THE TARIFF PROPOSALS.

New Zealand Times, Volume LXXI, Issue 4138, 28 August 1900, Page 3

THE TARIFF PROPOSALS.

Dv. HUT ATHENS TO TUB PREMIER. ( A,\ DLE-.M A KICKS AND ENGINEERS ' lie Prcmii'V was occupied for nearly two hours yesterday with deputations which waited on him concerning some aspects <4 the tariff proposals sel out in tin' Financial Statement. The first war irriin idle rep:'cs;mta!.ires of the candle manufacturers. who have recently le-ld a confei ‘.nee in \\ cllin;;‘ on. It con.sisleil of Messr.-. C. Ziele (Dunedin). N. Reid, M. Kenned'- D. .)• Nathan, E. Sealer and Dull (Wellington). Bell (Auckland). Beverley (Christchurch), F. i; .■<■!• and A. S. Hiss (secretary to the ce.iilereiH.ei.

Mr Zbie handed the Premier a memoraridnm si'Uiii" out the requests of tin* depul il if.it, urging that the proposed reduction v.-nnhl i uliict great hardship ~n iliese who have cm harked capital in the industry, and would have the effect. of throwing out «>i oiviployir.cnt a, luge anmuut of skilled and unskilled la hour, (hat it, would prejudicially af--1 f.<■ i, man’/ other industries from which cardie companies purchase their tnat.i rials, and that to pliable candle eom)>aides to exist, the restoration of the duty to 2d per 11), or the reduction on paraffin wax from I’.d to Id per lb, is imperative. Mr Ziele went on to argue that the, proposed reduction would effectually play into the- hands of the English and foreign manufacturers, and cause considerable loss _ to manufacturers in New Zealand, besides throwing a large number of hands out of employment. He also pointed out the difficulties under width the manufacture is carried on in New Zealand as Compared with the conditions at Home, remarking that in the colony they had to pay about 50 per cent, more for labour than was paid at Home, and as the skilled men were masters oi the situation, the employers had to submit to many unreasonable dimauds from them. In the colony they had had to import plants, for which heavy duty had to he paid, amounting to about ‘*’o per cent, ad valorem. The idea that the colonial candle was mil, equal to the imported artcle wav largely due to prejudice,' and as to the '-la(emeu; (hist the candle companies were making large, profits, he pointed out. Unit, with a duty of 2'd‘ pgr H) one company, which only depended on ’candles earned less than 0 per cent, on its capital, and another had not averag'd more, than t! per conk. .Mr Beverley said his company had caly been in the business in Christchurch for four years, and during Hint, fiine had paid only two dividends, one of 7 and one of 4 per cent. The business principally consisted of the cheap ,st”i’,riue caudle, and if the stearinc candle was not protected from the imported paraffin caudle, they would not lie able to make them.

Air Dell said bis company had for .wars supplied nearly all tbo candles n.-eil in the Thames mines. The impression ’ had got abroad that the shares m those com panics were held by a few people, but, ho might state that there were 145 shaieholders in his company, including fifty-seven ladies, of whom twenty were widows and twelve were spinsters, some of them seventy years of age. They hud not paid more than C per cent, during the seventeen years they had been in existence. !

Mr T). J. Nathan said the company's manager advised them that if the proposals of the Government were carried ont, the manufacture ,of stoarinc candies would have to cease, and in ,that ease, the public would be unable to got that class of candle at tin* presentitv ices. These were now retailed -at

Sid ncr lb. and the cheapest imported i candle they could get retailed at 7d' per lb. That was the candle most largely consumed in the colony, and ( was made entirely out of local pro- 1 duels. The' proposals, he argued, would j result in no increase of revenue, and a number of people would bo thrown; mi!, of employment, and the 1500 tons] of tallow now used, together with a large quantity of coal, would not be u-cd. " I

Mr Martin Kennedy said the deputation wns lirnily convinced that tho a! te-tit-ions in the tariff were proposed with the intention of benefiting the working classes, and also, no doubt, with (he idea that it would not interfere with the industry,—that they could live and flourish even under the proposals that had been made. Tho Wellin',:! on company had been in existence .some seven years, havinw taken over an old business which was wound up. and which, it was stated, had lost its capital. He unhesitatingly stated that, if the tariff was altered as proposed, the j company would certainly wind up. The whole capital only amounted to £IO,OOO, and one-half was sunk in plant; the •shares were not only held in Wellington. hut were largely hold outside, and many people had .bought them as an investment. Tho tallow used—and he supposed it was the same all over, the colony—-did not come from, the big freezing companies exclusively, but largely from small dealers. Further, if tho colonial companies were wound nil, it would throw the retailors more completely into the hands of the importers. who would benefit more than the consumers from the alteration. In fact. -it appeared to him that the pro-pn-nds would not load to any reduction in the price of candles to the consumers, inasmuch as the cheapest candle in (ho niarket at present was the colonial candle. Mr F. Dyer said it was contended that the colonial candles were nob hard enough for mining purposes, hut he would like to point out that the Wellington company had been supplying the Consolidated .Mines at Reefton for some time, and the managers and. shift bosses to Id him they were equal, if not superior, to anything that ' Price ever sent out- for mining purposes.

The Premier; I am told that Price’s candles cost 7d per lb. .M f N. lie id : About 7jjd. The Premier; What aro the colonial comnanics supplying them at? Mr Bull : At 6,1 d. less a discount of 7'. per cent., and freight paid to any part of the colony. Mr Ziole said his company charged from C'.d to 7d, with a trade discount from n" to 10 nor cent. Mr. Boll: Wo charge 7d per Ih, less discount, Mr A S. Biss, in reply to the Pre mier, said he had not a copy of the agreement amongst the _ candle companies. The agreement fixed the melt-in-x point* of candlr« ot not- low or than l.Unlog.. aud provide cl for the price of various grades of candles, and agents commissions. , , . ■ The Premier, in reply, said this was a ciuesticm of so much importance tiiftt he should of necessity have to place their representations before Cabinet. Ho might ray at once that under a penny tariff the principal can die _fac-j torios were started, and he was in a position to prove that under that tariff they made money. Ho was also informed, after making careful inquiries, that on a pennv tariff thev could still make very fair profits, but that it would bo advisable to concede somethin'; in regard to paraffin wax. That was the best advice be could got, and from persons who Were disinterested. It

was quite clear to him, from their owe. i admissions, that, no matter what the duty was. or even if there was no duty, the public would take the _ colonial caudles in preference to the imported article, because the colonial candle was the better article. (The deputation ; No. no; the question of price comes in.) ile had only taken what they said. It was a logical sequence that, if the colonial article was better than the imported article, the public was not going to take the imported article. (A voice; We said a tatter article at the price.) He knew tlurt the colonial candle- was better than the imported ar-ticle-bo was alluding to mining can-dles—-and h” knew the miners would not take tlm imported article, but would fake the stearinc: in preter,v.; Ed events, they had just, now told him they had formed what was known in America as a candle vend. They limited tlm output and fixed the price. (Mr Kennedy: No limit or output ) Hcnresentations had been made to him (hat if anybody attempted to start outside tlm vend they very soon put him out. Organised as thev wore ho (I'd not think the reduction would vitally affect the industry, because when the duty was _ increased the assurance was given that they would in time he able to go on with a. reduced tariff,If once a tariff was put on, it was >iever to he altered, the question arose whether industries were to he encouraged at that mice. The rule had al-

ways been that if a bonus was givon or a protective taiid' put on so as to give the industry a start, when _it got strong, and' the article came into fare ur, they could gradually reduce and ultimately abolish the protection. It appeared as if it was not the consumers who were to bo considered, but simply the manufacturers, and he found there was more trouble by a proposal to ’-omit, duties than there was when they were putting on duties. Importers, Chambers of Commerce, the press, everybody, bad always said that indirect- taxation was too high, and that the Government must- reduce it ; hut the moment they attempted to take it off where there would he the least harm, everybody was in arms. Ho was advised they were somewhat- handicapped in regard to paraffin wax, and lie was going to fate further evidence on that point. He knew that the. fee 1 ing in the country was that the reduction on light, was necessary. It was not a.n experiment made without careful investigation, and he should be sorry to see, any industry injured; but at the same time it was his duty to give effect to what he believed to be the desire of the people, namely, cheaper light. Mr Martin Kennedy said he thought the Premier must be mistaken in hi*: information. The Wellington company’s profits only amounted to ,',d per lb, and if a penny was taken off it would bo utterly impossible for them to do business, unless they sold at a

higher price. He assured the Premier that the company must wind up if the proposals were carried. Then, again, these stearinc candle?; wore supplied at a price which left no margin of profit, in order to compote .with the imported article. As to the vend; it was formed entirely For the purpose of preventing ruinous competition. The Premier said ho would l pay even* attention to what had been represented to him.

After further conversation the deputation withdrew.

The following is the text of the memorandum prepared by the representatives of the various candle companies of New Zealand and presented to the Premier yesterday; Wc have the honour to point out—- ’ i That the manufacture of candles in New Zealand has been fostered and encouraged by a duty of twopence (2d) per lb. (2) That it is an important industry, as the following figures will demonstrate ; —Total amount of capital invested by the companies represented at this conference is £IOO,OOO, of which £OO,OOO is represented by the candle industry. Candles sold during twelve months ended June 30th, 1900, amounted to 132,096 boxes, or a total of -.317,4091b, the major portion of winch was made from stearine (the product of tallow). Tallow (manufactured in New Zeal an,., used for the last twelve months amounted to 1500 tons, valued at £35,000. There were also used during the same period 48 tons of chemicals (manufactured in New Zea laud), costing £024. Boxes (manufactured in New Zealand from colonial timber), costing £2140. Paper (manufactured in New Zealand) costing £960. Labels (designed and printed in New Zealand) costing £567. Coal (all New Zealand). 3287 tons.

(3) That, the shareholders in the various companies have, since inception, only obtained a very modest return from the capital invested therein, averaging less than 6 per cent, per annum. (-1) That it will inflict great hardship upon those who have embarked capital in this industry, besides having the effect of throwing out of employment a large amount of skilled and unskilled labour.

(.5) That, further, it wilt prejudicially affyet many other industries froni whom candle companies purchase Their materials. In this connection we would mention tallow, chemicals, boxes, paper, coal, labels and' printing, etc. There also has to be considered the amount paid for engineering, plumbing, cartage, freights, railage, etc. ; besides the amount contributed by way_ of Government and municipal taxation, direct and indirect. v

(6) That, to enable companies to ex ist, the restoration of the duty to 2d per lb, or,the reduction on paraffin wax from I’d to Id per lb, is imperative. (7) That, in view of the foregoing, we earnestly hope the Right Honourable the Colonial Treasurer will reconsider til© question of reducing the duty on candles by Id per lb.

(8) That, failing this, we would ask that tbo duty on paraffin wax bo remitted, or at least reduced by I'd per lb. We hesitate, however, to recommend this alternative, in view of the injurious effect it would have upon the works that will shortly be completed at Orepuki for the manufacture of oil and wax. (9) That the reduction on the duty of paraffin wax would only afford partial relief to the candle industry, as the concession in duty on candles would not enable the manufacturers in Hew Zealand to continue making stearine caudles at a profit. The latter, owing to the low prices at which they have been sold, bare been of distinct benefit to the working classes. If the colonial factories be closed, as they undoubtedly will be if the present proposal be carried. t’„ masses will bo debarred from I procuring a cheap stearine candle thn’l has given them every satisfaction, and| in its place they will be compelled to' purchase an imported candle, which, [ with a duty of Id per lb, will cost them a much higher price. In the manufacture of stearine candles largo qnanti-, ties of locally-produced tallow—amount-i ing tor 1500 tons per annum—is used.] There are also bye-products from tbo manufacture of stearine candles, such as olein and glycerine, the former being largely used by the woollen fac-

torie.s. This is supplied to them at a much lower price than that at which the imported article could be obtained. llt is perfectly obvious that if the duty on kerosene be remitted, the consumption of candles will thereby bo much reduced, and the candle industry will suffer accordingly. It might be mentioned that all candle-man ufact u • ing plant imported hitherto has paid a duty of 20 per cent. The following are the importations into the colony for three years, via. 1897, 2,093,8011 b. duty value £17,241 13s 2d; 1898 1.707,368 lb, duty value £14.972 9s 2d: 1899, t,626,1731b, duty value £14.622 8s lOd.

Finally, we would particularly emphasise the fact that the candle industry has never in reality received a protection through the Customs, even with the duty of 2d per lb on imported ‘.-undies, as we have had to pay ltd nr- lb duty on paraffin wax, thereby reducing the protection to Id per lb. C. Ziele, chairman.