COMMERCIAL.

New Zealand Mail, Issue 1423, 8 June 1899, Page 6

COMMERCIAL.

FINANCE AND TRADE. At the annual meeting of the Association of the Chambers of Comm e tee of the United Kingdom in March last the baneful effects of the shipping combination on British foreign trade came up for discussion. The following resolution introduced by Sir A. Hickman, M.P., was passed, viz.“ That the maintenance of shipping rings, by the action of which goods are charged higher freights from British than from foreign ports, is most injurious to our trade, and that the Government be urged to discontinue the payments of any subsidies to shipping lines which give preferential rates to goods from foreign, ports.” In the course of his remarks in support of the motion. Sir A. Hickman said that British shipowners nad combined absolutely to keep up the rates in every English port. These rates did not apply at all to foreign ports, where English shipowners were entitled to charge what they pleased. But at English ports the rates were fixed by what he called a “ring,' but by what the owners called a “conference.” Efforts had been made to brea e up the ring, but in all cases these efforts resulted in failure. Whenever an independent shipowner had quoted rates outside the ring there had been a combination to run down those rates and fellow his ships, and the result had usually been that he had been driven into the ring or mined. Then the rates which the unfortunate shipowner had were divided among the ring, and thus it happened that the foreign rates only were open to competition.

Sir A. Hickman gave some examples showing the enormous difference in the rates from English and foreign ports. From Amsterdam to Java, via Liverpool, including the cost of transhipment, the cost was 20s per ton, but goods carried in the same vessel all the way, and where there was no transhipment, from Liverpool to Java, cost 20s. The P. and O. Company, which receives a subsidy of £360,000 per annum from the British Government, sends its vessels to Antwerp, where they are loaded partly with iron. That iron was brought to Liverpool, and till lately Lire company charged 10s per ton more from Liverpool than from Antwerp. Pressure having been put on it, it now charged the same price. That was to say, it carried German iron from Antwerp _ to Liverpool for nothing. From New York to Amsterdam the rates for iron were 5s to 10s per ton; from Liverpool from 15s to 25s per ton. The rate from New York to Sydney by the Tyser Line is 15s, while from London to Sydney it is 40s; and Sir A. Hickman declared that “until this iniquitous system was started such a thing as American bar or hoop iron was never known in New Zealand, but now they had got the whole of the trade in their hands, and they were likely to keep it when the English maker was handicapped by 22s per ton.” In the cotton trade a freight from New York to Shanghai was charged 22s 6d via Liverpool, while the British shipper was charged 47s 6d to the same port.

The ring is maintained by a system of rebates. Shipping agents are allowed a rebate so long as they ship only in the vessels belonging to the conference, and if a single ton is sent m a vessel belonging to a shipowner outside the ring the rebate is withdrawn from all previous business. The rebates are not paid over immediately; on the contrary, settlements are made about once in six months. Consequently, the shipowner is in a position to punish a recalcitrant shipping agent. This is one of the causes of the decadence of British foreign trade, and it is an important one.

Our comments on the working methods of the Customs Department, but more particularly as to the extraordinary powers vested in the department which prevents importers bringing their grievances before a properly constituted arbitration board, have been copied by several papers. There is, however, some doubt as to the accuracy of our statements on the question of arbitration, and even importers appear to be ignorant of the subject. We pointed out in our issue of the 13th inst. that in case of arbitration, the right of appointing the arbitrators rests entirely with the. department, and that the aggrieved importer must submit bis case to such a tribunal. We are absolutely correct in our state-, ments, and for the benefit of the importers, who appear to be extremely ignorant of this phase of the question, we quote section 46 of the Customs Laws

Consolidation Act, 1882, It reads as follows :—“lf upon view and examination of any goods or otherwise it appears to the proper officer that the said goods are not valued at according to the true and real value thereof as hereinbefore mentioned, then and in such case the proper officer may detain the goods, and shall assess the value thereof, or in ease of the value of such goods is unknown or uncertain, then the value of such goods shall be ascertained according to such rules and regulations ns tlie Governor-in-Coun-cil may from time to time make in that behalf, and the duties shall be paid according to the value so ascertained.” The regulations under the clause of the Act will be found in the “Gazette” of the 14th July, 1887, page 927. and section 1 is as follows : —“ln cases where the Collector or other officer of Customs has, in accordance with section 46 of the said Act, detained goods subject to ad valorem duty and assessed the value thereof, and the importer or his agent has objected to pay duty according to such assessment, or in case the value of such goods is unknown or uncertain, it shall be lawful for the Collector of Customs or other proper officer to appoint two valuators to appraise the fair market value of the goods a.s defined in section 40 of the said Act.’” It will be seen from this that the aggrieved importer has no right of appointing a valuator, but must accept the decision of the two appraisers appointed by the Customs Department, and further, the importer must pay the duty on the value assessed by the department’s nominees, and in default the goods may be impounded and sold by public auction. The importer also has the privilege of paying the departmental valuators for their services, and according to the regulations referred to above the fee to be paid each valuator is not to exceed four pounds nor be less than ten sliillings. For twelve years importers have tolerated this travesty of justice, and many of them have been totally ignorant of the enormous powers vested in the Customs Department. If importers are ontent to continue under the present condition, then nothing need be said further, but if jit is held that reforms are necessary, and we think they are, then the various Chambers of Commerce ought to be urged to give the matter some attention, and Parliament ought to be approached on the subject. No doubt the Customs Department requires extensive potvevs. but importers, too, have their ights, or ought to have, and it is for them co see that their interests are protected. The department is apt to abuse its privileges, and there are not wanting instances where it appears to have done so, and an effective check needs to be placed on the misuse of power. The department really needs thorough reorganisation; its methods of business lack the leaven of com-mon-seuse to make them acceptable to the mercantile community, an,l its dilatoriness is most annoying.

The sharemarket during the month now closing has been very quiet, and the volume of business transacted compares unfavourably with previous months. A restricted trade has been done in National Bank shares at 49s to 49s 6d. The bal-ance-sheet of this institution to the 31st March last is about due, and the general expectation is that the document will show very good results. Gas shares, though quiet, have maintained their level of values very well, except Wellington Gas, which are a shade weaker. Feeding Gas shares changed hands at 20s 6d. Insurance shares have met with a slightly better demand. New Zealand Insurance shares have advanced from 61s to 63s 6d, and buyers continue to offer the latter figure. South British Insurance shares have also advanced slightly. All woollen shares are a trifle weaker. Efforts have been made to place a part of the shares of the proposed Egmont Woollen Company, but we understand that the venture is not being taken up with enthusiasm, the feeling amongst investors being against the multiplication of such concerns, for which there is but a limited trade in the colony. The feature of the month lias been the marked advance in the price of Wellington Meat Export shares. For some time buyers were offering £6 12s 6d for the £5 paid-up shares, later on there was an advance to £6 15s, and now sales have been made at £7 ss. The shares have a strong upward tendency, and a further advance is almost certain to be registered. The dividend period of the company closes on the 30th June, which perhaps accounts for the strong demand for the shares. A small parcel of Sharland’s changed hands at 10s 9d and 11s. The recent writing down of the shares is looked upon favourably, the impression being that the company is thus placed in a sound position, and with its excellent trade; prospects it is anticipated that Sharland’s will soon be again on the list of dividend-paying companies. New Zealand Drug shares have been in steady demand, and sales have been made at 51s. Buyers are again on the market for Westport Coal shares, and business has been done at as high as 655. A line of about 500 Wellington Trust and Loan shares, of the value of over £3OOO, changed hands privately during the past few days. New Zealand Shipping shares have hardened, and buyers are now offering £5. Colonial Sugar Company’s shares have advanced 30s. The capital of the company is to be increased, and shareholders will, in all probability, receive the preferential allotment of the new shares, hence the advance.

Mining shares are comparatively active. A sudden rise has taken place in the value of Waihi shares, the shares having moved up from £6 to £7 in the course of

a few days, and sales have been made within the last day or two at £7 2s 6d. May Queens keep steady at about Bs. The development work in this mine appears to be proving satisfactory.

The Workmen’s Compensation Act came into force in Great Britain on the Ist of July last year, and, according to the Right Hon J. Chamberlain, who may be regarded as the author of the measure, it has proved of considerable benefit to the mechanics and artisans. The liability thrown upon employers by me operations of the Act is a serious item, and the accident insurance companies reaped a rich harvest. Mr Chamberlain’s calculations as to the premiums likely to he paid by employers in contracting out their liabilities under the Act were not borne out by the actual results, which viiere* very much higher than predicted. The sudden increase of accident business led to the formation of a number of new companies for the transaction of this class of business, and last year quite fifty new accident c-ompanies were registered. The competition, however, has not brought about any .appreciable reduction in the premiums, and at the conference of Chambers of Commerce a resolution was passed that the system of insurance carried on by the Post Office Savings Bank Department should be extended so as to embrace risks under the Employers’ Liability and Workmen’s Compensation Acts. The employers, it was pointed out, did not seek to have the Act amended or repealed, but merely that , the Government should afford an easy method of insurance by the extension of the Post Office system, such insurances to be effected on the lowest possible terms, and at cost price if possible. This expression, of opinion is valuable as indicating the desirability, if not the necessity, of bracketing the Workmen’s Compensation Bill and State accident insurance in our own legislation. The accident business could be easily undertaken by the Government Life Insurance Department, and the initial expenses would be insignificant. The Workmen’s Compensation Act is accepted by the employers in Great Britain, who wish to see the State furnish facilities for accident insurance, and the same conditions will no doubt be applied to New Zealand.

The Old Age Pensions Bill introduced into the House of Commons by Mr Herbert Whiteley, if carried, would give some stimulus to life insurance companies. The measure provides that every person who has acquired an annuity of £6 10s per annum after the age of sixtyfive until death shall be entitled to receive from the County Council under which they have a settlement, an additional sum of £6 10s from the age of sixty-five until death. This money, to be called a State pensjon, is to be paid out of the Exchequer’s contribution account to each county, which shall be supplemented as may be necessary from the local taxation fund, and the payments to pensioners are to be made monthly through the Post. Office. The annuity qualifying for a State pension may be acquired in any assurance office or friendly society, as in the Post Office. The PostmasterGeneral may at any time require returns from assurance offices and friendly societies to show what number of persons are insured in their offices for annuities which would qualify such persons for State pensions. This scheme, it is thought, would solve the difficulty to a certain extent. It would affect the more thrifty among the working classes, but would leave unsolved the great problem of the unthrifty, or of those who are unable, if willing, to make even the smallest provision for the future.

In the monetary movements of the last year or two colonial Government securities, though they have declined in value, have held their position on the London Stock Exchange relatively better than many of the gilt-edged British Corporation stocks. For instance, the City Council of Liverpool, which fifteen months ago obtained £600,000 out of £1,500,000, asked for at 2} per cent, at a minimum of £9B, in April last, when applying for £1,000,000, had to reduce the minimum to £93 10s, and give in more than three months’ interest. Even with tins concession the average., price was only 5d above the minimum. A year or two back a number of the British corporations were able to borrow on 2-J- per cent, securities at about par. At a recent date Metropolitan 2.’- and 3 per cents, were quoted at prices that yielded the investors about £2 11s to £2 12s per cent.; but the stocks and bonds of most ot the British corporations were quoted at figures which yielded from 22 to 3J- per eenc. Comparing the highest prices in 1896 and 1899, there is a general decline, but it amounted to 6} to 14} in the case of the English borough securities, and only from 3} to 4| in the case of colonial Government stocks. The former are quoted higher than colonial stocks,but then they have the advantage of being on the trustee list. British municipal indebtedness is now running into large figures. Debt has been incurred for gas, water, electricity and tramways, and the obligations under these heads have increased in six years, according to Burdett, by £14,!0<,000, or about 27 per cent. The total indebtedness of county councils, inunicipalities and all other local authorities throughout England and Wales m 18967 amounted to £252,135,000, an increase of £56,313,000 within ten years, as compared with an increase of £80,776,000 m the previous ten years. The indebtedness of local bodies in the United Kingdom advanced as rapidly as the national debt declined.

A general advance in the values of cattle, sheep, pigs and horses appears to