrive at the unimproved value of farm lands, and consequently it would be more equitable to tax .011 the capital .value. Tho unimproved values niven by the Government gave a handle to believers .in single-tax theories, but there was no justification for such values. THE FLOURMILLING INDI'STRV. G. K. Simpson stated he had been a flour-miller for the past ten years, and did not belong to tho Association and never belonged to it. At the current price of flour-he had to get his profits out nf the sale of bran,and pollard; it cost os more to produce a ton of flour than was receiv.ed. for it. A- RETAIL.BOOTMAKER:' - J. X. Dv Feu stated that he was., a bootmaker who "possessed "a retail shop, ■>-nd had been about twenty years in misiness. Shop rents were higher thAn they ought to be, but the. shopkeeper had' no option, because if he went oiit or' complained there -wns always someone ready to go in. He did not know that retailers altered the brands of New Zealand-made goods to give purchasers the idea that they were imported. Provided people were willing to live as they lived twenty yearn ago there had been no increase in the cost of living with the exception of increases in house rents and meat. .The duty should be taken off boots amf shoes that could not be profitably made in tho Dominion. * ■ • •