EXTENSION OF COMMERCE.

Evening Star, Issue 10783, 18 November 1898, Page 1

EXTENSION OF COMMERCE.

Early in the recent session, on the motion of the Premier, a Committee of the House of Representatives was appointed to inquire into and report as to the best means of promoting the commerce of the Colony, and the sale of tho Colony’s products in markets other than those at present obtainable. A report from this Committee was brought up on November 3, which deals with the question of primage and charges upon wool and produce made by agents. The Committee state that they summoned Mr C. Pharazyn, of Longwood, Foatherston, who handed in, as containing certain charges made by him against the agents of tho Colony, an article on primage from the ‘ New Zealand Times’ of July 22, and a letter on the same subject under date July 25; that Mr Phahazyn gave evidence, and that other witnesses called at his request were examined. The evidence shows, tho Committee report, that produce - exporting agents, in many cases, while acting as agents for producers, act also as agents for shipping and insurance companies. For tho work done these agents are remunerated by payment of a nominal sum by the' producer, and receive from the shipping and insurance companies payments made by way of brokerage and commission a percentage on tho freight (in some cases 5 per cent., in others 7i per cent.) upon tho distinct stipulation that it bo not returned to tho producer. The payments made by tho “shipping and “insurance companies to the agent of “ the producer who is also agent “ for the companies is never accounted for to the producer in the “ statement of accounts between him

“and his agents.” The evidence shows that what is known as primage is a brokerage on the freight, out of which a payment is made by the shipping company to their agents for collecting freights and guaranteeing and ensuring regular shipments. According to tho evidence agents are usually employed in carrying on the shipping business as at present organised. These agents must be paid either by the shipping company or the producer, and in either case ultimately out of the pockets of the latter. As evidence to prove that the present system could bo cheapened, the case of a shipment of 1,000 bales belonging to Mr Pharazvn was instanced. Mr Pharazyn stated that, by doing his own work, he had saved approximately £I,OOO, made up as follows £450, freight; £312, miscellaneous charges at 6s per bale; £l2O, 1 per cent, saving in tho method he transacted business; £IOB, petty charges. The Committee consider that it is desirable that all payments made to the agent in respect to tho shipment of produce should be disclosed to the producer. That tho interests of the producer in securing reasonable freights cannot be conserved so long as agents have a proportionate and _ beneficiary interest in the payment to shipping companies. That the condition imposed on agents—that they must not return primage to the producer—is an unfair and unreasonable restriction. The Committee conclude by saying that they have no recommendation to make in respect to legislation. Mr M'Nab, the chairman, in presenting the report, moved that it lie on the table and be printed, together with the evidence taken in connection therewith ; but the debate which ensued was adjourned, so that practically no action was taken, the session being concluded two days afterwards.

Mr Duthie initiated tho discussion, saying that ho wished to make a few re- • marks on tho report, the matter being of considerable interest both to producers ; and the shipping business of the Colony. : There was no doubt, in his opinion, | from tho evidence disclosed that this Com- : mitteo had been set up by the Premier for : the purpose of investigating this question, , and accordingly, at a very early stage, Mr : Pharazyn’s correspondence with the ‘ New ; Zealand Times’ was submitted to the , Committee for their consideration. The i charges were of a somewhat gross nature, seriously impugning the honor of a certain mercantile firm with which Mr Pharazyn 1 had donebusiuess. MrDuTini; proceeded to show how the strings were pulled to get this Committee set- up, with a view to : Mr Pharazyn’s ideas as to future legislation. The Committee, however, did not see their way to recommend that. The 1 subject had already been twice before the House, and he wished now to say a word on the prevailing customs of trade in respect to return commissions on freight. It was obvious that tho shipping companies owning these largo steamers wore engaged in undertakings which required complete organisation to ensure certainty in their movements, and it was necessary that they should have a number of reliable agents who are in business relations with the producers, and are able to make reliable arrangements for freight, so that the steamers may be loaded promptly and with certainty. The companies' have found it to their interest to employ agents, and they pay by commission. Then the companies have a perfect right to prevent competition among their various agents, and therefore to stipulate that the rebate commission shall bo retained ; but it by no moans followed that the producer received no benefit therefrom. The charges to the producer for these joint agents were nominal, scarcely covering actual outlay. For anything disclosed in tho evidence taken there was no need, Mr Duthie declared, for legislation. Tho assertion by Mr Pharazyn that he saved £I,OOO over 1,000 bales was evidently largely delusive. This gentleman exulted in getting lower freights, but he did not succeed in getting them under the British flag. Of course, these wool kings were free to do that, but having thus got lower freights, there was no justification for their asking for legislation to assist them in such competition. The companies engaged in the trade, Mr Duthie asserted, have served the Colony well, and none of them have made excessive profits. Further cutting would siroplv mean a reduction of wages all round’. He did not think that the case put forward by Mr Pharazyn, and dealt with in the report, was ope that called for any sympathy. That gentleman had caused a misunderstanding as to the con* ditlons of trade, and now that the Committee. had investigated tho matter, his statements were fully exposed. However, the disclosures as laid before the House would do some gcoi in having the rela* tions between the exporter and producer more fully understood, and the shipping trade would not bo seriously disturbed by 1 this fussy interference. , It would seem clear that the Extension of Commerce Committee concerned*tbem--1 selves but little with the gravely impor* ; tant questions comprised within the Order ; of Reference, but were used by Mr Charles Pharazyn, a wealthy sheep*

owner, for the ventilation of private grievances, and presumably the furtherance of personal intercThere is good reason to suppose that the (Jomvuittee were set up at his direct instigation, the Premier being only too willing to have a dig at the Wellington merchants, who are notoriously not of the “ right color.”