DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES. REVIEW OF OPERATIONS COVERING THE PERIOD FROM THE 1st APRIL, 1917, TO THE 31st MARCH, 1918, INCLUDING AN APPENDIX SHOWING RESULTS TO 30th SEPTEMBER, 1918.

Appendix to the Journals of the House of Representatives, 1918 Session I-II, H-38

H.—3B

1918. NEW ZEALAND.

DEPARTMENT OF IMPERIAL GOVERNMENT SUPPLIES. REVIEW OF OPERATIONS COVERING THE PERIOD FROM THE 1st APRIL, 1917, TO THE 31st MARCH, 1918, INCLUDING AN APPENDIX SHOWING RESULTS TO 30th SEPTEMBER, 1918.

Laid on the Table of the House of Representatives by Leave.

SIR,— Wellington, 24th April, 1918. In continuation of my last annual report, dated 30th June, 1917, I have the honour to submit a review of the operations of the Department of Imperial Government Supplies, covering the period from the Ist April, 1917, to the 31st March, 1918. As intimated in my previous report, the Department commenced operations on the 3rd March, 1915, and was constituted for the purpose of controlling the arrangements necessary in connection with the purchase of the entire output of frozen beef, mutton, and lamb available for export from New Zealand for such purpose as the Imperial Government might determine. The requisition of other commodities has since extended the duties and activities of the Department, and, in addition to frozen meat, it is now attending to the business arising out of the purchase and export of butter, cheese, " Glaxo," frozen and canned rabbits, condensed milk, scheelite, wool (greasy, slipe, and scoured), hides, and sheep-skins. In addition, the Department has administered the provisions of the Order in Council dated the 13th October, 1916, regulating the price of butter for local consumption during the 1916-17 season, has purchased butter and cheese for the Dominion Government for the use of camps and transports, undertaken all the internal arrangements in connection with the shipment of kauri-gum, kept the accounts in connection with the purchase of wheat by the Board of Trade on behalf of the New Zealand Government from the Commonwealth of Australia, and undertaken the arrangements in connection with the supply of butter for local consumption necessary through the withdrawal of factories supplying the Wellington markets during the present year. FROZEN MEAT. The requisition of frozen meat on behalf of the Imperial Government commenced on the 3rd March, 1915, and has since that date comprised all frozen beef, mutton, and lamb in store or produced at freezing-works available for export. The arrangements under which the requisition was introduced were the result of conferences convened by the Prime Minister and attended by representatives of the freezing companies, shipping companies, Board of Agriculture, and others interested in the industry. The schedule of prices and the general arrangements necessary in connection with the scheme were agreed upon and subscribed to by all parties interested, and the schedule of prices referred to was adhered to until the 20th

I—H. 38.

H.—3B.

2

October, 1916, when the rates were revised. The two sets of rates are furnished below for purposes of comparison :—

One of the conditions applying to the prices fixed on the 20th October, 1916, was that they should operate for at least three months after the termination of the war; and on the Ist November, 1916, the previous storage rate of per pound, with a maximum of three months, was reduced by 25 per cent., and the rate now paid is d. per pound. On the Ist May, 1917, the storage rates were again reviewed, and the maximum of three months' storage was removed. The position now is that storage is payable after the meat has been in store for one month, and the rate is - r , 3 a d. per pound from that date until shipment or delivery otherwise is effected. On the 29th November, 1917, an amended agreement governing the terms and conditions of the purchase of meat by His Majesty's Government was completed with all freezing companies, and under these amended terms and conditions His Majesty's Government accepts the ownership of all meat as soon as it is placed in the company's freezing-chambers in good and merchantable order and condition, and on such delivery into freezing-chamber the meat becomes the property of and at the risk of the Crown in all respects, subject to the obligations of storage, insurance, and delivery imposed on the company in terms of the agreement mentioned. The principal provision of this agreement is that all frozen meat so purchased shall be covered by insurance for a period of four months, at the freezing company's own costs and charges, under an accepted policy covering loss or damage caused by fire, and loss or damage caused by changes of temperature resulting from the total or partial destruction or disablement for a period of not less than twenty-four hours of any portion of the refrigerating plant by fire. At the end of the period of four months referred to the responsibility and liability for all frozen meat in freezing company's chambers is accepted by the Government. Provision is also made in this agreement for the withdrawal of meat required for local "consiirnption. Authority recently been received from the Imperial authorities permitting the shipment of mutton and lamb to Canada, provided that refrigerated

Description. ,, . ,. Prices operating Pneea operating from3rf 5 M . u , (!|i " 1915, to 19th October, 1916. 1916 , i Wethers, first quality, 72 lb. and under over 72 lb. and up to 85 lb. ,, ,, ,, 85 lb. and up to 98 lb. (subject to special approval by Inspector) ,, second quality Ewes, first quality, 72 lb. and under ,, ,, over 72 lb. and up to 85 lb. ,, second quality Lamb, specially prime and Canterbury quality, 42 lb. and under ,, first quality, 42 lb. and under ,, ,, over 42 lb. ,, second quality .. .. .. . . .. Beef, prime ox .. .. ,, second and heifer ,, boning in quarters . . ,, cow, prime. . ,, ,, second ,, boneless .. . . .. Mutton, legs ,, shoulders ,, loins „ haunches .. .. .. .. .. • .. Per 11). Per lb. d. il. f;3 41 ■> s if -i H n - 51 4| 41 4 4-£ 32 4f 3| 6i- 5| 6| 5| 64 5i fil r..L 5 4f 4f 4i 4J *4 43 41 41 4 51 5 6| 5|5| 4| 5f 4| 5

3

H.—3B

space is available in steamers now trading with that Dominion, and this concession has been taken advantage of by several freezing companies interested in the Canadian trade. The total quantities of meat purchased from the 3rd March, 1915, to the 31st March, 1918, were :— Beef (quarters) ... ... ... ... 1,900,267 Mutton (carcases) ... ... ... ... 7,294,204 Lamb (carcases) ... ... ... ... 8,970,976 Other meat (in 60 lb. carcases) ... ... 243,969 The total payments for meat to the 31st March, 1918, amounted to £22,851,823 Bs. lid., distributed as under :— Auckland ... ... ... 2,030,013 4 8 Poverty Bay ... ... 2,291,098 8 1 Hawke'sßay ... ... 2,302,148 3 7 Taranaki ... ... ... 926,927 511 Wellington ... ... ... 6,662,524 2 4 North Island ... ... 14,212,711 4 7 Marlborough 176,037 16 9 Nelson ... ... ... 112,030 10 8 Canterbury ... ... ... 5,059,783 6 10 Otago ... ... ... 1,654,301 14 4 Southland ... ... ... 1,636,958 15 9 South Island ... ... 8,639,112 4 4 Total ... ... ... £22,851,823 811 The quantities of meat which had either arrived at destination or were en route as at the 31st March, 1918, were as follows : — Beef (quarters) ... ... ... ... 1,875,950 Mutton (carcases) ... ... ... . ... 7,154,122 Lamb (carcases) ... ... ... ... 8,825,068 The balance is accounted for by quantities of meat then on board steamers loading in New Zealand and by losses in the steamers " Clan McTavish," " Eotorua," and " Westmoreland." The work of inspection, grading, and checking weights, together with the certified statements furnished by freezing companies relating to quantities of meat on hand, killings, &c, is carried out by the Live-stock Division of the Department of Agriculture. The respective quantities of meat shipped from each port from the 3rd March, 1915, to the 31st March, 1918, are set out in the following table : —

4

H.—3B

Statement showing the Quantities of Frozen Meat shipped at each Port from the Inception of the Scheme— i.e., 3rd March, 1915— to the 31st March, 1918.

1914-15 Season. 1915-16 Season. 1916-17 Season. 1917-18 Season (to 31st March, 1918). Total. Pori: of Shipment. Beef. , Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton, j Lamb. Beef. Mutton. Lamb. Beef. Mutton, i Lamb. Quarters. I Carcases. Carcases. Quarters. Carcases. Carcases. ! Quarters. Whangarei .. .. 23.694 .. .. 41,457 11.323 3,222 25.067 Auckland .. .. 52.533 41,264 74.983 186.587 42,975 108,104 76.063 Tokomaru Bay .. .. 6.463 58.460 41.897 8,950 j 107,846 67,526 7,742 Gisborne .. .. 25.024 220.038 101.073 62,261 325,172 165,752 33.933 Napier.. .. .. 34,802 208,775 151,982 64,802 377.599 301.282 33.092 Waitara .. .. 46.612! 49,485 28,250! 77,680 54,929 44,126 34,608 New Plvmouth .. .. .. .. .. .. .. .. 8,531 Wanganui .. .. 17.812 95.713 38,012 26.783 88,569 67,766 56.011 Wellington .. .. ! 58,979 610,073' 411,351 166.931 734,540 782,383 88,287 Carcases. Carcases. ! Quarters. Carcases. Carcases. Quarters. ! Carcases. | Carcases. Quarters. I Carcases. Carcases. 11.323 3,222 25,067 4,271 3,155 22,844 ; 9.991! 1,079 113,062 25,585 7,456 42,975 108,104 76,063 22,942 9,464 82.513 30.534 17,992 397.696 137.715 210.543 107,846 67.526 7.742 33,186 .. 4.071 42.968 .. 27.226 242.460 109.423 325,172 165.752 33.933 143. 881 j 13,562] 18.188 141.149 69,055 139.406 830.240 349.442 377,599 301.282 33.092 248,209 88,516 7,148 161.851 144.330 139.844 996.434 686.110 54,929 44,126 34.608 13,918 13,389 35.826 33.832 26.198; 194,726 152,164 111,963 8,531 12,761 2,567 12.952' 9,043 9,345 21.483 21,804 11.912 88,569 67,766' 56.011 65,784 24.004! 19.359 144,893 108,138 119.965 394,959 237,920 734,540 782,383 88,287 395.542 402.350 57.510 327,771 254.966 371.707 2.067.9261.851.050 , — i 1 Total shipped at North 265,9191,283,808 847,548 635.4511,742,9531,540,161 363,334. Island ports — ■ ! 1—— , Nelson.. .. .. 521 10.312 20,549 4,763 16,623 21,563 4,256 Picton .. .. .. 22.410 31.035 .. I 27,650 42,392 Lyttelton .. .. 11,128 244.750 772.152! 38.162 274,884 770,312 52,2051 Timarc .. -- 2,618 153.374 623.925 7.624 102.373 334,357 15,507 Oamaru .. .. .. 29.871 97.868 .. 10,095 32,402 Dunedin .. .. 11.876 85.884 214.387 22.246 1 102,716 189,680 30.388 Bluff .. -. •■ 45.673 156.552 282.044 61,634 144,396 217,847 52,018 940,494' 557,007 260, 41l! 902,032 631, 103 1,525. 115 4.869, 287 ! 3.575, 81 i 1,671! 17.592 237,954 158.713 9.541 107,912 101.723 1.684 23,217 352.344 248.520 2.527 54,700, 75,507 2,646 1,099 5,243 1,001 92 4,452 8.526 17.590 164.024 47.691 43.079 46,894 80.117 10,324 23,690 539.068 244.673 21.426 91.139 55.825 12,186 1.099 106,738 26,750 64.602 163,777 37,132 54.12( 85.242 120.33' 921, 612 2.433. 87< 462,1511.451.47i 92,586 154,22! 343,406 549.901 482.788: 631,22; ! ; : L_ . Total shipped at South 71,816 703,1532,041,960| 134,429 678,7371,608,553' 154,374 Island ports i ] ! — Grand totals .. ! 337.735 1.986.961 2.889.508 769.8802,421,6903,148.714 517.708 III I I 635,106 758,499 14,533! 407,921 986,145 375,152 2,424,917:5,395,15' 1,575,6001,315,506 274,9441, 309, 953 1,617, 248 1.900, 267 7,294, 204 8,970, 97i

5

H.—3B

System of Payment for Meat. No change has been made in the system of payment for meat adopted at the outset of the scheme. This provides for one set of bills of lading and shipping documents to be drawn by freezing companies for each shipment, and for these documents to be posted to the Controller, Department of Imperial Government Supplies, when completed and in order. On receipt in the Department the gradmg-oertrlicates and shipping specifications are checked with the particulars shown in the bills of lading and in the invoices attached, and payment is invariably rendered within twenty-four hours after receipt. In the majority of instances these documents are received by the Department from the various banks trading in the Dominion, an arrangement having been concluded whereby drafts drawn on the Department are negotiated free of exchange to the drawers. In the case of certain farmers' freezing companies, the proceeds of shipments arc payable to individual clients, and the method adopted in such cases is for the freezing company to indicate in its invoice the names of the clients to whom it is desired payment should be remitted, and on receipt of such invoice, and after the documents have been checked, the remittances are made by cheque free of exchange to the clients named. This system has proved particularly satisfactory, has obviated the necessity of drawing more than one set of documents for each shipment, and has resulted both in payments to the clients concerned with expedition and in the reduction of the many documents required to be handled by the Department. Funds for purchases are requisitioned weekly from the Imperial Government, and the practice adopted is for the Controller to make a weekly estimate of the funds required for the following week and advise the Treasury accordingly, and for the Treasury to cable the High Commissioner with the request that the amount be obtained from the Imperial Government department concerned and placed to the credit of the New Zealand Public Account. Such requisitions are promptly honoured by the Imperial authorities, and no delay has resulted since the institution of the practice outlined. The following statement furnishes particulars of frozen meat in store and of shipments made in 60 lb. carcases during the period commencing Ist April, 1915, to the 31st March, 1918, and a comparison of the relative shipments during the three complete years furnished will doubtless be found interesting. Particulars of Frozen Meat in Store and of Shipments made (60 lb. Carcases). In store on — 1915-16. 1916 17. 1917-18. April 30 ... 1,792,362 2,304,258 2,946,781 May 31 ... 2,048,454 2,642,362 3,290,072 June 30 ... 2,165,342 2,480,846 3,483,324 July 31 ... 1,865,283 1,892,504 3,383,235 August 31 ... 1,410,167 1,396,540 2,949,545 September 30 ... 665,992 816,933 2,873,277 October 31 ... 199,936 367,975 2,557,881 November 30 ... 140,836 161,311 1,890,489 December 31 ... 597,817 451,361 1,915,451 January 31 ... 1,093,300 1,137,438 1,954,490 February 28 ... 1,575,336 1,901,085 2,609,618 March 31 ... 2,152,250 2,409,541 3,^98,364 Shipments during— 1915-16. 1916-17. 1917-18. April .' 498,971 540,204 340,374 May ... ... 389,223 500,097 338,507 June ... ... 302,293 605,890 239,793 July ... ... 761,641 . 740,845 229,402 August ... ... 602,647 555,630 453,178 September 795,766 609,362 96,059 October 474,055 465,983 321,127 November ... ... 282,450 321,497 743,065 December 241,734 235,316 394,941 January ... ... 514,036 440,168 904,810 February 498,964 272,910 369,043 March ' ... ... 542,586 800,539 335,303 5,904,366 6,088,441 4,765,602

H.—3B

6

It will be noticed that the maximum quantity of meat in store to the 31st March, 1917, was that on the 31st May, 1916, comprising 2,642,362 60 lb. carcases, and that this amount has been considerably exceeded by the maximum quantity in store to the 31st March, 1918, which was 3,483,324 60 lb. carcases on the 30th June, 1917. A considerable increase has again to be reported in the freezing facilities available throughout the Dominion. When the Department commenced operations the storage-capacity of the various works was 2,200,000 60 lb. carcases. In my previous report I referred to the increase to 4,400,000 60 lb. carcases, and during the period under review this latter figure has again been increased, and the total refrigerated space now available throughout the Dominion is 6,336,399 60 lb. carcases. Of this latter space, 4,091,688 60 lb. carcases are available in the North Island and 2,244,711 in the South Island. In order to conserve the shipping-space available it was arranged during the past season that all freshly killed carcases of mutton and lamb intended for export were to be cut and packed specially, and in consideration of the extra labour involved by this requirement freezing companies were paid at the rate of per pound on all meat so cut and packed. The method adopted is to sever the carcases into two parts and place the hind quarters inside the forequarters, side on and legs first. The saving in space as a result of this process averages from 25 to 30 per cent., and, in view of the existing shortage of shipping facilities, the advantages of the adoption of this practice are obvious. CHEESE. During 1915-16 dairy season the Dominion. Government, acting on behalf of the Imperial Government, requisitioned one-third of the first-grade factory cheese produced in New Zealand, on the basis of per pound f.0.b., and under the arrangements then made 189,502 crates, valued at £917,748, were purchased and shipped. During the 1916-17 season the whole of the output of first- and secondgrade factory cheese was purchased at rates of and 9|d. per pound f.o.b. respectively, and under these arrangements 518,326 crates, valued at £3,295,557 were shipped. The whole of this cheese successfully arrived at destination with.the exception of 16,440 crates which were lost in the s.s. " Rotorua " as a result of the enemy's submarine campaign. The delay in the introduction of the 1916-17 requisition resulted in the disturbance, to a certain extent, of contracts already entered into between factories and agents of British importing houses, and in recognition of the trouble and expense to which these agents had been put a deduction of 1{- per cent. was made from the proceeds of shipments of all factories concerned, and paid to the relative agents. During the present (1917-18) season several conferences were held between the Prime Minister and representatives of the dairy factories, and after prolonged negotiations the total exportable output has again been purchased by the Imperial Government at lOd. per pound for first-grade factory cheese and 9|d. for second-grade cheese. The Imperial Government has also accepted sundry smaller shipments of third-grade cheese on the condition that on arrival in the United Kingdom it is to be valued by an expert firm in the trade, and that the price does not exceed per pound. In addition dairy cheese has been accepted at for first grade and Bd. per pound for second grade. The cheese is purchased on the basis of delivery f.0.b., and all insurance risks up to that point are borne by the factories concerned. If, however, the average period for which the whole of the cheese supplied oy any manufacturer remains in store for any period is in excess of three

7

H.—3B-

calendar months, storage in respect of the excess period will be paid by the Imperial Government at current rates, and with this exception all storage charges are paid and borne by the seller. In addition to the foregoing provision advances are made against cheese available for shipment after it has been in grading-store for at least twentyeight days, and this provision is made full use of by the various factories throughout the Dominion. To the 31st March, 1918, 201,763 crates of cheese had been shipped, and of this quantity 83,810 crates had arrived at their destination. The total value of these shipments, together with advances made, is £3,107,274. BUTTER. For the first time since the commencement of the present war the Dominion's output of butter has been requisitioned by the Imperial Government, and the preliminary arrangements were made as the result of conferences convened, first between delegates representing the various factories' interests and the Prime Minister, and later by a small committee appointed by the factories for the purpose of completing final arrangements. This committee met on several occasions, and the negotiations with the Imperial Government extended for some considerable period before finality was arranged, but a final settlement w T as reached on the 6th November, 1917, and the purchase commenced. The prices paid for the output are as under :— Creamery Butter. First grade ... ... ... ... 1575. per cwt. In the case of second-grade butter a deduction of Is. per hundredweight is made for each grade point by which the butter falls below first grade. Whey Butter and Dairy Butter. First grade ... ... ... ... 1335. Bd. per cwt. With a reduction of hd. per pound for second grade. Milled Butter. First grade ... ... ... ... 1245. 4d. per cwt. With a reduction of J,d. per pound for second grade. In addition to the prices mentioned it is also agreed by the Imperial authorities that if any profit results from the sale of butter in the United Kingdom a sum representing 50 per cent, of the net profit as determined by the Imperial Government will be made available to the New Zealand Government for distribution to the sellers pro rata in accordance with the quantities of butter purchased and shipped. These prices are for butter delivered f.o.b. ocean steamer, and, as in the case of cheese, all insurance risks up to that point are borne by the factories concerned. Prevision is, however, made for advances up to 90 per cent, of the value of the various grades and qualities of butter purchased after such butter has been in grading-store for a period of twenty-eight days, and this provision has been of very considerable assistance to factories in making their financial arrangements. Storage is also allowed by the Imperial Government if the average period during which the butter from any factory remains in store exceeds three months, but up to that period all storage charges are borne by the factories concerned. The arrangements in connection with both the butter and cheese purchases were considerably delayed during the past season, and in many instances factories were seriously incommoded by their inability to make satisfactory financial arrangements pending the completion of the negotiations. Recogniz-

H.—3B

8

ing this difficulty, the Right Hon. the Minister of Finance made arrangements to advance to those factories concerned sums totalling £600,000 during November and December, 1917, and the assistance thus provided enabled the majority of factories to make their monthly payments to suppliers at a time when the negotiations were still incomplete, and when the financial institutions throughout the Dominion appeared disinclined to make further advances until more certain as to the final disposal of the outputs. The total quantity of butter shipped to the 31st March, 1918, was 362,363 boxes, of which 38,528 boxes have arrived at their destination; and the value of these shipments, together with advances against produce awaiting shipment, was £2,240,622. The total quantity of butter in store awaiting shipment on the 31st March, 1918, was 350,315 boxes, of which 326,858 boxes were held in the North Island and 23,457 boxes in the South Island. CONDENSED MILK. Payment for supplies of condensed milk purchased on behalf of the Imperial Government by the New Zealand Munitions and Supplies Department has again been arranged by the Department of Imperial Government Supplies, and during the year ended 31st March, 1918, 39,159 cases have been shipped, for which £41,689 Bs. 4d. has been disbursed. The total shipments and payments to the 31st March, 1918, are 59,157 cases and £63,070 Bis. 4d. respectively. " GLAXO." During the year arrangements were completed by the Imperial Government for the purchase of a considerable quantity of " Glaxo " from the manufacturers in the Dominion, and the first shipment was made on the 10th October, 1917. Since that date 66,958 56 lb. tins have been purchased, valued at £234,353, and of this quantity 56,278 tins have been shipped. In addition to the value of the " Glaxo," a sum of £14,031 lis. 3d. has been paid on account of freight for shipments already made, and the total payments under this heading are accordingly £248,384 lis. 3d. The balance of 10,680 tins which have been advanced against are awaiting shipment. SCHEELITE. The purchase of scheelite on behalf of the Imperial Government commenced on the 20th September, 1915, and the price paid at that date was £2 15s. per unit of tungstic acid disclosed by assays made in the United Kingdom in respect of ore assaying at least 65 per cent., with a reduction in cases where the assay fell below that point down to 50 units per ton. This price was continued until the 31st December, 1916, and from the Ist January, 1917, an additional allowance was made to shippers, representing the di (Terence between the cost of freight and insurance at the commencement of the requisition and the rates then being charged. This arrangement continued throughout 1917, and on the Ist January, 1918, the price was increased to £3 per unit for ore assaying 65 per cent, tungstic acid, together with a further allowance of 3s. lOd. per unit, representing the cost of increased charges since the requisition commenced. The following are particulars of shipments and of payments made to producers : — Tons. Shipped per s.s. " Rotorua " (sunk en route) ... ... 8 Arrived at destination ... ... ... ... 451 En route to Great Britain ... ... ... ... 46 Total ... ... ... ... 505 Total payments made to 31st March, 1918 ... £97,611

9

H.— 38

Although final settlement is made on the basis of the assay carried out in the United Kingdom, an advance, free of interest, representing 80 per cent, of the value of the tungstic acid as disclosed by New Zealand assay, is made at time of shipment to the producers concerned. WOOL. Requisition and Disposal. Greasy Clip. The purchase of the 1916-17 greasy-wool clip on behalf of the Imperial Government was, as intimated in my previous report, made on the basis of a 55-per-cent. advance on the average prices realized during the 1913-14 season. These were estimated to be as follows : — Description of Wool. Ran g e of 1 Values per Pound according to Quality. Superior merino combings ... ... From 12d to 14-^d. Medium to good merino ... ... „ 9fd. „ ll^d. Inferior merino ... ... ... „ „ 9^-d. Superior half-bred ... ... „ 12d. „ 14d. Medium to good half-bred... ... ~ 9|d. ~ 12d. Inferior half-bred ... ... ~ 9d. ~ lOd. Superior crossbred ... ... „ 10- L d. „ 12d. Medium to good crossbred ... ... „ 9d. „ lid. Inferior crossbred , . ... „ 7|d. ~ 9d. Lincoln and Leicester ... ... „ B|d. ~ 10^d. Lambs, good ... ... ... „ lid. „ 13d. Lambs, medium ... ... ... „ 9d. „ lOfd. and all wool received into store and accepted was paid for on the above scale, plus the 55 per cent, mentioned. On receipt of advice from the Imperial Government of its desire to continue the purchase of the whole of the 1917-18 wool-clip on the same terms and conditions as for the previous season, the necessary action was taken, and a Proclamation issued by Gazette notice on the 25th August, 1917, which was subsequently amended by a further Gazette notice published on the 15th October, 1917. The method of purchase followed was on the same lines as that adopted during the previous year, with some minor alterations in procedure necessitated by the previous year's experience. All owners of wool were required to deliver their wool at the stores of registered Government woolbrokers at specified ports, and the wool was there examined by expert valuers appointed for the purpose by the Government and by valuers appointed by woolbrokers. In the case of any dispute in respect of the valuation as between the two sets of valuers, provision was made for revaluation by an umpire, and this provision has been freely availed of throughout all valuations. < Payment was made for the wool to the broker as the agent for the owner, and on receipt of payment the broker took possession of the wool and held it on behalf of the Government. Payments were made to woolbrokers free of exchange on the fourteenth day after valuation had been completed, and on the same day the broker was required to account for the proceeds to the several owners concerned. Prior to payment being completed the wool remained the property of and was at the risk of the owner, but was insured against fire to its full insurable value on his behalf while in the possession of the broker and until paid for. The broker was not allowed to charge the owner any sum for services rendered with the exception of that for repacking when such was required, the intention being that the amount payable by the Government to the owner for his wool should be the net return based on the foregoing scale of prices. The brokers appointed as registered Government brokers were required to do all that was necessary in connection with the receipt, weighing, stacking,

2_H. 38.

H —38

cataloguing, displaying, and countermarking in accordance with the instructions issued by the Government, and their remuneration for this service was fixed at ,-Ld. per pound of wool for all wool purchased through the agency of these brokers in pursuance of the scheme. An additional allowance of 6d. per bale was made to brokers to cover the cost of preparation of shipping documents. The woolbroker was required to provide storage free of charge for the wool for a period of twenty-eight days after the date of valuation, and on the expiration of that period storage was paid by the Department of Imperial Government Supplies at the rate of 4d. per bale per week or portion thereof for the months of October to April inclusive, and at the rate of 2-|-d. per bale per week or portion thereof for the months of May to September inclusive, in any year. The Government also accepted liability for freight, stamp duty on bills of lading, and all wharfage, lighterage, and railway charges from the store to the carrying steamer where such were incurred. Valuation. The services of the overseas buyers and others as valuers utilized for the valuation of the 1916-17 clip were retained for the valuation of the 1917-18 clip, and the remuneration for their services was fixed at £45,000 plus actual locomotion expenses, and £1,500 for clerical assistance and office accommodation. In addition to valuing the greasy clip, all scoured and slipe wool is valued as required without extra remuneration. Wool bought and shipped. Since the commencement of the requisition the following quantities of wool have been disposed of as under : — Total number of hales valued (as per valuation certificates received) .. 991,774 Number of bales lost in transit .. .. .. . . 9,668 Number of bales arrived at destination (in seventy steamers) . . 385,074 Number of bales en route to Groat Britain (in fourteen steamers) 65,159 Number of bales shipped on account of other Governments .. 18,560 Number of bales of greasy wool available for shipment or scouring 513,313 991,774 Number of bales of greasy wool delivered to scourers for treatment .. 129,435 Number of bales of scoured wool shipped .. .. .. .. 62.552 Number of bales of scoured wool available for shipment .. . . 58,685 Total number of bales paid for .. .. .. .. .. 981,573 For the 981,573 bales of wool paid for as mentioned above, the sum of £23,360,888 has been disbursed, and, in addition, £1,594,895 has been paid to freezing companies in respect of 62,981 bales of wool advanced against and shipped for valuation in London. The wool-valuing centres under the scheme were : Auckland, Tokomaru Bay, Tolaga Bay, Gisborne, Napier, Waitara, Wanganui, Wellington, Nelson, Blenheim, Christchurch, Dunedin, Timaru, Oamaru, Invercargill. Wool for other Governments. Acting on instructions from the Imperial Government, arrangements were made to permit the French Government to select in New Zealand, by its own agent, from the 1916 17 clip, 20,000 bales of wool for its own requirements, and this was effected at valuation prices, plus |d. per pound to cover cost of valuers' and brokers' services. In addition, 1,553 bales of wool were selected by the Department's representatives and shipped to the French Government without the intervention of the French representative. 7,436 bales of wool from the 1916-17 clip were also selected and shipped on behalf of the Canadian Government by the Department, and the prices charged for these latter shipments were arranged by the Imperial Government.

10

FT.—3B

11

From the 1917-18 clip, wool for other Governments has been selected as under :- — For France ... ... ... ... 30,000 bales; For U.S.A. ... ... ... ... 12,000 bales; For Canada ... ... ... ... 25,000 bales; and, with the exception of a portion of the wool for the French Government which has been selected by its own agent, this wool has been selected by the Department, and will be shipped as space becomes available. Authority has also been received for the selection of a further 30,000 bales of wool for France, and this will also be selected and shipped by the Department. Wool for Local Mills. The Department has also arranged for the continuance of the supply of wool required by local mills, and this has been supplied at the Imperial Government schedule rates, plus the cost of valuation. The representatives of New Zealand woollen-mills are required to make their selections prior to valuation, and in the case of any dispute arising as between two mills, preference is given to the one which has first intimated its requirements to the broker concerned. WOOL-SCOURING ARRANGEMENTS. Arrangements were made for the scouring of wool produced on behalf of the Imperial Government as required. Assistance in allocating wool for scouring during the 1916-17 season was given by District Supplies Committees at the various centres throughout the Dominion, and the thanks of the Department are due to these committees for the very useful services rendered gratuitously by them. For the 1917-18 season it was decided that a more equitable distribution and control could be secured by dealing with the whole matter direct from the Department, and on the Ist November, 1917, the control of such allocations was accordingly undertaken. For the 1916-17 season to the 31st October, 1917, 80,951 bales of wool were distributed to registered wool-scourers for treatment; and for the 1917-18 season, from the Ist November, 1917, to the 31st March, 1918, 82,123 bales of wool had been distributed to wool-scourers or set aside for subsequent scouring. Scourers were required to sort, classify, scour, dry, and pack the wool to be treated by them, and their remuneration was fixed at the following scale: l L d. per pound for fleece on scoured weights; lfd. per pound for bellies, locks, stained pieces, and second pieces on scoured weights; with -|d. per pound advance in each case for merino wool; and payment for such charges is made within fourteen days on receipt by the Department of Imperial Government Supplies, provided the inspectors' and valuers' certificates required are properly completed. Satisfaction has been expressed by the Imperial Government at the condition of scoured wool already arrived at destination, and as a direct result of this instructions have been received to have a larger quantity of wool scoured in the Dominion during the present season. The credit for this satisfactory position is largely due to the unremitting attention given this work by the Inspectors of Wool-scouring Works, and also to the attention which has been paid by wool-scourers to the requirements of the Department. Condition of 1917-18 Clip. Auckland. —The wool from this district came forward in good condition, and the standard of preparation is better, but there is still room for improvement, as the bulk of the lines offered are very mixed. Poverty Bay (including Tolaga Bay and Tokomaru Bay).—The wool in this district was generally disappointing, and seed was much in evidence, which in

H.—3B

12

many cases had a serious effect on the value. Hogget wool was poorly grown, short, and tender, no doubt caused by the unfavourable conditions of the previous winter. Lambs' wool came forward generally short and more or lass seedy, mere being very few choice lines. Haw he's Bay. —The condition of the wool submitted up to the end of January was generally good, although not so well grown as usual, but hogget; wool was in poor condition, short and tender. YYniic there were few really good lines of lambs' wool, the majority were short and carried more or less seed. offerings carried an excessive quantity of seed, and were heavier in condition. Wellington, Wanganui, and Waitara. —Generally in the earlier part of the season wool came forward in better condition than during 1917, but later the hogget wool showed want of length, and in many cases was very tender. Lateshorn clips carried a greater percentage of seed than usual, and lambs' wool was shorter, with comparatively few lines free from seed. Marlborough. —The whole clip was decidedly better than the previous year, and some of the merino clips came forward in excellent condition. Nelson. —The season had evidently been a favourable one, and the wool was submitted in good condition. Chnstchurch. —The wool offered at this centre was in better condition than in the previous season. Timaru. —A number of merino clips which had previously been scoured were submitted for valuation in the grease, and while they were heavy m condition they were generally well grown. Crossbreds and half-breds came forward in very good condition, and better than the average. Oamaru. —This district has a reputation for heavy-conditioned and dirty wool, but the past season was exceptional, and the wool came forward in really good condition. Dunedin. —The whole clip offered was in better condition than in the previous year, and the best lines of half-breds in the Dominion were submitted for valuation. Invercargill. —The wool generally was well grown and in good condition, the hogget wool particularly so. Wool-valuers have carried out their onerous duties with tact and judgment, and with general satisfaction to the growers and the Imperial Government. Owing to the prevalence of heavily seeded wool during the season some dissatisfaction was expressed at the prices given, but meetings arranged between the supervising wool-valuers and growers, at which the valuations were discussed, were of great service in removing misunderstanding. Wool-growers generally have accepted the decisions of the valuers in a spirit which has been greatly conducive to the smooth running of the requisition. Slipe Wool from Freezing Companies. Slipe wool produced at freezing-works to the 30th June, 1917, was purchased on behalf of the Imperial Government on. the basis of values obtained in London by individual freezing companies during the period Ist January to 31st December, 1914, plus 55 per cent. The wool was purchased for shipment and valuation in London, and an advance of 75 per cent, of the value was made on delivery into store in the Dominion. Slipe wool produced from the Ist July, 1917, to the 15th November, 1917, was purchased on. the basis of the average values obtained in London by all freezing companies-during the period Ist August, 1913, to 31st July, 1914, plus 55 per cent. This wool was also shipped to London for final valuation, and an advance of 75 per cent, of the value was also made in the Dominion, as stated above. During the 1916-17 season owners had permission to submit slipe wool for valuation in New Zealand if so desired, on the same conditions and on the same basis of valuation as for the greasy clip. This permission was subsequently

13

H.—3B

withdrawn by the Imperial Government, and negotiations took place with the object of securing to owners of slipe wool the option of valuation in New Zealand or London. The Imperial authorities, however, refused to allow the option, but agreed to permit valuation, to be made either wholly in New Zealand or wholly in London; and as the result of a conference of freezing companies and growers to consider the offer of the Imperial authorities it was decided that valuations of all slipe wool should be made in New Zealand, and should apply to all wool not invoiced to the Imperial Government at the 31st March, 1918, or produced after that date. The conditions of the purchase of slipe wool produced from the Ist July to the 15th November, 1917, were originally extended to the 30th November, 1918, but this extension has been subsequently modified as a result of the conference referred to above. As soon as arrangements have been completed valuations of slipe wool wi 11 be made at freezing-works and shipping-stores in the Dominion. To the 31st March, 191.8, 62,981 bales of freezing companies' wool had been dealt with, and payments totalling £1,594,895 made. Of the total quantity of wool advanced against, 49,332 bales have been shipped to the United Kingdom, and 1,795 bales sold on account of other Governments. SKINS AND HIDES. The purchase of sheep-skins on the basis of 55 per cent, advance on 1913-14 prices has been continued on the same conditions of purchase as obtained to the 31st March, 1917, with some small'improvements in procedure. The scale of values on which sheep-skins are purchased was fixed as follows : —

All skins with damaged or faulty pelts are valued at prices proportionate to those shown above. In valuing green or salted sound skins allowance is made for the extra value of the pelts as compared with dried sound skins of similar quality. Seedy skins are valued at lower values according to their condition. Black skins are valued according to their proportionate value to ordinary skins of the same class. Wherever the conditions are suitable skins from sheep slaughtered at abattoirs are now valued daily on the abattoir premises, and treated on the same day at neighbouring fellmongeries. Owing to the opinion being freely expressed in some quarters that the requisition of sheep-skins was against the best interests of producers, the Imperial Government offered to discontinue the requisition, and with a view to discussing the proposal a conference of the parties interested was called at Wellington. The unanimous opinion of growers, brokers, butchers, and fellmongers, however, was in favour of the continuation of the requisition, and arrangements were accordingly made to comply with their wishes. Fellmongering. Sheep-skins are allocated to fellmongers by the Department immediately after valuation, and are during treatment under close inspection by Inspectors of Fcllmongering-works specially appointed for the purpose.

Merino Skins. Half-bred Skins. I j fine Crossbred Coarse Crossbred Skins. Skins. _L Three-quarter to full-woolled sound skins Half-woolled sound skins Short to quarter-wSolled sound skins Shorn sound d. 101-111 8f-9f 7|- 8| 5|- 6| d. 13 -14 11 -12 91 -10| 8 - 9 d. d. 12 13 114-124 104-114 10 -114 94-10I 84 J Of 84- 94 8 -10 . y 1 Lamb-skins sound 11-124

H.—3B

14

The resulting wool and pelts, after valuation, are required to be redelivered to the Government through the Government agents at the customary shippingports, baled or cashed, and branded as directed. In November, 1917, a deputation of fellmongers made representations regarding the large increase in the cost of materials used, and it was found equitable, as from the Ist November, 1917, to increase the payment to fellmongers for their services to the following rates : — Fellmongering—2|d. per pound on the weight of wool. Curing pelts—3s. 9d. per dozen pelts (casks extra). Fellmongering of sheep-skins has been done in a very satisfactory manner, and the fellmongers have always displayed a willingness to carry out any instructions issued by the Department with a view to the improvement of the output, and the standard of preparation of both slipe wool and pelts is high. The Inspectors, who are also Inspectors of Wool-scouring Works, continue to exercise the closest attention and care to maintaining the standard already set. To the 31st March, 1918, 2,014,548 skins had been purchased, at a cost pf £757,323. In connection with both the wool-scouring and fellmongering operations periodical costs are extracted by the Department showing the results of the operations after taking into account the original cost of the greasy wool and sheep-skins and of the resulting product of the scoured wool, slipe wool, and pelts, and the results in the majority of instances have been quite satisfactory. As the slipe wool from skins and the pelts are valued by valuers totally distinct from those responsible Cor the original valuation of the sheep-skins fellmongered, this position must be regarded as particularly satisfactory, and discloses a uniformity of opinion of values as between the two sets of valuers named. Hides and Calf-skins. All hides and calf-skins produced from the Ist March, 1917, to the 28th March, 1918, have been purchased on the following scale of values, on the basis of delivery f.o.b. ocean steamer :— Per Pound. s. d. Ox-hides, first quality, over 45 lb. up to freezing companies' best standard 1 1 Others, first quality ... ... ... ... ... ... 1 0 OxJiides, second quality ... ... ... ... ... 0 11-J Cow-hides, first quality, up to freezing companies' best standards ... 1 0 Others, first quality ... ... ... .., ... ... 0 1.1 Cow-hides, second quality ... ... ... ... ... 0 10| Bull-hides, good quality... ... ... ... ... ... 0 9 All other grades and qualities, including cut and slippy hides, are fixed at relative valuations. Local tanners' requirements have been met by granting them permits to purchase from hides submitted for valuation at the appraised prices. Hides have also been supplied to the Australian and Canadian Governments for military requirements, and have been invoiced at schedule rates plus IJ, per cent, to cover the expense of valuation. In addition, sundry small shipments of calf-skins and yearling-hides have been made to Australian purchasers from the surplus of such skins and hides available after the local tanners' requirements have been filled under the system of permit referred to above. Valuations have been periodically made at brokers' stores, freezing-works, and at the Christchurch, Dunedin, and invereargill Abattoirs, and to the 31st March, 1.918, 324,314 hides have been purchased, at a total value of £596,762. Of these purchases 137,563 hides have been shipped to the United Kingdom and 129,692 sold locally and to other Governments. Owing to the increasing difficulties in obtaining shipping-space to the United Kingdom, and also to the fact that the prices at which hides had been purchased in the Dominion were higher than those at which they had been purchased elsewhere, the Imperial Government expressed the desire to discon-

15

H.—3B

tinue the requisition in New Zealand as on the 28th March, 1918. Efforts were made to have the purchase continued to the 30th June, 1918, but without avail, and the requisition of hides ceased on the 28th March, 1918. As negotiations proceeded conferences of parties interested were held, at which the position was fully explained, and after full consideration it was decided at the last meeting so held that in view of the Imperial Government's decision it was inadvisable for the New Zealand Government to continue to exercise any control over the marketing and sale of hides locally. A Gazette notice was accordingly prepared, and has since been issued, removing the restriction on the export of hides gazetted on the 12th March, 1917, and a fresh Order in Council has been gazetted granting permission to export under specified conditions, with the consent of the Minister, of Customs. RABBITS. Negotiations have at various times been conducted with the Imperial authorities with a view to obtaining their consent to the purchase of the output of frozen rabbits available for shipment from southern ports, and a number of conferences were held between rabbit-exporters and representatives of the Government with a view to arriving at terms satisfactory to the Imperial authorities in this connection. Finality was reached in February, 1918, when the Imperial authorities agreed to accept all rabbits for shipment in the space available of the undermentioned grades :— Grade A—Prime rabbits, 2-| lb. each and upwards, 24 in crate. Grade B—First-quality rabbits, 2| lb. each and upwards, 24 in crate. Grade C—Second-quality rabbits, 2-| lb. each and upwards, 24 in crate. Grade D—Young rabbits, 2 lb. to 2| lb. each and upwards, 30 in crate. Grade E—Small rabbits, 1|- lb. to 2 lb. each, 40 in crate. Net weight per crate to be not less than 62 lb. The price fixed was 19s. per crate delivered f.o.b. ocean steamer, all storage and insurance charges being borne by the seller. It was also stipulated by the Imperial Government that shipment of rabbits was not to be made in. the space usually set aside for the shipment of beef, mutton, and lamb requisitioned, but that all rabbits should be shipped in the balance of the 5-per-cent. space usually allotted for the shipment of sundries from freezing companies on private account. To the 31st March, 1918, 4,133 crates had been shipped, with an f.o.b. value of £3,926. Several contracts have also been completed by the Director of Contracts, Admiralty, with individual exporters of canned rabbits during the year, and the accounts in connection with these contracts have been kept by the Department of Imperial Government Supplies. Under the arrangements made 16,031 cases have been shipped to the 31st March, 1918, valued at £37,955, including freight, and a further contract for the supply of 20,000 cases is at present in course of completion. The quantity of frozen rabbits remaining in store on 31st March, 1918, and awaiting shipping facilities is 105,637 crates. WORK UNDERTAKEN FOR THE NEW ZEALAND GOVERNMENT. In addition to the arrangements made in connection with the purchase and shipment of the various commodities requisitioned by the Imperial Govern ment, the Department has also undertaken the supervision of certain matters on behalf of the New Zealand Government. Btjtter-fat Levy. On the 13th October, 1916, an Order in Council was gazetted with the object of fixing the maximum price at which butter should be sold for local consump-

H.—3B

16

tion in the Dominion, and the provisions of this Order in Council included the imposition of a levy of |d, per pound on all butter-fat consumed by both butter and cheese factories. Under the provisions of the Order in Council, 399 export licenses were issued to dairy factories in response to applications in which they accepted liability for the payment of the levy referred to, and the total amount collected for the months of September, 1916, to June, 1917, during which the levy was operative, was £308,819. This amount was considerably in excess of requirements, and it was subsequently found possible to refund to factories an amount representing ~: i d. per pound on all butter-fat on which the original levy had been paid. This refund has absorbed £51,085 to the 31st March, 1918, and, in addition, £252,142 has been paid to factories supplying the local market in order to bring proceeds for local sales on a parity with those ruling for exports during the months of September, 1916, to August, 1917. The rates at which compensation was paid during the several months for which the scheme was in operation were as under : — Per Pound. September, 1916, to January, 1917 ... ... ... 3|d. February, 1917, to June, 1917 ... ... ... 2^d. July and August, 191.7 ... ... ... ... 3d. A statement showing the weight of butter sold and the compensation paid for each month during which the scheme was in operation is given hereunder :— Pounds. H 1916—September ... ... 1,146,008 15,617 October ... ... ... 1,476,017 22,900 November ... ... 1,446,004 23,275 December ... ... 1,539,831 24,847 1917 -January ... ... ... 1,587,506 . 25,037 FebruaTv ... ... ... 1,762,272 16,608 March ... ... ... 2,054,468 21,268 April ... ... ... 2,385,093 24,737 May ... ... ... 1,937,346 20,124 June ... ... ... 1,622,408 16,883 July ... ... ... 1,476,443 18,292 August ... ... ... 1,822,362 22,554 As the provisions of the scheme require the rendering of monthly returns by all factories concerned, both in respect of butter-fat consumed and of butter sold locally, it was deemed expedient to appoint auditors for the purpose of examining factories' returns from their office records, and it is anticipated that the auditors appointed for this purpose will have completed their inspection some time during June next,- when a complete statement of the accounts in connection with the fund will be audited and copies supplied to all factories concerned. The Board of Trade was responsible for the arrangements made in connection with the administration of the Order in Council, and it had the assistance of an advisory committee, representing the butter-manufacturers, in connection with all matters of importance. Butter for Local Consumption. The purchase of butter by the Imperial Government was, as stated earlier in this report, effected at the rate of 1575. per hundredweight, with an undertaking on the part of the Imperial authorities to return to the Dominion 50 per cent, of any profits subsequently made in the disposal of the butter on the United Kingdom markets. This provision was considered by the factories supplying the local market in the Wellington Province as being likely to result in a larger return to the exporting factories than was possible to those factories supplying butter for local consumption only, and it was accordingly decided by the local factories that they would withdraw from the local market on the 28th February, 1918.

17

H.—3B

To meet the position created by this action a scheme was devised for supplying retailers and others concerned in the retail-butter business in the Wellington District with supplies from Imperial stocks held in cool stores and advanced against on behalf of the Imperial Government. Such butter is sold at £3 19s. 4d. per box of 56 lb. ex-store, with a minimum order of two boxes, and to the 31st March, 1918, 4,682 boxes have been supplied under this scheme, valued at £18,571 18s. Bd. As somewhat similar' conditions made themselves felt in other parts of the Dominion, action has been taken by the Government to ensure adequate quantities of suitable butter remaining in the Dominion to meet local requirements. Cheese for Defence Department. In co-operation with the Dairy Division of the Department of Agriculture, the Department has purchased for- the New Zealand Munitions and Supplies Department during the year ended 31st March, 1918, 4,028 crates of cheese, valued at £25,373 4s. Id.; and the total purchases made by this Department on behalf of the Defence Department- to the 31st March, 1918, amount to 7,204 crates, valued at £42,857. PURCHASE OF WHEAT FROM AUSTRALIA. At the request of the Board of Trade the Department has also undertaken the accounts necessary in connection with the purchase of wheat from Australia for the Dominion's requirements. 1,150,000 bushels were purchased through the State Wheat Boards of Victoria and New South Wales, and were transported to the Dominion in fourteen steamers, and the total amount expended on these purchases to the 31st March, 1918, was £344,611. Delivery was taken by the Board of Trade, and invoices were rendered by the Department onreceipt of the customary advice from the officers supervising the discharge. The whole of the accounts in connection with the sale of this wheat have now been paid by the purchasers, with the exception of £16,152, and no difficulty is anticipated in collecting this latter amount. « TOTAL DISBURSEMENTS. The total disbursements by the Department of Imperial Government Supplies from the 3rd March, L 915, to the 31st March, 1918, were as follows : — £ Frozen meat ... ... ... ... 22,851,823 Cheese, 1915-16 season ... ... ... 917,748 Cheese, 1916-17 season ... ... ... 3,295,557 Cheese, 1917 18 season ... ... ... 3,107,274 Butter, 1917-18 season ... ... ... 2,240,622 Scheelite ... ... ... ... ... 97,611 Wool ... ..." ... ... ... 23,360,888 Sheep-skins ... ... ... ... 757,323 Flides ... 596,762 Freezing companies'slipe wool ... ... 1,594,895 "Glaxo" ... ... ... ... ... 248,385 Butter-fat levy ... ... ... ... 252,142 Purchase of wheat in Australia ... .. 344,611 Miscellaneous ... ... ... ... 215,803 Total ... ... ... ...'£59,881,444 The salaries, expenses, rent, stationery, and all other incidental charges connected with the internal administration of the Department since its inception to the 31st March, 1918, have amounted to £25,209.

3—H. 38.

H.—3B

18

SHIPPING. As intimated in my previous report, the arrangements in connection with the shipment of frozen meat between New Zealand and Great Britain were carried out by private contracts between the respective shipping companies engaged in the New Zealand trade and the freezing companies until March, 1915, when the whole of the insulated tonnage in steamers engaged in the Australasian trade was requisitioned by the Imperial Government. The interests of the various shipping companies in existing contracts with freezing companies disappeared in consequence of the requisition referred to, and so far as insulated space is concerned, the companies were conducted as one concern and all space pooled for allocation to shippers. This allocation has been undertaken by committees appointed in London, Australia, and New Zealand, the New Zealand Committee receiving its directions from the London Committee and acting in co-operation with the Australian Committee. The personnel of the New Zealand Overseas Shipowners' Committee at present is as follows : Messrs. James Findlay (Chairman) and A. E. Pearce, representing Shaw, Savi.ll, and Albion Company (Limited); Messrs. A. W. Bennett and G. B. Bullock, representing the New Zealand Shipping Company (Limited); Messrs. W. Wallis and R. A. Anderson, representing the Federal Shire Line; Messrs. J. R. Rooper and 11. Beauchanip, representing the Cunard Line; and Mr. R. Triggs, representing the New Zealand Government. The Committee meets daily, and the amount of business conducted has been very considerably extended as a result of the requisition of wool, hides, butter, and cheese by the Imperial Government. The Department is in close co-operation with the Committee in connection with the allocation of space, and furnishes important information regarding the quantities of meat held in store at the various freezing-works, and also the quantities of greasy, slipe, and scoured wool and hides available for shipment from time to time. Loss op Ships. Although the amount of shipping available during the past season has been somewhat less than that for the previous year, the Dominion's requirements in the matter of ships have been fairly well met, and the whole of last season's dairy-produce has been shipped. In addition very little remains of the frozen meat in store at the close of last season, and only approximately 6,000 bales of wool. The quantities of meat, cheese, and butter in store on the 31st March, 1916. 1917, and 1918 are given below, and furnish some idea of the increasing difficulties experienced in connection with shipping : —

The following statement, showing the number of insulated steamers which have sailed from the Dominion during the years 1914, 1915, 1916, and 1917, and their total carrying-capacity, also furnishes a very clear indication of the universal shortage now being experienced :—

* Including eight steamers used as transports lor the New Zealand Expeditionary Force in October 1914, only a small portion of the insulated capacities of which was available for New Zealand produce.

Date. Frozen Meat (601b. Carcases). Cheese (Crates). Butter (Boxes). 1st March, 1916 1st March, 1917 1st March, 1918 2,152.250 2,409.541 3,398,364 73,927 185,417 363,790 87,678 224,506 350,315

Year. N umber of Steamers. Total Insulated ('apacity : 601b. Carcases. 1914 1915 1916 1917 99* 84 78 62 8,800,700 7,682,000 ' 7,322,500 5,626.350

19

H.-38

The losses of insulated tonnage since the commencement of the present war, represented in terms of 60 lb. carcases of meat, are as follows : — a . Capacity: (steamer. ..,,,, *~ 601b. (Jarcascs. S.s. " Kaipara" ... ... ... ... 96,500 S.s." Otaki" ... ... ... ... 95,000 S.s. "Rotorua" ... ... ... ... 99,000 S.s. " Tongariro" ... ... ... ... 83,500 S.s. " Rangatira" ... ... ... ... 97,800 S.s. "Tokomaru" ... ... ... ... 82,000 S.s. " Middlesex" ... ... ... ... 102,000 S.s. " Port Nicholson" ... ... * ... 113,000 S.s. " Port Adelaide" ... 113,000 S.s. "Marere" ... ... ... ... 86,000 S.s. " Clan MacTavish" ... ... ... 48,000 S.s. "Turakina" ... ... ... .... 120,000 S.s. "Somerset" ... ... ... ... 95,000 S.s. " Roscommon" ... ... ... ... 100,000 S.s. " Cumberland" ... ... ... ... 123,000 S.s. "Delphic" ... ... ... ... 93,000 S.s. "Limerick" ... ... ... ... 100,000 S.s. " Port Kembla"... ... ... ... 65,000 S.s. "Westmoreland" ... ... ... 50,000 1,761,800 Of the vessels mentioned only the s.s. " Rotorua," " Clan MacTavish," and " Westmoreland " carried produce consigned to the Imperial Government, and the values of the cargo lost in each of these steamers were as follows :— "Rotorua." "Clan MacTavish." "Westmoreland." £ £ £ Meat ... ... 89,991 47,558 66,452 Wool ... ... 221,625 ... 20,075 Cheese ... ... 102,318 Scheelite ... ... 1,641 "Glaxo" .... 2,503 £415,575 £47,558 £89,030 The s.s. " Matatua," which was mentioned in my previous report as damaged by an explosion and subsequent stranding, has since been repaired, and is at present engaged in the transatlantic trade. The shortage caused by the disappearance of so many steamers from the New Zealand trade has been very largely set off by the system of exchanging steamers with Australia, and as a result of this practice several steamers which have hitherto not been seen in New Zealand waters have visited New Zealand ports for the purpose of lifting refrigerated and wool cargoes. STAFF AND ORGANIZATION. In addition to undertaking the arrangements necessary in connection with the requisition of produce on behalf of the Imperial Government, the Department has at different times been called upon to institute general inquiries regarding other lines not commandeered, and in all matters in connection with shipping it has endeavoured to constitute itself a Department for the collection and distribution of information of interest to the commercial community. A weekly bulletin showing its operations has been prepared and furnished for the information of Ministers, all Departments of the Dominion Government concerned, the New Zealand Overseas Shipowners' Committee, representatives of the associated banks of New Zealand, the Board of Agriculture, and others,

H.-38

20

and has also kept the Imperial Government posted regarding the quantities of produce available for shipment from time to time. In addition it has been called upon to meet numerous inquiries in connection with shipping matters generally, and has at different times collected information regarding hemp, tallow, pelts, case oils, &c. The organization of the Department has been freely consulted by the business community in matters of commercial interest, and its endeavour has always been to render the fullest assistance in any direction possible. It gives me pleasure to record the indebtedness of the Department to Mr. W. S. Bennett, president of the New Zealand Woolbrokers' Association, for the invaluable assistance and 'advice he has always rendered, and I would also express my appreciation of the thoroughness of the continuous audit conducted by the Controller and Auditor-General, who has arranged for a special staff to be attached to the Department for the purpose. When the Department was originally constituted in March, 1915, to handle the arrangements in connection with the purchase of frozen meat, the staff consisted of five officers, including an Officer in Charge, two clerks, a typist, and a messenger; and on the 31st March last there were fifty-eight officers employed, including executive officers and clerks (44), typists (10), Burroughs adding machinists (2), and messengers (2). Of this stall only six are permanently classified departmental officers. The total absence of precedents and the rapid growth in the Department's business have rendered the work of all officers particularly strenuous, and I have the greatest pleasure in bearing testimony to the application and ready co-operation displayed by all officers in the discharge of the duties entrusted to them. Prior to September', 1917, matters ol outside arrangements in connection with the purchase of wool, sheep-skins, and hides were undertaken by the New Zealand Government Requisitions Committee, and the Wool, Sheep-skins, and Hide Valuers and Inspectors of Wool-scouring Works and Fellmongers were also under the direct instructions of that Committee. In September, 1917, the Committee tendered its resignation, and the duties hitherto undertaken by it were placed under the direction of the Controller of the Department of Imperial Government Supplies, and Mr. T. R. Lees, the Assistant Executive Officer of the Committee, joined the staff of the Department. In the same month it was found necessary, owing to the expansion of business, to obtain more commodious premises, and the Department was fortunate in securing its present accommodation. The offices occupied are centrally situated, well lighted and ventilated, and, being under one roof, are in all respects conducive to the prompt handling of the business of the Department. I have, &c, R. Triggs, The Right lion, the Minister in Charge, Controller. Department of Imperial Government Supplies, Wellington.

21

H.—3B.

A P P B N 1) I X.

SHOWING RESULTS TO 30th SEPTEMBER, 1918. FROZEN MEAT, BCHEELITE, BUTTER, CHEESE, WOOL, SHEEP-SKINS, Etc. MEAT. (Operations commenced 3rd March, 1915.) Beef Mutton Lamb (Quarters). (Caroases). (Caroases). 1. Shipped per steamers lost in transit .. .. 18,829 106,260 91,080 2. Arrived at destination in 236 steamers .. .. 2,083,211 7,508,413 9,013,404 3. En route to Great Britain in 3 steamers .. .. 29,823 127,191 60,533 4. Meat aboard steamers now on loading-berth .. 16,555 39,131 24,547 5. Total payments made to date, £27,916,676. 6. Totals.. .. .. .. 2,148,418 7,780,995 9,189,564 7. MEAT IN STORE on 30th September, 1918, for which no space has been allocated in overseas steamers — North Island .. .. .. .. .. 2,921,409 South Island .. .. .. .. ... 1,742,667 Total in 60 lb. carcases .'. .. .. 4,664,076 Total shipments to date — During .1914-15 season .. .. .. .. 337,735 1,986,961 2,889,508 During 1915-16 season .. .. .. .. 769,880 2,421,690 3,148,714 During 1916-17 season .. .. .. .. 517,708 1,575.600 1,315,506 During 1917-18 season.. .. .. .. 523,095 1,796,744 1,835,836 Totals .. .. .. .. 2,148,418 7,780,995 9,189,564 CHEESE. (Operations commenced 4th November, 1915.) 1915-16 season — Crates. 1. Total shipped and arrived at destination .. .. .. .. .. 189,502 2. Total payments made, £917,748. 1916-17 season— 3. Shipped and lost in transit .. .. .. .. .. .. 16,440 4. Total arrived at destination .. .. .. .. .. .. 501,886 5 Total payments, £3,295,557. 6. Totals .. .. .. .. .. .. .. 518,326 1917-18 season— 7. Shipped and lost in transit .. .. .. .. .. .. 16,406 8. Shipped and arrived at destination .. .. .. .. .. 321,264 9. En route to Great Britain . . .. .. .. .. .. .. 116,687 10. On board steamers now on loading-berth .. .. .. .. .. 18,000 11. Total payments to date, £4,811,228. 12. Totals .. .. .. .. .. .. .. 502,357 13. CHEESE IN STORE awaiting shipment on account Imperial Government on 30th September, 1918— Crates. North Island .. .. .. .. .. .. ..223,236 South Island .. .. .. .. .. .. .. 52,337 Total quantity in crates .. .. .. .. 275,573 BUTTER. (Operations commenced 20th November, 1917.) 1917-18 season — Boxes. 1. Shipped and lost in transit .. .. .. .. .. .. 49,487 2. Shipped and arrived at destination .. .. .. .. .. 550,346 3. En route to Great Britain .. .. .. .. .. .. .. 16,636 4. On board steamers now on loading-berth 5. Total payments to date, £2,816,457. — 6. Totals .. .. .. .. .. .. .. 616,469

H.—3B.

BUTTER— continued. 7. BUTTER IN STORE awaiting shipment on account of Imperial Government on 30th September, 1918— Boxes. North Island .. .. .. .. .. .. .. 104,639 South Island .. .. .. .. .. .. .. 3,128 Total in boxes .. .. .. .. .. .. 107,767 SCHEELITE. (Operations commenced 20th September, 1915.) Tons' 1. Shipped and lost in transit . . .. . . .. .. .. .. 18 2. Arrived at destination .. .. . . .. .. .. . . 524 3. En route to Great Britain .. .. .. .. .. .. .. 86 4. Total payments made to date, £122,917. 5. Total .. .. .. .. .. .. .. 628 WOOL. (Operations commenced Ist December, 1916.) 1. Total number of bales valued (as per valuation certificates received) .. .. 1,010,365 2. Number of bales lost in transit .. .. .. .. .. 9,668 3. Number of bales arrived at destination in 89 steamers .. .. .. 480,454 4. Number of bales en route to Great Britain in 9 steamers .. .. .. 18,872 5. Number of bales shipped on account of other Governments .. .. 63,384 6. Number of bales of greasy wool available for shipment or scouring .. 467,987 .1,040,365 7. Number of bales of greasy wool delivered to scourers for treatment .. .. 181,066 8. Number of bales of scoured and fellmongers' slipe wool shipped .. ... .. 70,755 9. Number of bales of scoured and fellmongers' slipe wool available for shipment .. 98,932 10. Total payments, £24,852,261. 11. Total number of bales paid for .. .. .. .. .. .. 1,040,033 SLIPE WOOL (Freezing Companies). (Operations commenced 31st March, 1917.) Purchased for Valuation in United Kingdom. 1. Total number of bales advanced against .. .. .. .. .. 69,591 2. Number of bales shipped .. .. .. .. .. .. .. 53,813 3. Number of bales shipped on account of other Governments .. .. .. 1,795 4. Total payments to date, £1,933,513. Purchased under New Zealand Valuations. 5. Total number of bales .. .. .. .. .. .. .. 49,048 6. Number of bales shipped on account of other Governments .. .. .. 5,306 7. Total payments to date, £1,336,819. SHEEP-SKINS. (Operations commenced sth February, 1917.) 1, Number of skins purchased and distributed to fellmongers .. .. .. 2,953,696 2. Total payments to date, £1,124,627. HIDES. (Operations commenced 19th March, 1917.) 1. Number of hides purchased .. .. .. .. .. .. .. 370,958 2. Number of hides shipped .. .. .. .. .. .. .. 149,143 3. Number of hides sold .. .. .. .. .. .. .. 139,823 4. Total payments to date, £704,577. PAYMENTS. (Total to date.) £ Frozen meat .. .. .. ■• •• •• •• •• •• 27,916,676 Cheese, 1915-16 season .. .. .. .. .. .. .. .. 917,748 Cheese, 1916-17 season .. .. .. .. .. .. .. ..3,295,557 Cheese, 1917-18 season .. .. ... .. .. .. .. .. 4,811,228 Butter, 1917-18 season .. .. .. .. .. .. .. .. 2,816,457 Scheelite .. •• 122,917 Wool .. .. ... 24,849,966 Freezing companies'slipe wool .. .. .. .. .. .. .. 3,270,332 Sheep-skins .. 1,121,066 Hides ~ 704,577 Other business .. .. .. .. .. •• •• .. ■• 1,230,747 Grand total .. .. .. .. .. .. .. £71,057,271

22

H.—3B.

Statement showing the Quantities of Frozen Meat shipped at each Port from the Inception of the Scheme— i.e., 3rd March, 1915— to the 30th September, 1918.

By Authority : Marcus F. Marks, Government Printer, Wellington.— 1918.

Approximate Cost of Paper. — Preparation, not given; printing (1,050 copies), £25.

Price 9d.]

23

Port of Shipment. 1914-15 Season. 1915-16 Season. 1916-17 Season. 1917-18 Season. Total. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Beef. | Mutton. Lamb. Beef. Mutton. Lamb. Beef. Mutton. Lamb. Quarters. Carcases. Whangarei 23.694 Auckland .. .. 52,533 41.264 Tokomaru Bay .. .. : 6.463! 58,460 Gisborne .. .. 25.024 220.038 Napier.. .. .. 34.802 208,775 Waitara .. . ' 46,612 49,485 New Plymouth .. .. ' Wanganui .. .. 17.812 95,713 Wellington .. .. I 58,979 610,073 Carcases. I Quarters. Carcases. Carcases. Quarters. 41,457 11.323 3,222 25.067 74,983 186,587 42.975 108.104 76.063 41.897 8,950 107.846 67.526 7.742 101,073 62,261 325.172 165.752 33,933 151,982 64.802 377.599 301.282 33.092 28.250 77.680 54.929! 44.126! 34.608 8,531 38,012 26,783J 88.569 67.766 56.011 411,351, 166.931 734.540 782.383 88.287, t arcases. 4.271 22.942 33.186 143.881 248.209 13.918 12.761 65.784 395.542 L Carcases. Quarters. 3.155 22,844 9.464 107.385 4,071 13.562 30.327 88.516 30.702 13.389 51.355 2.567 12.952 24.004 50.782 402.350 135.930 Carcases. Carcases. Quarters. 9.991 1,079 113.062 30.534 40.040 422.568 50,905 .. 27.226 171.840 89.115 151.545 263.874 211.847 163.398 33.832 26.198 210.255 9.043 9.345 21.483 149.076! 108.138 151.388 455,874, 271,141 450,127 : Carcases. Carcases. 25.585 7,456 137.715: 232.591 250.397 109.423 860.931 369.502 1.098.457 753.627 152.164 111,963 21.804 11,912 399.142 237.920 2.196.0291.867.225 ! ■ • Total shipped at North 265,919:1,283,808 Island ports : ! Nelson.. ... .. 521 10,312 Picton .. .. j .. 22,410 Lvttelton .. .. 11,128 244.750 Timaru .. .. 2,618 153,374 Oamaru .. .. .. 29,871! Dunedin .. .'. 11,876. 85,884 Bluff .. .. .'.- 45,673! 156,552 847,548 635,4511, 742,953|1, 540,1611 363,334 ! i 20,549 4.763 1 16.623 21,563 4.256 31.035 .. 27.650 42.392 772,152 38,162 274.884 770,312 52,205 623,925 7,624 102,373 334,357 15,507 97,868 .. 10.095 32.402 214.387 22,246 102.716 189.680 30.388 282.044 61.634 144.396 217,847! 52.018: 1,540,161 363,334 21,563 42.392 770,312 334.357 32.402 189.680 217.847 4,256 52.205 15,507 30.388 52,018, 940,494 1.671 17.592 237.954 158.713 9.541 107.912 101.723 557,007 446,3481,174,969| L 1.684 23,217J 352.344 248.520 2.527 54,700 75.507 2.646 8.526, 1,099 17.590' 37,049 313.454 7.038! 75.312 43,079 8,311 83.697 20,604| 80.117 756,9031,711,052 10,324 23.690 588.1421 266.834 21,426 112,692 55,825 12.186 1.099 138.544! 32,787i 72.821! 179,929! 5,142,224 3,701,61 37.132 54.12( 85.242 120.33' 1,071,042 2.482.951 489.772 1.473.631 92.586 154,22; 380.209 571.45! 482.788 631.22; Total shipped at South 71,816 703,1532 Island ports ! Grand totals .. 337, 735 1,986, 961 2 2,041,960 134,429! 2,041,960 134,429 678,7371,608,553 154,374 2.889.508 769.8802,421.6903,148,714! 517,708 678,737! 1,608,553 154,374 635,106 758.499 76,747. 621,775;l,078,933 437,366:2, 638,7715, 487, 94E ■ i 2,889,508 769, 880 2,421, 690,3, 148, 714 517,708 1,575,600! 1,315,506 523,095|1, 796,7441,835,83612,148,418 7,780, 995 9,189,56' i