AUCKLAND CHAMBER OF COMMERCE.

New Zealand Herald, Volume XXV, Issue 9105, 13 July 1888, Page 6

AUCKLAND CHAMBER OF COMMERCE.

ANNUAL MEETING. The annual meeting o£ the Auckland Chamber of Commerce was held at the rooms, New Zealand Insurance Buildings, yesterday afternoon. Mr. A. H. Nathan (president) occupied the chair, and there were also present : Messrs. C. C. McMillan, John Lamb, S. Vaile, J. Buchanan, J. Milne, J. Bridgewater, A- Porter, W. Lodder, F. Battley, G. P. Pierce, H. P. Barber, J. P. King, Groom, H. Green, J. M. McLacnlan, W. Tait, and John Reid. , The annual report (of which an abstract has appeared in the Herald) was taken as read. The balance-sheet is as follows : — Receipts and Expenditure from Ist July, 1887, to Ist July, 1888. Receipts.—Balance at Bank of New Zealand, £20 153 Id; cash in hand, £1 13a; subscriptions received, £124 19s : total. £156 7s Id. Expenditure.— advertising, stationery, postage, telegrams, and miscellaneous, £38 lis 6a ; subscriptions to newspapers, books, &c., £17 7s : secretary's salary, £50 ; rent, £40; balance in bank, £10 2s 7d ; cash in hand, 6a : total, £156 7s Id. THE PRESIDENT'S ADDRESS. The President moved the adoption of the report and balance-sheet. He said: The period that has elapsed since our last annual meeting has been fraught with much anxiety to all engaged in commerce in New Zealand. The depression that existed during the previous twelve months has become more evident, and now there exists no doubt that we have been, and are still, suffering from one of those waves of commercial derangement that have, of late years more particularly, been experienced all over the commercial world. In the previous history of this colony agricultural and manufacturing industries have felt periodical shocks to progress, but at no time during the past two decades has New Zealand been affected to such an extent over the whole colony as during the past two or three years. Political economists have many theories for this state of affairs which has proved so disastrous to all engaged in those various pursuits for which this colony is so naturally adapted, but there is no doubt in the minds of all reasonable men that the principal cause may ' be attributed to the effect produced by the cessation of the expenditure of vast sums of money raised by loans and scattered through the country in the execution of the_ public works and immigration scheme originally introduced by Sir J. vogel. The reaction produced by the stoppage of these works, and the accompanying inflow of the borrowed millions, which for the time caused an inflation to business, an abnormal value to property of every description, and- the employment of a large army of labour, is now being fait intensely by as all. The result is apparent in the many failures in business, in manufacturing and in farming. The agitation of the unemployed, and the stream of emigration that has set in to the other colonies, where—attracted by the news of rich discovries in the precious metals, and the proposed expenditure of large sums by the Australian Governments in railways and public works the bone and sinew of the colony naturally gravitate. The low price that has been ruling for stock and cereals has been severely felt by those engaged in agricultural pursuits and is another reason which may be adduced for the low ebb to which country settlers have found themselves. The high price of land which many , of them paid in better times, and for the purchase of which they had agreed to pay interest, has certainly led to a result _ which is easily caused by the low price of produce or continued bad seasons. For many years past it has been found in all the old civilised countries that the large cities attract the major part of the population of the State. This is found to be likewise the case in the Australasian colonies, and the great difficulty which statesmen have to contend with is how to /settle the country, when opened up, with a larger proportion of the population, more particularly those who have been reared in agricultural pursuits. It is an old adage that the town ' depends upon the country for existence, and therefore the prosperity of this city of Auckland is bound up with the occupation and proper settlement of the large areas of waste lands which abound in the province. For this purpose every inducement and assistance should be given by the Government of the colony to settlers of all classes, whether now resident in New Zealand or who may wish to emigrate, to take up and settle on these lands. For this purpose I am in favour of the selection of land on merely nominal terms on condition of residence, improvement, and making it unalienable for a certain fixed period ; also that the State should assist settlers with loans of money , at a low rate of interest to build homesteads and to purchase the necessary agricultural implements, seeds, etc., to give them a fair start. This system has been adopted with success in Canada, and many of the American States, and would, I am certain, be equally successful in this colony. The means of obtaining money at a low rate of interest by our farmers is a want that has been heavily felt, especially during the present depression, as the more distant the security the higher rate is demanded by the mortgagee, and in some instances it is next to impossible to obtain assistance in the shape of money to aid settlers in distant districts. This is a matter which is of great importance, and demands the earnest consideration of our Legislature. Another cause which has led to the present feeling of ill-confidence is the heavy taxation necessary to raise revenue to meet our annual liabilities to the English bondholders. This comes the more severely on a decreasing population, and it becomes a serious problem to those who hold the reins of government to legislate so as to preserve our national credit and at the same time lighten the burden of the taxpayers of the colony, so as not only not to drive away our present population, but by a wise and liberal scheme of land laws to attract from outside the colony desirable settlers who will be thereby induced to cast in their lot with us. A strong feature in our present financial difficulty is the unremiuierative character of our railwavs. On 31st March last there have been expended on our railways £14,603,109. Five per cent on this amount would give £730,155. Net revenue was £307,515, consequently the loss was £422,640. I am glad to see the Government are fully alive to the urgency of dealing with this subject, as it is one of the vital causes of the deficiency in the revenue of the colony. Whilst on this topic I must impress on the merchants and citizens to watch with care the steps that are being taken by Wellington influence to centre the railway system of the North Island in that city. Already the lines from that terminus stretch out east and west, grasping the country up to Waitara on the West Coast and Napier on the East Coast, which steadily and surely draws away from us the trade of those districts. Now they are moving hard to prevent the Main Trunk line from Auckland, which is being completed as far as Tc Uira, being connected with Stratford, so that by continuing the line to the proposed central route they could keep that trade in their own hands, knowing full well that it will be many years before the central route will be completed, and we should be isolated by that means from the West Coast trade through want of railway communication as we are at present. Therefore every means must be adopted by us whose interests are affected by the development of our trade with the Taranaki district to counteract the efforts being made by the Wellington people to shut us out from connection with that rich pastoral country. A look at the map will open the eyes of the uninitiated to the manner in which the railway system of the North Island has been and is still being concentrated or drained into Wellington, and if this continues we shall soon find, by our diminishing trade, the effect that has been caused by this centralisation. Already we are losing our hold on those districts which formerly patronised the Auckland market, and unless we obtain that connecting link with Taranaki to which we are fully entitled, we may say good-bve to our trade with the West Coast. The President here quoted a recent telegram from the Herald's special correspondent in Wellington (reporting a deputation of members _ to the Premier) to show the pressure which is being brought to urge the completion of the connections on the Wellington line of railway, and he then proceeded as follows Considering the energy with which at all times the railway system has been, and is still being pushed ahead in the south of this island and the Middle Island, I think that our interests are not cared for in the manner we are entitled to. Although it is recognised by all parties that we have not had a fair share of expenditure in the development of the North as compared with other parte of the colony, there seems to be no attempt to make reparation for the past, or to study the wishes of the Northern people in connection with the Main Trunk line. There is naturally in this colony everything necessary to create one of the finest and wealthiest agricultural States in the world, but unless our legislators study economy in government ami on a scale commensurate with its income nothing but disaster can result. The prosperity of this colony must suffer until such time as a beneficial and wise control directs the affairs of the State. I do not wish to import political matters or to discuss them here, but it is patent to all that provincial wants and jealousies do much to counteract good legislation for the colony as a whole, and until such time as the various districts who send representatives to Parliament to form phalanxes or to unite with other provinces to carry local measures without reference to the general good are content for their members to act for the interests of New Zealand as a State, I am afraid that we shall not see that careful and economical Government that it is the desire of every citizen of this colony to

' see practically carried out. The resources of the colony are abundant, and there is scope for the introduction and the employment of large capital in developing not only agricultural and pastoral lands, but in searching for and utilising the vast and rich mineral deposits that exist all over these islands. It is the obvious duty of the Government to induce the inflow of that capital, and to make investors look with eager eyes on these new fields of industry, but so : far little has been done in that direction except by private enterprise ; and one of our greatest and most important resources, I allude to mining, which should give employment to hundreds of thousands, and revive our falling revenue, is allowed to be coldly shelved by successive Governments and not given that prominence to which it is entitled. I look upon the development of mining in this province as one of our most necessary requirements. I trust that the new Council will constantly keep before them and the public the urgent necessity for fostering our natural resources in this respect, an to that industry we must look as one of the means which is to make this district unparalleled for richness. We are now, I may say, only in the experimental stage of its development, from the crude treatment to which it has been subjected under the old systems; but once the method of dealing with our refractory ores has been solved, there will come a time of such prosperity to this city as the present generation little dreams of. Energetic work is now being undertaken by various private individuals and syndicates in this direction, and I have no doubt that the many new processes now being experimented with will result in the desired solution of the difficulty that has hitherto been encountered in dealing with our refractory ores. Mr. Nathan pointed out that the imports into the colony had steadily declined since 1882, whilst the Auckland exports had increased during the same period—an evidence of the progress of the district, and its recuperative power under the severe strain which had - been experienced. Consequent upon the decrease in imports, the tonnage entering our port had not equalled that of former years, but this was due in a great measure to the increasing use of steam vessels. He was glad to notice that the direct steamers more frequently made Auckland a port of call; but he hailed with satisfaction the advent of a new line of steamers to New Zealand, which had suffered considerably by the monopoly enjoyed by the two steam services hitherto carrying the whole of our produce. The line of which he i spoke had on all occasions studied the interests of this port, and should therefore receive every encouragement;. at our hands. The President mentioned ths improvements being made in the shipping accommodation provided by the Harbour Board, and referred to the opening of the Calliope Dock. He proceeded :—Our timber trade did not show any great development until the turn of the new year, when a better demand was experienced, and consequently an era of better prices began to dawn. The completion of negotiations by certain Melbourne and New Zealand gentlemen engaged in this trade has resulted in the purchase ' of the principal mills and kauri forests of the province, and has been the cause of much comment, but I venture to think that it will in no way be detrimental to the interests of Auckland. It will free a large amount of capital invested by Auckland people, which has been of late years unremunerative, being replaced by foreign capital. It will require the same, or even a larger, outlay in labour and material than has hitherto been made to carry on the necessary production to recoup the capitalists. A more systematic mode of export will be adopted, so that the previous reckless system of shipping cargoes indiscriminately by so many companies ana firms to the various Australian ports will be avoided. There are still, no doubt, large areas of kauri and other useful timbers left which are not connected with this purchase; so that, although for a time some monopoly maybe felt, there will yet be ample scope for others • to engage in working those forests which up to the present have remained undeveloped, and also of utilising many other of our timbers which have hitherto not been so eagerly sought after as kauri. The export of this article showed a steady increase up to 1885, when its value was £143,488; the export for 1886 amounted to £137,144, and in 1887 to £122 297 ; thus showing a decrease in '86 of £6344, and in '87 of £21,191, which latter was the smallest export since 1882. The improved demand for phormium (New Zealand hemp) in the Australian and London markets has been the means of inducing our flax-millers once more to turn their attention to this staple, and the payable price now ruling will no doubt bring this article prominently before the public, and divert capital to investment in developing an industry peculiarly adapted to the utilisation of unskilled labour, and will assist many settlers in finding employment. The necessary machinery for producing a marketable article is not expensive, and the capital required for working not being extensive, I commend the industry to those who are settled in districts producing the raw material. The export of the article in 1878 was only 622 tons, whilst last year it reached 1578 tons, and as the demand is still only partially satisfied, there can be no doubt there is a good field for enterprise for small capitalists in this direction. Kauri gum has been largely dealt in during the past year— in fact the export exceeded any previous annual period, the total quantity shipped being 69/ tons, and the value entered at the Customs was £362,449. The cause of such a heavy output is attributable to the many unemployed who have taken to gum-digging, and the result is now being felt in the decreased price now obtainable for this article in the home markets. A glance at the exports for some years past will at once show that the production is not falling off, nor the available supply decreasing. Kauri gum forms the largest item in the exports of Auckland, aifd there are so many dependent on its production that any serious decline in its value is severely felt, more particularly in the northern district. The price in the home market is consequent on the supply not being above actual requirements, and therefore there is no benefit, but actually a loss to the community in producing it in larger quantities than is required for consumption. This is apparently lost sight of by many engaged in this business, and it would be well to consider whether the natural wealth indicated by this deposit should be sacrificed by indiscriminate production, or that somesystem should be evolved to check unnecessary supplies. Our trade with the Pacific Islands shows a tendency to improvement, more especially in the matter of utilising this port for transhipping produce. The figures in our report attest this conclusively. Steam communication materially conduces to this end, and the development of this trade warrants a continuance of support to the steamers Wainui and Richmond, which are doing good service in maintaining commercial relations between Auckland ana the South Sea Islands. I have endeavoured during my term of office to get the various wholesale firms to formulate an uniform basis of credit terms suitable to the respective trades, and I am glad to say with some degree of success. Ihere have been many difficulties in connection with doing so, as previously there was no system prevailing, and firms competing in the same line, by offering long terms as an inducement to business, secured for themselves a most pernicious form of competition. The result was large accounts, represented by long-dated bills, which led to over-buying, want of control, and in the end financial disaster. The customer without proper check, and with an assurance of easy renewals, soon learns to disregard his time payments, uses no caution in contracting liabilities, and soon becomes reckless. Those who have tempted him with long credit and offers of renewals thus suffer by reason of those very facilities for long credit which they in the first instance press upon him. I have said partial success only has attended our efforts so far in the direction of limiting credit, but I hope the time is approaching when recognised terms of credit will be strictly adhered to, and the reckless system so long in vogue previously of offering long credits as a basis for business will be abandoned. By careful inquiry and mutual confidence between the various business houses bad debts would be avoided, and the exposures which are repeatedly seen in bankrupt estates of people without capital obtaining large credit, contracting heavy liabilities, and then failing with little if any assets, obviated. We must bear in mind that the first design of the bankruptcy laws is to protect the debtor, and to relieve him of his liabilities. This is apparently an easy process whilst the difficulties and expense of attempting to punish dishonest traders and those who obtain credit by false statements, deter creditors from entering upon the legal process necessary for that purpose. The number of those who prey on the confidence of creditors cannot therefore be gauged by the number of prosecutions under the Act, as it is a well-known fact that rather than have the assets of a bad estate swallowed up in legal expenses and probably without result, creditors will not undertake such prosecutions. In the proposals which the Council, in connection with the other Chambers of the colony, have submitted to the Government, they have endeavoured to remedy many existing inconsistencies and hardships which creditors have had to suffer under the present Act. These proposed amendments have already been printed and distributed amongst members of the Chamber. In conclusion. 1 ck.ii only hope that the coming spring will witness a revival of commerce to the colonv. There is every indication that the prevailing unsatisfactory state of trade generally has reached a stage when we may reasonably expect a change, and I am certain that once the turning point has passed the reaction will come quickly, and the previous bad times will soon be forgotten in the prosperity that is sure to follow. Confidence in the future, energy and perao-

verance in the present, is all that is needed to raise New Zealand to the position to which it is entitled, and nothing can mar its progress if its citizens and men of commerce combine to develop its resources and to attract to its shores the thousands who would willingly come to aid them in doing _ so. The enterprise that has hitherto characterised the business people of Auckland will not, I feel confident, allow our commercial interests to Buffer from want of zeal, and they cannot more effectually study them than by supporting such an institution as our Chamber of Commerce, which has in the past promoted and carefully guarded the interests of this province, arid which has always been prompt in disseminating the advantages of our port and the colony, and has fostered by every means in its power the commerce and industries of New Zealand. (Applause.)

Mr. John Lamb seconded the adoption of the report. It was a well-known fact that the agricultural community were suffering seriously because of the unsatisfactory prices which ruled for produce, and when the farmers suffered the whole community suffered. But there was a tendency on the part of the farmers to work in one groove, and one of the results of this was that the millers had been compelled to stop buying because of the great quantity of spring wheat grown, whilst large sums of money were sent to the South, because the Auckland farmers would not grow the proper kind—winter wheat. The question of the railways, and the necessity for further immigration, were referred to by Mr. Lamb, who spoke of the food done by the establishment of the omestead settlements, which should be encouraged by the Government. Everything should be done by the * Chamber to retain the San Francisco mail service. Mr. Peacock had done good work in this direction he was a good man, and had always worked well with the Chamber. (Applause.)

Mr. McMillan quite agreed with Mr. Lamb as to the necessity for retaining the San Francisco mail service, but the Chamber should not leave everything to Mr. Peacock, and the Council ought to use every endeavour to supply information on the subject, so that our members would have arguments to go on. He urged the Chamber to agitate for the Stratford route contract. If the Auckland people displayed only half the energy shown by the Wellington people, they would be much more likely to secure their rights. He had no faith in railways as managed by the Government—(hear, hear)— and the Chamber should join with the country to have the railways taken out of the hands of the Government. Mr. McMillan mentioned the subject of the mining industry, and pointed out that the machinery at the School of Mines was lying idle. He dissented from one portion of the report—that having reference to " the useless expenditure upon universities and the salaries of so many professors." The report stated that the Council were "still of opinion that one university for the colony, and consequently one staff of professors, would fully satisfy all the requirements of New Zealand students for the present," and he moved, "That that clause be struck out." He thoroughly agreed with every effort made for retrenchment, and . they would . all agree that the expense of working the education , system could be very much cut down ; but he maintained that it would be a great mistake to cut down our University. he universities in the South were richly endowed, and the Southern people could therefore afford to laugh at us were any reduction made here in the expenditure upon university education. The sweeping away of the university would lead to a system of centralisation, and centralisation had been to a great extent the curse of this colony. • Mr. Buchanan thought it was urgently necessary that attention should be paid to the question of immigration. He agreed with Mr. McMillan that it would be a serious mistake to do away with the Auckland University. The professors in Auckland were practical men, and bub for them the people would not have been so far advanced in the direction of technical education. He therefore seconded Mr. McMillan's amendment.

Mr, McLachlan congratulated the Council upon its recommendation with respect to the education question. He considered this step necessary in the interests of retrenchment ; and he characterised those persons as actuated by a spirit of selfishness who would say that no reduction should be made in our expenditure here unless something were done in the South; " sacrifice everything and everybody but Auckland." Auckland, he claimed, should set a good example. He did not think the Auckland University College was a paying institution, and the only question, so far as Tie could see, was between the endowments in the South and the subsidy in the North. Many members of the Board of Education held views similar to those held by. him on this question. * - •••• . - * Mr. Vaile supported Mr. McMillan's amendment. He thought it was due to their children and their grandchildren that their University College should be retained. Air. Vaile agreed that it was necessary that the land should be settled, but, he asked, what was the use of settling the land if the people could not get to it? Circumstances were constantly coming under his notice to show how difficult it was to get to the land because of the manner in which the railways were mismanaged. The railways were now placed in a very serious position, because of the Estimates for that Department having been based on the assumption that the railways would return £1,040,000 during the year. During the past twelve weeks the Picton railways had gone to the bad to the extent of £131 13s 9d, whilst on the little Whangarei line steady progress was being shown. The President said that it had been suggested in last year's report that if University education could be carried out in one centre the amount voted for the purpose could be better spent. Mr. McMillan pointed out that 200 students were now attending the University College. Great advice and assistance had been given by Professor Brown in respect to the various processes' of refractory ores(applause)and it was owing his advice on this point that much needless expense had been saved. Mr. Milne supported Mr. McMillan's amendment. He was glad to see that the question of technical education had been taken up in the schools. Mr. Tait suggested that in place of the words which Mr. McMillan proposed should be struck out, there be inserted the following : —" Your Council learn with great satisfaction that the Professors of the University College are rendering valuable assistance to the cause of education by lecturing on technical subjects, and trust that these efforts will be continued and extended.".

Mr. McMillan withdrew his amendment in favour of that proposed by Mr. Tait. Mr. Tait's • amendment was then carried, the Chairman announcing that it had taken the place of the original clause in the report respecting the subject of education. Mr. McLachlan moved the following amendment to the clause in respect of the San Francisco Mail Service :—" That, in view of the rapidly-increasing steam communication between Great Britain, Australia, and New Zealand, and the proposed line of steam and cable communication between Canada and New Zealand, the time has arrived when subsidies to both the direct and San Francisco Service should cease, and that for the future the ship rate of Id per letter for the direct, and 2d for the San Francisco line, should be paid." Many of the postal authorities were agreed that this would be a good plan to adopt. It was a popular error to suppose that the San Francisco Service cost nothing. Mr. John Reid seconded the amendment, though he did not expect that it would be carried. The people of the colony were overtaxed, ana the time had arrived when something should be done to effect retrenchment. Mr. Bell, supported the amendment proposed by Mr. McLachlan. The subsidies to both services should be discontinued, because the people were not able to pay them. Mr. JBridgewater said it should be recollected that the colony gained Id for every letter carried by the San Francisco route, and lost Id on every letter by the Direct Service, The amendment was lost, and the report, as amended, was then adopted. OFFICERS. Mr. Nathan proposed, "That Mr. John Buchanan be elected president of the Chamber for the ensuing year." Mr. Buchanan was well known for his energy and perseverance. Mr. McMillan seconded the motion. He hoped that the term of office of president would be extended to three years. The motion was unanimously passed, and Mr. Buchanan briefly returned thanks. The following officers were also elected :— Vice President Mr. Jno. Milne. Committee : Messrs Arch. Clark, J. M. Lennox, Captain Colbeck, Messrs T. Henderson, N. A. Nathan, E. V. Houghton, J. P. King. Auditor : Mr. J. Waymouth. Representative at the Harbour Board: Mr. J. Buchanan. THANKS. A vote of thanks to the retiring President, Mr. A. H. Nathan, was proposed by Mr. Buchanan, and carried unanimously. Mr. Nathan moved a vote of "thanks to the Secretary, Mr. JllO. Young, who had rendered him valuable assistance. The motion was adopted, and the proceedings terminated.