Minutes of Evidence p.1401-1509 - Parliament of Victoria

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are sold at 10d., that would be an average of 7-§-d., whereas with the duty now, 100,000 boxes would be sold RobertJohuston,
at 8d.; that is when candles are cheap. I refer to three or four years ago. In that case the public would 2 n:~::;'i:iss.
have been the gainers.
48918. Of course, upon those figures, you make it out that the public would get the advantage
of !d. upon each pound ; but you might easily take another set of figures (or anyone else could) and show
that the public lose ~d., or even I d. a pound, by the fluctuations of the market ?-I do not think the public
would lose now; I think they would gain.
The witness ~vithd,rew.
The Hon. Thomas Loader further examined.
The Witness.-One statement has been made by the last witness that I think requires to be The Hon.
explained. If you would allow me I should like to explain it. It is one of the utmost importance. The last T~':?'~~;~~a:•
witness mentioned that the clifferenee between the price of tallow in this market and London gave a duty
or protection of £8 per ton in favor of the local manufacturer. I am prepared to say that he is mistaken.
He has spoken from imperfect information. That such a difference as that exists between the two markets
is quite true, but it is not ~~protection in favor of the local manufacturer, and it is necessary for me to·
explain why. In dealing 1vith a ton of tallow, the local manufacturer obtains therefrom about 52 per cent.
of stearine, which he ean manufaetnre into a candle of a quality equal to the European makes that come to
this market. The remaining 48 per cent. consists partly of an article called oleic for which there is no
market in Australia; 48 per cent. of the whole is oleic, and that oleic has to be shipped to London, where
under many adverse circumstances of freight and packages, leakages, and so forth, it barely nets the candle
manufacturer more than £13 a ton, so that the total quantity of one ton of tallow yields 52 per cent., which
is manufactured into candles on this side of the water, and 40 per cent. which has to be sold at the net
result of about £13 a ton in London, while the manufacturer here has given £36 a ton for the whole of it.
So you see how dangerous a witness, who states from imperfect information, may be to a great industry,
unless his statements be explained away.
48919. By l~fr. J.lfclrttyre.-We had the same evidence, this morning, from Mr. Kitchen exactly
word for word, given by the late witness, Mr. Johnston ; are we to understand .that a ton of tallow here is
not the same as a ton of tallow at home ?-I am not speaking of a ton of crude raw tallow; I speak of a ton
of tallow andlts products. ·
48920. The products of a ton of tallow must be alike here and in London ?-I beg your pardon,
there is a great difference.
48921. Are we to understand that a ton of tallow, which you buy here for your manufacture, is not
the same as a ton of tallow in London ?-The tallow is all the same, but the products are in different
markets. The product in this market, as I have explained, has 40 per cent. of it to be conveyed to
Europe; but if the same tallow is distilled in Europe the product is there and has not to be conveyed, and
if it goes home in the form of tallow it goes under the most favourable form, and there it is sold in the
market where the oleic brings £26 a ton. If it were possible for you to guarantee to the manufacturers here
£26 a ton for all their oleic, they could then do without the duty upon candles. But it is exactly the
difference that they must lose about £13 a ton upon all their oleic sent home.
48922. By the Chairman.-That is 40 per cent. of the tallow ?-That is 40 per cent. of the tallow;
and, therefore, if they pass through 100 tons or tallow through their stills they have to send home about
38 or 40 tons to Europe, where they only net about £13 a ton.
48923. By Mr. _ilf'clntyre.-It does not alter the facts at all ?-I do not want it to alter the
facts.
48924. We the consumers, at all events, are paying for the fact that we cannot utilise our oleic
here ?-That is quite right. I only wanted to explain Mr .• Johnston's evidence.
The witness 'Withdrew.
John Lorimer sworn and examined.
489 25." By the Chairman.-You represent the firm of Connell, Hogarth, and Company ?-Yes.
48926. Is this firm an importer of candles ?-We do not import many.
48927. Have you any evidence to add to the evidence that Mr. Johnston gave on this article of
candles ?-No.
48928. Are you content to accept his evidence for your firm a~ being a sufficiently reliable repre.
sentation of the case from an importer's point of view ?-Our interest as importers is so small that I
could not speak of it in that light at all. We are merely distributors of candles ; we buy in this
market mostly, it does not pay us to import.
48929. Then the duty does not affect you ?-Not at all.
48930. You do not 1>'ish to propose any alteration in the duty ?-No, it does not affect us.
48931. By ~wr. 11fuwro.-Do you find it quite as profitable now to buy locally as you did to
import ?-Yes ; the profit is more regular to huy in the market.
48932. The only advantage would be in a large shipment to make up a freight hy shipping
candles ?-Sometimes we would huy them expecting to make a profit in this market, and when they
came to hand we might make a loss. It is a very dangerous article to deal with.
48933. By Mr. Mcintyre.-As an importer you say the reduction of the duty would not affect
you ?-Not a bit.
The witn,ess witl