DEPARTMENT OF INDUSTRIES AND COMMERCE (EIGHTH ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1925 Session I, H-44

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1925. NEW ZEALAND.

DEPARTMENT OF INDUSTRIES AND COMMERCE (EIGHTH ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

This report deals with the operations of the Department of Industries and Commerce since the last report was placed before Parliament, and covers the period ended 30th April, 1925. Despite the comparatively small staff employed, work of considerable magnitude and importance has been undertaken. While this service had relation mainly to the commerce and industries of the country, special duties were imposed concerning the Dominion's representation for 1925 at the British Empire Exhibition at Wembley, co-operation with the Directors of the New Zealand and South Seas Exhibition Company at Dunedin in reference to overseas exhibits, and to the production of exhibits on behalf of New Zealand Departments of State in a pavilion at the Dunedin Exhibition specially provided for the purpose. The work of purchasing and importing from the Commonwealth of Australia nearly 4,000,000 bushels of wheat, and of distributing this wheat to millers and merchants in the Dominion, was also undertaken by the Department. EXTERNAL TRADE. It is pleasing to report that trade conditions have continued to be satisfactory. Exports for the year ended 31st December last show the substantial increase of £6,569,472 over the figures for the previous year. This increase in the overseas purchasing-power of the Dominion has doubtless been an influence in bringing about an increase of £5,163,215 in the value of imports as compared with the previous year. The following table sets out the value of exports and imports for the past five years : — Exports. Imports. Excess of Excess of r r Imports. KJxports. £ £ £ £ 1920 .. .. 46,441,946 61,595,828 15,154,082 1921 .. .. 44,828,827 42,744,122 .. 2,084,705 1922 .. .. 42,726,249 34,826,074 .. 7,900,175 1923 .. .. 45,967,119 43,486,544 .. 2,480,575 1924 .. .. 52,509,219 48,527,070 .. 3,982,149 Except for the boom year of 1920, when conditions were abnormal, the figures for 1924 constitute a high-point record in the Dominion's overseas trade. Prices for our exports were generally satisfactory during the past year, though a decline in prices of wool and dairy-produce in the past few months has detrimentally affected the position of primary producers. The high value received for wool in 1924

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was undoubtedly the main factor in the added value of our exports. The values of main items of export in 1924 as compared with 1923 are as follows : — 1924. 1923. £ £ Wool .. .. .. .. .. 15,267,364 10,904,658 Sheep-skins .. .. .. .. .. 1,513,477 1,121,695 Frozen meat .. .. .. .. .. 9,506,249 9,012,720 Butter and cheese .. .. .. .. 18,664,965 17,559,597 The principal increases in value of imports in 1924 as compared with 1923 were as follows : Motorvehicles, £1,125,000; wheat, £1,040,000; electrical machinery, £600,000 ; timber, £405,000 ; and coal, £269,000. It is much to be regretted that the Dominion should be forced to buy from abroad such essential commodities as wheat, oats, coal, and soft-wood timbers. The Dominion has also imported to an increasing extent commodities easily procurable in the Dominion, such as biscuits and confectionery, oils and paints. A lessening in the value of imports of soft-goods and footwear somewhat assisted the local industries, more particularly the boot and shoe industry. It should again be emphasized that production is the all-important factor, and that in reducing the amount of our imports our local manufacturers are improving our favourable trade balance, and are consequently assisting in meeting our indebtedness abroad. If prices for our leading lines of export continue to decline it will be essentia] that we should rely more upon our own resources and use every possible means to increase the production of such commodities as wheat, oats, and coal. Greater attention in this regard to our own manufactured goods, which are able to compete favourably as to price and quality, would also affect a material gain in the Dominion's economic welfare. Analysing New Zealand's export trade, it is satisfactory to record that over 80 per cent, of exports are normally shipped to the United Kingdom, and although during the war years this percentage was not maintained, the figures for 1922, 1923, and 1924 show a recovery to percentages of 85, 83, and 80 respectively. The United States of America has recently been our next-best customer, the percentage of the toal exports in 1923 being approximately 8 per cent., and in 1924 6 per cent. Australia in 1923 took nearly 6 per cent., and in 1924 5 per cent. Canada in both years has taken a little over 1 per cent., while Germany has increased her proportion from less than J per cent, in 1923 to over 2 per cent, in 1924. In regard to imports, the United Kingdom is still by far the most important supplier of the Dominion's requirements from overseas, but the proportionate importance of this trade is gradually declining. During recent years the United States, Canada, and Japan have supplied a much greater proportion of the Dominion's imports than in pre-war years. Japan has, however, lost much of the trade which she secured during the war. The percentages of the Dominion's total imports, and the values, as supplied by the leading countries from which the imports were drawn, during 1923 and 1924 were as follows : —

It is to be regretted that the imports from the United Kingdom show a decline relatively to the totals in the two past years. This proportionate loss, however, is accounted for by the increased percentage of the imports which have been drawn from other British countries, notably Canada ana Australia. During 1924 the position of the exchanges was such as to afford a considerable premium on remittances to London, with a conversely high cost of remittances to the Dominion. This resulted in encouraging importation from the United Kingdom at the expense, in some instances, of our local manufacturers. Exporters having funds in London found it sometimes difficult, and certainly expensive, to secure transmission of those funds. On the other hand, purchases from Australia were effected at disadvantageous exchange rates. This position was maintained with little modification throughout 1924, and it was not until May of this year that the position was remedied upon the readoption of what is virtually a free market for gold. The Dominion's external trade continues to expand, financial conditions are satisfactory, and New Zealand appears to have fully recovered from post-war depression.

1923. 1924. Imports from Percentage Percentage T7 , of Total X7 , of Total Value. 1A . . Value. ,. . . Dominion Dominion Imports. Imports. £ £ United Kingdom .. .. .. .. 22,532,205 : 51-9 23,068,282 47-5 United States .. .. .. .. 6,956,602 16-0 7,788,293 16-0 Australia .. .. .. .. .. 3,653,420 8-4 5,651,027 11-6 Canada .. .. .. .. .. 2,950,984 6-8 3,973,639 8-2 Dutch East Indies .. .. .. .. 1,126,441 2-6 1,080,200 2-2 Fiji .. .. .. .. .. 853,163 2-0 970,393 2-0 Ceylon .. .. .. 705,622 1-6 837,506 1-7 India .. .. .. .. .. 742,551 1-7 741,217 1-5 France .. .. .. .. .. 752,599 1-7 759,240 1-5

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MANUFACTU KING INDUSTRIES. Assistance towards the development and progress of the secondary industries of the Dominion is one of the statutory responsibilities of the Department, which has closely associated itself with manufacturers generally throughout the Dominion, and especially in Auckland, Wellington, and Christchurch districts, where local officers are stationed. The Department's local office at Dunedin, closed in 1921, has now been reopened, and the close relationship that lias existed between the Department's officers and industrialists in the other centres will be extended to the highly important manufacturing provinces of Otago and Southland. Before referring to the state of the main industries in various centres during the past year, and to their present position and future prospects (see appendix), the following review is submitted in regard to the general progress made by the manufacturing industries during the latest year (viz., ended 31st March, 1924), for which the Government Statistician has published figures. Statistical. The returns for the year ended 31st March, 1924, covering the whole Dominion, show decided improvement when compared with 1923 : — 1923. 1924. Increase. Establishments .. .. .. .. 4,335 4,461 126 Employees .. .. .. .. 73,662 77,661 3,999 Wages and salaries .. .. .. £13,764,884 £14,573,441 £808,557 Power employed (horse-power) .. .. 227,101 250,911 23,810 Materials used .. .. .. .. £45,095,687 £47,027,033 £1,931,346 Value added .. .. .. .. £28,757,736 £29,969,364 £1,211,628 Total products .. .. .. .. £73,853,423 £76,996,397 £3,142,974 Land, buildings, plant .. .. .. £44,219,125 £45,498,054 £1,278,929 Statistics for recent years indicate brisk advancement among the principal branches of manufacture, as wclJ as a tendency with the increasing population for greater diversity in the branches covered. Establishments. —The industries which contributed mainly to the increase in the number of establishments were—Motor and cycle engineering .. .. .. . . .. .. 35 Sawmilling .. . . . . . . .. .. . . .. 20 Woodware and turnery .. .. .. . . .. 17 Printing and publishing .. .. . . .. .. 12 Engineering . . .. . . .. .. .. . . 12 In a few cases decreases were recorded, these being chiefly clothing-factories and brick and tile works. Employees.- - The following industries were responsible for the more important increases in numbers of employees : Sash and door making (785), engineering (452), printing (366), biscuit and confectionery (240), brick, tile, and pottery (147), furniture (161), and flax-milling (214). In the clothing, boot-and-shoe, and meat-freezing industries, decreases in the number of employees are disclosed. It is interesting to record that employees classified as " administrative " represent 4 per cent. ; as " productive," 87| per cent. ; and as " distributive," 8A per cent., of the total. Wages. —The wages paid in 1924 by the manufactories of New Zealand amounted on the average to the large sum of over £50,000 per working-day. A slight reduction is noticed in the average yearly wage paid to males —£197 ss. (£199 Bs. in 1923); but to females an increase is recorded —£95 7s. (£9l Is. in 1923). The general average wage paid—viz., £178 6s.—-is the same as it was in 1923. In 1923 the average for males in Australia was £210 Bs., and the average for females was £94 Bs. Twenty years ago the wages paid to males averaged £88 and to females £41 per year. These figures are in respect of productive employees. Motive Power. —Cheap power and an abundant supply of it is essential to industrial manufacturing progress and success. The tendency is for the additional use of electric power, a further 6,113 horse power of this nature having been put into commission by manufacturers during the past year. The horse-power available per productive employee in New Zealand factories is 3-6. Production. —The most noticeable increases in production were in meat freezing and. preserving, £584,377; sawmilling and sash and door making, £452,181; biscuits and confectionery, £150,000; tanning and fellmongery, £230,000; fertilizers, £160,000; woollen-milling, £290,000. Decreases are recorded as follows : Butter and cheese, £254,394 ; boots and shoes, £86,868 ; grain-milling, £340,000 ; and coopering and case-making, £160,000. Land, Buildings, and Plant,.--The values of this item —viz., £45,500,000 —give a fair indication of the permanency and stability of the Dominion's manufacturing industries. Less than fifteen years ago the same assets were only £16,700,000.

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Comparison of industrial activities for the period by provincial groups, is shown below : —

The following table shows the value produced by the semi-primary industries in each district: —

If the general progress of the Dominion's manufacturing industries is to be maintained it wiJl be necessary, as this Department has so frequently urged, for industrialists to extend the policy of attractively displaying their goods and of packing them in well-designed cartons or other containers. The faithful workmanship and the purity of the goods generally made in this country are unquestionable, but manufacturers must educate the public to a realization of these facts. This educative policy, supported by well-directed publicity and an appeal to New-Zealanders to give preference to the industries which afford their own people a high standard of living, must surely foster a patriotism— now apparently to some extent dormant among our people —towards goods made in the Dominion. The increased output resulting from greater demand will reduce costs of production and prices, employment will be found in the Dominion for some of the skilled industrialists now unemployed in the Homeland, and the most|satisfactory market —the New Zealand market —for our primary producers will expand and assist in offsetting the keenness of competition that is now being experienced by the exporters of foodstuffs to overseas markets. The tabulated statement given in the appendix to this report reviews briefly the position of several of the more important industries during the past year. New Industries. There are a number of industries that have been established in the Dominion during recent years, and the progress of these and their prospects are carefully watched from year to year by the Department. Most of these industries are proprietary concerns, and are not classified separately in the manufacturing statistics for the reason that in every instance only one works is in operation. Figures are therefore not quoted, but a brief report of the state and progress of these industries is given below. Iron and Steel—A Key Industry.—The Onakaka (Golden Bay) works produced about 1,000 tons of first-grade pig iron last year. This was all used by Dominion foundries, and was reported to the Department as being of excellent quality. After running for two months, transport by motor-lorries over unsatisfactory roads presented a difficulty, and operations ceased in order that an endless-rope tramway could be constructed. Eight extra beehive ovens, air-dulling plant, and pig-casting

N ml Value of Provinces er Em- j Wages and Materials Products controlled. Factories P^°y ees ' ! Salaries paid. operated upon. £ £ £ f Total 25,764,304 | S.P.* 9,954,577 Auckland .. Auckland .. 1,272 25,290 4,907,600 15,133,139 -J | Bal. 15,809,727 Wellington.. ] f Total 25,607,423 Hawke's Bay | S.P. 13,808,334 Wellington <j Taranaki .. [>1,665 22,584 4,303,359 16,553,041 <j Marlborough Bal. 11,799,089 Nelson .. J * Total 14,295,652 r p , i ■> S.P. 4,944,704 Ghrislchurch J Canterbury L 792 15,629 2,896,037 &, 849,406 4 \ Westland ..J Ba] . 9,350,948 f Total 11,329,018 n 7- / 0ta g° •• \ ta o Ann 4AX r , r,A A An \ S.P. 3,481,293 Dunedin <. g ou thland / 14,158 2,466,445 6,491,447^ Bal. 7,847,725 4,461 77,661 14,573,441 47,027,033 £76,996,397 * "S.P." means "Semi-primary."

Auckland. Wellington, j Christehuroh. J Dunedin. | £ £ £ £ Meat freezing and preserving .. .. 2,332,038 5,539,310 3,754,832 1,635,498 Butter, cheese, and milk .. .. .. 7,622,539 8,269,024 1,189,872 1,845,795 Totals .. .. .. .. 9,954,577 13,808,334 14,944,704 3,481,293

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machines are being installed to cheapen costs. The company has foundfit necessary to raise extra capital by issuing debentures. The anticipated production of the new plant is 11,000 tons per annum. |It is expected that the furnace will be blown in about the middle of August of this year, and that, pig iron equal to the best Scotch will be turned out. This company will be able to turn out the whole of the Dominion's requirements. Silk Hosiery.—ln the middle of 1924 there was 4 installed a silk-hosiery plant in Wellington. Over forty hands were employed at the commencement, and already extensions to the works are being made. Insulators.—The output of New Zealand Insulators (Limited), of g Temuka, doubled during the past year, and Government Departments and Power Boards are now recognizing the excellent quality of this New Zealand product. A laboratory has been established at the works, and a testiug plant is in operation at Addington, and the results obtained fully justify this expense. Tests show that the insulators supplied will stand a very much higher voltage than that declared. Competition from overseas is extremely keen, but increased demand and output is enabling the company to reduce costs of production, which helps considerably in meeting this competition. Cattle-cake and, Linseed-oil. —In the early part of the year the industry was sorely taxed by overseas competition, especially in linseed-oils. The outlook is now more promising, and business is increasing. The success of this industry depends largely upon the growing in the Dominion of ample supplies of linseed. The establishment of the industry in New Zealand has resulted in growers of linseed receiving prices above world's parity for their products. The company anticipates that within the next two years sufficient linseed will be grown in the Dominion to keep the mill fully supplied and independent of imported raw material.. Margarine.—This industry is finding it necessary to make large extensions to its buildings and plant, and has already spent considerable sums in erecting up-to-date buildings and installing new machinery and purifying plant. Glass-bottle Industry.—This industry, established in Auckland a few years ago, is progressing fairly satisfactorily. It is proposed to establish another glassmaking works in the South Island, near Mount Somers, where there are excellent deposits of the necessary raw materials. A company has already been formed for this object. Prospective Industries. Whale Products.—-The Department has, through the High Commissioner, been in touch with the whale-oil and whale by-products industries of Great Britain and the Continent, and has supplied valuable information to various Dominion interests who are directing attention towards the treatment of whales for by-products as well as for oil. Non-poisonous Wlvite-lead.—Interest has been taken by the Department in a venture that has originated in Hastings for the manufacture of non-poisonous white-lead. Samples have been obtained and passed on to appropriate Government Departments for testing. At present an experimental plant is being erected in Wellington in order to prove the genuineness of this article, which, in view of restrictions imposed for health reasons in this and other countries, will be of considerable importance. Canning of Oils. —A large plant is being erected at Miramar, Wellington, for the packing of benzine, &c., which is to be imported in bulk to the Dominion. This industry is expected to give constant employment to hundreds of people. The necessary containers will also be made at these works. Cutlery.—Preliminary negotiations have also been opened with prospective migrants who propose establishing a section of the cutlery industry, and reports as to trade prospects, costs of materials, &c., have been sent to England. General. Additional plants in existing industries are represented by the establishment of a large biscuit and confectionery factory at Timaru, a biscuit-factory at Wellington, and woollen-mills at Wanganui, all of which are now actively at work. Flax-milling.—The flax-milling industry is evidently recovering from the unsatisfactory position it occupied during the period 1919-23, and the total employees return for 1924 —viz., 954 —is considerably higher than the figures for any of the three immediately preceding periods. The value of the output also materially increased. There is, however, a. good deal of headway to be made up so far as this industry is concerned, but the prospects are decidedly brighter than they were. In 90 per cent, of the secondary industries there is a hopeful tone and the prospects are good. Competition from overseas supplies is, however, becoming more keen, and the return to gold standard with a reduction and stabilization of the excha.nges may appreciably affect the position, particularly so far as Australian competition is concerned. A brief examination of the imports during the pa,st twelve months indicates possibilities for extension of New Zeala.nd manufactures in the undermentioned classes of goods : the amount shown alongside the class gives in round figures the value imported during the last twelve months : Canned fish, £1.70,000; biscuits, £15,000; confectionery, £250,000; jams, £22,000; pickles and sauces, £22,000; apparel and ready-made clothing, £2,000,000 ; boots and shoes, £900,000 ; leather-cloth, £27,000 ; woollen piece-goods, £900,000 ; linseed-oil, £77,000 ; pig iron, £60,000 ; dairying machinery, £170,000 ; leather, £326,000 ; basketware, £18,000 ; earthenware and chinaware, £288,000 ; cement, £9,000; furniture, £51,000 ; tiles, £78,000 ; sulphur, £56,000 ; brush ware, £120,000 ; candles, £30,000 ; matches, £52,000 ; soap, £92,000 ; total, £5,733,000.

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The Department feels confident that a very considerable proportion of the imports could be manufactured in New Zealand at competitive prices. If this could be done the danger of an adverse trade balance when prices of primary products fall would be greatlv minimized, and the national economy of the Dominion would be stabilized on a broader basis than at present. SCIENTIFIC INDUSTRIAL RESEARCH. In last year's report it was shown that manufacturers throughout the Dominion had been working on a scheme for the establishment of a bureau in New Zealand which would be helpful in the development of our secondary industries by providing adequate scientific research organization. The Department has been in close touch with the manufacturers' associations on this matter, and during the year steps were taken to bring about a conference on the subject between representatives of the manufacturers and heads of State Departments. This conference, held on the 3rd April last, discussed fully the whole question of the importance of scientific and industrial research. It was resolved that the meeting should give recognition to the need for organization and prosecution of scientific industrial research, and that a special committee, consisting of Dr. J. S. Maclaurin (Dominion Analyst), Dr. E. Marsden (Assistant Director of Education), and Mr. L. T. Watkins (President, New Zealand Industrial Corporation), be appointed to draft a scheme for consideration by the full committee, and, if approved, for submission to the Government. During the course of the conference correspondence wa,s read from the High Commissioner in which it was stated that the latter has received a communication from the Director of the Imperial Institute asking whether it would be possible for his Institute to be furnished with reports on New Zealand's economic problems. Should an organization be set up in New Zealand it will be possible to co-operate fully with the Imperial Institute and other similar bodies in different parts of the Empire so that an interchange of opinion and reports may follow. It was made clear at the conference that the expenses of any local organization should be borne partly by Government and partly by the manufacturers. The Department is of opinion that there is a very wide field of useful work to be performed in this connection, and that the co-ordination of research work throughout the Empire generally, and in the Dominion in particular, would be a distinct national gain. INDUSTRIAL EXHIBITIONS. It has been the policy of the Department to encourage New Zealand manufacturers to give frequent practical publicity to the goods manufactured in the Dominion, and with this idea the Department has associated itself closely with local industrial exhibitions held in several centres during the past year. Departmental exhibits, which were most favourably commented upon, were made at Auckland, Hawera, and Wellington. The annual Dominion Industrial Exhibition, supported by manufacturers throughout New Zealand, is to be held this year at Wellington during the visit of the United States Fleet, and will synchronize with the Wellington Winter Show. At the New Zealand and South Seas Exhibition, to be held in Dunedin, 1925-26, a special pavilion has been set aside in which nothing but the manufactures of New Zealand will be disjilayed. It is hoped that by comparison with other countries the Dominion will hold its own for the quality and finish of the manufactured goods produced in New Zealand. NEW ZEALAND AN J) SOUTH SEAS EXHIBITION, DUNEDIN. The Department has continued to co-operate fully with the Directors of this Exhibition, and has acted as the official medium between the Government and the directors. In view of the decision that the Government would continue its representation at Wembley, the question of postponement of the New Zealand enterprise until the summer of 1926-27 was seriously discussed, but, in view of the expenditure and inconvenience of postponement, it was decided to continue as originally arranged. Subsequent events have proved that the undertaking is not likely to be seriously affected by the continuance of the Wembley Exhibition. Applications for space have exceeded expectations, and six months before the opening date it is safe to assert that the whole of the space available in the pavilions erected will be fully taken up. The United Kingdom, Canada, Australia, and Fiji will be officially represented. Seven pavilions, a concert-hall, an art-gallery, and numerous annexes and similar buildings are nearing completion, and cover an area of nearly 13 acres. The Imperial Government has secured for official displays a space of 28,000 square feet, and a like floor-space in the same pavilion has been allocated for goods manufactured in the United Kingdom. The Commonwealth of Australia and the Dominion of Canada have undertaken the organization of comprehensive displays of their products, manufactures, and arts. The colony of Fiji will, as already indicated, be fully represented. New Zealand products will be shown in satisfactory displays by manufacturers and traders, and in the several provincial courts. The New Zealand Government has undertaken to provide exhibits of a very comprehensive character, a special building of 51,000 square feet being provided entirely for this purpose. Some fourteen Departments of State will participate and will demonstrate their functions and work. One of the largest buildings is being devoted to the display of motor cars, trucks, and appliances, and it is satisfactory to record that the support received from British sources points to the fact that the display will be the most comprehensive yet held in the Southern Hemisphere. Hitherto the products of the United States of America and Canada have formed 90 per cent, of motor displays at local Exhibitions.

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From the point of view of individual traders the Exhibition will provide an excellent opportunity of displaying the goods which they have to offer to a market which is recognized as one of the best in the Empire. A realization of this fact may account for the excellent support accorded to the enterprise. In addition to the trade and educational features of the Exhibition, provision has been made for amusement and recreation, while a specially built art-gallery will house art treasures from all parts of the world. The Exhibition will open on the 17th November, 1925, and will run for a period of five months. BRITISH EMPIRE EXHIBITION. New Zealand Pavilion, Wembley. The London Times observes that " An enterprise like the Empire Exhibition is not to be measured only by standards of financial profit and loss. The unanimous testimony to the impetus given to Imperial trade last year, the recruiting-work effected in the settlement sections of the Dominion pavilions, and the opportunities for the peoples of the Empire to meet together on common ground, the market expansion of inter-Imperial trade —all this and more are assets to the Empire which cannot be written down in the balance-sheet. The British Government this year raised the amount of its Exhibition guarantee to £1,100,000. All the Dominions represented last year agreed to continue their participation. The same is true of the colonies, with one or two exceptions." 1924 Season. —In the course of six months over seventeen million people passed through the gates of the British Empire Exhibition. Every part of the Empire, with the single exception of the Free State of Ireland, was represented. Covering the administration of forty-nine separate Governments, surely the responsibilities and potentialities of Empire must have been brought very pointedly before the people of the Old Country ! The productions, manufactures, scenic attractions, and manners and customs of all these widespread possessions were displayed in the various pavilions, and there is no doubt that the impressions made must have a lasting and instructive value. The enthusiasm of the school-children alone, of whom five millions visited the Exhibition in organized parties, was wonderful, and has been followed by requests from large numbers of individual scholars all over Great Britain for literature dealing with the various Dominions and colonies. The New Zealand Commissioner, Mr. A. F. Roberts, holds the opinion that there can be no doubt that our representation has bfeen of great advantage to the Dominion. Apart altogether from the general educative side, the propaganda for Dominion products has been most valuable. When one considers, for example, that many thousands of packages of butter have been sold in the New Zealand pavilion and despatched by post to all parts of the United Kingdom, one must appreciate the worth of such propaganda. One result has been that many inquiries have been made as to where regular supplies of our products can be obtained. At the New Zealand pavilion no fewer than fifty thousand packages of honey have been sold retail, while very large quantities of our fruits have, through the Exhibition, been their own advertisement in thousands of British homes. Excellent exhibits of frozen meat were contributed by the Meat Producers Board, and our wool display drew very favourable trade comment. 1925 Season. —When the Wembley Exhibition authorities decided to continue during 1925, an offer of up to £30,000 by way of subsidy was made to the New Zealand Government to assist in the expenses. This offer was accepted, and it is expected that the subsidy will cover approximately twothirds of the total cost of the Dominion's participation in 1925. It was found necessary to replace a number of exhibits which had deteriorated through exhibition during the six months of the previous season, and accordingly during the early months of the year the Department has been actively engaged in arranging for and despatching from the ports of Auckland, Wellington, Lyttelton, Bluff, and Port Chalmers, twelve large shipments of exhibits. These exhibits include, among a large number of less important products, the undermentioned principal items : A complete and fresh consignment of fleeces, numbering 160; a large number of tree-ferns for decorative purposes ; New-Zealancl-made travelling-rugs; woollen floor-rugs ; blankets; minerals of various kinds ; manufactured fruits and preserves ; fresh fruit; dairy-produce ; condensed milk ; wheat, barley, and oat sheaves ; seeds of all descriptions ; flax in bales and hanks—ropes and twines ; and canned whitebait. Many thousands of booklets and folders have also been prepared, printed, and shipped for publicity purposes, and a continuous supply is being forwarded from the Dominion each fortnight. By the s.s. " Ruahine," which left Wellington during May, two Corriedale rams and four Corriedale ewe hoggets were shipped for Exhibition in special sheep-pens that are now being constructed outside the New Zealand pavilion. This exhibit is expected to create a considerable amount of interest and be of particular value to the Dominion, for the reason that this breed of sheep is peculiar to New Zealand. The sporting and tourist section has also been augmented by additional shipments of specimens of stuffed trout and quinnat salmon. Two complete stags' skins have been shipped, for the purpose of adding to the 'realistic effects of panoramic views depicting New Zealand's excellent deer-stalking country. At Wembley the Commissioner and his staff have been extremely busy reorganizing and adjusting last years' exhibits. Quite a large number of new features have been added. These include typical bush scenes, with an actual waterfall in operation ; panoramas of Milford Sound, the Southern Alps, the Waitomo Caves (with realistic imitation of glow-worm effects), and excellent panoramas of the Wanganui River. In addition to these new features there will be a miniature Rotorua, 25 ft. wide and 50 ft. long, with working model geyser and boiling pools. Already excellent cabled reports have been received concerning New Zealand's display this year, and we cannot quote a more experienced or

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better authority than Earl Jellicoe, who expressed his congratulations at the excellence of the display in the pavilion. With the exception of Messrs. Hoare and Callaghan, who have returned to New Zealand, the Exhibition staff which was sent from New Zealand last year will carry on in charge of the pavilion during 1925. OVERSEAS MARKETS. Island Trade. Western Samoa. —New Zealand's Mandated Territory. In comparison with 1923, statistics show that there has been an appreciable improvement both in the export and import trade of Samoa during 1924. The total imports for 1924 were £5,900 higher than those of 1923, and the exports, which exceeded the imports by £87,000, show an increase over 1923 of £73,000. The grand total external trade of Samoa for the year under review amounts to £636,000, which is 14 per cent, higher than the total external trade for 1923. More than 90 per cent, of the exports, which total £361,000, are represented by cocoa-beans and copra, the former amounting in 1924 to £58,000 for 1,016 tons, and the latter £284,000 for 13,200 tons. Up to 1918 rubber formed a large proportion of the exports, but since that year this product does not appear to have been produced, on a trading scale. The general trade position of New Zealand's Mandated Territory of Samoa therefore appears to be satisfactory, and is showing improvement. The classes of products exported from Samoa are not used very extensively in the Dominion, and therefore our share of Samoan exports is only about 2 per cent, of the total, representing in 1924 approximately £7,000. Cocoa-beans to an amount of 129 tons comprised the main item of value, the balance being made up of hides, baskets, mats, and one or two small trial shipments of bananas, pineapples, and kapok—a trade that this Department is endeavouring to foster. Samoa buys from other countries many lines that might be supplied by New Zealand. The total imports of Samoa for 1924 amounted to £274,803. Of this amount — £ Australia supplied .. . . .. . . .. .. 99,448 New Zealand supplied .. .. .. .. .. .. 87,541 United States of America supplied .. . . . . .. .. 42,582 Canada supplied .. .. .. .. .. .. .. 6,181 Fiji supplied .. .. .. .. .. .. .. 7,972 All other countries supplied .. .. .. .. .. 31,079 £274,803 A careful examination of the articles bought by Samoa inclines this Department to the opinion that New Zealand merchants and manufacturers should give this market immediate and thorough consideration. Commercial and manufacturing houses in America and Australia have developed quite a good business in the islands, and these two countries will eventually make it very difficult for New Zealand to hold its present trade if the commercial interests and industrialists of the Dominion do not show more initiative and keenness for a larger share of this regular and comparatively convenient market. The following are a few items —now chiefly supplied by Australia —that New Zealand should be in a position to supply on a competitive basis. The table shown below gives the value of imports during 1924 under the various headings from Australia and New Zealand : — Item. Australia. New Zealand. £ £ Tobacco .. .. .. .. .. . • 2,600 Nil. Cigarettes .. .. .. .. .. .. 1,500 ~ Bags and sacks .. .. .. .. .. 10,000 ~ Tea .. .. .. .. ■. •• 700 120 Boots and shoes .. .. .. .. .. 1,000 120 Cement .. . . .. .. .. • • 1 600 500 Confectionery .. .. .. .. .. 700 1,300 Drapery, apparel, and textiles .. .. .. .. i 4,000 8,000 Leather . . . . . . .. .. . . 500 200 Biscuits .. .. .. .. .. .. 3.700 60 Jams, jellies, and preserves .. .. .. .. 1,000 200 Sugar .. .. .. .. .. •. 13,000 1,600 Soap .. .. .. .. . • •• 4,600 . 1,100 Totals .. .. .. .. .. £53,900 £13,200 The above totals show that there is a big margin of trade in most of the lines indicated, that might be captured by the Dominion. The only way in which this trade may be obtained is by personal canvass. It is reported to the Department that for every commercial representative of New Zealand who visits Fiji, Cook Islands, and Samoa, there are at least seven trade representatives from the Commonwealth of Australia.

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Fiji. The latest figures available are for 1923, and in that year 41 per cent, of the total trade of Fiji was done with New Zealand. This market, like the Samoan market, is one that requires the close attention of New Zealand manufacturers and merchants. There is direct shipping, as is indicated by the fact that New Zealand takes anything from 75 per cent, to 80 per cent, of the exports of Fiji, chiefly sugar and tropical fruits. The shipping facilities, therefore, for return cargo are available at regular intervals. The following goods supplied by Australia could, in large measure, be conveniently and competitively supplied by New Zealand. It should be noted that trade in these goods amounts to £110,000 from Australia and only £12,000 from New Zealand. Australia. New Zealand. £ £ Biscuits .. .. .. .. .. .. 10,000 84 Boots and shoes .. .. .. .. .. 3,500 600 Brushware .. .. .. .. .. .. 1,000 180 Candles .. .. .. .. .. .. 140 30 Cement (United Kingdom £6.000) .. .. .. 700 365 Coal .. .. .. .. .. .. 36,000 13 Confectionery .. .. .. .. .. 2,300 2,000 Cordage and ropes .. .. .. .. 5,000 700 Fruit, fresh .. .. .. .. .. .. 1,300 400 Fruit, preserved .. .. .. .. ..2,700 260 Furniture .. .. .. .. .. .. 1,500 80 Jams .. .. .. .. .. 2,400 60 Leatherware .. .. .. .. .. 6,200 600 Agricultural machinery (United States of America £10,000} 7,000 250 Manures .. .. .. .. .. .. 18,000 2,600 Matches .. .. .. .. .. .. 2,160 20 Milk, condensed .. .. .. .. .. 3,200 2,200 Oatmeal .. .. .. .. .. .. 300 180 Linseed-oil .. .. .. .. .. .. 300 40 Pickles .. .. .. .. .. 700 70 Soaps .. .. .. .. .. 3,400 1,030 Tar .. .. .. .. .. .. 850 100 Twine .. .. .. .. .. .. 960 80 Vinegar .. .. .. .. .. .. 270 20 Totals .. .. .. .. £109,820 £11,962 Java and the East. The Department has persisted in its efforts to interest exporters and manufacturers in the possibilities of trade with Java. The difficulties experienced in engendering practica 1 interest in the proposal are very great, mainly due to the apathy shown in the setting-up of local organizations to examine the facts and provide the funds to exploit this market thoroughly. The Department has shown its willingness on all occasions to co-operate with and advise any firm or organization as to the trade possibilities. A private company with headquarters at Auckland has been formed to develop trade relations between New Zealand and Java. This company provides a definite New Zealand organization with expert officers through which primary producers and manufacturers may export their produce to the East. The company is favourably situated to import all Eastern products into New Zealand. A tour of the main centres to interview possible exporters has been undertaken, and an earnest endeavour made to arrange for preliminary consignments to try out the Javan market. In conjunction with the industrialists of New Zealand, an effort will also be made to have a New Zealand stand at the next Sourabaya Fair to be held at the latter part of this year. During the year the Department has made several appointments of honorary trade representatives. Mr. H. C. Tennent is now acting on the Dominion's behalf at Honolulu, Hawaii; the British Chamber of Commerce at Marseilles, France ; and Mr. B. R. Avery at Johannesburg. Trade representatives are also acting in Belgium (Antwerp), India (Calcutta), and South Africa (Durban). The paid officers of the Government, Messrs. W. A. James at Vancouver and H. Stephenson Smith at San Francisco, continue to supply the Department with valuable information concerning trade matters in respect of the countries they represent, whilst Messrs. H. J. Manson (Melbourne) and W. R. Blow (Sydney) are in constant to Commonwealth trade and industries. COMMERCIAL TRUSTS ACT. During the year the Attorney-General took action under the Commercial Trusts Act, 1910, against a number of firms engaged in the production and distribution of flour. This action involved the Department in a great deal of work in the preparation and presentation of the case for the' Crown. The case was heard in Dunedin'in November,|l924. The hearing occupied ten days, during which over thirty witnesses appeared for the Crown a.nd twelve for the defence. Considerable public interest was manifested throughout the hearing. The case for the Crown was conducted by Mr. F. B. Adams,

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Crown Solicitor, Dunedin, and Mr. J. B. Callan, Solicitor, Dunedin. The case for the defence was in the hands of the following counsel: Messrs. M. Myers, K.C., of Wellington ; C. P. Skerrett, K.C., of Wellington ; S. Solomon, K.C., of Dunedin ; with their junior counsel; and Messrs. A. T. Donnelly, of Christchurch, and W. D. Campbell, of Timaru. His Honour Justice Sim gave a verdict for the defendants, with costs against the Crown. As the Attorney-General has decided to appeal against the decision, comment will be withheld until the appeal is decided. Several complaints were received during the year concerning the action of certain commercial and manufacturing organizations fixing prices and conditions of sale. The Department made careful inquiries in all cases, but in no instance was there evidence of an offence against the provisions of the Act. GAS REGULATIONS, 1924. Regulations under the provisions of the Board of Trade Act for the control of the sale and supply of gas, with special reference to the four main features—heating-value, purity, pressure, and price— were gazetted on the 25th August, 1924. The regulations were drafted after due consideration had been given to the enactments and regulations ruling in other parts of the British Empire. The regulations before adoption were fully discussed with representatives of the gas undertakings in the Dominion. It may be said without fear of contradiction that the regulations have met with the general approval of the industry and the general public. The first step in putting the regulations into force was to appoint a Chief Gas-examiner and Gas Referees. Accordingly the following gentlemen were appointed: Dr. J. Maclaurin, Messrs. R. Dougall and R. W. Holmes, all of Wellington. Dr. Maclaurin (Dominion Analyst) was also appointed to the position of Chief Gas-examiner. The regulations came into force as from the Ist January last, and, as a preliminary step to their enforcement, the Minister of Industries and Commerce called upon the four gas undertakings at Auckland, Wellington, Christchurch, and Dunedin to declare the calorific value of the gas which was intended to be supplied as from the Ist April, 1925, and to state for his approval or otherwise the maximum price, or prices, at which it was proposed to sell each therm or each thousand cubic feet of gas of the declared calorific value. It was further indicated to these undertakings that the Department would inquire into the cost of production and distribution of gas. This inquiry is approaching completion, and it is expected that the necessary declaration a.s to calorific value and maximum prices will be published shortly after the presentation of this report. The regulations as gazetted are included in an appendix to this report. CONTROL OP THE TAILORING TRADE : SALE OF GARMENTS TO MEASURE. Following conferences held between the Department of Labour, master tailors, clothingmanufacturers, and operative tailors, it was decided to initiate legislation relating to the manufacture of tailor-made and factory-made garments to measure. The proposed legislation made it an offence to sell or offer for sale as " hand-made " or " hand-tailored " any garment which was not completely made by hand ; and also made it an offence to sell or offer for sale as " tailor-made," '' tailored to measure," &c., any garment which did not contain a specified amount of hand-work. It was decided, however, that special legislation was not necessary, as the matter could be dealt with by means of regulations under the Board of Trade Act. The regulations were accordingly drafted, approved, and gazetted, and were made operative as from the Ist March, 1925. The officers of the Labour Department are co-operating with the Department of Industries and Commerce in seeing that the regulations are given effect to, and it is pleasing to report that no serious breaches have arisen during the few months in which the regulations have been in force. The regulations appear to have gone a long way towards settling a problem which has vexed the ordertailoring trade for many years past. At the same time the consumer has been protected against misrepresentation as to the class of article offered for sale. Copies of the regulations, as gazetted, form an appendix to this report. INVESTIGATIONS. As has been stated in previous reports, the necessity for restrictive control over prices charged by traders in the Dominion is now much less than was the case a few years ago. Competition in many trades is keen, and fully adequate to ensure the charging of no more than reasonable prices. For purposes of price-control, and for other reasons, detailed investigations of a number of industries and trades have been necessary during the past year. Costs of production and distribution, the effects of Customs tariff, overseas competition, &c., have been matters for consideration in many instances. Among many inquiries of a similar nature, investigations in relation to the following commodities or services may be mentioned : Bricks and tiles, chemical fertilizers, rennet, printing, bread, paper, and paper bags. Where necessary and possible, action was taken to correct an unsatisfactory position in relation to prices, supplies, or competition. SUGAR. Since the cessation of Government control of this industry on the 31st August, 1923, supplies and prices have been left entirely to the adjustment of private enterprise and competition. Consumers, however, continue to draw their main supplies of refined sugar from the refinery at Chelsea, Auckland,

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and the sale and distribution of products of the refinery have been carried out by the Colonial Sugarrefining Company (Limited) on its own account, with a protective tariff on refined sugar fixed by Parliament at Jd. per pound. Refined sugar in New Zealand has, of course, fluctuated in price according to the movement in world market values of sugar. During the year under review sugarprices have fallen steadily, and the Colonial Sugar Company has been forced to meet a serious and continued decline in the values of raw and refined sugar held by the company. The reductions in the price of refined sugars during the past twelve months have aggregated £9 10s. per ton. The Chelsea works in the past year have melted 66,272 tons of raw sugar, most of which quantity was obtained within the Empire —namely, 46,113 tons from Fiji, 8,415 tons from Australia ; Java and Peru supplied the balance of aj>proximately 12,000 tons. During the year ended 31st March last the total quantity and value of sugar (other than raw) imported into New Zealand amounted to 1,825 tons, valued at £42,467. The company has entered into contracts with New Zealand manufacturers who are large users of sugar, under which, for a certain period, manufacturers know the maximum price payable for supplies. Such contracts make provision for a reduction in price if and when world prices fall. In Fiji, where, during recent years, the production of raw sugar has been seriously reduced, a distinct improvement has been brought about. Last year 62,000 tons were produced, and for the coming season it is estimated that there will be 90,000 tons available—a quantity more than sufficient to meet the Dominion's normal consumption of approximately 65,000 tons of refined sugar. The reductions in price put into effect from time to time by the company have doubtless been much appreciated by consumers, and no complaints in regard to either prices or supplies have this year been received by the Department. The Department has continued to keep in touch with conditions in the world's markets, which for some months past have recorded an almost uninterrupted decline in prices. This has been due essentially to the marked improvement in world production, which at a recent date was estimated for the year 1924-25 at nearly 23,000,000 tons, as against 19,700,000 tons in the previous year. This very substantial increase is largely though not entirely due to a post-war recovery in the European production of beet-sugar. The position in Australia is of interest. In the Commonwealth an arrangement exists for the prohibition, over a period of years, of the importation of sugar, with the fixation of the prices of home-grown and refined sugar at a level (£37 lis. 4d.) considerably in excess of world market value. This stimulus to production has apparently been a factor in bringing about a record output, estimated for the current year at approximately 500,000 tons. Of this quantity about 200,000 tons must be sold for export. TIMBER.* For some years past the Department has controlled the administration of the regulations relative to restrictions on export of timber. Permits to export New-Zealand-grown timber are issued up to the limits and upon the principles laid down by the Government, as explained in detail in the reports for 1923 and 1924. The issue of these permits and the supervision of control is a work of some magnitude which has apparently been carried out with satisfaction to all parties. The exports of timber during the years ended 31st March, 1924 and 1925, were as follow : —

It will be noted that white-pine has been exported in increased quantities in 1925. This class of timber is usually produced under such conditions that unless export were allowed much of the timber would be destroyed on lands being opened for settlement. The local market has, however, continued to have a first claim on supplies, which have been ample to fulfil all Dominion needs. The other main exportable timber, rimu, has been exported to a lesser extent in 1924-25 than in 1923-24, and reports indicate that the competition of other soft woods in our export market— Australia —is increasingly keen. Beech, of which the Dominion has very large supplies, is finding an increased export market.

* In regard to timber, the Department of Industries and Commerce acts on the advice and on the instructions of the Commissioner of State Forests, who is responsible for the policy and regulations as to the control of the export of timber.

Year ended 31st March, 1924. Year ended 31st March, 1925. Variety. -e ; — Quantity. Value. Quantity. j Value. Sup. Ft. £ Sup. Ft. £ Kauri .. .. .. .. 1,913,767 42,435 2,598,400 53,828 White-pine .. .. .. 31,458,492 306,762 34,881,143 378,663 Bimu .. .. •• 7,458,638 59,147 5,171,640 44,807 Beech .. .. .. .. 1,366,517 18,095 1,832,000 24,669 Miscellaneous .. .. .. 1,455,922 16,176 700,907 8,096

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WHEAT, WHEAT-PRODUCTS, AND BREAD.* The Government has during the past year again been closely associated with the wheat industry and allied trades. Although it is highly desirable that there should be a sufficient local production of wheat to supply our requirements, the shortage of wheat last year proved to be over 4,000,000 bushels, and this quantity had to be imported from overseas. The Department purchased wheat in Australia and arranged for its freighting, sale, and distribution in the Dominion. Prior to purchase and importation being undertaken an arrangement with Government approval was made between the farmers and millers whereby the prices paid for wheat of the various varieties were fixed at ss. sd. for Tuscan, ss. 7d. for Hunters, and ss. 9d. for Pearl. After investigation of the cost of flour, bran, and pollard, the Government agreed to flour, bran, and pollard being fixed at the following maximum prices f.o.b. main ports South : Flour, £15 10s. per ton ; bran, £5 10s. per ton ; pollard, £6 10s. per ton. The prices of bread were also stabilized, and were fixed on the basis of lid. for the 41b. loaf cash over counter, South Island, and Is. in the North Island. The Department agreed, however, to minor adjustments in price in cases where additional or higher costs of production and distribution made this necessary. It was difficult to determine early in 1924 the quantity of wheat which would require to be imported. Just what quantity the local harvest would yield could not be known with any degree of exactitude until the middlo of the year. It was clear, however, that the shortage would be over 000,000 bushels. For reasons set out in last year's report of this Department, Cabinet in February, 1924, gave for the purchase on Government account of this quantity as a first and main step towards meeting requirements. It was, however, recognized by the Department that 3,000,000 bushels would certainly not cover the whole shortage for the year. Purchase and shipping commenced in February, 1924, Mr. Alexander Davidson, of Sydney, being appointed to act as our representative in Australia. The total quantity of wheat purchased in 1924 and early 1925 was 3,887,679 bushels (equalling 104,134J tons), for which the sum of £977,782 was paid. Early in the year arrangements were made, with the Union Steamship Company for freighting the wheat to New Zealand ports. Close attention had at all times to bo given to purchase contracts and to movements of vessels, and it was only by careful co-operation with the company that the Department was able to make satisfactory dispositions. Weather conditions during the winter months caused much anxiety in keeping shipping arrangements in line with the extensive loading and discharge requirements. Labour disputes in Australia seriously threatened the shipping arrangements, and although delays were experienced through this cause, supplies were maintained well in advance of manufacturing requirements. It is clear that the danger of industrial difficulty in the transport of this essential foodstuff is one of the strongest reasons for urging that the Dominion should be self-contained in the matter of wheat-supplies. In all, no less than thirty shipments of wheat had to be arranged within a comparatively brief period, and it was only because the Union Company had a big fleet of vessels available that satisfactory service could be given. The sampling and loading of the wheat was carefully supervised by Mr. Davidson, who was in constant touch with the Department by cable and letter. Excellent service was given by Mr. Davidson, who worked at times under great pressure when thousands of tons of wheat had to be sampled and loaded each month in various Australian ports. The Government appointed Mr. 11. Shrimpton to act as grain-grader, and he gave excellent service in the Dominion in attending to the unloading of vessels and in watching questions of quality and weight. The wheat, which was bought on f.a.q. standard, was, in the main, quite satisfactory, and millers generally were well pleased with the wheat tendered. Of the weight landed (3,876,540 bushels), 3,374,493 bushels were delivered to millers, and 502,047 bushels were sold for poultry-food. The sales of wheat in New Zealand by the Department aggregated £1,161,000. The price to millers was agreed upon at the beginning of the year on the basis of prices being paid for New-Zealand-grown wheat, and, though world prices rose very materially during the year, no advance was made in the price charged to millers or in the prices of flour, bran, pollard, and bread. By reason of the fact that the Government was able to supply relatively cheap wheat to millers who were working on a fixed-price basis, New Zealand was for months unaffected by the increase in world prices,' and consumers received a very substantial benefit from the Government's forward purchases at low prices. The amount of this benefit increased gradually as the overseas prices advanced, and it is somewhat difficult to [estimate the financial advantage winch the Dominion has enjoyed. In the later months of the year eiding February, 1925, however, ijhe saving to New Zealand must have been at least £35;,000 per month, and at a low estimate the saving to the public over the whole year which resulted from the forward purchase of supplies must havejbeen at least £200,000. It must be remembered in this connection that not only did bread-consumers benefit, but poultry-farmers for a number of months received supplies at prices considerably below world's parity. For these reasons the benefit arising from the Government's transactions must not be judged by any small profit or loss shown by the accounts, which could by only a slight increasing of the selling-prices have been made to show appreciable profits. The wheat was sold to millers at a price of ss. 7Jd. per bushel, sacks in, ex ship's slings, at main South Island ports, with additions for sales at North Island ports approximately equivalent to the cost of bringing wheat from Lyttelton to such northern ports. The usual increments in price of Jd. per bushel per month were made from May to October, the southern price therefore rising gradually to a maximum of ss. lOJd. per bushel. As previously mentioned, the fact

* In regard to the importation and distribution of wheat, the Secretary of the Department of Industries and Commerce, as Wheat Controller, acts on the advice and on the instructions of the Minister of Agriculture, Hon. W. Nosworthy.

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that tie Australian value f.o.b. finally reached the high point of 7s. 3d. per bushel did not affect the prices at which the importations were sold. In accordance with the arrangement made at the commencement of the season, railage was allowed to inland mills, to the extent of the actual cost of transport from port station to mill station. The payments for wheat purchased involved considerable difficulty, and care had to be exercised to see that the necessary credits were available from time to time to pay for each cargo as and when shipped at the prices specified in the contracts previously made with sellers. In this matter the Treasury Department rendered excellent service. Exchange on Australia was bought—mainly through London —and on the funds so made available credits were drawn as required. The increasingly serious difficulty of securing exchange on Australia, and the gradual rise in the rates which had to be paid, caused some anxiety and materially affected the cost of importation. During the year the Government decided to suspend the duty on bran and pollard, and the Department issued recommendations for permits for the importation of supplies of these commodities during the winter months when local production fell short of Dominion requirements. Under this arrangement a quantity of approximately 2,560 tons of bran and 2,055 tons of pollard was imported under permit into the Dominion duty-free. This system worked well, and all parties'—farmers, merchants, and millers —were satisfied that the Government took the best course in allowing importations on this basis. As previously indicated, the Department undertook the importation of supplementary supplies of wheat required for poultry-food up to the end of 1924. After that date there was a change of policy by which the responsibility was thrown upon merchants to import fowl-wheat, permits being granted for duty-free importation. This change involved the Department in a great deal of work, since a careful check had to be kept to prevent the bringing-in of such quantities as would detrimentally affect the New Zealand growers' market when the season opened in late January of this year. The permit system worked satisfactorily, although, owing to strike troubles on the Australian coast, several shipments by merchants were unduly delayed, and some supplies which were expected to arrive in early January were delayed until late in February. These quantities, however, were comparatively small, and had no material affect upon the prices received by farmers for locally produced supplies. The difficulties met with in the Dominion during 1924 so far as wheat-supplies were concerned are, unfortunately, to be repeated this current year. The estimated acreage in wheat for the presentyear's harvest was 170,000, and the Government Statistician considers that the total yield for the Dominion will approximate 5,000,000 bushels, as against an actual yield of 4,174,000 bushels for the season 1923-24. A good deal of concern was felt by the growers as to the effect of competition of imported flour upon wheat-prices in the Dominion, and a representative conference waited upon the Hon. Minister of Agriculture in December last and asked that the duty on flour should be increased and that no dumping of flour took place without a dumping duty being imposed. The Minister announced that the duty would be raised on flour to £3 per ton, making it correlative with the existing duty on wheat (Is. 3d. per bushel) as against £2 10s. per ton formerly ruling, and that the Minister of Customs would give notice to the effect that dumping duty would be imposed if and when circumstances arose to warrant it. The notices were accordingly gazetted, and at the same time a notice was given revoking the embargo on the importation of flour as from the end of February, 1925. World prices for wheat at the opening of the New Zealand season ruled high, and prices ranged from 7s. to 7s. 6d. (Tuscan) per bushel; at the same time the price of flour was advanced from £15 10s. per ton f.o.b. South to £19 per ton f.o.b. South as from the Ist March, and bread-prices were also generally increased throughout the Dominion. When the substantial and sudden fall in world prices of wheat took place in March, 1925, a deadlock arose in the Dominion, farmers on the one hand declining to sell wheat and the millers refusing to buy except on terms that would enable them to compete with imported flour. A shortage of bran and pollard arose, especially in the dairy and poultry industries, and great pressure was brought to bear on the Government to relieve the deadlock by reimposing the embargo on flour and reducing the duties on bran and pollard so as to enable the importation of the latter commodities from Australia. Matters remained in a disturbed and unsatisfactory state for several weeks, wheat having declined in value to 6s. 3d. per bushel South with no sellers. On the 23rd April a representative conference took place in Wellington, which was attended by wheat-growers, the Executive of the New Zealand Farmers' Union, millers, poultrymen, and grain-merchants. At this meeting the following resolution, passed at Ashburton on the 15th April, was endorsed : — " That, in order to overcome the present deadlock in the wheat situation and secure for the New Zealand wheat-growers a fair price for his produce, and to ensure a continuance of wheat-growing on a scale sufficient for the Dominion's growing requirements, this conference requests that the Government should either reimpose the embargo on flour or levy a dumping duty on any further importations." An endeavour was made to secure an arrangement between wheat-growers and millers for fixed prices for wheat for a term of years, but no agreement was arrived at at the conference, and a deputation was formed of the interests represented at the conference to discuss the matter fully with the Minister of Agriculture. As a result of this discussion arrangements as under were suggested and agreed to by Cabinet:— (1.) Millers agreed to a readjustment of prices, and to offer to farmers 6s. Bd. for Tuscan, 6s. lOd. for Hunters, and 7s. for Pearl, an increase of sd. on the then-existing prices, AH milling-wheat to be taken over within the next two months. (2.) Wheat-growers' representatives to recommend strongly to their branches the acceptance of this offer.

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(3.) Millers determined upon prices as follows : £18 per ton for flour f.o.b. South, a maximum of £8 per ton for bran f.o.b. South, and a maximum of £9 per ton for pollard f.o.b. South. (4.) Duty on bran and pollard from Australia to be reduced from £2 10s. to £1 per ton. (5.) Millers to find cash for wheat from Australia to supply the deficiency till next harvest, a,nd Government to purchase, import, and distribute these necessary additional supplies. This decision of the Government did not involve reimpositions of the embargo on flour, nor any alteration in the duty upon flour. The lowering of the price of flour from £19 per ton South to £18 per ton was effective in reducing bread-prices in those cities and towns where a rise of Id. per 2 lb. loaf had been made in early March. Generally speaking, the arrangement effected gave stability to the wheat-growing, flour-milling, and baking industries of the Dominion, and the breadconsumers of the Dominion were relieved to the extent of Jd. per 2 lb. loaf. The reduction of the duty on bran and pollard has also made available at satisfactory prices the necessary additional supplies from abroad. Purchase and importation of Australian wheat for milling requirements is now again being carried out by the Department. CONCLUSION. This report does not, of course, set out in detail by any means the whole of the work carried out by the Department during the past year. The limitations of staff—seventeen only for the whole Dominion—necessitates concentration upon essential duties and leaving-over of work which can be undertaken at a later period. Some important investigations into the Dominion's industries have had to stand aside, but these will be undertaken as opportunity offers. Everything possible has been done, however, to check unfair methods of trading, and to foster and promote the Dominion's industries and commerce. There is reason for congratulation in that the Dominion has substantially been free of that commercial and industrial depression which has so seriously affected the position in Great Britain. The statistical position discloses steady growth in both industry and commerce, and in regard to industry particularly the support from our own citizens now given to goods made in this country is distinctly encouraging. There is still, however, much scope for the removal of prejudice, and for co-operation between manufacturers, retailers, and the general public. It is pleasing to be able once again to record the generally satisfactory condition of the commerce of the Dominion, which is at all times so largely dependent upon a satisfactory production and sale of our primary products. Provided that the present prosperity is not made the basis of extravagance and speculation, a period of healthy and sound progress appears to lie ahead of the Dominion. For the Department of Industries and Commerce, J. W. Collins, Secretary.

APPENDIX A. Agriculture and Dairy Machinery and Implements. Output—(l9o6) £200,000 ; (1924) £600,000. The condition of this industry has been normal during the past year. Competition, especially from overseas, has been keen, and labour, with the exception of that required for highly skilled work, plentiful. The export trade, especially with Australia, has improved since the reciprocal tariff arrangement was made. Engineering. Output—(l9o6) £437,000 ; (1924) £1,650,000. Subnormal conditions have prevailed in this industry for some considerable time. Ample labour is available for practically all branches. In Auckland and Dunedin boilermakers and patternmakers are in demand. Those in a position to judge regard the prospects as likely to be a little brighter during the coming year. Boot and Shoe Making. Output—(l9o6) £501,000 ; (1924) £1,355,000. This industry has been passing through a very difficult period, and has been depressed through extraordinary overseas competition and excessive importations, a large proportion of which retailers were compelled to sacrifice. The surplus stocks of imported footwear are being reduced, and local manufacturers are commencing to obtain a larger proportion of orders. The quick changes of fashion, especially in ladies' footwear, are having a helpful effect. Clothing. Output—(l9o6) £423,000 ; (1924) £2,400,000. The clothing industry, like the bootmaking industry, is passing through a period of depression, and during last winter a great many of the factories were working only part-time. There is plenty of labour available in all centres for this industry. The present tendency is for slackening of operations, with consequent partial unemployment that will only be alleviated by a greater demand for locally made wearing-apparel.

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Rope and Twine. Output—(l9o6) £100,000 ; (1924) £218,000. The prosperity of this industry depends very largely upon the grain-growing industry. Last season only about half of the Dominion's requirements of wheat was grown, consequently the demand for twine was much below normal. There is very keen overseas competition in the rope section. No difficulty has been experienced in obtaining the necessary labour, and it is hoped that the guaranteed prices arranged between millers and farmers for wheat for the next harvest will increase the output and have a stimulating effect upon the flax, rope, and twine industry. Printing, Publishing, and Bookbinding. Output—(l9o6) £1,068,000 ; (1924) £3,623,000. There is every indication of good conditions generally prevailing in the printing industry. With the exception of Dunedin, where highly skilled labour is in demand, probably on account of extra work through the Exhibition, labour is plentiful. Bricks, Tiles, and Pottery. Output—(l9o6) £217,000 ; (1924) £599,000. The brick, tile, and pottery industry is progressing satisfactorily, and results achieved in practically all works throughout the Dominion have been good. Biscuit and Confectionery. Output—(l9o6) £364,000 ; (1924) £1,384,000. This industry, which had a serious setback at the beginning of this year on account of the epidemic of infantile paralysis, had previously been advancing very solidly. In a number of centres new factories have been established during the past year, and to many of the established works there have been considerable extensions. Those responsible for the manufacture of biscuits and confectionery are to be congratulated on the very forward and progressive policy that has been adopted of late, especially with regard to the supply of sweets and biscuits in attractive packages. Competition from Australia, America, and the United Kingdom is very keen. The coming big Exhibition at Dunedin should assist to make the prospects during the coming year for this industry especially good. Sauce, Pickles, and Yinegar. Output—(l9o6) £56,000 ; (1924) £198,000. There has not been anything of particular interest to report concerning these industries, the conditions of which are, generally speaking, normal. Soap and Candle Making. Output—(l9o6) £179,000 ; (1924) £497,000. The soap industry is steady and progressive, but the candle industry is quickly diminishing. In some centres the soap industry has had a very satisfactory year ; in others conditions have been normal. There is no dearth of labour required for these factories. Competition, especially from the Continent and United States of America has been and is extremely keen. Coach- and Motor-body Building. Output—(l9o6) £295,000 ; (1924) £711,000. The demand for motor-bodies for touring, commercial, and private orders has been good during the past year, and practically all works have been running full time. A certain scarcity of highly skilled labour has been felt. The prospects for this industry are bright. A large number of excellent vehicles have been made by several Dominion manufacturers, who are justly entitled to great praise for the design, comfort, efficiency, and strength of the work produced. Furnishing and Cabinetmaking. Output—(l9o6) £328,000 ; (1924) £1,114,000. There has been a keen demand for furniture in some centres and a slackening of orders in others. Generally the industry is progressing. The manufacture of gramophones is a branch of the cabinetmaking section that is growing rapidly. The machines turned out compare very favourably with similar imported instruments both as regards tone and finish. There is a fair demand for skilled labour in the cabinetmaking and furnishing industry. Chemicals and Fertilizers. Output—(l9o6) £95,000 ; (1924) £515,000. The manufacture of superphosphates, which is the chief industry included under this heading, is developing rapidly. At the moment two new works are under construction in the North Island.

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W OOLLEN-MILLS. Output—(l9o6) £397,000 ; (1924) £1,421,000. Trade conditions in the woollen-milling industry have been very dull during the past year. A considerable quantity of low-grade and cheap clothing and materials was imported during the period. This had a depressing effect upon the output of the Dominion's mills, and it was found necessary to discharge a large number of operatives. Lately the industry has picked up slightly, and in one or two centres experienced machinists are required. Tinplate and Sheet-metal Working. Output—(l9o6) £98,000 ; (1924) £244,000. Generally speaking a fair trade has been carried on in this industry. Competition from abroad is keen, and highly skilled labour is scarce. Jams and Preserves. Output—(l9o6) £98,000 ; (1924) £244,000. The manufacture of jams and preserves has been quiet during the past year. Many classes of locally made preserves are in short supply on account of the past season being rather poor for certain classes of fruit. Competition from Australia and America is very keen ; nevertheless the industry generally is solid, and is holding its own. Tanning, Wool-scouring, and Fellmongering. Output—(l9o6) £1,836,310 ; (1924) £2,702,534. There is a more unsatisfactory report concerning this industry than there is about any of the other Dominion industries. Those responsible for the destinies of the tanning and fellmongering industries expect a rather quiet period during the coming year. APPENDIX B. [Extract from New Zealand Gazette No. 62, 25th September, 1924.] Board of Trade (Gas) Regulations, 1924. 1. These regulations may be cited as the Board of Trade (Gas) Regulations, 1924, and shall come into force on the Ist day of January, 1925. 2. In these regulations, unless the context requires another meaning,— " A British thermal unit " means the amount of heat required to raise one pound of water from 60° Fahrenheit to 61° Fahrenheit: " Calorific value" means the number of British thermal units (gross) produced by the combustion of 1 cubic foot of gas, measured at 60° Fahrenheit under a pressure of 30 in. of mercury and saturated with water-vapour : " A cubic foot " means the space occupied by 62-321 lb. avoirdupois of distilled water, weighed in air at a temperature of 62° Fahrenheit, the barometer being at 30 in. : " Gas company " or " company " means any company, corporation, firm, or person supplying coal-gas for lighting, heating, motive power, or other purposes, and disposing of the same for profit, and includes a local authority as herein defined : " Local authority " means a City or Borough Council or a Town Board : " Therm " means one hundred thousand British thermal units : " Minister " means the Minister of Industries and Commerce. 3. The Minister may, by order, require any gas company — (a.) To declare the calorific value of the gas which it intends to supply : (b.) To fix, with the approval of the Minister, a maximum price or maximum prices for each therm or for each thousand cubic feet of gas of declared calorific value : (c.) To supply gas of the declared calorific value at a specified pressure and free from sulphuretted hydrogen : Provided that any company may, subject to the provisions of clause 5 hereof, at any time alter the declared calorific value of its gas by giving three months' notice to the Minister of its intention to make such alteration. 4. The maximum price or maximum prices for each therm or for each thousand cubic feet of gas of declared calorific value shall be subject to alteration at any time, if it is shown to the satisfaction of the Minister that the costs and charges of and incidental to the production and supply of gas have substantially altered from circumstances beyond the control of, and which could not necessarily be avoided, by any company. 5. The declared calorific value of gas shall be not less than 400 British thermal units gross per cubic foot, unless it can be shown to the satisfaction of the Minister that gas of a lower calorific value can be sold at such price as to warrant the fixation of a declared calorific value lower than 400 British thermal units gross per cubic foot. 6. In the event of a company supplying gas of a lower calorific value than 450 British thermal units gross per cubic foot, or in the case of alteration in the declared calorific value, the company shall take at its own expense such steps as may be necessary to alter, adjust, or replace the burners in consumers' appliances, in such manner as to secure that the gas can be burned with safety and

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efficiency, except in tie case of any consumer who objects to such alteration, adjustment, or replacement- by the company. 7. The minimum permissible pressure shall be such pressure in any main or in any pipe, laid between the main and the meter, having an internal diameter of 2 in. and upwards, as to balance a column of water not less than 2 in. in height, except as may be otherwise provided by the order relating to any company, and different minima may be specified for different parts of the district supplied by any company, or for gas of different calorific values. 8. It shall not be lawful for any company (whether or not such company is a company specified in the Schedule hereto) to charge for the supply of gas according to the number of British thermal units supplied, unless authorized to do so by the Minister. 9. (1.) The Minister shall appoint two persons to act as Gas Referees, one of whom shall be a person having practical knowledge and experience in the manufacturing and supply of gas, and shall likewise appoint a third person who shall act as a Gas Referee and also as Chief Gas-examiner. (2.) There may be appointed in a like manner such properly qualified Gas-examiners and Inspectors of Meters as may from time to time be found necessary for the purpose of carrying out these regulations. 10. Two of the Gas Referees shall be a quorum and at least two of the Gas Referees shall concur in every act or determination of the Gas Referees. 11. The Gas Referees shall prescribe — (a.) The places and times at which and the apparatus and methods by which tests, whether continuous or intermittent, shall be made to ascertain whether any company with respect to which an order has been made under these regulations is supplying gas in accordance with its obligations ; and (b.) The method by which any such apparatus shall be verified ; and (c.) The time and form of the reports to be made by a Gas-examiner to the Gas Referees and to the companies, and the means by which the results of the tests shall be made available to the public. 12. If a company thinks itself aggrieved by any report of the Gas-examiner, it may within thirty (30) days appeal to the Gas Referees, who may confirm with or without amendment, or annul the report and the decision of the Gas Referees, after hearing the parties, shall be final and conclusive. 13. Any company with respect to which an order has been made under these regulations, shall provide and maintain to the satisfaction of the Gas Referees, the prescribed testing places and apparatus, and shall give any Gas-examiner access to any testing-place for the proper execution of his duty. 14. The prescribed apparatus shall, in the case of any companies which have sold in the preceding year more than fifty million cubic feet of gas, and in any other case in which it appears necessary to the Gas Referees, include a calorimeter of a design approved by the Gas Referees, for the production of a continuous record of the calorific value of the gas which is being supplied. 15. A representative of the company may be present on any occasion in which the Gas-examiner inspects, or alters, adjusts, or replaces the testing-apparatus, or tests the gas, but shall not interfere with the inspection, alteration, adjustment, or replacement, or test, unless requested to do so by the Examiner. For the purposes of this regulation, the Gas-examiner shall, in cases where the testingplace is situated elsewhere than on the works of the company, give to the company reasonable notice of the time at which he will attend at the testing-place. 16. The Gas Referees may at any reasonable time where it appears to them necessary for the proper execution of their duties, enter upon and inspect any of the works of a company, and the company shall afford them and their assistants full facilities for this purpose, and shall furnish the Gas Referees with such information with regard to the position of the mains and pipesof the company and with regard to any other matter, as the Gas Referees may reasonably require : Provided that the Gas Referees, or any other person or persons acting under authority of these regulations, shall immediately prior to any inspection of any works of a company notify any responsible official of the company of his or their intention to carry out such inspection. 17. The. remuneration of the Gas Referees and Gas-examiners shall be such as the Minister may fix. 18. (1.) It shall be an offence by a company against the regulations — (a.) If that company fails to comply with any lawful prescription of the Gas Referees or to provide or maintain any testing place, apparatus, or materials, or any other matter • or thing prescribed therein, or to afford to Gas-examiners or Gas Referees access to any testing place or works in accordance with the requirements of these regulations, or to afford or furnish any facilities or information in accordance with the requirements of these regulations : (b.) If on any occasion of testing by a Gas-examiner the average calorific value of the gas supplied by that company for a period of two hours or upwards ascertained in accordance with the provisions of these regulations (by intermittent tests or by a continuous test with a recording calorimeter after verification and, if necessary, adjustment by the Gas-examiner) is more than 5 per cent, below the declared calorific value : Provided that where there is no continuous record of the calorific value of the gas supplied by the company, if on any occasion of testing the calorific value at any testingplace is found to be more than 5 per cent, below the declared calorific value, a second testing shall be made on the same day after an interval of not less than one hour, and the mean of the two testings shall be deemed, for the purposes of this subclause, to be the calorific value of the gas supplied by the company at that testing-place for a period of two hours :

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(c.) If on any occasion the gas supplied by that company does not conform to the provisions of these regulations, or any order made thereunder in regard to purity : (■d.) If on any occasion the gas supplied by that company does not conform to the provisions of these regulations or any order made thereunder in regard to pressure : Provided that if the Gas Referees are satisfied that the deficiency is due to the insufficient size of the gas-mains, or to such other cause as may require time for its correction, the company shall not be liable hereunder if it lays the additional or larger mains or takes such steps to correct the deficiency as may be necessary within such time as shall be allowed by the Gas Referees. (2.) A company shall not be held to have committed an offence under this regulation in any case where it shows that the deficiency or failure was due to circumstances not within its control, nor shall a company be held to have committed more than one offence in any one day in respect of a deficiency in either calorific value, composition, or pressure of gas supplied from any one works. (3.) No prosecution shall be instituted under this regulation except with the consent of the Minister. 19. If in any year the average calorific value of the gas supplied by any company, ascertained in the manner prescribed by the Gas Referees, is less than the declared calorific value, a sum which the Minister shall determine to be as nearly as may be the amount by which the revenue of the company has been improperly increased shall be applied towards a reduction in the price of gas in the next year : Provided that no such reduction in the price of gas shall be made unless the average calorific value of gas ascertained in the manner aforesaid shall be more than 2 per cent, less than the declared calorific value. 20. If, on an appeal to the Gas Referees, they certify that the default of a company is not substantial or not due to the careless conduct of the company, or of their servants, no summary proceedings shall be taken in respect of the default. 21. All gas manufactured by any company shall be registered at the works by means of a station meter, or meters, before being delivered into the gas-holders. 22. All companies shall furnish to the Minister an annual return showing in cubic feet the volume of gas registered at the works during the year, and also the total volume registered by all consumers' meters. 23. No gas-meter by means of which gas is supplied by a company to any consumer shall be used unless it has been tested and stamped as accurate either in the country of origin, or in New Zealand, and the Gas Referees approve of the method of testing and stamping employed. 24-. A Gas-examiner, or an Inspector of Meters, shall have access at any time during working-hoirrs to any workshop belonging to a company where consumers' meters are being tested or repaired and may test or cause to be tested any new meters or any meters in stock, or any meters which have been repaired. He may also require the company to bring in and test meters which are in use, provided that the company be allowed such time as may be necessary to bring in and test such meters. In cases where a company has no meter-testing or repair shop the Gas-examiner may cause the company to send any meters to the nearest testing-place within New Zealand for testing and verification, and he shall have access to such place. 25. Any gas-consumer may, on application and upon payment to a Gas-examiner of one pound (£1) have his gas-meter tested. If the meter is found by the Gas-examiner or by an Inspector of Meters to be registering more than 2 per cent, in favour of the company, this amount of one pound (£1) shall be refunded to the gas-consumer. If the meter is found by the Gas-examiner, or by the Inspector of Meters, to be registering not more than 2 per cent, in favour of the company, the amount of one pound (£1) shall be paid over by the Gas-examiner to the company as payment of expenses of removal and reinstatement. 26. The Gas Referees shall have power to make rules regarding the testing of meters, and may determine from time to time the fee or fees which shall be payable by companies in respect of the examination and testing of meters. 27. (1.) Except- in so far as is provided in clause 8 hereof, these regulations shall apply to such companies only as are set out in the Schedule to these regulations : Provided that the Minister may, by notice published in the Gazette from time to time, make additions to such Schedule or may remove the name or names of any company or companies from such Schedule. (2.) Every company effected shall receive a notice in writing of such alterations or additions to the said Schedule. SCHEDULE. Tiio Auckland Gas Company (Limited). | The Christchureh Gas, Coal, and Coke Company (Limited). The Wellington Gas Company (Limited). Ihß The Dunedin City Corporation. APPENDIX C. [Extract from New Zealand Gazette, 12th February, 1925. Board of Trade Regulations.—Control of the Tailoring Trade :• Sale of Garments made to Measure. J. These regulations may be cited as the Board of Trade (Sale of Garments made to Measure) Regulations, 1925. 2. These regulations shall come into operation on the Ist day of March, 1925.

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3. Every person commits an offence who sells or agrees or offers to sell as hand-made or hand-tailored any garment that is not wholly made by hand and otherwise made in accordance with the requirements of these regulations respecting tailor-made garments. 4. Every person commits an offence who sells or agrees or offers to sell as tailor-made any garment that is not tailor-made. 5. A garment sold, offered for sale, or described as tailored, tailored to order, or tailored to measure, or in any other manner represented to have been tailor-made shall for the purposes of these regulations be deemed to have been sold, offered for sale, or described as tailor-made, as the case may be. 6. If any person sells, or agrees or offers to sell, or advertises for sale both tailor-made garments and other garments made to measure, he shall before selling or agreeing to sell any garment made to measure that is not tailor-made inform the purchaser that the garment is not tailor-made ; and in any proceedings for a breach of this regulation it shall lie on the seller to prove that he so informed the purchaser. 7. For the purposes of these regulations, unless the context otherwise requires,— (a.) " Tailor-made " means made to measure by hand to the extent and in accordance with the conditions prescribed in the Schedule hereto, and so far as the work is performed by employees, carried out in accordance with the provisions of the current awards or industrial agreements relating to the employment of shop tailors and shop tailoresses in the locality. For the purposes of regulation 6 hereof the expression " tailor-made " shall be deemed to include " hand-made." (5.) " Garment " means a man's or boy's coat, trousers, breeches, vest, or overcoat (other than an oilskin overcoat). SCHEDULE. The minimum amount of work to be performed by hand in a tailor-made garment and the special conditions for the making thereof are as set out hereunder : — Coats and Overcoats. Minimum Handwork. All canvases and lapels padded. Sleeve-linings felled top and bottom. All pockets tacked. Shoulders and sleeves sewn on. All edge stays. Collar padded and sewn on. All facings put on before shoulders are sewn (silk Sides, shoulders, and bottoms of linings felled. facings, &c.). Buttonholes and buttons. All body seams in body-fitting coats. All silk facings. Special Conditions. All coats made by a male coatmaker shall be pressed by him. A coat made by a tailoress may be pressed by a tailor or presser. Vests. Minimum Handwork. All pockets tacked. Buttonholes and buttons. Edge stays fastened. Back straps taeked. Forepart linings felled. Buckle sewn on. Neck felled. Special Condition. Vest shall be pressed off by a presser or tailor. Trousers and Breeches. Minimum Handwork. All pockets felled in and tacked. Seat-seam and leg-seam from crutch to knee. .Pocket stays. Band-lining and crutch-lining. Edge of button catch felled. Bottoms, buttons and buttonholes. Ply tack. Special Condition. Trousers and breeches shall be shrunk and pressed off by a presser or tailor.

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