Fair Play INTERVIEWS.

Fair Play, Volume I, Issue 20, 17 March 1894, Page 10

Fair Play INTERVIEWS.

This industry is probably one of the largest in New Zealand, and the gentleman, whose portrait we publish above, may bo aptly termed the “ Father” of it. He has also been mainly instrumental in the promoting and furthering of the frozen meat trade in the colony. Mr. John Holmes was born in County Cork, Ireland, where he studied law before he came to New Zealand. He arrived in the colony in 1874, and engaged in a general merchant’s business in Dunedin. He resigned his position there to accept an appointment with the New Zealand Loan and Mercantile Agency Company, for whom he undertook special financialduties. The Directors recognising his ability and energy rapidly promoted him, and at the expiration of 18 months he opened, and was made manager of the company’s branch at Blenheim, which he conducted with marked success, the prosent handsome building of the company there being the result of and a monument to his exertions. He finally decided to engage in business on his ,own account, and on resigning the management of the Blenheim branch was presented by the Directors with a substantial cheque in recognition of his services. To Mr. Holmes, Marlborough owes the direct London rozen meat trade, in fact the initiation of that trade and the exporting of tinned rabbits, both of which have played a prominent part in the prosperity of the district, were brought about by him. He has always taken a lively interest in all that affects the produce of New Zealand and has opened up new channels for its outlet, notably to Bio Janiero, to which port he has consigned large shipments of milling wheat, oats, and other cereals-

His connection with the hemp or flax trade of New Zealand is well known, and requires but little comment, suffice it to say that out of a great number of applications his was specially chosen as grader to the New Zealand Flax Miller’s Association. A representative from this paper called on Mr Holmes a few days ago with a view to furnishing it’s readers with some par. ticulars regarding the trade. He was courteously received by the subject of our. sketch, who expressed himself as willing to furnish any information in his power.

“ In the first place, Mi. Holmes,” said our reporter, “ what should the-flax trade of New Zealand be worth annually to the colony ?”

“ I should say about dE400,000, and at times over that, but the prices vary so, it is difficult to give an exact figure.”

“ About how much passes through Wellington ?” “ From fifty to sixty thousand bales of flax pass through the Wellington sheds yearly.’' *’ You were speaking of the varying of the prices; is it simply the usual varying of prices on a staple product; or is the market influenced by other means ?’’

“ Well there are several features that affect the marketvalue of our flax export. In the first place, it is to a certain extent controlled by the export of other fibres such as manilla and sisal, and in many cases the rope manufacturers prefer to use the fibres mentioned; if at the time the amount of flax in the home market is large, naturally the demand being reduced prices go down. Tlien there is the competition of flax from other parts of the world, with the result that a glut in the market ‘ home’ means a corresponding loss to the exporter.” “ But the flax is bought before it leaves New Zealand, it it not ? and surely the supply cannot overrun the demand when such is the case, at least in the London market. ” “ Ah, there you have touched the weak spot. Flax, up to within a few years ago was sold here to be delivered in London at a certain price. Perhaps during the time that elapsed between the sale and the delivery the market price through the influx of other fibres had depreciated to a considerable extent. Owing to the absence of proper grading, the buyers had a loophole of escape, and in many cases would refuse to accept delivery except at market prices, on the plea that the flax delivered was not up to the standard it sliould_have been. This was, of course, cruel to the exporters, but there was no remedy.” “ Could not this difficulty have been obviated by some system of Government grading and marking before the cargo was shipped, so that on its arrival, unless damaged during the voyage, it would have to be accepted by the purchaser.” “ Most certainly, but unfortunately we could not get the Government to take action in the matter by appointing an official grader. The difficulty was, however, to a certain extent surmounted by the flax millers forming themselves into an association, and appointing a man to examine and grade all exports in the trade before shipment. This grading has been accepted by purchasers in the English market almost universally and the result has been most satisfactory.” “ But London is not the only market is it ? I should have thought, judging from the cable reports of the lynching cases in America, that hemp would be a product much in demand in the United States.”

“ Oh yes,” was the reply with a smile, “ we send some to

America, but London is the great distributing depot for the world, and most of it goes there.” “ Apropos of the production of flax, Mr. Holmes, what is the amount that can be raised per acre ? ” “ About thirty tons to the ere. “ And what is the* highest price it has reached during comparatively recent times ? ” “ It has brought as high as £45 per ton, delivered in London, and Has gone down to £l7 10s, and even £15.” “Has the trade been a steadily increasing one since its nception ? ’’ “ Well, I can hardly give a negative or affirmative answer to your question in the way that you put it. When the industry first started it gradually grew to be one of the big features of our exports, then it fell off to comparatively little or nothing. Some little time afterwards it sprung up again during what was known as the * revival of the flax trade,’ and since then it has passed through various stages of depression and prosperity until at present the industry is worth about the amount per annum to the colony that I gave you a few minutes ago.” “You gave evidence as an expert before the ‘Flax and Other Industries Committee ’ in 1890, did you not, Mr. Holmes ? ”

“ Yes, and the expression of my opinion at that time is in accordance with my feeling and views at the present time, and I then said that if the Government were to place a sufficient sum upon the estimates to induce greater interest in the development of the industry by reason of improved machinery, that it would attract a larger number of competitors and the country would gain the benefit of the brains of engineers, and other men, flax dressers (practical and otherwise) in developing some new machinery that would both improve the dressing and reduce the cost.”

“At that time I believe the question of inspecting the fibre before shipment was also gone into ?” “ Yes; and I said then as I say now, I can hardly conceive that there should be two opinions on so important a question. To my mind it presents various advantages, the chief one being that it would have a deterring effect. The mere appointment alone would have a deterring effect upon all persons who are alleged to be careless in the manufacture of the fibre. And it would also have the effect of securing some absolute certainty to the honest producer, and then it would do away with the question of arbitration cases, which has been frequent in the city of London on flax questions. In Ireland, butter, for instance, is examined by experts and branded, and the butter is sold upon a basis in that way. As an instance, every farmer sends his butter to the butter exchange, and there it is branded with the Government brand. There are two inspectors who examine the butter, and if they have any doubts about it they refer it to another, and so on to the end of the chapter with the whole lot of casks, some thousands of which are examined from time to time. That being the case, there is no uncertainty with regard to the sale of the particular produce, because it is branded, and it goes to the outer world with the Government brand upon it, and insures for the farmer a price according to the value of the market at the time. In that way the producer is enabled to get the standard value of his article without any reference to arbitration, which has unfortunately taken place in the sale of New Zealand hemp.” “ In acting as grader for the Flax Millers’ Association you have no official standing with the Government, I suppose, Mr. Holmes.”

“No, I have no connection with the Government, but simply act as the accredited representative cf the association and receive from them 3d. per bale for inspection.” " “ Oh 1 one question more, what is the flax exported from New Zealand mostly made'into ?” “ The larger quantity is used for binding twine and cord, although a fair proportion is used for the manufacture of rope.” “Would not a greater profit accrue to the colony if the

twine were manufactured here than by the export of the raw material ?”

“ Undoubtedly there would; but as I have explained before, we have not as yet got the machinery to manufacture on a large scale.” “ Well, I must thank you for the information you have given me, which I am sure will be of interest to our readers.”

“Quito welcome, Mr. Fair Play, and I am always ploased to be of any use in my power to you.”