WAR DUTIES OX OILS.

New Zealand Herald, Volume LII, Issue 16013, 3 September 1915, Page 4

WAR DUTIES OX OILS.

DIFFICULTIES OF SYSTEM.

OLD AND NEW STOCKS.

WHEN THE SHIP ARRIVES.

The imposition of a duty 01 4d a gallon on benzine and kerosene imported into the Dominion has created some unusual situations in the avenues of trade in which these commodities figure prominently. The effect of the new duty has been to raise the price of benzine from 14s lOd per case of eight gallons to 17s 6d per case; the price per gallon has risen from Is lOd to 2s 2d. A relative increase has also occurred in the price of kerosene. The cause of the uneasiness among dealers and

:onsnmers is, however, not due to the increase in price so much as to the fact that • new duly applies only to future importations. Stocks already in hond or in store are not subject to it. . Inquiries made yesterday elicited the information that it in the practice for orders to be delivered direct from the ship to the stores of the buyer. In this way much expense in storage and cartage is saved. It happens that an oilladen steamer is due at Auckland today, and it is in connection with this vessel that the chief interest in the question is centred. The oil which will be delivered from her will be subject to the duty and will consequently be sold at the higher prioe. In consequence of this a number of buyers have asked the oil company to cancel their orders for the oil from the ship and to fill the orders from their stocks in store, at the price ruling before the imposition of the duty. It is understood that this request will not be acceded to, as the transferring of the oil from the ship to the bond would mean the outlay of some thousands of pounds, which would tend to further increase the price of the shipment when it was eventually sold. An interesting position is likely to arise when the steamer begins to discharge the oil.

In the meantime, the oil companies are selling to regular buyers at the old price, from their stores. But only normal quantities are being supplied. As soon as the duty was announced, the oil companies were inundated with orders, although only 25 cases are allowed to be stored in any one building, much larger orders were received from individual firms. After filling all orders received during the first two days, the companies decided to limit the amount of each order. One reason for doing so was that while the companies were compelled to sell at the old price, there was no guarantee that merchants, storekeepers, and others throughout the countryside were not charging the public the extra Ad per gallon.

Several buyers complained of this limiting of supplies, suggesting that since the companies could not add the duty to stocks imported before it -was imposed, they were doing the next best thing in their own interests and selling as little as possible from their stores. It was, however, admitted that during the first couple of days, full orders had been delivered.

QUESTION OF BRANDING.

STOCKS OF KEROSENE. [BT TELEGRAPH.SPECIAL COKRESKHCDEXT.] Wellington, Thursday. A question was asked in the House today by Mr. C. A. Wilkinson, who wanted to know if instructions could be given by which kerosene, on which duty had been paid, should be branded with the Government stamp. He understood that a certain quantity had gone forward without a stamp. He also pointed out the hardship suffered by merchants whose stocks had now run out and who had to order more under the increased tariff, as compared with others whose fresh supplies had arrived prior to the imposition of the extra duty. Sir Joseph Ward said that no kerosene that had paid duty would be allowed to i pass without the Government stamp. At a time when alterations in duty were being made in any country, there were bound to be complaints. Stamps were available now throughout the country, and the regulations under the Act would apply as from August 26. When the Regulation »of Trade and Commerce Bill was before the Legislative Council to-day, the following new clause permitting interchange of stocks was added on the motion of the Hon. Sir F. Bell: — " 1. A Collector of Customs, at the request of any person who is the owner of any stock of refined mineral oil imported on or before August 26, 1915. herein called duty-free stock, and who is also the owner of any stock of refined mineral oil imported after August 26, called duty-paid ■stock, may from time to time approve of the substitution of any mineral oil included in the duty-paid stock for an equal quantity of mineral oil of the same description included in the duty-free stock. 2. On such approval being given, the duty-paid stock to which the approval extends shall, in respect of all subseauent dealings therewith, be deemed for all the purposes of this Act to be duty-free stock, and the duty-free stock to which the anmoval extends shall in respect of all subseauent dealings therewith be deemed ; for all the purposes of the Act to be dutv- ! paid stock." " i