DUNEDIN CHAMBER OF COMMERCE.

Otago Witness, Issue 3100, 13 August 1913, Page 74

DUNEDIN CHAMBER OF COMMERCE.

, ■ ANNUAL MEETING. The annual meeting of members of the D uic-din Chamber ot Commerce was held in the Waratah Tea Rooms on the 7th. As usual, proceedings took the form of a dinner, followed by the ordinary routine ot the annual meeting. The President of the chamber (Mr J. Loudon) occupied the chair, having on his right Mr George Ritchie (ex-president), and behfg supported by members of the executive. About 70 other gentlemen were present. A large number of apologies were received, including one from Sir Joshua Williams THE PRESIDENT’S ADDRESS. The President, before formally moving the report and balance sheet, said they would notice from the report that the chamber had an accession of new members to the extent of 12. He took that as e\ idenco that their efforts were appreciated by the mercantile community. Their finances also had improved to the extent of £47 16s lOd. DEFENCE. Last year, their president (Mr G. R. Ritchie) had referred in weighty and wellchosen terms to the defence scheme under the new Territorial system just then inaugurated. Another year had passed over their heads, and while he did not pose as an expert, ho thought he was justified in saying that the scheme so far had been successful and beneficial in every way, notwithstanding the opposition from a email section of misguided and unpatriotic individuals.—(Applause.) TRADE OF THE DOMINION. The position of the general trade of the dominion for the past year must bo matter for congratulation, as the exports showed an increase of £3,659,414 over those of the preceding year and a surplus of £1,333,577 over the volume of imports. The margin between the exports and imports for the year just ended, although perhaps not satisfactory to some critical authorities, was on the right side, and if the last eight years wore taken a better showing resulted. The total volume of exports from 1905 to 1913 inclusive amounted to £154,925,220, and of imports to £134,403,472, a surplus of exports of £20,516,748, or an average annual excess for the eight years of over £2,500,000. —(Applause.) The range of values for our staple products was satisfactory, with every prospect of continuing. The question' of over-importation was one which caused a good deal of discussion and diversity of opinion amongst those who took ~tho trouble to study it and read into the fact of an excess of imports over exports or a narrow margin between the two an excuse for . the assumption that the dominion was not paying its way. To say because the volume of exports for any one vear did not meet the cost of imports and, in addition, provide for all outgoing interest on their public and private indebtedI ness that the dominion was living beyond I its income or marching to financial ruin | was not correct. Naturally after a year I when their exports were buoyant and a high rates of values existed, there was a tendency to be a little extravagant in the matter of importations, but in the case of most commodities, they became part of the capital assets of the dominion. To arrive at a correct statement of the position, it would be necessary to take account of their unrealised stocks of merchandise, and while it might at times bo found that those were in excess of their legitimate trade requirements, the assets would still exist. At the same time, the quotation of overimportation was one which had to bo guarded against. If the imports or commodities responsible for any undue excess were used for increasing the productivity of the country, then no great harm could result —what they wanted to avoid was anything in the nature of luxurious extravagance. Ho found that there had been expended in motor cars, cycles, and material £1.321.648. and last year over three-quarters of a million was spent. He did not intend

to dogmatise as to whether this expenditure was reasonable or not, but would leave his hearers to form their own conclusions. Notwithstanding their public and private debt ho believed the dominion was financially sound and prosperous, and that their assets if carefully assessed, would show an enormous margin over their liabilities. ' STRINGENCY OF THE MONEY MARKET.

No doubt ho would be expected to refer to the recent stringency of tiio money market, the bane of the commercial man’s life, ant! ho thought lie could not do bettor than quote the words of the chairman of directors of the Bank of Now Zealand at a recent meeting in Wellington That gentleman had stated that “ the steadily improving social conditions of the world, and the higher standard of living now being generally adopted, might be sot down as among the originating causes of the scarcity cf money. Then there was the assimilation of western ideas among the eastern nations of the world, and the resulting tendency to frame the requirements of life —individual and social —on the basis of western models. But perhaps more important and weighty than all these, was the heavy perennial demand arising in connection with the colonisation and development of the unoccupied lands of tiie world—work which year by year went on in continually increasing volume. Apart from the natural increase of population occurring yearly in the new world, and the necessity for opening up channels of employment, a steady stream of emigration from the Old World was continually flowing to the now lands across the Atlantic. In a small way we had experience of it in our own land, but, with our restricted immigration, wo could hardly have anv clear conception of the phenomenal development that was going on in such rapidly progressing portions of the earth as, for example, Canada and the Argentine. During the vear 1912 nearly £47,000,000 of the new capital issues on the London money market were on Canadian

account, and over £20.000.000 on account of the Argentine. It would bo readily seen how fertile a channel this was for the draw-

ing off of surplus supplies of British and Continental capital.”

| LOCAL TRADE AXD CITY MATTERS. Local trade for the past year, lie said, had been satisfactory, and while business had been somewht restricted owing to the stringency of the money market, the verdict, not given by themselves, but by outsiders who had business relations with them, was that Dunedin might bo included to-day among the soundest and most satisfactory

| centres of commerce in the dominion. The | operations for the year ended March 31 of the Dunedin City Council —probably the largest trading corporation m the Southern Hemisphere—had resulted satisfactorily, and he would take the opportunity of tendering the chamber’s congratulations to that body. ! —(Applause.) It was also extremely gratifying to notice from the town clerk’s annual publication comprising the various departmental reports that the electric power and lighting undertaking, although only some six years in existence, ■ had earned a gross revenue of £45,721, and that after providing interest on the total capita! expenditure, as well as £11,551 18s 7d for depreciation and renewal, there still remained a surplus of £1079 6s sd. To his mind the results were satisfactory beyond anticipation, and the department was and would be in 4he future an important factor in the success of their city. The rates for power supply were extremely low, and combining that fact with the presence of harbour lands conveniently situated on the foreshore and available for building purposes, he felt there was no danger of the industrial and manufacturing interests of the province going back. —(Applause.) City building had been fairly brisk during the year, permits having been issued by tne council for buildings to a value of £219,602. as against £150.715 for the previous year. Quito recently authority had been granted by the ratepayers for a loan of £l/5,000, so that they had reason to hope that the reproach as to the condition of their streets would be removed at no distant date. OTAGO HARBOUR BOARD.

Closely allied to the commercial interests of the province wore the operations of the Harbour Board. r iho published returns to December 31 showed an increase of revenue over the preceding year of 9s 7d. This advance did not, however, represent an increment in the volume of trade, but was accounted for by an increase in the dues chargeable on ships and on exports which it was found necessary to impose to meet the enlarged expenditure of the board. The dues on imports which were not interfered with showed a small decrease in the year s operations. The rentals from endowments and reclamations, which now stood at £12,206, showed an increase over the previous year of some £290. The imports and exports for the years 1911

The total arrivals in the port consisted of 662 vessels, with a tonnage of 1,085,691, against 665 vessels for 1911 with a tonnage ot 1,092,669 tons. The dock at Port Chalmers, although not a directly paying proposition, was a necessary adjunct to a seaport like Dunedin, which strove to maintain its position in the dominion as the chief manufacturing centre, and ho believed its construction would be fu.ly justified. While it was regrettable that accidents such as had happened to the Knight of the Garter, and later to the Indrabaruh, shoud occur, they proved that extensive and splendid work could bo carried oat it their port. Referring to the latter vessel, no said he would like to pay the chamber’s tribute to the British pluck and resourcefulness of the master and others engaged ;n the work of refloating the stranded vessel, and to congratulate them on the success of their efforts. Just now, she was in their own dock, and it was hoped that authority would be received from the owners to have the whole of the permanent repairs carried out at Port Chalmers. HARBOUR RATING.

An important question had been discussed by the board during the year as to obtaining legislation to levy a rate over the Otago Harbour district for the purpose of further necessary improvements to bring the port up to a first-class condition. The proposal, however, had met with a storm of protest from tho country districts, mainly, he thought, from the want of a full knowledge of. the position. The board, he thought, had wisely resolved to defer the matter for a short period, and in the meantime to submit lo all tho local bodies throughout the harbour district a full statement setting out the position and requirements of the board. At tho Fame time, ho could not help saying that it was a pity the Prime Minister and Minister of Finance had seen fit to say they would resist any efforts ill tho direction indicated without having any information before them as to tho interests and necessities of the port. Other parts of the dominion had been granted tho power to rate with good results, and there was no reason why tho same should not take place in Otago ’ provided the interests of the country wore properly safeguarded. PARLIAMENTARY TRIP TO OTAGO CENTRAL. During the year a trip to Central Otago was organised mainly through the energy and activity of Mr A. Montzson. Fourteen North Island members availed themsolves of the invitation, and the trip might bo considered to have been successful in every respect. Tho whole of tho Upper Clutha Valley was inspected, including the Tarras, Hawea, Wanaka, and Makarora districts, and tho visitors were greatly impressed with the possibilities of Central Otago both as regards cereals and fruitgrowing. The people of the province could rely on this: that any enemy in Parliament who dared to assert that this part of the dominion was only capable of providing sustenance for “one lizard to the aero’’ would be looked upon as a lineal descendant of a certain Biblical personage. At certain points of tho itinerary a diversity of opinion existed amongst the local settlers as to wliich was the paramount want—irrigation or railway communication, and in one case tho opinion was emphatically expressed that if the Government provided adequate railwav communication the people themselves would attend to the irrigation. There was a good deal of force in that assertion, and he was of opinion that the all important factor in tho development of the Upper Clutha Valley was railway communication, and that ;n their own interests tho people of Dunedin should use all their efforts to got tho Otago Central line pushed through to Hawea, and to use every legitimate means in their power to induce the present' or any future Government to carry out the promises made in the past. GIFT BATTLESHIP. He thought it was fitting he should refer to tho visit of the dominion’s gift battleship, Now Zealand, seeing that tho protection of the Empire’s commerce was per-

haps the prime necessity for a navy strong enough to command the sea. Everywhere she had been received with the greatest enthusiasm. The boys and girls of to-day wiio would be the men and women of to-morrow were intensely interested, and it was safe to say a spirit of loyalty and kinship had been set aflame which would never die out. —(Applause.) In conclusion the president said he desired to tender his grateful thanks to the vice-president (Mr A iS. Paterson), to the committee, and to Mr Peter Barr for their kindly and loyal assistance in carrying out work of the chamber.—(Applause.) fhe motion was seconded by Mr John Mill, who said that the chairman had explained everything so well that there was not much for him to say. They in Dunedin must put their shoulders to the wheel and demand that the harbour should bo made. capable of accommodating any ships that came or went. He thought that the board should be up and doing, but they must have rating power. If they did not get that they must say to the Government: ” You must consolidate our loans and guarantee them, and then wo can go ahead.”—(Applause.) The motion was carried. ELECTION OF OFFICE-BEARERS. On the motion of Mr J. W. lien ton. seconded by Mr \V. F. Sligo, the following office-bearers were elected for the ensuing year: —President, Mr J. Loudon (re-elected); vice-president. Air G. W. Gibson; committee—Messrs W. F. Edmond, R. Ewing, F. O, Bridgeman, A. S. Paterson, and J. P>. Waters. HARBOUR BOARD DUES. Air E. I* 1 . Duthie made reference to the matter of Harbour Board revenue, and in doing so ho stated that the chairman had claimed that the Harbour Board had in creased its revenue by £4OOO, but not, unfortunately, through an increase in trade. That result had been brought about by an increase of tluf dues on goods and ships. He questioned the wisdom of th« oolicv of increasing the lates, but they were all aware that the board held a prominent position in extending the utility of the port. In his business relations he was repeatedly called upon to quote to Home manufacturing firms and others the landed cost of goods tl.rougbejit New Zealand, and he assured them that n they followed the trend of business they would find that the question of Harbour Board duos was having a very detrimental effect upon the trade of this port. Their excessive dues on ships were cxoicising a very serious influence upon their port, and ho did not know whether the suggestion of rating the country districts that had beenreferred to by the chairman anti Mr Alii! would got over the difficulty It had to bo recognised that geographically the position of Dunedin as a shipping centre was not central, but if their dues were not so heavy manufacturer? and importers would do more business. —(“Hear, hear.”) Last week one firm that ho knew of was seriously considering the question of passing over Dunedin fo" some of the inland Otago trade. That was a rash statement to make, but on it hinged the question of whether Dunedin was to hold its position as the port of Otago. The question of competition was now becoming very keen amongst manufacturers, merchants, and others, and when firms could land rheir goods at another port and rad them to their destination more cheaply than by passing them through Dunedin it was certain the trade would go there. He had known of goods landed at Bluff, railed to Dunedin, and placed in the warehouse at less than they could be landed in Dunedin. This was perhaps an exceptional case, but it was a matter which the committee and the Harbour Board should seriously consider. The high dues levied on goods at the Dunedin wharf wore having a most serious effect on the trade of the port, and if the charges on ships were the same the position would be oven further accentuated. Ho was of opinion that the policy of increasing the dues on goods and ships was very unwise.—(Applause.) v Mr Moritzson asked which port Mr Duthie had referred to. Was it a northern port or a southern one? Ills statement had opened up a very important matter. In reply, Afr Duthie stated that it was well known that goods had been landed at Bluff and railed to Clinton, Baleiutha, and Dunedin at a cheaper rate than they could be landed here. The I’resideut stated that lie had listened carefully to Air Duthie’s references to the matter of harbour dues, and the whole question would be considered by the. committee at its first meeting. Tile increase in the dues had boon effected on shipping by doing away with the maximum charge on ships and making a flight increase on exports. The impert dues had not been touched at

Mr Uuthie: Wo arc pay* ll !? enough now. They could not be raked any higher. Mr London said ho would admit they wore high, and he believed it would bo better to impose a small rate on the province than to increase the dues any further. However, the Harbour Board could not make bricks without straw, and if they had tiie money the channel could be deepened two or three feet. With regard to the export charges, ho contended that all along these had been exceedingly low—as, indeed, was admitted by experts —and did not press hardly on the exporters. He agreed with Mr Uuthie that there should he no increase on liie nlll>ort dues. Mr U. M. Fea expressed doubt as to where the revenue was going to come from if the depth of the harbour were increased. If larger ships came to Dunedin it was questionable whether the productivity of the country could supply them with cargo. Ho believed that at the present time they had neither the country nor the population, but ho was of opinion they should bo clear of export dues. Mr J. B. Waters said ho would also like to refer to the difficulty they seemed to be labouring under in Dunedin, particularly in regard to their export trade. It seemed to him they were very seriously handicapped as compared with the other ports of the dominion in the matter of handling their bulk goods and particularly such lines afi grain. That ; rose from the fact that they had failed to concentrate their bulk exports alongside the wharyes as was the case at Lyttelton and Bluff. From the railway their goods were taken to the warehouse and thence to the wharves, where they were again handled by workmen. It was a wellknown fact that every time heavy and cheap goods were handled their cost was added to. At Lyttelton and Bluff the handling of goods was concentrated, at the wharves, and this meant a big saving. It was the duty of the chamber and the Harbour Board to see whether some facilities- could not be provided for concentrating their bulk goods alongside the new wharf which the Harbour Board was proposing to erect so as to reduce

the handling of them and place the local merchants on the same footing as those dealing in heavy goods in other ports.— (Applause.) In the past they had pursued no fixed policy—but one of makeshift —and the Harbour Board t>nd the Chamber of Commerce might very well be asked to consider these questions. It gave him very great pleasure to move a hearty vote of thanks to the retiring members of the committee—Messrs M'Plierson. llrnton, Gow, and Fisher. These gentlemen had been associated with the chamber for a verv con-

siderable period, and he desired to express the thanks of all to them for the time and service they had devoted to the business of Dunedin while occupying positions on the co mm it tee.—(A ppla use!) The motion was carried by acclamation. In reply Mr Gow stated that he had been a member of the chamber since its inception 33 years ago, and with the exception of a short interval ho had been a member of the committee during the whole of that time, in addition to having been president twice.— (Applause.) Ho stated that ho know a good deal of the affairs of the Otago Harbour Board, and he did not regard it in the samp light as some did. As a matter of fact the port charges on ships hero were no higher than in other parts of the country —if, indeed, they were as high. It was an extraordinary statement to make, but it was a fact. In most other ports the charges on ships were higher—(A Voice: At Oamaru?) —than tho-so in Dunedin. The Harbour Board had tal con a very wise stop to increase its revenue for thus year and one that he had always advocated. In these days ships wore growing enormously in size, and instead of having a maximum shipping charge of £IBO it would lie much more advantageous to have a eliding scale. Under the old system a ship of 400 tons and one of 10,000 tons paid the same rate of £IBO, but the new plan whereby a sh : p was charged according to its size was a much wiser one.' In regard to the abolition of export duos ho believed it would be desirable to remove these from ordinary merchandise. The dues on wool and grain and the produce of the soil should he abolished, and the country people would bo very pleased to see it, but they would no doubt be very displeased to see a rate on the country districts. He saw no reason why the country people should not continue to pay a fair share of the cost of keeping the Otago Harbour in existence.—(Applause.) The money had to be paid either as a direct rate or as dues upon their goods, and ho hoped the president, who was also a member of the Harbour Board, would see that that was dinned into the farmers. In conclusion he thanked Mr Waters for his remarks, and expressed the hop? that ho would again sit on the committee. —(Applause.) Messrs Henton a.nd M'Pherscn also thanked those present for the cordial manner in which the motion had been received, and stated that they looked forward to a further term of service on the committee.

During the evening Mr M'Phcrsrvn contributed a humorous recitation which was greatly appreciated.

and 1912 wore as follow : — Imports. 1911. 1912. General goods (tons) 172,184 170,064 Transhipments (tons) 24,309 16,667 Coal (tons) 36,062 42,636 Timber (feet) 14,458,752 13,979,513 Exports. General goods (tons) 112.886 120,242 Wool, skins (bales) 44.777 47,730 Horses 802 356 Cattle 68 32 Sheep 1,409 514 L 1