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The Pamphlet Collection of Sir Robert Stout: Volume 76

New Zealand Hemp

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New Zealand Hemp.

London,

Sir,—

I have the honour to herewith hand you the accompanying preliminary reports upon the New Zealand hemp and kauri-gum trades.

It is within your knowledge that the completion of the authority intrusted to my care had its origin in the numerous petitions sent to Government during the months of May, June, and July, 1896. These were signed by the leading mercantile gentlemen throughout New Zealand, who were supported by many of the chambers of commerce, industrial associations, and agricultural societies in the colony, to all of whom I desire to express my appreciation for the confidence reposed in me.

In view of the fact that I shall have further evidence for the Government concerning the hemp industry, I have abstained from making any recommendations thereon at the present time.

Travelling through New South Wales, Victoria, South Australia, and South Africa, it has been my good fortune to meet with the most cordial kindness from the various Ministers upon whom I called, and I always received a ready and willing help from the Government officials to whom I applied for information.

In London and the provinces I found the same generous feeling existing. I am specially indebted to Messrs. W. F. Malcolm and Co., Robinson, Fleming, and Co., John Haddon and Co., James Morrison and Co., Devitt and Hett, Lewis and Peat, Hoare, Marr, and Co., William Bennie and Co., with many other merchants and brokers in London, and also to Mr. Thomas J. W. Buckley, proprietor of the Post magazine, who devoted several articles in his valuable magazine to the advantages British insurance companies would gain by the investment of their accumulated funds in New Zealand mortgage and other securities. To the Lord Mayor of Manchester, Mr. Bythel (chairman of the Ship-canal Company), and Mr. Matthew Wells (merchant) I am also indebted for many acts of courtesy extended to me during my visit to Lancashire.

I cannot conclude this letter without placing on record my best thanks for the kind assistance extended to me by your good self, as well as by your efficient staff, in the prosecution of my work during my stay in London.

I have, &c., Hon.

W. P. Reeves

,

Jno. Holmes

. Agent-General for New Zealand, London.
page 2
London,

Sir,—

New Zealand Hemp.

I have the honour to place before you the result of my investigations concerning the New Zealand hemp industry. Under authority dated the 5th June, 1897, from the Hon. John McKenzie, Minister of Lands, I left Wellington on the 22nd July, 1897, proceeding by way of Auckland to Sydney, where I had the pleasure of waiting upon the Hon. the Minister of Agriculture, who kindly extended to me special facilities for inquiring into the development of fibre plants at the Hawkesbury College Farm. I found that only a limited area of ground was allotted to the cultivation of ramie, and, although the Principal of the college and Professor Musson expressed a special interest in that department of their work, they could not afford any reliable information as to the commercial value of ramie fibre. Professor Musson very kindly procured for me a few plants grown on the farm. These I immediately forwarded to the Secretary of the Agricultural Department, at Wellington. Returning to Sydney, I visited all the rope-and cordage-makers in the city and surrounding districts. Many of the manufacturers complained of the lack of uniformity in our hemp.

To Messrs. A. Forsyth and Co., rope-makers, of Sydney, I am indebted for some valuable information. Mr. Forsyth accompanied me to his works, and explained the difficulties his firm experienced in ordering certain classes of New Zealand hemp. As an illustration of these difficulties he pointed to several brands varying in colour and preparation, although bought under the same classification, and shipped from the one port. He strongly urged the importance of a general grading system, and the advantages to be gained by the adoption of a standard size of bale, as in the case of manila, which is always packed in two piculs, each bale weighing 2½ cwt., and universally accepted at eight bales to the ton, thereby avoiding the cost of handling and reweighing. He, however, advocated an increased weight for New Zealand hemp, stating that 3½cwt. bales would be a most suitable size. This opinion was confirmed by the other rope-and cordage-makers, all of whom evinced the deepest interest in my work, and promised extended orders for New Zealand fibre.

Going overland to Melbourne, I called upon the Acting-Premier, the Hon. I. A. Isaacs, who expressed a wish to assist my investigations. To the Hon. Minister for Agriculture I am indebted for special facility in travelling throughout the colony. Mr. Martin, Secretary of the department, offered every assistance he could, and informed me of the experiments made by the Agricultural Department in its endeavours to raise ramie, for which he thought the climate and soil of Victoria was suitable. He is, however, of opinion that only two crops can be obtained in a year, as against four crops in India. Mr. Martin referred to the difficulty of getting suitable machinery for decorticating the fibre and preparing it for market. I was able to show him the varied samples of manufactured material made from ramie-fibre prepared by the Rhea Fibre Treatment Company (Limited), under what is known as the "Gomess process."

Visiting the works of James Miller and Co., Melbourne, and Messrs. Donaghy and Sons, of Geelong, I had the advantage of seeing and hearing the objections raised by practical men to our hemp. These were chiefly based on the same lines as expressed by Messrs. Forsyth and Co. Messrs. Donaghy and Sons, however, informed me that it was their desire to use as much as possible of New Zealand fibre, providing they could in future depend upon a continuity of a standard quality, especially as to colour and preparation. They informed me that, wherever introduced, the binder-twine made from New Zealand hemp gave the utmost page 3 satisfaction; other difficulties, however, existed in increasing its consumption. Here it is instructive to learn that manufacturers sell to merchants binder-twine made from manila and New Zealand hemp. Such sales are made on a basis of 10 per cent, discount or commission. Manila being the dearer of the two, preference is given to push its sale with the consumer, for the obvious reason that 10 per cent, on manila at 5¼d. per pound is better than the same commission on New Zealand hemp at 3¾d. per pound. Notwithstanding the fact that manila is longer to the pound weight, still there is a large saving in favour of the use of New Zealand hemp twine. The smaller rope-makers in Victoria expressed a wish to have a standard bale and a more uniform colour, which latter is essential to the successful manufacture of clothes-lines, halters, and plough-reins.

Continuing my overland journey to South Australia, I visited Adelaide, where I was cordially received by the Hon. Dr. Cockburn, Minister for Agriculture, who generously assisted me in every possible way. Upon inquiry I found that no fibre was raised in that colony for export or manufacturing purposes. Visiting the rope-works in the city, I ascertained that the objection raised by the mill-managers was directed towards the "towy" appearance of the fibre, due to want of care in "stripping" the green blade. Complaints were also made of the lack of uniformity in colour and preparation. As an instance of this, they pointed to two lots of the same brand of hemp bought at the same time, but shipped from New Zealand at intervals of one month. Both parcels varied considerably in stripping, scutching, and bleaching.

Learning that South Africa was importing American binder-twine and other cordage, and that there was a prospect of extending trade with that colony, on the principle that "the path of duty is the path of safety," I altered my plans, and took passage in the s.s. "Culgoa," the first steamer sailing for Cape Town. Upon my arrival I called upon the principal ironmongers in the city, who, although they had never previously heard of binder-twine made from New Zealand hemp, promised to send some trial orders to the colony for the following season's supplies. I have reason to believe that these have since gone forward to the colony.

Arriving in London on the 28th October, I immediately set to work prosecuting my inquiries anent the hemp industry. I found no little difficulty in obtaining reliable information, and experienced some opposition in my endeavours to procure the best evidence. While there appeared to be a desire to assist me in eliciting the information I sought, at the outset there existed some doubt as to how far it was wise to disclose fuller details. I had very many interviews before my would-be helpers felt Assured that I had no desire to upset or interfere in any way with the present system of conducting the fibre trade.

In my earlier visits to gentlemen interested in the imports I was astonished to hear nothing but eulogiums about the excellent quality of New Zealand hemp. For some time these praises were bestowed upon our fibre; but when I ventured to suggest that the diminishing demand—apart altogether from the falling prices—did not exhibit that appreciation of the improved quality referred to, I was met with the instructive answer that if New Zealand would send regular standard qualities, and would sell subject to the usual arbitration clause upon which manila and sisal fibres were bought, there would be a largely increasing demand for New Zealand hemp.

I had the pleasure of interviewing several rope-makers, urging the claims of New Zealand hemp. I elicited various recommendations, and I many promises that future orders would embrace the colony, not withstanding the fact that the "spot stocks" had decreased from 1,500 tons on the 30th September, 1896, to 1,073 tons on the 30th September, 1897, page 4 which were still further reduced to 926 tons on the 30th November, 1897, There was little or no sale for several months prior to my arrival, the nominal market values ranging from £13 10s. to £14, c.i.f., London.

It is with pleasure I point to the improved prices that have since taken place. Messrs. W. F. Malcolm and Co., reporting upon New Zealand, under date the 21st March, says, inter alia, " The market is exceedingly firm, and holders are asking £20 for parcels on spot." It will I am sure be a matter of satisfaction to you to know that cash-buying orders for many hundreds of tons of hemp have been cabled to New Zealand during the present year, the prices offered being in excess of quotations prevailing for a long period before.

Manufacturers' and Brokers' Reports.

The many manufacturers and brokers upon whom I waited from time to time expressed the opinion that by the adoption of a grading system, and, if possible, a standard weight of bale, greater confidence would be gained in the more general use of the fibre, and increased trade would follow. I enclose letters from Messrs. W. F. Malcolm and Co., Frost Brothers (Limited), and Messrs. Hawkins and Tipson and Hoare, Marr, and Co., which speak for themselves, and require no further comment from me.

Bonuses of £1,750 and £250.

In the hope that a wider circulation of the terms on which the above bonuses were offered for an improved process of preparing New Zealand hemp would increase the number of competitors, I made known, through the medium of the Press, in every city and town I reached the conditions attaching thereto. This involved heavy correspondence, and a very large number of interviews with engineers, machinists, and chemists, several of whom are now experimenting on the green leaf. Many of them were quite enthusiastic, and regretted that they were not in possession of the information before. At their own expense they obtained samples of Phormium tenax from Cornwall and other places. Mr. William Parkinson writes as per letter of 6th January (enclosed).

Gomess Process.

So much has been written upon this process that I felt it my duty to make a special effort to attend at the experimental works outside London. After several interviews with the Rhea Fibre Treatment Company (Limited), I visited the works with the secretary of the company, who introduced me to Dr. Gomess. This gentleman informed me that he had already made several unsuccessful experiments with New Zealand flax (as he described it), the true nature of which he frankly admitted he did not quite understand. On explaining to him that New Zealand hemp was Phormium tenax he became very interested, and, having exhibited a small sample of Native-dressed fibre (for which I am indebted to Mr. Hone Heke, M.H.R.), he expressed the opinion that there was a great future for an improved and extended use of the plant. He thereupon promised to make further experiments, and report the result. I strongly recommended his perusal of Dr. Hector's excellent work on Phormium tenax. Notwithstanding several efforts and special letters written on the subject, I have not yet received any report as to the result of his experiments. His letter of the 25th January, 1898, is attached hereto, which gives the reason for the delay.

Provinces.

Having many inquiries from Lancashire, at the first available moment I visited Manchester, Accrington, Stockport, Warrington, and surrounding districts, where I made known as widely as possible the objects of my mission.

page 5

At the special invitation of his Lordship the Mayor of Manchester, I had the pleasure of attending a semi-public lunch in the Town Hall, where, in response to an invitation, I had the privilege and pleasure of briefly reviewing the history of the colony, pointing to the many advantages New Zealand offered to Britain's sons seeking a home beyond the seas. A suggestion was made by Mr. Bythel, the chairman of the Shipcanal Company, that New Zealand might, with advantage to its export trade in wool, frozen meat, tinned meats, butter, and cheese, consider the advisableness of developing closer trade relations with Lancashire and surrounding districts by way of the Ship-canal, which he claimed could serve the growing population (now numbering eight millions of people) more effectively than by the present system of shipment viâ London. Replying to this, I assured the meeting that the Government were always ready and willing to assist the settlers in New Zealand to find profitable outlets for their produce, and I ventured to recommend that whenever the Manchester people could place before you some definite workable scheme for submission to the Government you would be found ready and willing to assist in any movement that had for its object the improvement of the colony generally. I humbly suggested that if the advantages of the Ship-canal, so ably set forth by the various speakers, were placed before the trading communities in the outer world, such information would assist in accomplishing the end so much desired. The example already set by the Wholesale Co-operative Society of Manchester in sending their delegates to New Zealand might be followed in the joint interests of the Ship-canal and Corporation.

I assured the meeting that, as New Zealand had chosen a Lancashire man as Premier of the colony, they could rest assured the Right Hon. E. J. Seddon would have the fullest sympathy with any proposal from his native land.

It is with pleasure I refer to the accompanying cutting from the Manchester Guardian of the 23rd instant, referring to the appointment of a special committee now visiting Canada in the joint interests of the Manchester Corporation and the Ship-canal Company. I also understand that it is not improbable that a similar committee will be appointed to visit New Zealand.

General Produce.

My long association with and interest in the export of New Zealand produce must be my excuse for devoting a portion of my time in advocating the excellence of our increasing shipments of wool, frozen meat, and dairy produce. Knowing that the ravages of the rinderpest in South Africa was diminishing the meat-supply of that country, and learning that Cape Town had just begun to import frozen meat, I called upon the principal importers of frozen meat and dairy produce in that city. After a very lengthy interview, I was surprised to hear that Victorian shippers were supplying merino mutton at 3d. per pound, c.i.f., and that an offer of 2¾d. per pound had then been made by cable for future supplies. The duty of 2d. per pound limited the consumption in Cape Town, but heavy consignments were going forward under bond to Johannesberg, where the duty was only 7½ per cent, ad valorem.

New cold-storage was then being erected at Durban, Natal, for the reception of frozen meat landed at that port.

The shipping facilities extended by the Government in Victoria have assisted shippers in availing themselves of the new outlet in South Africa, the freight contracts for frozen meat and dairy produce to London embracing delivery at all ports of call without extra charge.

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General Remarks.

While conducting inquiries and supplying information as to the New Zealand hemp trade generally, I never failed to seize every opportunity I could of advancing the interests of New Zealand amongst the many financial, shipping, insurance, and commercial men I had the pleasure of meeting.

Conclusion.

Such, in general outline, is a brief report of my humble efforts, put forth with all the zeal and earnestness I could command, to carry out the mission intrusted to me by the Government.

I have, &c., Hon.

W. P. Reeves

,

John Holmes

. Agent-General for New Zealand, London.
33, Drayton Gardens, South Kensington,

Dear Sir,—

I am in receipt of yours of the 12th instant. I must apologize for not having answered it before, but I have been suffering from an attack of influenza, and have only just recovered.

I am surprised to learn that Mr. Collins has not sent you the promised samples yet. I will take an early opportunity to see him about it, and have them sent on without further delay.

I have begun the experiments with the New Zealand hemp, but cannot let you know the results definitely till they are completed. It is rather a long affair, and will take a little time.

Many thanks for letting me know where I can obtain the raw material,

Yours, &c.,

J. Holmes

, Esq.

A. F. Bilderbeck Gomess

.
31A, Spring Gardens, Manchester,

Dear Sir,—

Enclosed please find sample of ramie treated under our process. The sample is very fine and soft, and procured from the raw bark with a loss of about 30 per cent., and at a very small cost in treatment. It can be produced with a longer staple and not quite so fine a count at a loss of about 20 percent.—that is, from the raw to the heckled. Kindly compare this with other processes, under which you will find a loss of from 50 per cent, to 75 per cent., and the fibre left not so soft and pliable.

The advantages claimed for this treatment of ramie and rhea are—(1) Cheapness; (2) the non-injury to the fibre; (3) the procuring of a longer staple after heckling, and the adaptability to flax and other long-staple machinery; (4) after decortication, when in the ribbon state, it can be prepared for the market on the plantation, where water is convenient.

Other stalks and leaf-fibres can be prepared for the market by this method.

Yours, &c.,

J. Holmes

, Esq.

William Parkinson

.
36, Leadenhall Street, London, E.C.,

Dear Sir,—

We have received your letter of the 1st instant regarding New Zealand hemp, and have pleasure in giving you the following replies:—
(1.)It would certainly be advantageous to have a general system of grading in New Zealand. Of course, the hemp would still continue to be distinguished by the place of its production, as, for example, Auckland and Wellington, which we have generally found to be hemp of two distinct characters.page 7
(2.)We would recommend the following classes: Fine, good, good fair, and fair. These, we think, should be sufficient for all practical purposes.
(3.)The advantages of a uniform size for bales would be that buyers and sellers could deal for the hemp in bales instead of tons, a system which is found very convenient in hemp business with Manila, Mexico, Bombay, &c. Moreover, if the bales were all of one uniform weight, or nearly so, expenses might be spared in landing and weighing at the port of discharge, as is the case with manila hemp, where only 10 per cent, of the parcel is weighed for average, and the invoice based upon the result. This saves the cost of landing and weighing, and enables 90 per cent, of the hemp to be put overside into a lighter and transhipped at a cost of only 2s. 6d. a ton.
(4.)We have no very well defined opinion regarding the size of hanks and the number of these in each bale. We would only say that on the whole we prefer hanks to be of only medium size, and certainly dislike large hanks.
(5.)There would be no objection to bales of cwt. each.; in fact, we think that would be a very good size. If this size is adopted it would be desirable that the bales should be all of one form and the same length and breadth, so that freight from London to continental ports and elsewhere could be easily arranged with the ship-brokers, just as is the case with manila hemp, jute, &c., which are favourite articles with steamer people here, because they know exactly how they would stow.
(6.)The advantage to the New Zealand shipper in selling on the London arbitration clause would probably be that he would get a better price. No one can sell New Zealand hemp on the market here without giving a guarantee with London arbitration. If a corresponding guarantee is not obtainable from the New Zealand shipper the seller here has naturally to add something to the price to compensate him for his risk.

We hope you will find the above sufficient for your purposes. If there are any other points upon which you wish our opinion we shall be very glad to furnish the same on hearing from you.

We note from a remark outside of your envelope that our market report of the 1st November is missing. We have the pleasure to enclose another copy.

Yours, &c.,

John Holmes

, Esq.

W. F. Malcolm and Co.

11, London Street, Fenchurch Street, B.C.,

Dear Sir,—

In reply to your favour of the 29th ultimo, we have examined the sample of New Zealand hemp, and consider it of excellent quality. Kindly let us know the price, and who would be the best people to procure it from.

With reference to your inquiry, we would suggest that the bales should weigh 2½ cwt. each, the measurement of which is about 2 ft. 5 in. by 2ft. 3 in. by 2 ft., and put up in hanks similar to the one sent us.

Our trade with New Zealand is not at present a large one, so if you could give us any information as to the names of some of the leading rope-buyers we should be much obliged.

We are, &c., Frost Brothers (Limited),

John Holmes

, Esq.

H. Bell

.
48-51, Minories, London, E.C.,

Dear Sir,—

We have your letter of yesterday, as also the sample of hemp referred to therein. We have carefully examined it, and consider it very good page 8 quality indeed, being of nice length, good colour, and fair strength, while, above all, it is well cleaned.

We should recommend two grades as being sufficient, and that the bales be made up of a uniform weight of 2½cwt., or eight to the ton, as in the case of manila hemp, but the size of the hanks is immaterial.

Yours, &c.,

John Holmes

, Esq.

Hawkins

and

Tipson

.
26 and 27, Budge Row, Cannon Street, E.C.,

Dear Sir,—

New Zealand Hemp.

We are in receipt of your favour of the 28th instant, also sample of New Zealand hemp, the quality of which is most excellent, leaving little to be desired, and the same would always command a ready sale.

In reply to your queries,—
(1.)A grading system of quality would, we think, be advantageous-say, fine, bright colour, fine, soft, and clean; good, good colour, clean, and free from seed; fair, fair colour, and as clean as possible—upon which contracts might be made and guarantees given.
(2.)Special size of bales: The size lately shipped—say, 3 cwt. to 4 cwt.—is found generally convenient, but it would be an advantage if the system were adopted of packing all bales of uniform size and weight. I would suggest that 400 lb. (3 cwt. 2 qr. 8 lb.), same as jute, would be the most convenient size for handling and stowing.
(3.)Size of hanks is not of much importance, that now in general use being quite convenient.
(4.)Style of packing: Press-packed bales, such as have lately been imported, are quite satisfactory.

We consider that New Zealand hemp is a most valuable fibre, and, although its use has been somewhat restricted of late, owing to the unprecedentedly low price of manila, there will always be a fair demand for it a few pounds below that of manila.

The preparation of the fibre has of late years been much improved to what it formerly was, and we would still urge the importance of cleaning the fibre as well as possible, as the better it is cleaned the higher will be the price realised.

If we can afford you any further information we shall be most happy to do so.

Yours, &c.,

Hoare, Marr, and Co.,

John Holmes

, Esq.

J. Hutchinson.