Whakatane Paper Mills Inquiry

Northern Advocate, 14 February 1940, Page 7

Whakatane Paper Mills Inquiry

[Per Press Association. Copyright ] WELLINGTON, This Day. The hearing cf the Whakatane Paper Mills’ application to the Price Tribunal for permission to increase its prices for the cardboard it manufactures was commenced yesterday. Mr. H. P. Richmond, of Auckland, who is appearing for the .company, said New Zealand was the only country in ! which cardboard was produced that 1 had not granted protection to the in- ; dustry. Mr. N. A. Foden, for the Crown, said > that that was not what the company wanted. 1 War Emergency. 1 “t may be they did not," said Mr. ' Richmond. I He was concerned, however, only ■ with the stating of the problem as it existed. - He was going to submit that the , tribunal must, of necessity, take the ) facts as they existed and deal with • them, and not with any principal ones, i because the emergency had to deal 5 with a war emergency, and decide . whether or not the mill was to con- , tinue production. > Company’s Contention. ; In the first place, he asked that prices , 1 should cover the actual cost of proi duction and, secondly, that there should 7 be sufficiet allowance to cover interest on borrowed capital invested solelyjn the mill and Its necessary adjuncts, such as the branch line railway and pumping station. The total cost of the mill and adjuncts was £586,000. Mr. Richmond said the company had a very large sum invested in the 47,000 , acres of plantations, but on that it did not ask one penny interest or other charge. ’• Reasonable Request. The company suggested that a net 1 return of 5i per cent, in the way of dividends to shareholders was a per- * feetly reasonable request. j He proceeded to outline what the 1 undertaking meant in New Zealand’s ' business economy, stressing what would | haye to be found in dollar exchange ' for importations. > The hearing was adjourned until toi day.