FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20010, 19 August 1930, Page 12

FINANCE AND COMMERCE.

WHAT IS ADVERTISING? L, M. Jones, chairman of Board of Jones Store Company, Kansas City, UJ3.A., in a talk at the Kansas City Advertising Club recently, gave the following us,bis definition of advertising:— "Advertising is tbe iifeblood of commerce, the dynamic force in civilisation, the greatest constructive force, and doubtless the strongest moral force in tbe world to-day. "It is the magic lamp of fortune, the creator or wealth, the spirit breathed into the body of commerce which makes of it a living soul. "It promotes honesty, establishes integrity by causing its user to be Bquare with tbe public. "It. tbrowß' a sacred guarantee around every transaction, placing the capital of the concern back of every purchase, thus bringing about correctness of statement and honesty of product. •'lt stimulates ant} increases production and distribution, lowers prices, and places articles of beauty and utility in the reach of a multitude of people." It serves an important part in assisting mankind onward- to the universal goal of human happiness. "It stimulates ambitious rivalry to frrrnish 'tho best for the least and "thus contributes to the. happiness of mankind. "It promotes the social contact of men and raises the standards of business conduct between men, communities, and nations. The advertiser, by co-operating with the daily newspaper, has produced this dynamic power that mores civilisation. "It presents one of the greatest paradoxes in human experience, in that actually it costs the advertiser and customer absolutely nothing. 1 ' MOTUROA OILFIELDS. U'USS &3«OC3a?IOX TJCLEGHIU.) NEW PLYMOUTH. August 18. Moturoa Oilfields, Ltd., reports for the week ended August 16th: — No. 1 well drilled to 2065 ft in sandy shale, with small flow of inflammable gas. Eight-inch casing run to 2040 ft. CORNISH POINT MINING CO. Th» manager of the Cornish Point Gold H'mioz Company, Ltd., reports, under date August loth, as follow*: Work been proceeding steadily at the mine, and the branch driTe, or what is now eh* mats drive, has reached the rising reef on its right, to that we had to come back two seta to set tbe drive through to the left. Some large boulder* hare had to be driven out, and in aome places the face nearly «U atone. Now, however, the face is in m rice-looking river trash, the height 01 it being four feet-. HIGH COMMISSIONER'S REPORT. (TBE P&ESB Special Service.] WELLINGTON, August 18. The Dcpahment of Agriculture has received to* following cablegram, dated August 16tb, item tba High Commissioner foi- Aew Zea- • UmL London:— . TALLOW. Spot market remains steady, witii fair demand at suction, 1230 packages being offered aad 751 sold. .Present quotations are: Motion, fill* 81s, fair to good 97a to 295, dark to doll 23s to 265; beef, sweet and/or mixed SJU'to «3r, fair to good 26a to 28s 6d, dark to dull 32s 6d to 255, mixed fair Jo gooa 98« to 90s. dark to dull 28s fd to 25a; gut, etc., 22s «d to 26s per cwt. APPLES. -Marlwt very dull. Current, prices for Now Zealand Slurmew are 7s to lCs, Delicious 6s ttt 11#, condition variable; Dougherty 9s to ltol American Gravenatein 8s 6d to 9s. Engltsb apples ace increasing in quantity ana HEMP. Manila, market easier, but fair business has been done. grade August-October shipment sold in the middle of this week at £3t Ifa and at the end of the week down to ITiM ■ Tbe output of Manila Horn January «3t to August 4th was 837,000 bales, against BljffjffllO for the same period last year, stocks in.- Manila on July 3lst were 140,000 bales, •cainat 187.000 at the same tim« last year. Stocks in IJngland are .19,491 boles, against 13,286 «t the same time last year. Sisals-African is easier, owing to the absence of trade support at the cJose.. No. 1 good marks August-October shipment is euuted (sellers) at i 22 15s and fair average quality £93 frs. The Mexican Co-operative mM bales to America, shipment from August to June, at the equivalent of .£l3 10s Europe. yCtiw Zealand—Market continues dull and depressed. No first-hand salS3 ire reported. WOOL. Tiu> Bradford market is quiet. Crossbred tou *re moving in. small weights, with pri-'es aligbUy in favour of buyers. Present ijuotatieSTfor tops are: 6S's Is 7d, 40's prepared ■ ic Sid, others unchanged. COMMERCIAL BANK OF ' AUSTRALIA. At the annual meeting of shareholders in this Commercial Bank of Australia, Ltd., in Melbourne, the chairman of directors (Mr Jaba L. Webb), who presided, eaid the in the bank numbered over IMOO, representing all classes of people distabuted throughout the various States ot the Commonwealth, New Zealand, and Great itfftmiw... The avenge holding per sharewu approximately £369* Tno net to £389,811, compared with 2381,623 "for the year ended June 30th, 1929, vlfcsdbt in Viaw of the high-rate# paid for puidmw ot London' bills during the iaflt half-year, and • the generally quiet trading pwvaUing, must be considered ' wtiefactory. - Tlie London and foreign ex«bsngis. posit ion had been unsettled and difficult; la consequenoe traders had suffered eocsidenble inconvenience. It had been immmuX for tile banks generally to-restrict Somewhat the facilities for payments overseas, not only because of the difficulty of obtaining cover in London, but also to assist th« movement to adjust the adverse balance «t trade. Notwithstanding these difficulties tits Iwflk been able t6 meet all legitimate demands in this direction, aided by a recognition by its customers that smaller operas* buying was a safe policy in view of the threatened economic situation. These restrictions, together with the high- of exchange suid small margin, had considerably •Smim profits. It wss felt, however, that the course pursued had been in the best interests of the- Commonwealth. "TAKE ALL." TAXES £IB,OO0 —NOTHING FOR DIVIDENDS. •VignMS produced at the annual meeting .Herts Bock and Engineering Co., Ltd., (Sydqey), showed thst while the year's «p*fatioi»* provided no dividend for the share- - balifers, the tMpayers. have done very ««ll Mt of the business indeed. 81* Kelso King, chairman of the company, Mftmd to the net earnings left to the cornStar after baring met rates and taxes, as 0 ''small return." The Industry, be added, In the year ended JTona 80th, had "only speeded in earning MJtolant to pay ratesto the Municipal Counetl. sad taxation on the previous year's proftt# to tbe Oowwnonwoaltb and State QoTcrn—ewts. These totalled £IB,BOB, • and -only 4799 19s 4d remained to be added to the hnhinfi eivrlid forward* ■ fllwmboMers received no dividend; bpt tfe# Wflipany paid out- ot Its frois .rovooiiMi VedHml taxes- —land and Income . 4,287 ftoto'taxes - .. 6,844 • Fmbllt Endowment tax .. .. 3,800 rites . ■ .. 3.173 L #|lt«w-*»tss ■■■■*■ •• ?0p ft Htitoil Trust charges .. 189 I Items included in total ... 18,873 ■ 3k. th# vrsnoos year the sum similarly sbIwM'tM stated m'£14,842.

CHRISTCHURCH STOCK EXCHANGE. YESTERDAY'S TRANSACTIONS. Firm but quiet conditions prevailed on call yesterday, and the recorded turnover was below .the average. Transactions, exclusive of vestibule business, included:— £SOO Greymouth Borough Council 5 per cent., 1937, Debentures. £3OO N.Z. Govt. 54 per cent. Inscr., 1933. ~ £4OO N.Z. Govt. 6 per cent. Stock, 1931. j 15 Comm. Bank of Sydney. j "00 Bank of New Zealand. 100 United Building Society. 100 Northern Steamship (14s 6d paid). 250 New Zealand Breweries. 100 Electrolytic Zinc (Preference). 200 Holden's Motors. New Zealand Government 5i per cent. 1933 Stock changed hands at £99 7s 6d, market closing 2s 6d on either side; 6 per cent. Stock .due 1931 realised £ 100. Commercial Bank of Sydney shares had dealings at £2O 7s 6d, and there were further sellers at that price, buyers at £2O. Bank of New Zealand shares had dealings at 53s lid and 565, and there were further buyers at 55s lOd; sellers at 56s 3d. Union Bank of Australia shares appeared easier with sellers at £lO 13s, buyers at £lO 12s 6d. Greymouth Borough Council 5 per cent. Debentures, due 1937, changed hands at £97. United Building Society shares advanced to las 9d, market closing lus 9d buyers, 15s lOd sellers. Northern Steamship 14s 6d paid shares were taken at 14s 7d. Buyers of Westport Coal Company shares moved up to 31s 6d, sellers at 32s 64. New Zealand Breweries shares changed hands at 50a lid and 51s, closing quotations 50s lOd buyers, 51s sellers. Tooheys Brewery shares appeared weaker with sellers at 18s 4d, buyers at ISs. Sellers :of _ Tooths Brewery' shares reduced their limits to 28s 9d, buyers at 2Ss 4d. Electrolytic Zinc Preference shares cum dividend eased to 22s 6d, and more were available at 225, buyers at 21s 6d. Holden's Motor shares hardened to dealings at 9s 3d, market closing 9s buyers, 9s 3d sellers. Buyers of Waihi Gold Mining shares raised their bids to 14s Id, sellerß at 155..' LATEBT QUOTATIONS. ' Buyer*. Sellers, j £ ». d. £ ». d. N.Z. Government, Debentures — . I per cent. .Inscribed 1938 and Bonds, 1939. 03 15 0 ii per cent. Inscribed 1939, and Bonds 1933 and IMI •• Wl2 6 Si per. cent. Inscribed, * 1941 .. •• Bi per cent. Inscribed, 1933 .. 69 S 0 99 10 O 5* per cent. Bonos, 1933 •• .. 69 5 0 Si per cent. Inscribed, 193G .. .. 99 5 0 99 12 « 5i per cent. Bonds, 1983 •• .. 99 5 0 - Other Debentures— Christchurch Trams, Si per cent., 1941 - 0 Timara Borough, 3 per , I : cent., 1935 ~ 06 lo 0 Banks — 1 Adelaide 65 j* f ® Aust. of Commerce •• 1 110 1 111 Comm. ot Aust. 10 2 10 3 Comm. of Aust. (nref.) 6 5 0 6 7 0 Comm. of Aust. (new, 6s paid) -• •• - 01 ° ® Comm. of Bj-dney .. 20 0030 7 6 E., 8., and A. ... 516 0 SlB 0 National of N.Z. Sl4 0 615 6 i National of Australasia, ! (£lO paid) " .. 13 13 011 - 0 New South Wales fcuni div.) .. .. 36 0 0 36 10 0 Wew Zealand .. • ■ 213 10 '2 16 3 New. Zealand ("D" Mortgage shares) . m 1 " 0 Union of Aust. * 10 13 6 10 13 0 Insurance — National - .» 0 " * ,0 14 2 New Zealand .. jj * ® Standard (cum dir.) .. -- o 0 0 Loan and Agency—,Dal&ety and Co. .. 916 6 10 0 0 Goldsbrougb, Mort .. 1 t 3 1 t 8 N.2. Guarantee Corpn. 0 7 9 0 711 Permanent Investment 10 0 0 United Building Society OZS 9 010 10 Wright, Stephenson and Co. (ord.) ~ 110 Shipping— Adelaide Steamship .. Huddart-Parker • • , , 2 Huddart-Parker (pref.) P. and O. Deterred Stock .. ..226 260 Union feref.) •• ~ 110 Frozen Meat— N.Z. Befrig. <£l paid) 0 9 7 ox ® J® N.Z. Kefrig. (10s paid) -0 4 3 0 410 Woollens — Kaiapoi (17s paid) .. 010 0 011 5 Kaiapoi (7s paid) .. 0 3 9 0 4 6 CoalGrey Valley ...126150 Taupirf •• ~ , : A 2 Westport .. .. 111 6 112 6 Gas — Auckland -• •• ~ * ® Christchurch .. 14 4 I 410 Christchurch (108 paid) Timanx 1 1 » Breweries — Carlton " i,2 in o v n New Zealand .. ?, i a • Staples .. 2 3® « « ® Timaru • • Timaru (Ss paid) ... 06 6 07 0 Tooheys • •• » ® 018 4 Tooths •• •• 1 8 * If® .White Star .. •• Miscellaneous—I Allied Motors ~ 0 13 ! Amalgamated Wireless „ (contr.) .. •• ~ 1« £ Beath and Co. • • ... 1 rii Beath and Co. .(Is paid) 0 6 4 0 611 Australian Iron and Steel (pref.) •• ® 0 . British Tobacco .. 117 3 117 4 Burns, Philp -• Colonial Sugar ■ • 86 0 0 36 lo 0 Electro. Zinc (ord., cuin div.) .. •• ~ 10 0 Klectro. Zinc (pref., enm div.) 1 1 6 1 - 0 Hayward'e Pictures 0 IB 0 Holden's Motors (cum dir.) .. •• 0 9 0 0 9 3 Howard Smith (ord.) .. 010 0 Howard Smith (pref.) .. J? J Kauri Timber •• J Mt. Lyell .. •• 13 2 12 3 Mt. Lyell (new, £1 paid) .. 1 \ ® N.Z. Drug Co. N.Z. Farmers' Co-op. ("B" pref.) N.Z. Farmers' Co-op. (6i per cent. Stocic, 1980) •• .. 73 0 0 80 0 0. N.Z. Farmers' Co-op. (6& per cent,. Stock, 1940) .. .. North Canty. Co-op. Flour .. • • 010 0 Quill, Morris .. ®® Taranaki Oil •• United Pictures .. 018 6 . < Wilson's Cement . ■ 118 0 Wunderlich .. •• 0 ® Central Dairy .. 16 0 113 0 Mlnins— Alexander - v - . ® Kawarau . ■ 004 —- Mahsktpaw* .. - -0 0240 0 8 Oksrito o 610 o 7 o Cornish Point (Is paid) 0 0 8 0 08J . few Orck : (U paid) q - x Waihi Grand junction Winding Orssk (Is pd.) - 00 6 Winding C*stk (fid pi) 9 0 3

YESTERDAY'S SALES. CHRISTCHURCH. Sales on 'Change—- £. s. a. | N.Z. Government 6 P er 0 cent. Stock, 1931 - - 100 0 0 Comm. Bank of Sydney. (3) 20 / b Xew Zealand Breweries (-) - ; Holden's Motors (cum div.; (-) Sales Reported— X.Z. Government 51 per „ cent. Inscr. 1933 "J Northern Steamship (14s 6d paid) • • 0 14 ' Electro. Zinc (prcf. turn . „ - j div.) •• •• I - ® j Bank of >"eiv Zealand .. - United Building Society .. 0 15 9 Xcw Zealand Breweries (-) - n u Greymouth Borough Counell 5 per cent. 1937 .. -o 0 0 AUCKLAND. Sales on 'Change—- £, s. d. E., S., and A. Bank • • 5 17 0 Bank of New Zealand •• -la 11 Uni« Ba»k W « « >". Z. Insurance .. •• 2 1 9 Northern Steam • • 0 14 < Farmers' Trading • • 0 ® 0 Wilson's Cement • • - 0 6 Waihi Grand Junction .. 0 2WELLINGTON. Sales Reported—- £ ». u. Eank of New Zealand .. 2 16 0 dunedin. Sales on 'Change—- £ s. d. ] Electrolytic Zinc (ord. cum dir.) ... 10 0 debenture bonds. Debenture bonds, bearing 8 per cent interest, are offered in our advertising columns to the Canterbury public. Tho bonds are of £25 each, and 400 are being offered. In addition to surplus assets, amounting to £70,000, tho bonds are protected both in regard to return of capital and regular payment of interest bv a deed of guarantee with the New Zealand Underwriting and Development Co., Wellington, which has a subscribed capital of £175,175. CENTRAL RESERVE BANK BILL. NOT TO BE PROCEEDED WITH. Satisfaction was expressed in business circles, says the Melbourne "Argue," at tho intimation from Canberra that the Select Committee of the Senate had presented a progress report adverse to the Central Reserve Bank Bill beins proceeded with at tho present juncture. Tlio opinion of bankers and other financial authorities- is unanimous that the time is inopportune to remodel tho Federal banking system, especially as the Commonwealth Bank as at present constituted is carrying out central banking business in a satisfactory manner. Following the shelving of the Reserve Bank Bill, it is unlikely that time will be wasted in further discussion of the Commonwealth Bank Bill, the object of which was to establish as a separate institution the trading business of the present Commonwealth Bank. At the Commonwealth Bank is now apparently safe from disturbance by political action for at least twelve months, interest will be taken in the intentions of the Government regarding vacancies on the Board of Directors. When Sir Samuel Hordern's position became vacant by effluxion of time in October, the Government took no action to fill the vacancy, but it was known that had tlie banking Bills, now shelved, not been in contemplation it was intended to appoint , _ a Labour man. Sir Robert Gibson, the chairman of directors, is the next member of the Board due for retirement, his term expiring on October 10th. As the Prime Minister intends to leave for London shortly, it is expected that an early , intimation will be conveyed to Sir Robert Gibson or rns reappointment. At the same time the Ministry may decide to All the other racancy. The business community regards Sir Robert wpson as a tower of strength to Australia in her present financial condition, and joins with his colleagues on the Board of the ban* in the expectation that the Ministry will do the right' thing. NEW ZEALAND APPLES. (rnou oca ows cobkesposdext.) LOKDON, July 11. Heavy shipments' of Tasmanian apples and the soft fruit season are the factors at present operating against a profitable time for the New Zealand fruitgrowers. The fruit from throe vessels is at present on the market. The Port Sydney arrived on June 27th, and 20,000 cases of apples have gone into consumption, some 3000 cases being placed in cool store at Southampton. The Mataroa brought 7170 cases on July 4th. These aro on the market, as well as 35,542 cases from the Tairoa, which arrived on July sth. Tho Tairoa is also unloading 18,836 cases at Hull. For Stunners 9s to 10s is being obtained, and for late red varieties from 10s to 12s. Because of the low prices Mr H. E. Stephens (London reprasentative of the Board) has considered it advisable to place several of the shipments in cool store. The Taranaki brought 13,874 cases for Southampton and 31,822 cases for London. Both these lots have been placed in store at Southampton. At Avonmouth 14,822 cases from the Port Hardy have gone into store, and 43,055 cases from the Tasmania have gono into store at Manchester. Doubtless, when the strawberries, cherries, and raspberries are off. tbo market prices for apples will take a turn for the better. Since the Fruit Board established representotion in' London the work has been carried on in offices in Walter House, at the corner of the Strand and Bedford street, and a few yards away from the High Commissioner's Office. Better offices were available some months ago, and the Board has now been able to make arrangements for removal, which was effected last Friday. The now offices, consisting of one large room and a smaller room, are in Lloyds Bank Chambers overlooking Covent Garden Market. Besides being lighter and pleasanter than the former rather gloomy rooms, these offices are far more conveniently situated. AT THE WINTER SHOW CANTEBBUBY HALL PLANS ON YIEW. Every -visitor to the Show should make a point of seeing the special stand • on which is featured, a model of Canterbury- Hall, built to scale, and j where • are displayed tho architect's plans for this very .fine building. In future the Winter Show, conducted by the Canterbury Manufacturers' Association, in conjunction with the Canterbury A. and P. Association, will be held in Canterbury Hall, the erection of which will shortly be commenced. ■ The site is a freehold one, ideally situated in Moorhouse avenue, opposite the Christchurch Bailway Station. Canterbury Hall will meet a very pressing need for adequate modern accommodation for shows, exhibitions, large public gatherings, athletic contests, and other sundry purposes, all of which will swell the already assured revenue from the annual Winter Show. In order to complete financial arrangements, 7 per cent. Debentures are being offered to tho public in denominations of £5, £SO, £IOO, and £SOO. Owing to the community interest, small denominations are being offered in order to permit all classes of the community to participate. Attractive features of the proposition are that the security will be on freehold property, and also in the event of the company paying off Debentures within the ten year period, repayment will be made at the rate of £lO3 per centum. Only 10 per cent, is required on application, which may be made to the Secretary, Canterbury Hall Company, Limited, P.O. Box 381, Christchurch, to any member of the Christchurch Stock Exchange, or at the special stall at the Winter Show. An explanatory booklet, which'thoroughly illustrates the proposition, is available upon request. —6

PETROL TAX. DISPOSAL OF REVENUE. REFORM CRITICISM. GOVERNMENT'S DEFENCE. [THE rEESS Special Service.] WELLINGTON, August IS. The proposal in the Finance Bill to alter the proportion of motor spirits revenue allocated to the revenue fund of the main highways account and to the cities and larger towns met with a spirited protest from the Leader of the Opposition, the Et. Hon. J. G. Coates, during the second reading of the Bill in the House of Representatives to-day. Mr Coates characterised the decision not to pay £200,000 from the Public Works as a "steal," and he charged the Government with damaging the ratepayers to the benefit of the general taxpayer. When outlining the contents of the Bill the Prime Minister said he did not intend to go into the question of the petrol tax or highways money, as members had already spoken at length on I the subjects, and they would no doubt have much more to say. Ho thought tho position was already quite clear. Mr Coates: There is really no argument for them. The Prime Minister said that the necessity of the times was tho argument for the proposals, and against that nothing could be said. When up against necessity theory had to stand aside. The future would depend upon the state of the country's finances, and no one would be more pleased than he if it were found possible to restore the payments from the Consolidated Fund which it was proposed to discontinue from that source. Although he was in sympathy with many of the arguments which he had had placed before Mm since the proposals were first made, ho was unable to take any other course in the circumstances. The simple fact remained that there was not the money available to accede to the demands of the many people and organisations which had protested against the rearrangements made. The questions arising from the Finance Bill were not those affecting the taxation of motorists, but those relating to the disbursement of the moneys raised. Allocation to Boroughs. Strong criticism was levelled by Mr Coates at the Government's proposal to give the cities and larger towns only 54 per cent, of the net revenue from the petrol duty. Surely tho cities were entitled at least to 8 per cent., which was the present arrangement in connexion with the fourpenny duty. Eeturning to the subject later in his speech, Mr Coates said ho wondered whether Mr Forbes knew how the arrangement with respect to the expenditure on highways was arrived at. Two conferences of local bodies and motorists had been held in Wellington, and from the last of the conferences the Highways Act had, emerged. The Government agreed to contribute £35,000 to the Highways Fund and handed over 6000 miles of road to the Highways Board. The expenditure oa the maintenance of the same roads had cost the Consolidated Fund at least £50,000 in past years. It was felt the Government was doing good business if it could relieve the Consolidated* Fund of that expenditure on the terms arranged. Then a sum. of £200,000 was, under the Act, to be made a free grant from the Public Works Fund, which had been called on in past years to the extent of about £300,000. The Government proposed to destroy those arrangements entirely. Tlie Prime Minister: No, the payments will still be made. Mr Coates: It is very hard to keep one's temper with the hon. gentleman when he makes a statement like that. The Prime Minister: Tho general taxpayer paid it before and the special taxpayer will pay it now; that is all. Mr Coates eaia the Government proposed to charge interest on £1,226,000 being tranfers from the Public Works Fund to the Main Highways Fund. In effect the Government by that method was taking £61,000 from the taxpayers' pockets in one transaction alone.' Mr W. J. Poison (Ind., Stratford): And that £61,000 will increase each year. Mr Coate3: Of course it will. Proposals Denounced. The Government's proposal not to pay the sum of £200,000 from the Public Works Fund could only be termed a "steal," "said Mr Coates. The amount was intended as subsidies to local bodies on rates, and the legislation had been in force for over 40 years. He deemed the matter one of sufficient importance to require the confirmation of the electors. It was not one to he dealt with according to circumstances. A party of 26 members, with the support of the Labour Party, was going to undo and reverse legislation which had been on the Statute Book for 40 years. The Government said the amount would still be paid, but the Government was "diddling" the ratepayers out of the money. The general taxpayer would not pay as in the past. In fact, the farmers with motor-cars would be in the position of subsidising their own rates. As for the proposal to give only 5} per cent, to the cities and larger towns, neither Mr Forbes nor Mr Hansom had worked out that scheme. It was a Departmental "rig out." It was calculated that 5$ per cent, over the whole petrol taxation would give the cities the samq as 8 per cent, of the fourpenny tax. Mr Forbes: A little more. Mr Coates: How muehP The hon. gentleman cannot justify it, Mr Forbes: Nothing will be taken from the cities. National Boading System. A national roading system was advocated by the Deputy-Leader of the Labour Party, Mr M. J. Savage (Auckland West). That, he contended, was the only solution of the highways difficulty. Construction and maintenance would then be provided for out of the Consolidated Fund to which every person in the community would contribute according to his or. her means. The principle was unanswerable. Mr Savage said he had never believed in the petrol tax. He considered that the' Government would .be well advised to consider some readjustment in the matter. He quite agreed that a tax for making roads should be allocated so as to have the money expended where i't was most necessary. Where it should be spent was very debatable, but it seemed wrong, in his opinion, for such a large percentage to be going to the oountry districts and so little tor the cities and boroughs, j "I could not see anything in the charge of breaking an honourable agreement that was made by the Leader of the Opposition," said Mr Savage. "It would be a sorry state of affairs if this Parliament could bind the next. The community votes for a change because it desires one, and if it gets a change in legislation as a result, it

seems to be * chauge in the direction it wanted." Mr Savage considered that the principle of the petrol tax was wrong, and that the proposed allocation should be carefully scrutinised before the Bill was passed through all stages. He would like to be sure that cities and boroughs would not suffer. The House, in his opinion, should have definite information as to what the position would be. | Responsibilities Discarded. ; "The Main Highways proposals carry out a decision of the Government to < unload the whole of its liabilities in connexion with the public roads of the Dominion which are the property of the Crown on to the local bodies and motorists," said Mr D. Jones (R., Canterbury). ''They propose to take away £226,000 of subsidies to local bodies which have been in existence for nearly fifty years, and also refuse to pay £35,000 maintenance charges, which were agreed to by Act of Parliament." Under the Highways Act of 1922, the State undertook to contribute £200,000 annually from the Public Works expenditure, on the condition that the Highways Board took over all the roads that the Public Works were maintaining. This work had been actually costing the Publio Works nearly £300.000 a 'year. In the present Bill the Government refused to pay the £200,000 a year laid down by the Act. The various sums totalled about £461,000 a year, and they were the Government's definite liability. It now proposed to pass an Act exempting it from the payment of tt'em and putting the whole of the burden on to the ratepayer and the motorist. In addition to this the Government now said that it would charge interest on these past grants, which amounted to £1,266,000, and which were definitely given to the Highways Fund by the Act. This interest would amount to over £60,000 a year, and such action was far worse than a repudiation of debt. Most of the proposals were brought down last session by Sir Joseph Ward, who had been forced to abandon them because of their evident injustice. Burden on Ratepayers. "This Bill proposes to add another annual burden on the ratepayers and motorists of £522,000, and a further twopence per gallon on petrol," Mr Jones added. "This increase is equal to from TO to 80 per cent., and I hope that the country and the Prime Minister recognise that." The Prime Minister: No, he does not. Mr Jones: That has been the difficulty throughout the whole of this debate. The outstanding fact is that the Prime Minister does not understand the proposals and how far-reaching they are. The Prime Minister: The ratepayer is not, paying the money. Mr Jones said that the ratepayer was paying every penny of it, and it was absurd to say otherwise. The Hon. P. A. de la Perrelle: Would you agree that 90 per eent. of the money from the petrol tax is being raised in the cities? Mr Jones said that the Minister for Internal Affairs referred to purchases, and not to usage, which was an entirely different thing. The outstanding fact was that although the Government was calling upon the ratepayers to find an additional £522,000, it was not giving them one penny back. It put the money in one pocket of the ratepayer and took it out of the other. It was not enough for the Prime Minister to say that he had to balance his Budget. Why should he do it entirely at the expense of the ratepayer? The whole roading system of the Dominion was being upset in one moment. Local Bodies Penalised. He entirely agreed with his Party leader concerning the allocation of the petrol tax to the cities. It was absurd to cut down the cities' proportion in the way proposed. In the allocution of the new petrol tax the cities and boroughs would not receive one additional penny. They would have to pay the whoje of the additional tax, less their Government subftidiei, and they would receive exactly the same amount that they received to-day. The proposals 6truck at the very foundation of the Highways Act, placing an unprecedented burden on the ratepayer and the motorist. The object of the Act was to maintain roads and relieve the ratepayer of what was becoming a crushing burden, but the amendment would leave him in a financial quandary. The Government confused the issue by saying that it * was giving back the money through * the petrol tax. It was not paying the ratepayer in another way, because the additional petrol tax was paid by the consumer and then handed back to him. Proposals Defended. A spirited defence of the Government's policy and an attack on the Reform Party, which, he declared, had made an "absolute present to the oil oompanies of America'' by having the increase on the petrol tax reduced from threepence to twopence, was made by the Minister for Lands, the Hon. E. A. Ransom. He believed that had Mr Coates had more regard for the advice of the Treasury, the country would be in a much better position to-day. Accumulated surpluses had been dissipated, and public exp.mditure had not been kept in check, but fortunately the elector* had been discerning and had- decreed at the last General Election that the orgy of extravagance should cease and another Government was put in office. Mr J. A. Nash (R., Palmerston): Tou are surely not saying that seriously. Mr A. M. Samuel (R., Thames): The best joke yet. The Minister said the Government had been charged with repudiating an honourable agreement made by the previous Government with regard to highways finance. He pointed out, however, that Parliament was not governed by agreements except what was embodied in legislation. He did not know what a previous Minister for Public Works had promised the local bodies and the motorists at the conferences Mr Coates had referred to. The present Government had only the records of the Acts to show what had been promised. It was absurd to say that anything else was binding. The Main Highways Act had been Mr Coates's "baby," and it had now grown so heavy that tho Consolidated Fund should not be asked to carry it. The Government now proposed to do what should have been done years ago, to place the responsibility on the road user. When the Highways Board was first formed there was placed at its disposal £35,000 from the Consolidated Fund for roads, which might bo regarded as a national charge, £200,000 from the Public Works Fund, and the proceeds of tyre tax and license fees. Subsequently the fourpenny petrol tax was introduced, and added to the Highways Board revenue. It was tEen, in his opinion, that the Government should have taken the opportunity of relieving the Consolidated Fund of the charges on it. However, that was not done at a time it could have been brought about without harm to anyone. The large sum available to the Highways Board led to extravagance in expenditure, and local bodies found it very hard to maintain the rate of expenditure asked by the Highways Board in spite of the fact that the Board offered £2 to £1 subsidies. In some cases local bodies taking advantage of such offers found they were in no better financial position than before. It must be agreed that the user of the road who got the. major advantage from the expenditure should be held liable for that 1 expenditure, .

| Growth of Rates. Mr Ransom said that in 1914 the sum of £754,785 represented the entire rates collected by counties, while the sum in 1928-29 was £1,939,718. It could readily be Been that the large increase in expenditure was due to motor traffic, and it was not fair to the primary producer that he should pay anything like the proportion- he was now carrying. "That unscientific financing of the highways had not assisted the primary producer either in his rates or in the carriage of his products. It had been said that subsidies, the system of subsidising local bodies on rates, had been in vogue for 40 years. The Bill would not interfere with those subsidies. They would be paid in the Bame proportion, but they would be paid through the highways revenue fund out of the petrol fund, instead of by the present system. An Accusation. Answering the criticism that 26 members of the United Party supported by the Labour Party were going to alter tho system which had obtained, Mr Ransom argued that that was not a fair way of putting the position. The change was going to be made by a majority of the members of the House. It was a question of principle and not of Party. Unquestionably if the Reform Party had Btudied the interests of the country it would not, out of "pure cussedness" he was going to say, have acted as it did on the Customs Bill by opposing the Government on the petrol tax increase and so have deprived the country settlers of £120,000 which was made an absolute present to the oil companies of America. There was a storm of dissent at this remark and Mr W. L. Martin (Lab., Raglan) was heard calling above the ''clamour": "W r hy did the Government agree to it?" Mr J. S. Fletcher _(Ind., Grey Lynn) tried to put a question to the "Honourable Minister," but Mr Ransom replied that "the Honourable Minister's time is running short and he proposes to finish in his own way." Mr Ransom said that he had a lot of sympathy for the settlers in the backblocks, and in the Kaipara electorate, which was represented by Mr Coates, ho had experienced some of the worst roads. Under the petrol tax scheme there would have been £200,000 available in a full year for the backblock roads, and altogether he could see outlying districts benefiting by about £300,000. "But we have been robbed of this, absolutely robbed," declared Mr Ransom. This raised a fresh hubbub and Mr Ransom was asked who was the Government. Concluding, Mr Ransom said that with the twopence extra tax he anticipated there would be from £120,000 to £150,000 available for backblock roads in a full year. The schedule showing how the money under that heading would be allocated would be shown in the Estimates of the Highways Board next year. Members would then be able to see for themselves how it was proposed to spend the money. Highways Revenue. The Minister for Internal Affairs (Hon. P. A. de la Perrelle) said the new allocation would not hurt the fanner or anyone else. The Main Highways Beard had received £7,828,000 from various sources during the past five | years, the total being made up as follows: — £ Tyre tax .. 1,396,000 Motor registration 1,653,000 Petrol tax .. 1,734,000 Consolidated Fund 210,000 Miscellaneous .. 187,000 Public Works Fund 1,226,000 Loans .. .. 1,422,000 "I am certain that if I had my way the main highways would stand the cost this year, and there would be no charge on the Consolidated Fund for so richlyBoariil," the Minister said. Mr Coates: Are those Treasury figures? The Minister: They are very authentic figures. Mr Coates: Smoke screen. SHARE OF CITIES AND BOROUGHS. On the casting vote of the Mayor (Mr J. K. Archer), the City Council decided last night to petition the Government to allow cities and boroughs to receive 8 per cent, of the petrol tax of sixpence instead of 5£ per cent, as provided in the latest Budget proposals. A telegram from Mr H. Holland, M.P., containing the information stated: "At present the cities provide the major portion of the £460,000 and teceive practically nothing." Consideration in committee was followed by equal voting—seven on each side —the Mayor giving his vote for the protest. Crs. A. A. McLachlan, W. Williamson, and M. E. Lyons expressly asked that their votes be recorded against the proposal to protest. Cr. explained his attitude by reason of the fact that the extra taxation was raised for the special purpose of providing half a million to relieve the Consolidated Fund. In view of the way Canterbury M.P.'s had voted, protest, he asserted, was useless. NO ARRANGEMENT FOR PRICE RESTRICTION. , [THE PKBSB Special Sarrlce.] WELLINGTON, August 18. Noi arrangement is to be entered into in the meantime between the Govern-ment-and private companies with a view to restricting the retail price of petrol following upon the raising of the 1 petrol tar from 4d to 6d. A statement to this effect was made by the Prime Minister, the Hon. G. W. Forbes, in answer to an urgent, question by Mr D. G. Sullivan (Lab., Avon) in the House of Representatives to-day. Mr Sullivan asked the Prime Minister whether he had obtained any assurance from the companies that they would reduce the, price of petrol by Id a gallon, following upon the Government agreeing to reduce the originally-pro-posed tax by that amount. He asked whether the Government had itself made any endeavour to come to some arrangement, and whether if it had not done so it would take steps to see that an agreement upon the point eould be reached. The Prime Minister said the''Government had no intention, at least at the moment, of taking any steps to: regulate the price. The companies had given no guarantee concerning petrol prices. As he had pointed out during the debate on the Customs Bill, an investigation into the alleged disparity between prices in New Zealand and the countries of origin would be undertaken during the recess. Following upon that j enq«iry the Government would be in a position to know what to do. "That with superfluous ills doth mar our joy,"—Assure quick relief from winter ailments that make you miserable, with Baxter's Lung Preserver Soothes and remedies. Possesses unique tonic properties, which also tone up the system. The contents W0 preserved by a new screw cap. All chemists and stores. Economical famuy siae, 4s 6d; medium, 2s 6d; bachelor's mm, la 6d. «H§.