RUBBER FIRM'S AFFAIRS

New Zealand Herald, Volume LII, Issue 15821, 19 January 1915, Page 9

RUBBER FIRM'S AFFAIRS

ALLEGED GERMAN COMPANY.

NEW ZEALAND BUSINESS

GOVERNMENT CRITICISED

[BY telegraph.— association.]

Wellington. Monday. Reference to the position of the Continental Rubber Company in New Zea land was made at a meeting of the council of the Wellington Chamber of Commerce to-day. It was stated that practically all the shareholders in the company were Germans, and that perhaps unconsciously the Government was assisting a foreign organisation to gain profits in New Zealand. Similar matters were before the law courts, but members expressed themselves as not at all sure that the question was settled.

The secretary (Mr. A. J. Petherick) read a letter sent to the chamber by Mr. A. R. Hislop. agent for rubber manufacturers in Wellington. The letter was as follows: — "The action of your live chamber in discussing the Continental 0. and G. Rubber Company and its methods was very much appreciated by my firm, and we beg to tender the chamber our sincere thanks. An extraordinary thing has happened in the receipt of a circular which was posted direct to us and speaks for itself, and the position is that our British principals find themselves in the position of having as competitors in their business the Government of New Zealand through their Public Trust Office, who are not only trading with, but are actually acting as agents for the enemy. It seems to us such an extraordinary position that we are sending the enclosed letter to a number of our British principals, including the Shrewsbury and Challiner Tyre Company, Manchester, to advise them of the position."

The circular referred to in Mr. Hislop's letter was as under.- —'In terms of the War Regulations Act, 1914, and regulations made thereunder, the Attorney-General has by warrant appointed the Public Trustee as the controller of the Continental C. and G. Rubber Company, Limited. This empowers the Public Trustee, as controller, to carry on the business of the company, and if it is expedient so to do, he will, accordingly, carry on and use the present machinery of the. company for the purpose. The control of the company being thus in the hands of the Government, you may, therefore, continue to do business with it as heretofore. I shall be pleased if you will remit orders to the manager of the company, or to me direct, —(Signed), The Public Trustee, by T. D. Kendall, Local Deputy Public Trustee, Christchurch."

In his letter to his British principals, Mr. Bishop remarked :—" It seems to us a monstrous thing that whilst we are doing all in our power to secure New Zealand trade for the British manufacturers, the Government of the day should take upon themselves to run a German concern in opposition to our British principals, especially in view of tho fact that our members of Parliament have expressed themselves in favour of an all-British trade, and Ministers themselves profess to urge New Zealand merchants to pusli fur orders to keep our own manufacturers busy in the Homeland. It appears to us that the particular German company referred to must have had inside information with regard to the prospects of war, for we understand, on good authority, that there are stocks of Continental tyres made in Germany in New Zealand, sufficient to meet the demand for two years, and it seems out of all reason that the Government should act as selling agents for a German firm, in opposition to the direct representatives of our British manufacturers. We feel it our duty to report to yourselves, and also to other British manufacturers, and trust that something may be done to stop this trading with the enemy, even though it is through the Government of our own fair and loyal country."

In discussing the communications Mr. E. J. Fit/gibbons said that Mr. Massey ha J stated that the public trustee was merely holding the money which would not reach the enemy. .Mr. Hislop's letter, however, had some justification.

Another member remarked that the Government could have either held the goods, destroyed them, or disposed of them by selling theiii and keeping the money in the country. They had chosen the last course. There should be "no howl from the trade " unless proces were cut.

Mr. Ascroft Edwards said that a similar case lias been brought under his notice. Jt was another large company with a nuge business. He would say nothing about it, however, until he was sure of his facts.

Other members commented on the tact that the Continental Company had oniv paid license fees on a nominal capital of £5000. whilst their annual turnover was over £300.000. Not only in this case, but in that of other companies such a loophole ty escape taxation was considered unfair.