FLAXMILLERS AND THE GOVERNMENT.

New Zealand Times, Volume LI, Issue 8967, 18 April 1890, Page 3

FLAXMILLERS AND THE GOVERNMENT.

A BONUS TO BE GIVEN FOR MACHINERY. Yesterday morning a deputation, consisting of the following gentlemen, waited on the Premier with respect to the production and treatment of flax ;—Mr J. G. Wilson, M.H.R. ; Mr R. Gardner and Mr G. Potts, chairmen respectively of the Manawatu and Rangitikei branches of the Flaxmillers’ Association ; and Mr M. McCredie, representing the Maori Hemp Company, Poverty Bay. Mr Wilson, introducing the deputation, said the gentlemen comprising it had some suggestions to make in regard to the flax industry, having been appointed by persons engaged in that industry in the R ngitikei and Manawatu districts. Two other gentlemen who were also deputed to wait on the Premier had unfortunately missed the train. They were allglad, he remarked, to know that the Premier took a gn at interest in this industry. Mr Gardner said they were very pleased indeed to find the Premier taking such an interest in the industry, which had, as Sir Harry would be aware, grown to be one of no secondary importance. Last year, according to the mere Custojns returns it was worth to the Colony L3'30,000, but according to returns which he had made out of the actual sales in London, it was worth, for last year alone, L 440,000, so that the industry had grown enormously, especially toward the latter part of the year. From returns now made up, it was estimated that this coming year, had things continued to progress as they were doing, the Colony would have seen a million of money from flax ; and when it was remembered that that sum was yielded by what was formerly nothing but a weed, costing men 25s or 30s an acre to clear off their land, one got an idea of how very valuable an industry it had become. Unfortunately, however, the prices in England had" been falling, and many mills had been shut up, being brought into competition with two other fibres— Manila and sisal. They were of opinion, and were borne out by Sir James Hector, that the New Zealand fibre should not take any second position among fibres, and that the cause of its at present occupying a third-rate position in value was that it was not prepared as it should be and could bo. They were of opinion that if they had better means of dressing it they would be able co rank equal Avith the best fibres. In many respects flax was superior to other fibres, and in some respects inferior —chiefly in that it had not quite sufficient strength. Now the weakness in strength was to a great extent caused by defective machinery. The great feature of the machinery hoav in use was that there Avas a drum Avith diagonal beater bars o f cast - iron that beat upon a fixed beater bar. Every time these beaters came against the fixed one there was a blow—a concussion took place—and that bruised the flax at that particular part. When the flax was exposed to the action of the air that part of it Avas to a great extent destroyed. Thus the greatest delicacy was necessary in setting the machine so as to prev r ent as far as possible the bruising which Avas so injurious to the fibre. They Avere of opinion that the Avhole system of bruising at present in use Avas wrong that instead of bruising they should folloav something like the late Mr Pownall’s scheme of scraping, and that if they could obtain a machine that would substitute scraping for bruising or beating, they Avould have a machine Avhich ! would produce flax equal if not superior in every respect to Manila. At the present time NeAV Zealand flax Avas doAA’n to something like L2O ss, and Manila was at L3O, and the difference of LlO would, they believed, bo made good to the Colony by improved machines. It was on these grounds that they asked the Government to consider the advisableness of making a national thing of it, by placing on the Estimates a sufficient sum to set inventive genius to work, not only in NeAV Zealand, but also in the other colonies and England. Ho kneAV that England took a great interest in this matter, and was discussing the question how best to improve the machinery for dressing flax. He did not knoAV Avhebher it would be wise to suggest the amount of such a bonus ? The Premier : Yes, I hope you will. I shall be very glad to hear any suggestion you can make. Mr Gardner said that taking into consideration the magnitude of the industry, and the fact that it produced nearly half a million last year, and was capable of development to an unknown extent, the deputation thought a sum of LIO,OOO should be put on the Estimates, and would bring forth a scheme by which the quality and value of the fibre would be increased. Mr Wilson pointed out that the bonus suggested by Mr Gardner Avas following the principle already adopted Avith refer- . ence to new goldfields. Mr Potts said Avhat was wanted was to make it Avorth Avhile for outside competition to come in. He remarked that during last December a sum equal to over a million a year was being spent in the Colony over this industry—that Avas the actual cost of delivery at the nearest port or railAvay station. The cost of output alone Avas Ll 3 a ton at present. The Premier: What is this Bull’s machine ? Mr Potts : 1 don’t know ; we’re going to see that to-day. Mr Gardner: Of course the mi'lers themselves could suggest some of the chief requisites, The Premier : Yes ; of course that would Avant careful consideration. He should have to provide for a machine producing a certain quantity. Then there must be the right to use the machines at a reasonable royalty. Well, gentlemen, 1 have no hes : tation at all in saying that the Government will be quite prepared to make such a proposal to Parliament as you suggest, for a bonus for machinery, and I shall be very glad indeed to get any suggestions from you on the matter and have them caxefully considered by Avhat experts we have got. I shall also communicate with the Agent-General, telling him that ■we have this in contemplation, so as to prepare the people at Home for it who would bo likely to take an interest in such things, Mr Gardner remarked that he had not referred at all to the present depression ; he was assuming that the plan suggested would remove the depression, and they could go on producing the maximum amount. The Premier said it of course Avas an important matter if they could assist the trade.

Mr Potts said a quarter of the million he had referred to Avent to the farmers direct, in grain, meat, &c. In answer to the Premier, he said a very large proportion Avas paid in wages, which had teen at a’ very high rate—about L 9 a ton. 1 : The Premier : Is there anything-' else .that the Government can do, in the waj'■of inspection or anything like that ? ■ Mr Gardner said that matter had been considered very carefully, and they did not see how the Government could Jlo anything in it. Mr Wilson mentioned the question of railway freights, and the Premier said the Government were quite prepared to.take an interest in it, and, if necessary, communicate with the Commissioners. '*?■ The Premier remarked, in furtherHtmversation, that he would not “ spoil the ship for a haporth of tar.” The amount of the bonus Avas a mere bagatelle compared Avith the importance of the industry. Mr Potts said the condition noAV Avas fearful, there being hardly any work. If they could get a reduction in shipping and railway freights they might do better. The cost from New Zealand Home Avas now over L 8 a ton, It looked exorbitant, did it not ? L 8 15s Avas what it cost to sell. The Premier : Could avg not help you in that ? We thould be very glad if A\'e could do so. Mr Gardner remarked that he Avas doav shipping from Melbourne to London for 455, and shipping from here it cost him 90s. Mr Wilson : And these tAvo companies are being subsidised by the Government to carry our mails ! The Premier promised to look into the matter and see if any remedy could be effected. Mr Potts said what Avas wanted Avas a machine that Avould reduce the cost of production and turn out a better quality. Many machines had been invented for this purpose, but none of them Avere of any use. Mr Wilson thought persons engaged in the flax industry should thank the Government for the telegrams received from the Agent-General. The Premier said the Agent-General had been instructed to let the Government knoAV every change or prospect of change in the market. He (the Premier) was told the other day by a gentleman very much interested in export that a telegram had been received stating that they believed in London that the bottom had been touched. He Avas not at liberty to mention names, but this gentleman attached great importance to it. This concluded the interview, and the deputation, having thanked the Premier, AA'ithdrew. DEPUTATION TO THE CHAMBER OF COMMERCE. At 4 p.m. the deputation Avaited on the Flax Committee of the Chamber of Commerce, Mr J. Duncan occupying the chair. Mr Gardner expressed the pleasure he felt at again meeting the Chamber to discuss the flax trade. The deputation’s object Avas to ask the continued co-opera-tion of the Chamberlin carrying on the flax trade of the Colony. The Associations which he and those with him represented weredoing theirbest to maintain the trade by impro\ r ing the quality of the out’ put and lessening general charges, and they had received from the Premier that day a promise to grant their request for LIO,OOO to be put on to the Estimates as a bonus for improved machinery. The question of machinery having been disposed of, there remained that of other charges. There Avas freight, for instance. It cost 90s a ton to ship from Wellington to London, Avhile it could be shipped from Melbourne at 455. The latter, ho kneAV, Avas not a good price, and he did not know why they made it soloav. The fact remained, however, that avc could send our flax Horae at about 70s by taking that route. What he asked was that the Chamber would give them some assistance in getting the Direct freights reduced. It would be a very serious thing if this industry collapsed ; and as a matter of fact only 29 machines Avere now in work in his district as against 109 not long ago. If, hoAvever, they could get a reduction of LI per ton in freight they Avould have a better chance of continuing. He thought, also, that the Harbour Board rates might be reduced. As showing the magnitude of the industry, he added that L 120,000 to L 130,000 Avas invested in flax milling, and about 10,000 men Avere recently employed by it. The Chairman said the Chamber and all members of the community Avere interested in desiring this industry to continue, as one whose benefits must affect all sections. The Chamber felt also that no stone should be left unturned to endeavour to bring about a revival of the trade. The depression in the fibre trade generally, he thought, was due to the action of syndicates in America, who, by forming “corners,” were able to reduce prices. He might say, hoAvever, that only that day he had received a telegram intimating that there was an improvement in the general tone, of the Home market. That Avas especially gratifying, because he kneAV that a number of sailing vessels from New Zealand had arrived both in England and America during the last few days. It was one of the most hopeful signs he had heard of for months. (Hear, hear.) With respect to charges, ' Mr Duncan quoted figures to show that in sending flax by chartered vessels, as they had had to do recently, the shipping companies Avere only making Is a ton for carrying flax, without taking into account any expense for agencies or for the chance of having to pay storage to the Harbour Board. It seemed to him therefore that the rate Avhich had been charged was not unreasonable. The rates had, owing to the conclusion of the avoo! season, become a little easier now, and there was some difficulty in getting filling-up cargo in Australia, Avhicli accounted for the extraordinary figures quoted by Mr Gardner. It was not unreasonable to suppose that our flax Avas finding the means of carriage in vessels which Avere carrying lead and other heavy cargo from Australia. He pointed out that in deference to the flaxmillers the freight was reduced to 70s by sailing vessels for some months, which meant a dead loss to the carrying companies. At the present moment he understood it was in contemplation to reduce the freights again. Every attempt had been made to meet the trade and help them through. He could not say definitely that a further reduction Avould take place immediately, but he thought that he might say that at no distant date there would be a shading in the rates. What he thought was badly needed was some method of testing the quality of the flax when it arrived in London. No standard of any kind was fixed, and he

thought the ups and downs of the market were probably the standard of quality. If the flaxmillers could have some standard set up it Avould be beneficial to the trade ; he Avas sure very few of the merchants would care to take the risks in future that they had been taking, and there Avas no doubt, also, that much of the Wellington flax Avas not sent for ward hi. a marketable condition. That might he affected by the bonus, but he thought the real remedy was greater care. He had been struck, while m Auckland, with the excellence of the fibre turned out there. Probably inquiries made there might be beneficial. He recognised the gravity of the present situation, and thought that for that reason all would be anxious to do Avhat they could to improve it. As to the Harbour Board dues, he did n/-t look upon that matter as of great importance, because most of the dues fell on the ship, excepting perhaps Avith reference to storage charges. Mr J. H. Cock thought the Harbour Board charges did affect the cost to the flaxmillers, who had to pay, in the shape of extra freight, Avhat Avas charged the ship. Hemp, he remarked, was about the only thing that had benefited by the Board’s recent revision of rates. Those rates wore high, he considered, especially fid per bale a week for storage, but he could not see his Avay to asking the Board to make a further reduction. The Wellington merchants made practically no charge for handling the flax, except that of preparing bills of lading. It Avas a very small consideration. The London charges Avere very high, but he did not know Avhether they could do anything to remedy them. As to the industry generally, hoAvever, they were all agreed in doing all they could for it. .The Chairman remarked that he had not included storage charges in his figures. Probably it was Avell knoAvn that there had been an inquiry for flax to be sent Home undumped. Experiments made in that way showed that it ran about 123 ft to the ton, Avhich made the cost of freight about L 5 5s per ton. That seemed to make it obvious that we could not hope to do much with undumped flax. Mr Wilson remarked, Avith reference to inspection in London, that an offer made by the Premier to the deputation might lead to some system of classification here. He asked Avhether it would not bo possible to reduce the cost of dumping. The Chairman, in ans Aver to Mr McCrodie, said he did not think there was much difference between the London prices for dumped and undumped flax. He had not heard of dumping doing any general damags. This objection to the the London classification was that the men who carried it out, so far as he kneAV, had not really any knowledge of fibre. He thought, however, that grading here Avould have been much the best system. Mr Cock said the difficulty was that to have the fibre properly graded here would need a hundred inspectors, because a man \vould ha\ T e to examine every hank. If, however, the flax was turned out as it was in Auckland, it Avould not require inspection. The Chairman said that on the other hand a steadier price would be realised. MrMcCredie said he had just returned from a vrisit to the Waika'o, and did not think the quality of fibre turned out there Avas as good as Mr Duncan thought it. They Avere paying lower wages, however—they gave scutchers, balers, and men like that 5s a day only, Avhere 7s or 8s Avould be paid in Wellington. Wellington had got a bad name in 'this matter Avhich was sticking to it. - , Mr Potts doubted whether there was a call for first-class flax. A London merchant Avho had written to him asked only for “a good, fair, clean sample,” and wanted nothing finer. Mr Cock did not think we could look for a return to the abnormally high prices which had been prevailing. Mr Potts said the conditions would be more favourable —wages would not be so high. This concluded the interview.