THE PEOPLE'S COLUMN.

Northern Advocate, 1 August 1924, Page 4

THE PEOPLE'S COLUMN.

[Our columns are quite open to the public for the discussion of matters of public concern. We invite correspondence, but do not identify ourselves with the views expressed by our correspondents. —Ed.]

FARMERS AND LIME

(To the Editor.) §i rj —Under the heading of "Hikurangi Lime Project," Mr. Hodgson makes the feeble attempt to justify the establishment of a company to acquire and work the lime deposits at Hikurangi now under offer to the farmers of the district. I admit I attended the meeting called by Mr. McDonald on the 22 nd and I was not favourable to the establishment of a company under Ihe conditions offering. Now, Sir, why does not Mr. Hodgson show us how we can acquire and work those deposits successfully? It is a matter of £. S. B.

I will now give my further reasons for my attitude. I should like to ask, can it be contended that this deposit of lime is worth £2000? What is it worth for agricultural purposes without the application of labour and capital? And the last mentioned is absolutely essential. Where is Mr. Hodgson going to get the capital? It will ccst at least £6500 to acquire the land and establish the works. The North Auckland Co-operative Lime Company Ltd., referred to by Mr. Hodgson as the Waikiekie Lime Company, is now an established fact (at a eost of £4935 and interest at 6 per cent, represents an annual charge of £296 2s), and a perusal of their balance-sheet reveals an appalling state of affairs. For what reasons? Because there is not a sufficient number of farmers so well acquainted witn the necessity for lime as Mr. Hodgson. How much capital of the men so urgently needing the lime is in that company! Well 2760 £1 shares have been taken up. Of this amount £1327 10s has been called up, and after deducting calls in arrears £408 10s, £919 is left of shareholders' capital to work the company. What hope has this company of success without further support! And the support it needs now is demand for lime, and my contention is there is no room for two companies. Waikiekie caii more than satisfy the demand for many yeais, and without the support it is doomed to failure. Waikiekie to be a success and produce lime at any- ' thing like £1 per ton will need to turn j at least 4000 tons, and can Mr. Hodgson show me where the demand is com- • ing from to make a success of these I works and leave a market for 4000 tons per annum from Hikurangi, which is the least needed to make a partial success of the Hikurangi venture on the capital outlay needed for its establishment? Some people seem to have lime on their brain. I have endeavoured to arrive at what would be the approximate demand for agricultural lime in t%2 radius that could be supplied from Waikiekie, and I think I am near- the mark when I state that the outside figure would be 3000 tons per annum. How I calculate this is by taking the number of suppliers supplying the Hikurangi, Whangarei, Maungatapere, Springhead, and Waipu Dairy Companies, which make a total of about 1300. How many of this number will use lime, An outside estimate is 1000. What will be their average requirements per annum! Say 2 tons, making a total requirement of 2000 tons, and they will need to dispose of at least another 2000 tons to non-suppliers and farmers outside this area (mentioned by Mr. Hodgson) before one company, let alone two, can be a partial success. There are other ways of arriving at the lime requirements of the farmers. Take their average income from the dairy companies mentioned and estimate the outside amount available for expenditure on lime, allowing frieght from the railway to the farm, and the figures will be more discouraging. The North needs lime and no one knows it better than I do, but, Mr. Hodgson forgets when he prophesies the requirements of the next generation that the present one has to live in the meantime, and at the present high rate of interest charged, the excessive price asked (on account of the scenic beauty of the deposit) and other facts mentioned, that it does not present a sound business proposition. As for the possibility of losing the railway concession now granted (for freight up to 100 miles), it is to silly to discuss. In conclusion, I must state Mr. Hodgson has cautiously evaded answering any of the reasons given in my first letter, and I will now ask Mr. Hodgson to disprove my figures and put forward some constructive idea showing the farmers how this venture (truly named) can hope for financial success, not losing sight of the fact that at present there is no access to the railway and this has to be obtained through private property.—l am, etc., JOHN McBBBEN. Marua, July 31, 1924.