THE WORLD’S MARKET

Evening Star, Issue 20194, 6 June 1929, Page 12

THE WORLD’S MARKET

ADDRESS BY MR I. R. TOOVEY CHAMBER OF COMMERCE RECEPTION This morning at the Savoy Lounge Mr T. 11. Toovey (.principal assistant to the general manager of the Port of London Authority) and Mr Letch (a member of the commercial department of the Port Authority) were tendered a reception by the Chamber of Commerce, following which an address was delivered by Mr Toovey on “ London, the World’s Market,” the speaker touching upon all phases of the Port of Loudon, and speaking further at the Strand Theatre during the screening of a him to do with tlm Port of London. The President of the chamber (Mr E. A. Rosovear) was in the chair, and ho welcomed the visitors, stating that members had been looking forward lor some time to hearing Mr Toovey speak. Mr Rosevear also stated that ho was pleased to sec present Mr W. J. Bardsiey (secretary of the Otago Harbour Board) and Mr Ailken (chairman of the Bluff Harbour Board). Mr Toovey said that the Port of London Authority had observed the phenomenal development which had taken place in the exports from the dominion during the past century, and was anxious that lacilifcies should bo available lor any increased trade which might come in the future. “ Port and dock extensions and improvements involve very large capital expenditure, and cannot be effected in a lew mouths. The Port Authority considers it is not sufficient merely to, keep abreast of trade requirements. It looks years ahead, and as far as possible anticipates the needs of shipowners, shippers, and merchants. By improving existing decks, installing the latest mechanical appliances, and by constructing new docks, quays, sheds, and warehouses in advance of present needs it hopes to discharge the onerous trust which lias been placed upon it.” The Authority’s work did not stop at providing dock facilities. By erecting warehouses, vaults, and cold stores lor the reception of all classes of go. Is it relieved merchants of an immense load of responsibility and expenditure. The Authority was neither importer nor exporter, but custodian only. Its stall’ of over 12,000 men performed all operations which the owners of goods might require—weighing, taring, sampling, grading, bulking, and hundreds more I which were indispensable to the conduct of trade.

ADVANTAGES AS SELLING GENTLE. Mr Toovey went on to mention a lew of London’s advantages as a selling centre, stating that the population of Greater London was 8,000,000, as much as the entire population of Australia ' and New Zealand, and that its spendfing power was greater per head of the population than any other centre of the country. London’s economic disJ tributing area extended, however, iar beyond its own local boundaries. Within a radius of 100 miles of the city there were 16,000,000 people who depended upon the Port ol London lor their supplies of imported produce. He drew attention to the drift of population to the South of England, and declared that London was the financial centre of the world and exerted a tremendous influence on international trade, being also the centre of the world for insurance and for the chartering of vessels. Every cargo on arrival in London had focussed upon its unloading, its storage, and its marketing the intelligence of alert and well-trained men. Transport and communication were London’s biggest business, employing 250,000 workers, or one-sixth of the male working population. There were 170 miles of railway lines in the Authority’s docks, and merchandise could be loaded into or discharged from trucks alongside ship, thus incurring the minimum handling. The railway companies were in very keen competition with llio road haulers for the transport of merchandise, and as a result traders distributing from Loudon received quick service at low' cost. Eor trade with New' Zealand, London far surpassed all other ports for regular and frequent sailings, he declared. In 1927 289 vessels, aggregating 1,809,853 net register tons, arrived in London from Australia and New Zealand, exceeding the total shipping tonnage for all other ports of the United Kingdom. Ship owners trading to London were assured of good cargoes, and on arrival in the port received a quick “ turn round.” Experience had shown that the London market, ow'ing to its immensity, could absorb quantities which at other centres would result in a glut, while competition was too keen and widespread for buyers ever to dictate the price. A further proof of London’s power as a market was that on many occasions consignments from Australia and New Zealand imported at the outports could not no sold locally at satisfactory prices and eventually had to he sent, at the shipper’s expense, for realisation in London. New Zealand trade with the United Kingdom had been built up by centralisation in London, and Mr Touvey said he thought it would be agreed that the results had been satisfactory. A policy of decentralisation—of sending produce for sale at many centres, London, Liverpool, Hull, Manchester, Glasgow, and others—was not likely to benefit the producer in the long run. By centralising, the sellers would control the market to some extent and regulate supplies, while buyers must compete for the produce. By decentralising, the sellers in various centres would compete with one another, and probably reduced prices w ould ensue. “ The predominant positjftn occupied by London may be judges from the fact that it imports more meat every day than the total imports for a whole year of Glasgow and Manchester put together,” continued the speaker. “There has been a, meat market- at Smithlield since the twelfth century. The simp frontages aggregate nearly two miles, and contain over fifteen miles of display rails. The value of the supplies sold through Smithfield exceeds £35,000,000 annually, and over 5,000 tons of produce have been received, sold, and despatched in a single

day. The market has thirty entrance gates, and is open day and night for receiving meal. LONDON’S COLD STORAGE. “ In 1881, London provided the first public refrigerated accommodation in a British port. A very largo proportion of the meat coming to London is discharged in the Royal Victoria, Albert, and King George V. Docks. In tins system, the authority lias provided cold stores with a capacity ol I,UUU,OOO carcases, and there are over twelve and a-half miles of quays at which steamers can be discharged, each berth being equipped with the latest mechanical appliances, sheds, railways, and roadways. SURE SALES CENTRE. “ London is a sure sales centre lor meat. Buyers come from all parts of the country to Smithfield market because it is only in London that they can obtain such a wide range ,of descriptions and grades. There are very many competitive interests in London, and producers and shippers are assured of a just return and the best prices because there are always buyers in London for all descriptions of meat. “ In view of the recent visit to New Zealand by a representative ol the Port of Glasgow, it may be of interest to point out that Scotland, of which Glasgow is the most populous city, is _a large exporter of meat. In 192 i, 85,000 tons of Scotch meat was sent to Smithfield market, and competed with the products from overseas. Incidentally, this meat on its journey to London passed the doors of Liverpool, Manchester, and Hull. CONCERNING WOOL.

“The steamers bringing wool from Australia and New Zealand discharge in the Royal Albert, King George V., and Tilbury docks, and the produce is conveyed immediately by barges and road vehicles from the ship’s side to the wool warehouses in London and St. Katharine docks and the vicinity. Every bale is taken to the show floors and lotted in accordance with brokers’ instructions. The show floors generally are fitted witli northern skylights, so that the wool may be judged in a neutral light, and the authority nas shown their faith in the future of the London wool market by spending many thousands of pounds during recent years in modernising the lighting ol their show floors. “The greatest care is exercised in handling and storing the wool in London, and all the services required to be performed, from deceiving at the import ship to delivering to the buyers land conveyances, including twelve weeks’ rent from breaking bulk of the ship, are covered by a single consolidated charge amounting to about onethird of a penny per lb. PREDOMINANCE OF BUYERS. “Numerous markets tend to decentralise competition and enable buyers to dictate the prices. The buying power in London is higher than at other markets, and there is alwavs greater elasticity in price ‘ limits!’ In London a very large number of the actual principals of manufacturing firms operate, and are not tied by a hard and fast limit for wools which are suitable for their requirements. They give themselves far more latitude than they would allow to their buyers attending overseas sales. In addition, a great number of smaller firms will buy wool only in London, as they cannot afford the heavy expenses of sending representatives to Australia and New Zealand. ’ DAIRY PRODUCE. “In 1927 the United Kingdom imported 291,344 tons of butter and 147,457 tons of cheese, of which Australia and New Zealand sent one-third and more than one-half respectively. The wholesale provision market of London is in Too ley street, and it is the greatest dairy produce market in the country. Buyers from the London area and the provinces come to looley street to obtain their supplies of all kinds of provisions—butter, cheese, eggs, bacon, and lard. “ At the Surrey Commercial Docks, where largo quantities of New Zealand cheese are handled, the produce is landed direct into cold stores, sorted to marks, grades, and descriptions, weighed for average in accordance with trade requirements and warehoused in the various cold or cool temperatures required. The produce is afterwards delivered to conveyances for distribution in the London area or the provinces. “London has built up the market for colonial butter and cheese, and receives practically the entire supplies for the country. New Zealand dairy produce occupies the highest place in London and the South of England, and is sold in practically every shop.” Mr A. H. Allen expressed the indebtedness of those present to Mr Toovey, pointing out that throughout the Empire merchants did not favour one Home port more than another, their chief concern being the cheapest means (if distribution to the consumer. Sir Allen referred to the fact that all produce from New Zealand was sent on consignment instead of f.o.b. or c.i.L, and producers had to run the risk of deterioration and the fluctuation of the markets. He thought it was time consideration was given to the matter by powerful distributing concerns in the Old Country. He proposed a hearty vote of thanks to Mr Toovey for his interesting and instructive address, the motion being caused by acclamation.

A REMARKABLE FILM LONDON OOMES TO DUNEDIN. A more practical insight into the amazing development of London’s shipping facilities than could be given by the spoken word was revealed later at the Strand Theatre, when Mr Toove.v, speaking before a moving picture film, gave another instructive address. Mr E. A. Jlosevear (president of the Chamber of Commerce) introduced the speaker to a large audience, which included more than a hundred pupils of secondary schools. Taken by the Gaumont Company, the production showed dearly the wonders that have been achieved by way of establishing modern machinery to cope with the vast amount of foodstuffs being imported into the United Kingdom, and original diagrams gave a concise idea of tho growth of trade since 1700. The palatial building of the Port of London Authority's central office disclosed architecture of unique design, tho circular main office being something quite unique. Here a huge army of clerks was seen dealing with the 'business of the organisation. Then some very interesting river scenes, including the incoming of overseas liners, were thrown on the screen, to be followed by views of actual dredging operations and of tho manipulation of the produce which was being taken ashore. The giant cranes, the labour-saving conveyances, and the elevators, all worked by electricity, proved to be an eye-opener, and not tho least instructive aspect from the New Zealand point of view was the handling of frozen meat, fruit, and daily produce. Evidence of cleanliness and efficiency was everywhere, reproduced. ,