NEW ZEALAND CANDLE COMPANY

New Zealand Mail, Issue 1745, 16 August 1905, Page 62

NEW ZEALAND CANDLE COMPANY

Proceedings at the ordinary general meeting of shareholders, held at Messrs Badham and Biss’s office, Willis street, on Tuesday, Bth August, 1905, at 3 p.m., Mr Nicholas Reid presiding.

Che Secretary (Mr Bull) having read the notice convening the meeting and the Auditor’s report,

The Chairman, in moving the adoption of the leport and balance-sheet, referred to the unsatisfactory trading for the past financial year, which was the worst of many bad years experienced since 1900. when the duty on candles was remitted. Mr Reid pointed out that the most serious competition which the colonial candles have to face is that in respect to candles manufactured and exported from America and Burmah to this colony. These, he explained, were made solely from paraffine wax. If they were, a composite candle —that is to say, made from stearine and wax —the colonial companies would be in a position to hold their own. The duty on candles is Id. and on wax £d. The duty of Id. is not adequate protection against the imported candles, whilst the duty of |d. on paraffine is not sufficiently low to enable the companies to manufacture a purely paraffine candle to compete with the imported article. Another matter he wished to touch upon was tallow. He said that the operations in that department did not compare favourably for the past year with the preceding one, for the reason that the price paid for the raw material, through excessive competition, was high, whilst the prices realised in Loudon were particularly low. Lately there had been a reduction in the price of the raw and he expressed a hope that a profit on tallow would be made in the near future. In concluding, he moved that the report and balance-sheet a<s read be adopted. This was seoorded by Mi* Beauchamp, who, in doing so, expressed great regret that the results for the past financial year had been so unsatisfactory. Still, they had to recognise that this result was looked for in view of the very substantial reduction that took place in the duty on candles in August, 1900. Since that period, the company had been making an uphill fight against the importations of English, Burmah, and American candles. The protection that is afforded to the locally manufactured is not sufficient. It is not only the New Zealand Candle Company that is suffering, but all other companies in New Zealand engaged in the manufacture of candles, are in the same unfortunate position as themselves, and- it must be recognised that, unless more protection is afforded to this industry, it is bound to go to the wall. Not only is the candle industry of this colony insufficiently protected, but there are other industries which have been referred to by the Industrial Association and representations have been made to the Government with a view to affording them some relief. Mi* Beauchamp remarked that there was very little prospect of their getting any consideration during the dying session of Parliament, but, prior to the election of a new House, they should endeavour to make tariff reform one of the main planks of the political platform. It was, he thought, necessary to bring this matter prominently under the notice of members who are seeking election to the House of Representatives to get their support in this laudable direction. As pointed out by the Chairman, the company had also been handicapped this year in respect of-the manufacture and sale of tallow. They had been forced, through excessive competition, to pay unduly high prices at this end, and consignment® had been selling in the London market at unremunerative figures. Th i total debit balance was nearly £2OO on the past year’s trading, which included provision for Directors’ fees. These, however, for the past six months had not been drawn. Mr Kennedy, in speaking on the motion, said he joined in the regret voiced by the previous speakers as to the outcome of the efforts of the company being so poor. Speaking as a considerable shareholder—one representing several shareholders who were not present, and the majority of the holders of the stock, at all events—he considered the immediate prospects were not encouraging, and that, if there was no prospect of the tariff being altered, he would not be warranted in supporting a continuance of the company. As a shareholder, and on behalf of those he represented, he would prefer the company to be woundup within the near future unless there was a chance of the tariff being altered. Last year the Chairman (Mr Nicholas Reid) gave evidence before the Extension of Commerce Committee, and, from his statement, he noticed that some of the members present asked Mr Reid whether the falling-off in the consump-

tion of candles was not due to th# cheapening of the price of kerosene. Well, the reply to this is that, in. 1900, when the duty was reduced, the total import that year of candles was 1,609,1211 b., and the colonial make wai 3,317,4091 b. Up to that period, the. company was reasonably prosperous: they were employing a large number of hands, and the outlook was encouraging ; but the alteration of the duty seems to have practically annihilated any prospects the company had at that time. Coming to the year 1903,. the imported candles amounted to 3,042,053, and the local made to 2,746,6471 b., making a total of 5,788,7001b5. as against 4,926,5301b5. in 1900, so that it will be seen that the total consumption of candles was greater instead of less. This entirely disproved the suggestion that, through the remission of the duty on kerosene, the consumption of candles, on the whole, has been lessened. The importation, however, had completely absorbed the falling-off in the colonial make. Mr Kennedy remarked he had not particulars of the imports of 1904, but he could show that the colonial make continues to decrease, because, while in 1903 these amounted to 2,746,6471 b., last year they were only 2.246,001, or a reduction of, approximately, half a million pounds, as compared with the previous year. It was the duty of the Legislature, he added, to keep the cost of commodities as low as possible.

Still, he felt that if the duty on candles was increased to a moderate extent, the price would not be appreciably raised for the reason that, with the increased output, the cost of manufacture would, at the same time, be reduced. All, therefore, that is required is increased output, but, to get that, they must have more protection. When the duty on candles and wax was reduced in 1900, it played directly into the hands of trusts, against which Parliament had several times attempted to . legislate. For example, paraffine is supplied by the Standard Oil Company, and American candles by the Vacuum Oil Company—on offshoot of the Standard Oil Company. With regard to Burmah candles, the speaker explained that they had to compete with cheap coolie labour employed in their manufacture. He also pointed out # that, with respect to English candles* the principal manufacturers, namely, the Messrs Price, quoted per lb. less for export than for Home consumption, which meant that they were using the colonies as a dumping ground for their surplus manufactures. In getting rid of this surplus, they, too, were able to reduce the cost by increased output. The company, said Mr Kennedy, cannot go on much longer unless the candle industry in the colony is protected. Carried. Mr Ferguson inquired what steps had been taken to bring the unfortunate position of the candle companies iunder the notice of Parliament. In reply, Mr Beauchamp said that Air Reid had attended the meeting of the Extension of Commerce Committee last year, and gave very lengthy evidence. The matter had also been brought under the notice of the House quite recently by Air Wilford, the representative of the district in which the works are erected. Further, the subject was fully referred to in Parliament last session by Mr AEassey (Leader of the Opposition), and other members, who said they would be very glad to co-operate with the Government with a view to getting reasonable protection for the candle companies. Air Beauchamp also added that Air Reid had interviewed the Premier on more tnan one occasion, and Mr Seddon said that he was very anxious that no local industry should go under during his Administration, so tjhat, immediately the tariff question is re-opened, there was every hope that they would get such 'adequate protection as would enable them to carry on this important industry. Mr Kennedy: It may also be mentioned that, since the duty on kerosene has been remitted, there has been a very large increase in the consumption thereof, as the following figures will indicate: 1900 ... .. 2,797,771 gallons 1901 ... ... 3,041,881 gallons 1902 ... ... 3,329,648 gallons 1903 ... ... 3,440,326 gallons 1904 4,420,491 gallons It may be assumed that, as coincidently there has been a very great increase in the consumption of candles, the increase in the consumption of kerosene is largely attributable to its extensive use for heating and cooking purposes. Mr M. Kennedy and Mr D. J. Nathan, the retiring Directors, were reelected. . Mr A. S. Biss was appointed auditor at same remuneration as last year.