PRICE INVESTIGATIONS

Evening Star, Issue 23500, 14 February 1940, Page 5

PRICE INVESTIGATIONS

SITTING OIF TRIBUNAL PAPER MILLS APPLICATION CPbb United Press Association.] WELLINGTON, February 13. The hearing of the Whakatane Paper Mills’ application to the Price Investigation Tribunal for permission to increase its prices for the cardboard it manufactures - was commenced to-day. Mr Justice Hunter is presiding, Mr H. P. Richmond (Auckland) is appearing for the company, Mr N. A. Foden for the Crown, and Mr W. Perry is representing the users of the products. ■ Mr Richmond said New Zealand was the only country in which, cardboard was produced that had not granted protection to the industry. Mr Foden: They said they did not want it “It may be they didn’t,” said Mr Richmond. He was concerned, however. only with stating the problem as it existed. He was going to submit that the tribunal must of necessity take all the facts as they existed, and deal with them, and not with any principal ones, because the tribunal had to deal with a war emergency, and decide whether or not the mill was to continue production. In the first place, he asked that prices should cover the actual costs of production, and, secondly, that there should be a sufficient allowance to cover interest on the borrowed capital invested solely in the mill and its necessary adjuncts, such as the branch line railway and pumoing station. The total cost of the mill and its adjuncts was £386,000, he said. The company had a very large sum invested in 47,000 acres of plantations, but on that it did not ask for one penny interest or other charge. The company suggested practically that a net. return of 5| per cent, in the way of dividends to shareholders was a > perfectly reasonable request. He proceeded to outline what the underbaking meant in New Zealand’s business economy, stressing what would have to be found in dollar exchange for importations. The case was adjourned hill to-mor-row.