H.—44c,

other brands of similar specification. It has been stated on reliable authority that at one period a certain brand exported to New Zealand cost less and was sold at a lower price than the United States motor grade. The various grades of gasoline appear to be determined principally by their end or final boiling-point, and it seems to be the general opinion that the published Gulf export quotations fairly represent the difference in values of the various grades. Certificates of laboratory analysis of several companies were inspected, and showed some variation in the quality usually sold as first-grade spirit in New Zealand, while the analysis in some cases showed a higher grade than 375 end point (the highest grade published in the National Petroleum News). Other analysis showed an end point of 375 and lower. What is known on the New Zealand market as second-grade spirit (with an end boiling-point of between 392 and 400 degrees) actually constitutes the major portion of the Dominion's imports from the United States of America. Freight Rates, Bulk Shipments. All the major oil companies' overseas organizations possess or are associated with subsidiary companies operating oil-carrying tankers, and the majority of shipments to the Dominion have been carried by tankers owned in the above manner. Other shipments have arrived in tankers chartered by the overseas exporting interests, who have added freight charges to the invoices for motor - spirit shipped to the New Zealand company. These freight charges do not necessarily represent the rate paid by the exporting corporation. Freight rates under usual trading-conditions fluctuate with the demand for tankers by oil-exporting interests. Freight rates for the period November, 1929, to 31st July, 1931, charged to the New Zealand branch by the associated exporting company have been consistently higher than market quotations for shipments of approximately the same distance as California to New Zealand. The following table is submitted showing freight rates charged to the New Zealand company, and freight rates quoted on similar dates during the period under review :—

Tie Department has been advised that contracts for chartering are made some months in advance of loading date at terminal depot. As a consequence, it is not improbable that the rate of freight contracted for will be at variance with market quotations at time of shipment. The Department has inspected freight-charters agreements between New Zealand companies and the brokers acting on behalf of owners of tankers. One such contract, dated the Ist October, 1930, quoted a freight rate of 18s. 6d. per ton for one-port delivery and Is. per ton for each additional port of discharge. The Department was advised by cable on the 25th July, 1931, by the New Zealand Trade Commissioner at Toronto that tanker rates for shipment of motor-spirit from Pacific Coast to New Zealand were quoted at 18s. to 20s. per ton for one port of call and Is. per ton for each additional port. The Petroleum Times of April, 1930, quoted tanker rates, California to New Zealand, at 3ls: per ton. In the October, 1930, issue of the same journal rates had fallen to 18s. 6d. per ton.

4

Gulf to Continental Port (National Petroleum News). Charged to New Zealand Company. i " ~~ j 7 ■ , . ■ ~ "7. Bate quoted. j Per Ton. Invoice Bate. j Per Ton. I 1 I i I ' 1929. 1929. November 25th .. . . 30s. November 27th . . . . 38s. 9d. 1930. 1930. January 20th . . . . 30s. to 32s. January 16th . . .. 38s. 9cl. February 24th . . . . 50s. "February 26th . . .40s. 9d. March 3rd .. . . .. 42s. 6d. March 15th . . .. 52s. April 14th .. . . . . 30s. to 32s. 6d. April 9th. . .. .. 30s. 6d. June 9th .. .. .. 25s. June 13th .. .. 62s. 6(1. „ 9th .. .. .. 25s. „ 18th .. .. 51s. 6d. August 25th.. .. . . 13s. August 31st .. .. 30s. 6d. September 2nd .. . . 12s. to 13s. September 5th . . . . 48s. 6d. „ 8th .. .. ,12s. to 13s. „ 17th .. .. 39s. ,, 15th ., .. 12s. to 13s. ,, 28th .. .. 26s. November 3rd . . . . lis. November 3rd . . .. 41s. 6d. December 22nd . . . , 10s. December 25th . . . . 41s. 6d. 29th .. .. 10s. „ 31st .. .. 20s. 6d. 1931. 1931. February 23rd .. , . 10s. March 4th .. .. 28s. 4d. March 2nd .. .. .. 10s. „ 9th .. .. 39s. April 13th . . . . . . 10s. April 14th . . .. 30s. 6d. June 29th .. .. . , 9s. June 30th . . . . 35s. 6d. July 6th .. .. .. 9s. July 1st . . .. . , 30s. 6d. „ 31st .. .. 33s. 6d.