BINDER TWINE MONOPOLY.

Evening Post, Volume L, Issue 45, 21 August 1895, Page 4

BINDER TWINE MONOPOLY.

TO TH« XDIIOB. Sin— The thanks of the farming community will be dne to yon for your outspoken leader on the binder twine monopoly. In September and October last resolutions were passed against the retention of this duty by the Canterbury, Otago, Wellington, Auckland, Hawkes Bay, Southland, Palmerston North, Gore, Masterton, Clutha, Waihemo, Ashburton, Tokomairo, Oamaru, Leeston, and Central Otago Agricultural and Pastoral Associations, and these resolution have been endorsed by the recommendation of the Tariff Commission. The Hon. J. G. Ward, however, who is, or was, a substantial owner of the Southland Twine Company (Limited), has not teen his way to plaoe binder twine on the free list, alth&ugh its importation from abroad has practically ceased, and the revenue would not appreciably suffer by the abolition of this dnty. The great bulk of twine used is locally made from phormium tenax, and there is no fibre which can compete with it for cheapness and suitability. Under these circumstances the letention of the duty in simply a cover for ihe formation of lical rings, which, as you say, are a menaoo to the whole community. Last season a ring was formed in this colony, which made it imperative under money penalties that the price to the farmer for Mew Zealand made flax twine was to be maintained at 4Jd per lb, the parties to this agreement having a few month's earlier bound themselves to exact Sd for the same article. Without a duty each an arrangement wonld have been impossible. The very makers constituting this ring knew that at leatt one of -their number was exporting the same twine to Victorian dealers for 2Jd per lb, freight and insnranoe paid to Melbourne wharf ; and they were well aware that twine of the same kind spun in New York irom New Zealand grown fibre was selling there at a mere fraotion over 2Jd. In New South Wales local spinners were selling the came twine, spun from New Zealand grown fibre, to storekeepers at SJd.less 5 per oent., whilst our onn storekeepers were charged 4£d, less the same discount, I for parcels of under ton tons. Tlio Victorian dealers were delivering, to farmers their New Zealand purchases, free in Melbourne or Geelong-, at 3}d per lb net (or 4Jd per lb duty paid, duty 8s per owt, or rather over }d per lb). This state of tilings was Bimply monstrous, and whep tfie true inwardness of the ' Association iras exposed, one "ringite" 'in 'Canterbury forfeited his deposit, and sold his twine at a reduced price. The effect of this was 'somewhat ouriouß. ahe ting "allowed" their members to sell in Canterbury- at areduotion of 10 per oent. to compete with the renegade, and dealers doing, business all over the South Island had then, to ask an intending purohaser on whioh side of the Waitaki his farm, or the major part of it, lay? If on the Canterbury side the price was 4td legs 10 per cent., whifot if in Otago or Southland (where the twine was really produced) the price was 4Jd net. One feature of the New Zealand ring, I think, would give points to any American combination of a similar nature and that was the agreement to pay its distributor members a substantial bonus on twine they neither saw nor handled On all purchases by small outside dealers of under 10 tons the makers in the ring bound themselves to pay the distributor members a commission of 7J per oent. Thus a storekeeper buying say nine tons-a very large paroel— would pay4id, less 5 per oent. This 5 per oent. wonld represent the whole of his profit on the paroel when split up into small farmers' lots, unless he could get a further profit from his onstomer by raising the price to 5d or 51d, and had to compensate him for leakage of interest, risk, and all handling expenses. The ring distributor, who never knew of the sale or assisted in any tray in making it, reoeived 7i per cent, for doing nothing, or 50 per oent. more than the unfortunate dealer who had all the work to do and all the risk to oarry Of course the makira could have no ring witbont the assistance of the larger distributors, and the hitter received this additional consideration fof their high mtral support and co-operation. The farmer had to pay and as he eeemod to be comnlaaent and long suffering, the soheme was looked upon as brilliant and highly satisfactory to its members. l . In Mr.' Ward's published correspondence with me he stated thaHhe makers reoeived only 2 15-16ths of a penny from the 4Jd paid by the farmer, and in reply I pointed out that no tariff was needed .to conserve him this return. Asa matter of faot, twine has been bought this season looally at 3d and under, including railage, and with the du>y off no local industry will suffer, as it is perreotly impossible for any twine from abroad to oome into' this oolony to compete in price or quality with the local production on its merits. The abolitiou of the duty will simply make these rings impossible: and this is a matter in whioh the whole jirming industry is vitally interested. It is enrious why the Treasurer did not put Canada on the, free list in respeot to this item, instead of a 2i per oent. concession, if that Dominion was to serve as an outlet for New Zealand-made twine. Mr. Ward probably knew that Canadian spinners hud lately sold very heavily in the English market, and that he dreaded their turning their attention New Zealand-wards. If he left binding-twine at the 2J-- per cent, oonoession as a taotioal move to commit this nolony to the retention of the duty if they adopted the leoiprooity treaty at all, it must be the duty of the Legislature to see that the treaty is not ratified unless they are willing to beoome parties to the maintenance of the state of things' existing last s«»son,or any future developmenttbat may eventuate 1 . I am, &o , i Gjto. H. Oatwat Dunediii, 17th,Augu»t. *