FINANCE AND COMMERCE.

Press, Volume LXII, Issue 18617, 16 February 1926, Page 8

FINANCE AND COMMERCE.

CHEAPER FRUIT. DIRECT TRADE WITH ISLANDS. IMPORTANT CONFERENCE. ADBRESS BY SIR MAYNARD HEDSTROM. There was a representative attendance yesterday morning at the meeting called by the Canterbury Chamber of Commerce to discuss with Sir Maynard Hedstrom, a member of the Fiji Legislative Council, and president of the Suva Chambor of Commerce, and Mr R. B. Watson, a member of the Suva Chamber of Commerce, matters relating to the establishment of direct trade between South Island ports and the South Pacific Islands, chiefly Fiji, Tonga and Samoa. Mr W. Machin, president of the Canterbury Chamber, was in the chair. In introducing Sir Maynard Hedstrom, the chairman said Sir Maynard an,d Mr Watson had made a special journey from Auckland, at some little inconvenience to themselves, to attend the meeting. .New Zealand had reasons of sentiment and reasons of business for promoting trade with the islands both ways. Direct trade was desired, because Island fruit cost very much moro if it camo via Auckland; it was greatly delayed in delivery; and very often arrived in poor condition. The Chamber periodically discussed this question of direct trade, and they now had an opportunity of discussing it with a gentleman who, knew tho position from A to Z.

Fiji and New Zealand. Sir Maynard Hedstrom, who was received with applause, said that Fiji had an abundant supply of bananas, and a very large proportion of the crop w.'nt ta waste because there was only ono shipment every four weeks. Fiji was interested because there was no part of the Empire to which it had more sympathetic and friendly feelings than Key Zealand. The Dominion had always displayed the greatest friendship to' Fiji when called upon. He instanced : her assistance given ,in connexion with labour troubles in Fiji some years ago and, more recently, in connexion with the typhoid epidemic. "We look upon, New Zealand," he said, "as a genuine big brother in the British family." (Applause.) : Shipping Facilities. Sir, Maynard Hedstrom briefly described the . geographical position of Fijij Tonga, and Samoa, and stated that he/faas a director of Norris, Heldstrom, Ltd;', Suva, which had investments in Fiji and Tonga, totalling just over £1,000,000, and with a surplus of assets • over. liabilities of £BOO,OOO. Con- , seqnently, if he did not know the conditions obtaining in the threo groups of Jislanda mentioned, he ought to. He detailed the shipping connexions of Fiji .with«the outside world, and said that they were better served with ships than most people in New Zealand were aware. Included in the information given under thiß head, was tli6 state- • meht tha* there is a fortnightly direct ' service with Sydnfey, and a fourweekly service with Auckland. Freights to Fiji from England were at the same rates as from England to Sydney. There was, he said, iio difficulty about the supply of fruit, but it would be of very great importance and advantage to Fiji to have »& regular fortnightly service, and it) would be to their profit and interest to assist in bringing abo*t i such a service. . As to methods of packing, Fiji would be governed entirely by the requirements of the New Zealand market. , It seemed -to •! him that there were

three major points 'to be considered:' (1) The demand for bananas in / the South Island, and the extent of the demand; (2) The question of transport; and (3) the method of handling the fruit at this end. Possible Demand. He had read in a newspaper report that the requirements of the South Island were 20,000 cases of bananas per week. He! thought the speaker had been misreported, or the type-setting machine had slipped a cog and added an-additional cypher. If the requirements were 20,000 cases weekly, the problem would 'be easily solved; they would have a proposition to submit to the .shipping people, that would indicate that there was sufficient trade. He* thought that two thousand cases weekly was nearer the mark. At any rate, they would get a much more conservative estimate if they consulted the officials of the "Union Company; who ■ were not 1 convinced that the South Island could consume 10,000 cases-, per month. Some Christchurch .friends of his had told him that if the fruit could be brought direct to Lyttelton 10,000 eases per month could be distributed. If that amount could be handled it looked as if the transport' problem could be fixed through the Union Company, That was pretty nearly the minimum quantity which the company, would be to consider ■in connexion with direct shipments. It would be necessary to collect facts and data so as to be able to convince the carrying company not only that the fruit was in th® Islands, but also that there was a market for it at a price which would encourage shippers to continue the trade. Special Steamer. At a recent meeting in Christchurch it "was suggested that one solution of the problem was to build special steamers for the trade.. He was afraid that the conditions would not warrant the investment involved; to build a steamer suitable to carry fruit on anything like a large scale, meant a very big capital outlay. He was hopeful that some day New Zealand would have progressed and reached a stage to justify such an outlay. The three .groups of islands could supply tropical fruits and products for a population five or six times as great as the present population. The real reason that the Islands' fruit trade did not progress more rapidly was the difficulty, of finding markets. They were shut out practically and entirely from the Australian market, and, so far, they had only touehed the fringe—the coastline —of the New Zealand trade.

A Steamer a Month? The suggestion he would make to deal with the present .position was that they should approach the Union Company and ask them if they would be prepared to divert to Lyfctelton the cargo steamer which was available every four weeks. The mainportion of their shipment of ■ from Kji was carried by the T9fua —Auckland, Suva, Tonga (three ports), Apia (Western Samoa), then to . Buva'to load bananas, and then to Auckland. In addition, the Union Company , 'ran a cargo Service, Sydney to Suva, yi parrying Newcastle coal for New Ze'a,;laad in £he lower Lplda. After dis-

charging her cargo for Suva this vessel was available for banana shipments, and sometimes carried from 6000 to 8000 cases. The proposal was that after delivering her cargo in Suva she should come to Lytteltou, instead o£ j Auckland, and'deliver her fruit cargo, the Union Company taking delivery of the coal at a South Island port. Mr Watson and he had put this suggestion to the general manager of the company in Wellington, and had discussed the proposal with him. The nearest they could get to it was that the Union Company was quite prepared to consider the proposition, and would probably carry it out at short notice, provided they were guaranteed 10,000 case 3 of bananas per trip, ence ever four weeks. That was where it was very largely up to the local people and distributors. If the Fiji people could get the same price at Lyttelton as at Auckland for their bananas, they would be only too pleased to take the trade, and to divert a proportion of their shipments to the South Island, in the hope thereby of increasing the general demand and consumption. Ho did not profess that this cargo service was an ideal solution, but, frankly, he was afraid that it was the only practical solution at the moment, while the quantities handled were somewhat limited. Handling in the Dominion. A considerable proportion of Fiji bananas were sent on consignment to Auckland, but a very substantial proportion was purchased by Auckland merchants f.0.b., Suva; the terms of payment wero the same as if wool or hides were being bought, and sold. The reason that fruit was sold f.o.b. was that quite a number of shippers, owing to their financial position, could not carry on by any other method. It was not possible to divert trade miless they could offer equally good conditions, and he did not think that there was any possibility of landing bananas here and selling them at the same prico as in Auckland., Some things could not be- got? over—such as their geographical position. Rail charges would add to the cost; that handicap would put one shilling on each case. Regular Visits to tlie Island. If they were to establish the business on a mutually satisfactory basis, the South Island distributors would have to take a leaf out of the book of their friends in Auckland, who visited the islands regularly every year and remained for a fortnight. They knew every shipper personally, and called each' by his christian name. His company was substantially interested in the fruit trade, but in no sense whatever did they control it; it was entirely a free trade. There was a substantial number of independent shippers. An Auckland merchant when he received an offer of a shipment, knew tho whole history of it from the time it left the plantation; he knew the grade, and whether the shipment would be" reliable, and if it was good enough he would make an offer for it. The connexion and mutual knowledge were very close, and that could be gained only fey the same methods as were adopted in Auckland. The South Island distributors should visit the islands, meet the shippers, and learn tho conditions of tho trade, and go into business, with their eyes wide open. He had : touched on the principal points; he had given facts and, in some instances, expressions of opinion. The opinions were his own, "formed after a fairly intimate knowledge of trade conditions in Fiji over a long .period. If anything, he had flaid seemed to be of a' discouraging character, he wanted them to put it down to this; he presumed that they were hard-headed business men, and that they wanted to get as near to the facts as possible. It was no utfe glossing over difficulties. Unless they knew the difficulties they could not get over them.' He did not think that the difficulties were insurmountable. He desired to emphasise that the proposal to improve the trade relations between the three groups of islands and New Zealand would be welcomed in the warmest way by the business people of Fiji, who would do everything they possibly could to further it. But that did not mean that they would buy goods from New Zealand at a higher price than they could get them from other people. The president (Mr Machin) might be good, enough before he and Mr Watson, went back to Auckland, to prepare a questionnaire, which he could take to Fiji, with him. They would then be glad to give the fullest details, estimates, and figures—anything wanted to enable them to form an opinion themselves on the factß placed before them. (Applause.) ' Questions Answered.

The chairman remarked that 10,000 cases of bananas per month distributed amongst a population of 300,000 meant about three or four bananas a week for every person. Replying to Mr J. Longton, Sir Maynard Hedstrom said that the fruifc was shipped under Government supervision by special inspectors., A good deal or it was actually packed under supervision; The Government recognised the necessity for tightening up the inspection and a small committee had been set up to draw up a practicable method of more efficient supervision of packing and quality. To Mr J. A. Frostick, who suggested that the methods adopted by Californian citrus fruit growers should be adopted, Sir Maynard Hedstrom said that it was a question of the magnitude of the trade; at present the banana trade was comparatively small. South Island Disabilities. Mr G. D. MacFarlane said that bananas for Christchurch railed and shipped from Auckland cost (5s per case tor transport from steamer to store; the freight from Fiji was 2s lid. fciouth Island people had never had a chance to get Islands fruit at anything like the price that Auckland people got it. Christchurch dealers had to pay the top price in Auckland in order to get fruit that would carry; fruit that they paid 16s or 17s per case for was sold in Auckland from 8s to lis. No one could tell what the demand would be in the South Island if importers were placed on the same footing as Auckland importers. He suggested that as Fiji had been cut out of the Australian market, Fiji should assist in developing trade with the South Island! The trade should not be one-sided. He did not think it was reasonable to ask for a guarantee of 10.000 cases per month; the trade had been strangled, and there had been no opportunity to develop the trade. In addition, the fruit deteriorated more in its transport from Auckland to Christchurch than from Fiji to Auckland; it was handled about ten times before it got to Christchurch. The trade was a risky one; even the Auckland merchants did not always make money out of bananas. Sir Maynard Baid that he was in agreement with Mr MacFarlane, when he said that the Union Company should I bo satisfied with a guarantee of a smaller minimum; a reasonable quantity would bo about 5000 cases per month, | and he suggested that those interested should try their persuasive powers on the company. As to mutuality of trade, 1 he was entirely with Mr MacFarlane. Mr E. H; Marriner said that they could not hope to build up a Big trade right off. In Dunedin they said that they never got a decent banana—the Dunedin description of the article they got there was that it was something between a cucumber and a rubber tyre. I

(Laughter.) If they could get the fruit shipped direct to the South Island the trade would soon grow; they were absolutely starving for fruit. _ He urged that, in return, Fiji should import more manufactured articles from the South Island. Back Loading. Mr A. F. Wright said that there waa a very real demand for fruit, and an ever increasing demand for citrus fruits. He suggested that 'New Zealand coal would provide back-loading. Sir Maynard Hedstrom remarked that New Zealand was itself an importer of Australian coal; the price of New Zealand coal would be prohibitive. New Zealand flour was unsuitable for use in the tropics; they could not make bread with it. Regarding citrus fruits, Fiji imported mandarins and pineapples. Mr G. Ivirljy stated that 30 years ago there was a good market Jn Christchurch for bananas and for Fiji oranges. Mr H. Holland, M.P., said a great deal of stress had been, laid on the ditiiculties connected wieli the proposed direct trade, but difficulties existed only to be overcome. The Canterbury Chamber should get in touch with the Otago and Southland Chambers with a view to ascertaining the quantity that could be taken. Mr W. L. Halliday, chairman of the Board of Trade, Apia, Samoa, said that he was in Christchurch quite by accident. He could not add much to what Sir Maynard Hedstrom had said. When Sir Maynard had anything to say. about the Pacific Islands those interested in them "sat up and took notice." 'Ho emphasised the necessity for direct communication, and added that the islands had not had an opportunity of selling New Zealand goods except at considerable expense. Visitors Thanked. The chairman, in moving a vote of thanks to Sir Maynard Hedstrom and Mr Watson, remarked that there was a great sentiment in favour of the importation of island fruit, but they could not run a business entirely on sentiment. Chambers of Commerce, not being trading bodies, could not guarantee that a certain number of cases would be required; but they could develop the sentiment he had referred to, and give publicity to the matter amongst consumers in the South Island. The matter was one, however, that rested entirely* in the- hands of private enterprise, and, personally, he was not in favour of going to the Government. He thought that the Chamber should send a delegation to the islands within the nest month or so to gather all possible information as regards trade both ways. Mr J. H. Blackwell, in seconding the vote of thanks, said that they had had a most informative address from Sir Maynard Hedstrom. The problem of bringing together those who had the fruit and those who wanted it was on the way to solution, and the Progress League would be glad to co-operate in every possible way to give publicity to the matter.

The motion was agreed to. Sir Maynard Hedstrom said thai lie was hopeful that something definite would result from their conference. He supported tho chairman's idea that a small defecation should be sent to tho islands; between May arid November they could generally reckon on good weather. "We have all the good will in the world," he added, "to do a,mutual business, if we can buy at an equal price. We will be glad to give you the fullest information, and we will hope that an interchange of exports and imports will result." (Applause.) Mr Watson said that he had not taken up their time covering the same ground covered by Sir Maynard Hedstrom, but he wished to say that the sentiment "over there'' was entirely in favour of New Zealand nrodyice. Many, like himself, were born in New Zealand, and any trade "tliat could be fostered would be done with ail good will. On the motion of Mr Marriner, seconded by Mr G. D. Macfarlane, it was decided: "That this meeting of business and commercial men of Christchurch heartilv endorses the work that has been done by the manufacturers and commercial men of Otago, and guarantees to give them its united support in this matter of import and export trade with the islands."

BORING FOR OIL. GISBORNE COMPANY'S DECISION. (PRESS ASSOCIATION TELEGRAM.) GISBORNE, February 15. The Gisborne Oil Proprietary, which is about to bore for oil in the district, has now definitely decided on the location, which •will be on Dodgshun's Station, a few miles from Ruatorea. The gear is now being landed on the site, but owing to the amount of work necessary prior to the boring, it is unlikely that drilling will be commenced before the end of April. Geologists are now deciding on the second location, and probably two wells will be sunk at the same time. DAIRY PRODUCE. (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, February 15. Mr Brash, secretary of the New Zealand Dairy Produce Board, has received the following cable from the London office of the Board, dated February 12th:— The butter market is very quiet.' ' New Zealand salted 174s to 1765, unsalCed 178s: Australian salted 1665, Argentine 156s to 160s, Danish 186s f.o.b. Copenhagen. Cheese—The market is quiet. New Zealand white 995, coloured 102s. The New Zealand Producers' Co-operative Marketing Association's weekly cabled report from London, February 12tji, is as follows: — Butter—The market is slow. New Zealand salted 172s to 1735, seconds 162s to 1665, unsalted 176s to 178s, Australian 164s to 168s, Argentine 156s to 1625, Danish 192s Dutch 198s to 200s, Esthonian 170s to 1725, Siberian 150s to 1545. The estimated stocks of butter held here are now 500,000 boxes; butter afloat 620,000 boxes. Prospects are that the market will not advance until Considerable quantities of the held butter have gone into consumption. The cheese market is quietly-steady. New Zealand white 98s to 995, coloured 102s to 103s, Australian white 96s to 98s, coloured 100s to 101s, Canadian 106s to 112s. Messrs A. H. Turnbull and Co. have received the following cabled advice from London Danish butter, 192s (last week 1925); 'N.Z. unsalted, 1763 to 178s (176s to 180s); N.Z. salted, 173s to 176s (174s to 17Ss). Market quiet. N.Z. cheese: White, 98a to 100s (99s to 101s); N.Z. cheese: Coloured, 102b to 104s (103s to 105s). The market is quiet-ly steady.

FROZEN MEAT. The New Zealand Loan and Mercantile Agency, Co., Ltd., have received the following cable advice from London:—New Zealand Frozec Meat —Lamb: per ]b average. Mutton: Wether and maiden ewe, light 6gd per lb, heavy 6|d per ib; ewe, light 4Jd per lb, heavy per ib. The mauket is weak. PROPERTY SALES. Jones, McCroatie Company, Ltd., sold by public auction on Saturday, tn account of the Public Trustee, as executor of the will of Jane Radcliffe, deceased, the property situate No 160 Ensors road, close to Ferry road, comprising residence of 6 rooms, together with quarter-acre of land, for £320, to a client. SALE REPORT. Nicholls and Co., Ltd., 176 Manchester street. —The property being No. 250 Kilrnoro street, City, advertised for sale by auction on tha 17th inst., was 6old privately yesterday by the company to Miss Le Page. It is therefor® withdrawn from the market. This ia the seventh property disposed of by the company Binca Friday laat. —6