TOBACCO GROWING AND POLITICS

Nelson Evening Mail, Volume LXI, 12 November 1928, Page 2

TOBACCO GROWING AND POLITICS

(To the Editor)

Sir.—lt is interesting at this stage to learn ' that the National Tobacco Company, per Mr Nash, has now entered the lists against the Government, and it is little difficult to ascertain the reason for Air Nash's antagonism when we remember that the Government assisted this--New Zealand Company by the grant of a subsidy of 8d per lb. on their tobacco. This 1 understand was a yearly grant from year to year to enable the establishment of the industry. As it was only a yearly preference it is not to be wondered at that upon the industry becoming established the preference was removed.

On perusal of the. return it *is clear that this Company became well established with the assistance of the Government, for their returns show that in the fourth year of its trading it made a nett profit of 53£ per cent, on capital, surely a record. On its paid-up capital of £35,793 the disclosed profits are shown as being _ £21,776 for the year. If I remember aright it pays its manager £2OOO per year and recently granted him 30,000 fully paid up shares in the company and allowed him to return the secrets of blending. I cannot see that this wealthy company has any fault to find with the Government, and if it has the tobacco growers of this district will be very illadvised to take up the fight on the company's behalf. Why should the tobacco growers be dragged in? It was most amusing to hear Mr Nash at a meeting of the growers some time ago in Motueka, when he read numerous reports on the. quality of the leaf supplied to justify the prices paid by this company in comparison with what had been promised. The repeated expression "for pity's sake" as a reason for payment got very trying to the audience on that occasion. We were led to believe that this company with its enormous profits was merely acting as a charitable institution to the growers, but when we read the huge profits made we can easily understand why a reason, even if a poor one was adduced for the low prices paid in comparison with the other company operating in this district,

Is Mr Nash afraid that the Government's policy to subsidise the export of tobacco leaf is going to reduce his company's profits or what is it that's worrying him. The growers are not satisfied with the limitation of area enforced on them by this company and is it to be wondered at that where the hind is available they desire in increase their production of tobacco by the cultivation of additional areas? Although the Government guarantee at present is only £3,500 which'h;ts never yet been called upon, I understand that they are prepared to go to £90.000 subsidy' as an inducement for export. One wonders if this is the reason for Mr Xash entering the lists. Mr Xash will be well advised to attend in his business and give the growers a fair deal and net intermeddle with politics. I am etc..

TOBACCO GROWER Motueka, lOtli November.