CHAMBER OF COMMERCE.

Evening Star, Issue 12882, 3 August 1906, Page 8

CHAMBER OF COMMERCE.

ANNUAL MEETING:

The annual meeting of the Chamber of Chamber was' held this afternoon.

Mr R. Maris Clark (president) occupied the chair, and the other members present were Mr John Mill, Mr C. W. Rattray, Mr J. Sinclair Thomson, Mr D. Crawford Mr John Davie, Mr D. M'Pherson, Mr Leslie H. Hams, Mr C. R. Smith, Mr H. Salmon, Mr G. L. Denniston, Mr Leslie WHson. Mr ..'A."S .'Paterson, Mr W. Gow, Mr <V T «W»,' MrJ - : ' Ct Thomson, Mr T. Brown, Mr -r^ ei " Hi 9l °P» J- Lethbridge Mr D. Theomin, Mr J. M. Gallaway, Mr G. Ritchie, and Mr Peter Barr (secretary) Apologies were received from Messrs J W* S <a S? n 'i' P -o R^ Sa, B 00d ' W - F - Efcnond', I. Black, R. Chisholm, the Hon. T Fergus, and Dr Hocken. The President, in moving the adoptior of the annual report, said : I beg to move the adoption of the report in your hands and m doing so would ask your permission to make a few remarks. —PersonaL—

During the year there passed away one of the staunchest supporters of this Ohain?2k^n 0 J wa ?" 6l * a of its fol "nders, and in IB9<i failed the president's chair. In the death of Keith Ramsay tho commercial world m particular, and the community in general, lost one of its most valued mem hers. Due to his sterling uprightness and keenness in the promotion of enterprises calculated to advance this portion of tht colony, coupled with a practically sympathetic nature and kindly disposition, he will be long remembered with feelings of the highest respect and affection. The event of the year that has most moved the peoplo of the colony was th* lamented death of the Right Hon. the Premier, Mr R. J. Seddon.. His manv qualities have been brought so prominently before the public by able writers that i't is unnecessary to refer to them here. But there is one respect in which he deserves the highest commendation, which I have not seen referred to—namely, the irre proachable manner in which the vacancies ocenrring in the Supreme Court Bench wero filled during bi„ term of Ministry. Thi temptation to reward political confreres who were not worthy of the high position, or shelve political opponents similarly un worthy, is ever strong with the head of ; Government, but in every case men eminently fitted both by sterling characte> and legal and scholarly attainments have been chosen, to the credit of the Stale and the Ministry who appointed them. As mentioned in the report, among other duties performed during Ihe year youi Committee protested to the Government against the alteration in the hour of clos ing the railway goods sheds. In view oi the fact that these sheds exist for thi purpose of receiving goods from merchants and shopkeepers for conveyance to country storekeepers and others, it seemed to youi Committee a most high-handed proceeding that the change should be made without consulting the parties for whose use and at whose expense the sheds are maintained Another instance of the same disregard on the part of the Government for every thing outside official circles is \n the con duct of the Department of Industries am 1 Commerce. This department is maintainer at an annual cost to the colony of sonn £40,067. Members will be surprised t learn that beyond sending the Chambei some copies of consular reports they have had absolutely no communication from tin department during the year, or, indeed since its existence. Surely if the _ depart ment desires to fulfil the duties its title implies, it could do so more completely i' it kept in touch with the various Chamber? of Commerce throughout the colony. —Trade and Prospects.—

The combined imports and exports for the port show a small falling off for 1905 as compared with 1904, the figures being £3,550,154 and £3,631,979. Exports have, however, risen from £1,388,973 to £1,533,814. The present high price of wool (which there is every prospect of being maintained), the rncrease in our flocks which should indicate a larger export of wool and frozen meat, dairy produce industry showing signs of increasing at fully maintained prices, hemp bringing high prices, and the gold produced in Otago for 1905 slightly exceeding that for previous year, are all good signs. A recent Australian paper savs : "The. chief;. cause of the present prosperity of is the frozen meat trade, and the second cause the dairy export. Both these industries were started, not, by the Government, but by the New Zealand and Australian Land Company (who they have since hunted out of thp colony), the large pastoralists like Mr Gri<*g, and the pastoral finance institutions.' It is to the very classes that have been progressively land taxed and generally abused that "New Zealand owes the foundation of her prosperity." On the whole the prospects for the ensuing vear are cheering. The slight increase in population in Dunedin as compared with other centres Iras caused some alarm, and many ■■ theories have been advanced as to the probable cause, but there would appear to be no real reason for anxiety. Fluctuations are unavoidable in chief towns situated as those in New Zealand axe. and if :our products and trade increase as they promise, the next census will probably show we have again risen to the position as regards population that the stability of this part of the colony would lead us to oxpect.

—Wool.--

The outlook in respect of this important stape is on the whole encouraging. The number of bales exported from New Zealand for the year was 415,000—an increase of 38,870 on previous year's figures. In spite of the recent slight decline in prices, they still compare favorably with those of recent years, the coarse wools having increased" 15 per cent, during the year, no less than 170 per cent, since ISO!?—indeed, they have not been so high for thirty years —while merino has increased 10 per cent, in twelve months, and 40 per cent, since 1902. The increase in the clips in Australia cannot fail to have an effect oil prices, such increase for the past year having been 273,721 bales, but against this is to be taken the decrease in the flocks in Enrope, amounting to close on forty million sheep during the past ten years, and, further, the change in fashions has created a greater demand for merino and fine wools. The Continent has been a valuable market, France, Germany, Belgium, and Holland having bought over 50 per cent, of Australasian wool sold during the year. It is gratifying to know that the present demand is a. consumptive one, and there is no, accumulation of the wool bought. The higher price of cotton • this year and the prospect of legislation to restrict the adulteration of fabrics sold as woollen with inferior material inspire the hope that the demand for wool will continue to increase. The sheep-growing, industry has never been in better condition than for the past year. —Frozen Meat.— The export of froaen meat from the colony shows a considerable increase in all classes as compared with that exported for 1904-05. The figures for the two years to 30th June, 1905, and 30th June, 1906, are: Carcasses mutton, 1,627,802, 1,722,405; lamb, 1,735,022, 2,334,612; beef (quarter pieces), 90,949, 97,739. The lamb export has never been higher than it was last year, and the maximum was nearly reached in mutton and beef, while the reduction in freight by one-third has aiforded considerable relief. Prices have, unfortunately, not been maintained. This is due in part to the great increase in frozen and chilled beef from the Argentine, and in part to an alleged deterioration in the quality of out mutton. With, the fact before "us that Argentine mutton has so improved that it realises practically the same price as that from New Zealand, it behoves our growers to take the greatest pains to produce an article which i 3 exactly what the consumer requires, ajid this can only bo done by the liberal introduction of fresh blood into their flocks as necessity requires. Serious defects in the grading of meat are also complained of. As mentioned in the report, your Committee communicated with the High Commissioner in Londoo, with a view of his taking action to try to remove the obstacles to the mtroduction of frozen meat to Germany. I am pleased to note Mr William Henderson; late of this City, manager of the Christchurch Froaen Meat Company in London, has taken the matter uiQ and arranged to .nwx* a agrafeer of

editors of German newspapers who are to 1 visit England, and hopes to enlist their sympathy. Last month Mr Gilruth, M.R.C.V.S., Chief Government Veterinarian, gave in Dunedin a highly interesting and instructive address, in' which he pointed out a fact that is not made sufficiently public—viz., that by the Slaughtering and Inspection Act of 1900 all sheep and cattle killed for local consumption or export are subject to inspection by the Government department. Mr Gilruth recommended that ©very carcass shipped should be impressed with a small stamp, which would not be detachable, as the tags at present used are. He condemned the practice of shipping boned beef, the product of old animals, as calculated to prejudicially affect the good name of exports of this class. —Sheep.— The effect of the depletion of our flocks during the high price of frozen mutton and lamb is gradually being removed, the number of sheep in the colony having increased by 900,000 during the year. This must be regarded as satisfactory when it is remembered that 6,408,600 have been slaughtered during the past twelve months. The returns now show over 20,000,000 in the colony. This is still over a million less than we had in 1902, when our. highest level was reached. The effect of cutting up runs has been watched with interest, and fears were expressed lest the standard should be lowered through small farmers not venturing on the necessary expense to secure high-class rams to maintain the character of their flocks. Time will show whether or not these fears are well grounded. —Dairy Produce.— Dairying continues to be a valuable industry to the colony, but it has not made the advance during the past year that one would have liked to eee. This ia attributed in the report of the South Island National Dairying Association to the neglect of proper breeding and rearing our young stock. The more general use of the Hutchinson milking machine, invented in Wellington, will ininimise labor and dispense with the overworking of children, to which attention has been drawn. It is anticipated that high prices will obtain at Home during the -•oming winter. The improvement in the condition of the mass of the people is leading to a greater consumption, while the Irought in the Argentine and the fact that the highest capacity for production in Denmark has been reached, and the reduction in freight, materially brighten the outlook in respect of our dairy produce. Great oraise is due to our Government grading ystem, which is described as being as nearly perfect as it is possible to be. The Health Department is, I understand, about to insist that all byres shall be provided >rith concrete floors. This is a necessary provision for the production of wholesome milk, but it will bear hardly on some small anners, and tie Government might well idvance the means at a low rate of interest to assist those who need it. It is un satisfactory that all our export of butter is *till shipped at Lyttelton, instead of at our own port. —Flax.— This has now developed into an important industry in both islands. During the sunincr months good, payable prices ruled, ind lately the market has been at a very high level, and millers have been enabled to make contracts up to the end of the vear, and even beyond that time, at prices that must leave a splendid margin of profit It is satisfactory to note that the Agricul tural Department is giving this indtrstry every attention. A competent staff of -Traders examine all shipments, and as far as can be ascertained their grading is giving entire satisfaction to foreign buyers. Tn addition to this work, the graders and other experts are available to all millers to visit the mills and give advice that may* had to a higher quality of manufacture. Experiments in the cultivation of flax are now being made in various parts of the colony, and the results of these will be awaited with interest, as this step will be necessary if the industry is to be carried on resrularlv to any large extent. The total exported in i 905 was 27,877 tons, valued at £696,467.

—Gold.—

Iji spite of the high river throughout the vear restricting dredging operations on the Molyneux, the yield for this provincial district exceeded that for 1904. The figures rare: 1904, 169,4780z, value £684,764; 1905, 172,0980z, value £694,214. That the sjold is in the bed of the river there can be but little doubt, and a season -with a favorable river is all that is necessary in order to win it —Fires on Steamers.— A most serious loss has been sustained by fires on a number of steamers carrying wool and other produce from the colony to London. If continued, it foreshadows higher rates in insurance. The possibility of fires of this character points to the necessity of some system of inspection while vessels are loading. This duty was, until the last few months, undertaken by the insurance companies doing business in the colony for the benefit of all concerned. But their interest in each vessel being comparatively small, they refused to continue to bear the expense until others holding larger interests contributed. This they refused to do, and the companies discontinued the survey system. Who can say but that the recent fires have been the result ? A Royal Commision has been appointed to inquire into the causes of the catastrophies, and should be able to suggest some means by which they might be prevented. One valuable means would be that vessels should be provided with chemical appliances for extinguishing .fires. These have been of great service in several instances, with the advantage that the cargoes as well as the ships have been saved from destruction. —Otago Harbor Board.— The Board have made considerable improvements in the harbor during the year, the principal being in respect of channels. The channel by which vessels enter the harbor was first used for navigation in 1894, and then carried 30ft at low water. Since then the depths have steadily improved until to-day there is at least a depth of 39ft. Inside the entrance at Harrington Point, works are in progress for the purpose of giving a navigable channel on an easier curve than had previously existed. Since May last vessels have been able to use a new channel, formed partly by scour and partly by dredging, across the flat to the westward of the old channel. This has been much appreciated by shipmasters, as the old channel., though deep enough, necessitated the greatest caution in using it owing to the peculiar set of the currents and the sharp bend at Harrington Point. The works now in progress will, it is believed, induce and maintain a natural channel of such a carve as to bo easily navigable. '

Victoria Channel.—This channel requires more or less continuous dredging to enable its depth to be maintained. The channel is, however, being gradually widened and increased in general depth, and will probably give less trouble as the years go by. The berthage at Victoria wharf has been cleaned out to 22ft low water.

Jetty street Wharf.—The approach to the Jetty street wharf is being extended daily, and in a few weeks (when the piles are to hand) active work will be commenced to extend it, so as to give a berthage of 600 ft from the end of extension to the Tongue wharf. The dredging of the approach from the Victoria channel will shortly be commenced, and it is hoped that in three months' time a berth for ocean steamers connected with the railway system will be available. The City Council have the matter of the roadway in hand, which when formed will enable the strip along the wharf forming the present roadwav to be available for sheds and storage purposes.

The port charges are now under revision, and it is hoped that the Board may shortly be able to submit a scale more in consonance with other ports, with a result that more favorable charges on shipping may be conceded. The members of your Committee and the public generally have been justly indignant at the reckless manner in which the Government have taken large areas of t&e Harbor BoardV endowments far

railway purposes and given no adequate compensation, besides . cutting off access to much of the remaining property of the Board. The matter is to be the subject of a mass meeting, at which there is no doubt the City will express its feelings with no uncertain sound. —New Dock for Port Chalmers.—

The contract for the dock was signed in December and the price, not including pumps and cement, was £58,719. Contracts *°. r the supply of cement were also let to Messrs Briscoe and the Milbnrn Lime and Cement Company in the amounts of £6,453 and £6,600, while cost of the engines and pumps delivered to the Trust as contracted for by the Worthington Simpson Pump * t S%?2,? aa f®' o **' ma] ™ n g a grand total of £73,817, which is in close accord to the engineer's; estimate of £74,000. The works are now in full swing, and the contractor has a large quantity of plant on the ground, including engines and pumps for keeping the excavations dry while the work of placing the concrete is going on. The contract is, according to the agreement, to be completed (allowing for the time between the acceptance, and signing of the contract.) by April, 1907, but it is probable that it may be even later than that date. A considerable quantity of cement has now arrived, and the pumps are expected in the cqurse of a month, so that it will be seen, unless some unforeseen contingencies arise, that the completion of the second dock for Qtago will be an accomplished fact within a comparatively short time.

Last year you passed a resolution tl at your Committee should do what they could to further the amalgamation of the Lcck Trust and the Harbor Board. As vour representative on the Trust, I watched closely for a favorable time to table a motion affirming the principle, but after consultation with vour representative on the Harbor Board it appeared the time was not opportune, and I leave the duty as a legacy to my successor. —Local Bodies.— The extent, to which the City Council have taken up commercial enterprise is the excuse for referring to it in these remarks. The act of placing the various trading departments under expert heads subject to a central authority is a wise one, and should free the departments from the evil of patrona/ne. which is the bane of public bodies. The more nearly municipal practice in this connection can conform to that of true commercial undertakings, the greater will be their pucces?. The tramway construction has been completed, and the City is to be congratulated on having an excellent service, which reflects credit on the builders and on the City Council. The work of bringing in power from the Waipori Falls is progressing satisfactorily, and in a few months energy from that source should be available for the electric, trams and for disposal to users of power in the City and surrounding district.

One department of the City Council closely concerns the commercial bouses—■ viz., the Fire Brigade and the , water supply. The former, thoagh consisting of an admirable body of -men under a roost able and devoted captain, is much hampered by insufficient accommodation, and should be famished with a powerful motor car in place of the horse service now in use. The reticulation of the streets other than Princes street, where the business warehouses are •situated, requires renewing with larger pipes, m order that a large fire may be effectually coped wRh. The Drainage Board have made considerable progress, the main intercepting sewer being on the verge of completion. It is hoped that within twelve months the greater part of the City and of some of the suburbs will enjoy the benefits of an efficient drainage and sewerage service. —Bank of New Zealand.— The success of our principal banking corporation is such a useful index to the prosperity of the colony that I make no apology for repeating the principal items of its' last balance-sheet. The increase m tho twelve months in fixed deposits other than Government funds was over £600,000, while bills discounted and advances had increased £811,500. After writing down bank proprty, the net profits, after paying £40,000 interest on guaranteed stock, was £274,329. The recent valuation of property held by the Assets Realisation Board shows assets held exceed in value the outstanding debentures of the Board by £36,822. These figures disclose a highly satisfactory state of affairs, not only for "the bank, but indirectly for the colony, while the decisions of the directors to restrict the transfer of its shares to London will be hailed with satisfaction in Xew Zealand. The tendency of the shares of our financial and commercial undertakings to drift to the metropolis of the world has resulted in many of the colony's local institutions being local only in name, and the action of the Board of the bank is in the best interests of the colony. The president's assurance in referring to the bank's relations with Ministers that " they have at all times . been absolutely untrammelled in the conduct and control of the business of the bank," will have a reassuring effect on many minds. The published quarter's accounts since tho close of the financial year indicate a continued increase in tho business of the bank, —State Fire Insurance.—

Last year I addressed you on what appeared to me the serious blunder the Government made in establishing a fire insurance department. I pointed out that the field was already covered by twentyfive companies, with seventeen others in Australia only too ready to come here if there was an opening. I also pointed out the discouragement the step was to our local companies, which were earning profits abroad, to distribute in New Zealand, and advertising the colony throughout the world by sending New Zealanders to manage their foreign branches. The terrible catastrophe at San Francisco has thrown a strong light on the gross indiscretion of the Government in attempting to force down rates to a level which prevents the building up of the reserves absolutely necessary for the safety of insurance companies, and their policyholders, in the event of such.a catastrophe occurring in our midst. Speaking of the possibility of large conflagrations in New Zealand towns, a recent issue of an Australian paper says :—" It is folly to suppose that the annual difference between premiums and outgo of insurance companies represents profits: the bulk of it goes to reserves for ' conflagrations,' and there is ample evidence that in modern times these recur very frequently, and if companies were to adopt a hand-to-mouth policy, and trust to luck, they would certainly fail the public at the time when their nrotection is most wamted. The onlv bright in the prospects of San Francisco arises from the fact that so manv millions sterling in their coffers were available to mitigate the losses in some degree, and thousands will be saved from actual ruin and misery by the contributions of those institutions. But in New Zealand we find the State, without knowledge and without experience, stepping in and starting an insurance department, simply with the wanton aim of securing temnorary popularity by reduction of rates, and openly and deliberately declaring that they desire no nrofit themselves, but that their object is attained by simply keeping down rates." As you are aware, the Government scheme depends for reinsurance on Lloyd's, and sends a large proportion of the premiums out of the colony to that body. In this connection the same paper goes on to say :—" The Government have also to consider the question : Who are the Lloyds with whom tbey are dealing, and what are their resources and liabilitv in the event of the City of Wellmgton being destroyed ? There are no ' Lloyd's' deposits available for fire losses; it is simply the name underwritten. on the paper, and we venture to say that tho Government know nothing whatever as to the stability or means of those whose names are written."

Truly, this new experiment on the Dart of the colony may land it and its policyholders in serious difficulties if a catastrophe a la San Francisco occurs. —Home Politics.—

A change of government has taken place since our last annual meeting, and from a colonial standpoint the new Government is one which causes some uneasy feelings. There are already evidences that the traditional indifference of a Liberal Government to colonial interests forms part of their policy; The lights hearted manner in which they apparently deal with. Questions involving &e so-

premacT of the whites in Africa, the ante, macy of the British in the Transvaal/and the supremacy of England over the rest ©f the world on the sea, are, to say the least, disconcerting. The security of ottr commerce depends on the maintenance of the navy in a high state of efficiency, an« there is a grain of comfort in tfie announcement that the Government,' bowing public opinion, have modified then? suicidal scheme of largely reducing th« Navy Estimates. In conclusion, I wish to thank my fel-low-committeemen, who have worked hare and cheerfully during the year, and th< secretarv (Mr Barr) for his thoughtful ant willing assistance.