KAURI GUM

Otago Daily Times, Issue 23703, 10 January 1939, Page 5

KAURI GUM

GUARANTEED PRICE SYSTEM EFFORT TO REVIVE INDUSTRY STATE TO CONTROL MARKETING (Per United Press Association) AUCKLAND. Jan. 9. The institution of a guaranteed price system for kauri gum was announced to-day by the Minister of Industries and Commerce (Mr D. G. Sullivan) He said that the Internal Marketing Department had assumed control over the marketing of kauri gum and had fixed the minimum prices for the various grades, below which brokers might not buy. The Government had thus guaranteed through the Internal Marketing Department that gum diggers should receive an appropriate reward for their labour.

The following are the minimum buying prices which have been decided upon as a result of an agreement by the diggers and merchants, with the Internal Marketing Department acting as arbitrator:—Chips. 60 per cent gum content. 22s per cwt, Auckland. 65 per cent.. 265; 70 per cent., 31s; 75 per cent.. 345; salt or clay cleaned, not less than 80 per cent, gum content. 38s per cwt, Auckland: nubs, 42s to 50s ner cwt; chalk, 36s to 45s per cwt; B J’s, over half-inch sieve—free from chalk. 56s to 60s: B 3’s, 40s to 50s \s Large as Public Works Pay If the merchants and pickers cannot agree, the Internal Marketing Depart ment is now authorised to buy the gum. By this means, it Is stated, the gum diggers will receive an income at least as large as they would earn on public works employment, to which they would gravitate if not receiving an adequate livelihood from digging. Mr Sullivan said that in recent years the kauri gum industry had been declining. The falling off in supplies faulty marketing methods, and more particularly the development in the production of synthetic gums had gradually brought, about a condition whereby employment in New Zealand in the winning of gum had fallen from 6000 persons in 1913 to a few hundreds at the present time. Although the prices for kauri gum had recently been relatively good. Mr Sullivan said, the Government's inquiries had shown that varnish and linoleum manufacturers were gradually turning to substitutes. It was clear, therefore, that the existing methods of marketing and_ utilisation would not bring about a position where any great numbers could be empbyed in the industry The most promising development was considered to lie in a process, the patents to which were held by the Government, whereby gum could be refined to a standard An officer of his department. Dr Hosking had been sent to England for the purpose of going fully into the question whether this process could be used on a commercial scale for marketing kauri gum. After finding by experiment that crude gum could be treated by the process and marketed according to a prearranged standard, the next problem was to determine whether the refined product would be acceptable to the Industry, and, if so. what prices could reasonably be expected, and also if that price would be a payable one on the estimated costs of production

Refining Process

“The results of experiments carried out by the London and Midland and Scottish Railways at Derby,” Mr Sullivan said, “ and also by several other large-scale enterprises conclusively show that the process evolved by Dr Hosking is an undoubted success. The future of the industry, therefore, lies in the reflnin" of the product and marketing it to a standard specv flcation. The next step is the develop ment of a market for the gum The manufacturers of substitutes have developed good marketing arrangements and provide a good service to users. The development of an equally good marketing system for the disposal of kauri gum will take time but progress is being made."