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The Pamphlet Collection of Sir Robert Stout: Volume 68

Opinions of Agents and Salesmen

Opinions of Agents and Salesmen.

I called at the offices of the New Zealand Loan and Mercantile Company (Limited) in Queen Victoria Street, E.C.. and was favoured with an interview with the chief buyer, who is intimately acquainted with the whole system of the New Zealand trade. My chief object page 61 was to ascertain directly from the company whether, from their point of view, the New Zealand shipper suffers any loss by sending his goods through its agency. While, naturally enough, the provision-merchants of London would prefer to receive consignments direct from the colony, there is much to be said for the protection which is afforded by the transmission of produce through a recognised channel which provides absolute safety and some guarantee that it will be sold to the best possible advantage. Although, therefore, it is quite possible that first-rate firms of merchants may be able to treat the shipper as well directly as the agency is able to do indirectly, and perhaps in some cases better, yet the great value of consignments and the delicate nature of the trade suggest the supreme importance of avoiding all risks, and therefore of even paying a small extra increased charge to insure both a fair sale and Eire freedom from loss of the amount which the goods realise. The company's buyer, however, did not for a moment believe that higher prices were obtained, or could be obtained, than those realised through the agency. Although there are firms who hold an opposite opinion, yet, he said, there were others who would not venture to suggest that this was the case. As is well known, the company has offices in all the large towns of New Zealand, while among its Home directors are men of such high position and character as Mr. Mundella, M.P., and Sir James Ferguson, M.P. I notice that in the company's circular for the 3rd November quotations are made of the prices for prime Danish, Normandy, and Friesland butter. It is important to observe—what may possibly be unknown to the colonists and even to those who study such quotations—that they do not represent the selling-prices of these articles in the London markets. London quotations, in a word, are absolutely misleading, and the fact has recently been most fully substantiated in the evidence given by experts before the Royal Commission on Market Tolls. The shop-keeper visiting the markets in the hope of buying at quoted prices will generally be deceived; and, with considerable experience upon this point, I have no hesitation in believing that as quotations, as Mr. Pell has stated, were made by interested salesmen for market purposes in connection with meat, so may they be made in a similar manner both with regard to butter and cheese. Prime Normandy, for example, quoted at £4 18s. to £5 8s., cost, to my personal knowledge, at this date, from £6 to £6 5s., while prime English Cheddar quoted at £2 6s. to £3 6s. cost £3 10s. to £3 15s.

Learning that the great bulk of the dairy-produce of New Zealand had passed through the hands of Messrs. Samuel Page and Son, a very important firm of provision-brokers of Water Lane, E.G., I put a number of questions to this firm, which were very readily answered in the following words:—"We think it will be well to impress upon shippers of New Zealand cheese and butter the following points: viz., That all butter of the same mark should be of uniform quality, and that each package of the same mark should be page 62 of the same weight, and made of the same kind of wood, to insure regularity of tares, as some wood absorbs more than others. That if butter be of mottled colour, however good the quality, buyers will only take it at much less money than that which is regular in colour; and colour should be yellow, not red. That Pond's patent boxes should only be used for butter of exceptionally fine quality, as we understand they cost a good deal more than firkins. That butter in rolls should not be shipped here. That firkins should be bound with galvanised-iron hoops, as ordinary iron becomes rusty and looks unsightly. That stencil-plates should always be used to mark the packages, as appearances go a long way, and that the packages should be marked only on the top, and that the words ' Pure butted must appear on each package. That there should be no cloth all round butter, but a muslin cloth sprinkled with salt on the top only. The butter of fine quality should contain not more than 3 per cent. of salt, but anything of doubtful keeping-quality may be salted 4 or 5 per cent. That the London market cannot have quality too good. That after March it must be expected that prices of New Zealand butter decline very much, because supplies of fresh-made European become plentiful. With reference to cheese, the prin cipal things to bear in mind are that they should be of upright Cheddar shape, 50lb. to 70lb. each in weight, straw-coloured and uniform in colour, not mottled, rich in quality, and clean-flavoured. There should be a space between the staves of the crates and a thin board between each cheese; also a scaleboard or thin veneer of wood at the top and bottom of each cheese. We assume that shippers will before long adopt the American mode of packing cheese singly in light boxes instead of several together in a crate, as they are more easily handled. Having disposed of the bulk of New Zealand cheese and butter from its earliest importation, we have watched with great pleasure the development of the business, and are confident that if shippers continue to improve the quality of their produce very good results will be obtained on this market for the butter from the month of October to March; and there is no reason why the cheese trade should not be carried on all the year round, as the seasonal in well, as was proved by our being able to dispose of 1,800 cases of New Zealand cheese, ex "Doric" and "Rimutaka," at £2 10s. to £2 16s., whilst the May and June American offering at the same time were only worth £2 6s. to £2 8s. We strongly recommend that butter be always sent in the refrigerators and cheese in the cool chamber."

I subsequently had an interview with Mr. S. P. Page, a personal friend of my own, and one of the members of the firm, who informed me that the colonists had made rapid strides in the improvement of butter and cheese of late, although much was still to be desired as to uniformity. The cheese arrives in better condition when shipped in cool-chambers, but when shipped with ordinary cargo it is Very often in a melted or collapsed state. It is recommended that the page 63 butter be sent in a refrigerator, for, although the cool-chamber keeps it firm in condition, the refrigerator preserves the flavour better. The colonists, said Mr. Page, have every chance of competing with French, Danish, and American produce. Great stress was laid upon the fact that much of the butter comes in a mottled condition, some-times making as great a difference as £2 6s. in a hundredweight in value. The factory or mixing-houses do not therefore appear to have fully understood the practice of blending, which is described in another portion of this report. Mottled butter in the Home market generally caused by bad manufacture and imperfect salting and colouring. Coarse salt badly mixed attracts the moisture which is always to some extent present in butter, and causes a difference in the colour, as compared with the butter-fat surrounding these briny streaks. I put a question to Mr. Page as to whether he did not think that, if perfectly-made butter was shipped in a refrigerator very soon after making, it would not reach this country in as line a condition as could be desired. He replied that a large quantity of the butter had to travel a considerable distance before it reached the port of shipment, and that much time frequently elapsed between the butter leaving the churn and its entrance into the cold-chamber. This undoubtedly is an important factor in the success of New Zea-land butter-makers. If, in a warm climate, a week or ten days is host in this way, it is quite possible that much of the butter may have commenced to change before shipment, and thus first-rate prices are lost. Rapidity of transport is therefore most desirable; and it is well worth while for those engaged in the trade to consider whether it is not possible in particular districts to arrange for despatch on fixed days, so that as great a bulk as possible may reach the port in sufficient time only for shipment. In a country well provided with railways there would be no difficulty, but under present conditions it is impossible to do more than to impress upon interested persons the great necessity of losing as little time as possible, and of taking care to protect consignments from the influence of heat while they are on the way to the steamers. Mr. Page spoke very highly of Pond's boxes, which, however, are necessarily too high-priced for general use; but he also urged that, as wood of the very best kinds suitable for cask-making is largely grown in New Zealand, it might be employed with great success. I asked him whether he preferred that, after heading, brine should be passed into the casks before plugging up. He said that he gave the preference to a thick layer of salt, which should be laid in before the cask was fastened down.

At one time it appears that butter was received in rolls which were wrapped in cloth. These were not found suitable, the natural presence of air contributing largely to spoil the butter for marketing. Mr. Page suggested a temperature of about 37° for butter, inasmuch as if frozen it was less able to keep after arrival; and 43° Fahr. to 47° Fahr. for cheese. Much of the cheese appears to have arrived page 64 at times in a crumbly form, so that when the retailers who purchased it cut it up for sale they suffered a considerable loss, and fought shy of a similar article in future. With reference to the question as to whether shipments should be made to merchants or, as under present conditions, to the New Zealand Loan and Mercanttile Agency Company, I learned that it was to the interest of the broker, who receives a commission upon his sales, to obtain as high a price as possible, so that upon this ground the shipper may rest assured! that the best possible is being done in his interest. The produce is not submitted to auction, which according to some experience realises lower prices than when it is exposed upon the quay and sold in the ordinary way to buyers who come to inspect the consignments which are pitched for sale. This is certainly a point of great importance. A shipper consigning to a salesman is unable to make terms until the goods have been inspected by the firm to whom he ships; and, although in good hands he will probably be treated with fairness, yet it is possible that he may not be, and the experience of English manufacturers and growers in other departments of agricultural commerce gives a great point to this argument.

Mr. Reynolds, of the well-known London firm of merchants, Messrs. Reynolds, Sons, and Co., afforded me considerable information with regard to New Zealand produce. He was most earnest i s his desire to impress upon the producers in the colony the necessity of avoiding the payment of brokerage and other charges to middlemen—that is, to firms and other media through whom both cheese and butter pass on its way to the consumer—but between the producer and the salesman. He stated that in many cases the consignors ship to an organization to whom they look for financial assistance. Between this organization and the merchant comes the broker, who, in his turn, receives a portion of the sum which the goods realise; and yet, to Mr. Reynolds the intervention of broken: appears to be utterly unnecessary. Supposing, for example, that a bill of lading be handed to a firm of merchants of the calibre of the firm of Messrs. Reynolds, there appears from their statement to me to be no reason why the goods should not be in their possession within twenty-four hours after their arrival in dock. Should it be necessary to make advances upon consignments, this firm declare their willingness to make them to the extent of two-thirds of their value; and they not only afforded me evidence of their substantial position, but declared their willingness to do the same to either New Zealand shippers or producers. My object in the questions which I put to this firm was to ascertain from them the readiest manner in which the producer could sell his goods at a maximum obtainable price to the British consumer; to learn, also, their opinion of the market for inferior goods, and to understand the relative position which goods of a superior class from New Zealand would occupy when competing with those from Denmark, from France, and from America. The first point has been practically answered. With page 65 regard to the second, Mr. Reynolds admitted that there was always a Be market in England for both butter and cheese of second quality; but he remarked that he was bound to add that the prices for these [goods were so low that they could not possibly pay the producer; and that, in fact, all inferior dairy-produce must be sent out, from whatever country it comes, at a direct loss to the grower, this loss king at times very considerable and always distinct. With regard [to the comparison of colonial goods with those from the countries tamed, the firm think that they would have equally as good a chance as the butter from Denmark and France, and the cheese from America, and that there is no reason, indeed, why they should pit surpass them. New Zealand cheese has constantly been sold as American—that is admitted by the salesmen themselves; while butters, although fine brands have been few, have in some instances been received from the colony in a well-preserved state, having originally been well made, and have realised proportionately high prices. Mr. Reynolds said with considerable force that the difference between good and bad butter arriving from New Zealand was not less than 6d. per pound in the London market, and there was a relatively proportionate difference in the value of cheese. It appears to matter little whence the produce comes, so long as it is sufficiently good to command a price. For example, the chief brands of butter from Normandy are sold as Brittany, whereas real Brittany butter comes to London under the name of Jersey; and I ascertained during a visit to this island in September that there was not a single hundredweight shipped per week to the London market—Eat. in fact, a Jersey-butter trade with England did not exist. As regards cheese, Mr. Reynolds's warehouse was filled with large Entities of both British and American makes, several brands of which I was allowed to inspect and to taste. The Americans were generally of fine quality, clean-flavoured, and admirable in texture and colour—in a word, they were even throughout, whether coloured or pale. Comparing a medium American brand with a brand of New Zealand cheese in the same store, I was informed that the one, although a cheese of a similar character, was worth 14s. per hundredweight more than the other—£2 16s. against £2 2s.

An examination of the two cheeses showed that the New Zealand had been carelessly finished, the texture was coarser, the colour uneven, and the cheese itself, although mild, lacked mellowness. The American sample, on the other hand, was perfect in all these points, its deficiency being only in the delicacy of flavour. Upon pointing this fact out to Mr. Reynolds, I was shown another American sample, which, although somewhat higher-coloured for a particular market, was more perfect in this respect, and perhaps within an ace of being equal to the best English Cheddar in the warehouse, which I valued at £3 10s., the identical price which the firm are paying to the producer. "Here," said Mr. Reynolds, "is a cheese which is in great demand, of which it is not possible to obtain page 66 a sufficient quantity. The English farmer can come into my ware house and demand his own price from £3 10s. to £3 15s., and a maker of this class of cheese is always in a position to do this when he has it. If he has delivered it, and is unwilling to take the price we offer, he can threaten us with its removal, which we should desire to avoid, knowing the scarcity of cheese of this quality." These are striking words, and they deserve to be strongly impressed upon the memory of the cheesemaker, in whatever part of the world he may be conducting his business. Mr. Reynolds also recommended that New Zealand farmers should take the Wiltshire loaf-cheese, which in quality is of the Cheddar type, in hand. It does not pay quite so much per hundredweight, but is a marketable variety, and finds ready sale when it is good. With regard to cheese of the Cheshire type, upon which I asked some questions, Mr. Reynolds stated distinctly that its days were over in this country. It may, perhaps, be as well to remark that this was the view of a London, and not a north-country merchant, for as in the case of butter so it is with cheese : in the London and southern markets of England the consumer prefers mildness and delicacy of flavour; whereas in the north, doubtless owing to the difference in the taste which the mining and other industrial populations have acquired, a stronger flavour is preferred in cheese as saltness is preferred in butter.

Mr. Reynolds, in answering questions with regard to packages, and the mode of transit of dairy-produce, was strongly of opinion that butter of the highest quality, if properly shipped in a cold chamber, would reach the London market in good condition, and that it would retain that condition sufficiently long to permit of its being sold at its full value; but it would be of no use to attempt to export butters which are not really of the first class. The idea of blending various qualities is out of the question; and there is much to be said with regard to the method of packing. It is scarcely necessary to condemn the casks or firkins which are used in the Irish market. At Cork butters are delivered to the authorities in tubs or firkins. These are occasionally opened by the inspector, with the assistance of an ingenious machine which lifts off the head of the cask and spreads out the staves, while leaving them in such a condition that they may be fastened up again almost in an instant. I have witnessed this operation, which enables the testers and the inspector to ascertain whether the butter has been mixed, and whether, in fact, it is thoroughly genuine; but it vividly illustrates the fact that the sides of the mass left standing for inspection are pressed into close contact with the wood, which is not always of a nature suitable for the purpose. To remove all possibility of deterioration Mr. Reynolds recommends that, as in some samples which he showed me, firkins should be lined with grease-proof paper. It is necessary to add that this work should be skilfully performed, to prevent the possible enclosure of air within the cask. With regard to the transit of cheese in cold-chambers, this firm, like myself, believes that if the cheese is page 67 in a sufficiently ripe, saleable, sound condition when shipped into the cold-chambers it will arrive in a similar condition in this country.

In affording me this information Mr. Reynolds said that he and his brother, who were the proprietors, were men of business. They believed their business was the largest in London, they had plenty of energy, and their object was to buy the best goods in the cheapest market, and to sell in the dearest. These facts, which are sufficiently patent in a firm of this kind, were nevertheless stated openly, and I have sufficient knowledge of their business extent and qualifications to know that they are in a position to deal largely in the dairy-produce of the colony.

Messrs. Thomas Nesbitt and Co., provision agents, of Hibernia Chambers, London Bridge, S.E., in speaking of the uniformity of New Zealand butter and cheese, state that both articles have been most irregular in quality, and that, although some of the arrivals were very fine, the majority were inferior. The condition upon arrival was good upon the whole, but there have been instances of damages incurred when the goods were slipped outside the cool-chambers, although the cheese-packages were good. This firm recommends Pond's patent cases for the finest qualities of butter, and kegs bound with galvanised-iron, weighing about 60lb. net, for the other qualities. Messrs. Nesbitt believe that with care and attention on the part of the colonists the prospect for competition with Continental and American produce is favourable; but they add that nothing but cool-chambers are suitable for the transit of provisions from New Zealand.

Messrs. Wheeler, Bennet, and Co., of Tooley Street, London, S.E., who are actual selling-agents for New Zealand produce, and mho inform me that they are able to handle any quantity, desire to call special attention to one feature of the trade. They state that winder present conditions the colonial farmers hand their produce either to a bank or a financial firm, who in their turn consign it to some firm in London which is entirely a stranger to the trade. Again, this firm in their turn hands over the goods to brokers or agents like ourselves for direct sale." Messrs. Wheeler, Bennet, and Co. contend that the two heavy commissions entailed by this process ought to be saved. The general rule of this firm is stated to be as follows: An advance of 75 per cent, of value against production of the bill of and the balance upon completion of the sale with "account sales"' The film furnish me with the names of four of the principal banks to whom they refer their customers.

In answer to some questions put with regard to New Zealand produce, Messrs. Wheeler, Bennet, and Co. state: "Of the two articles sent to us—butter and cheese—the former did not show the uniformity in quality and make of the latter, and great improvement is needed in this respect. The bulk of the shipments more or less showed sighs of not having been marketed quick enough. They page 68 were of a good, sound, tough texture, but not carefully cured, and when marketed here opened rank and stale. The bulk of the cheese turned out favourably and met a ready sale, showing a uniformity in make so far as each factory was individually concerned. If mean could be taken to retard too-quick ripening, it would, we think, be beneficial and enhance the value. The packages have generally stood the voyage and knocking about well. Until some great change can be made in the butter, it would not have any material effect on Danish or French goods. The length of time en route is a great detriment to it, as we now require a mild butter for the best trade. No matter however sound and tough the texture, if any excess of salt shows itself we cannot work it for best goods, and if not sufficiently salted to stand the time occupied from the period of making until it is marketed here it arrives stale and rank. As regards American butter, it has superseded it in the lower qualities, but the finest American butter does not come to England in any quantity. New Zealand cheese has considerably interfered with the sale of American and Canadian, both for finest and lower-priced goods whether this can last ss not time alone will show. Should any large make there show itself it must be consumed, and low prices alone will do this. The trade are not confined to any particular make, bull look out for the best value."

Butter must be shipped in the cool-chambers, but we are not satisfied on this point as regards cheese; certainly it should not be placed in a chamber at the same low temperature as the butter, yet it must not travel openly in the hot hold passing through the tropics.

Mr. W. H. Hart (successor to Mr. James Watson, M.P.), of Birmingham, states that he has only had two or three shipments A cheese, which came to hand over-ripe and full-flavoured. Although rich in quality, they had to be sold at low prices. Mr. Hart believes that if the cheese were shipped while new it would "cure and ripen" on the journey, and arrive in good saleable condition, meeting with a ready sale. He is of opinion that butter is too perishable an article to bring such a long distance, especially as, after being in a refrigerator for some time, it becomes strong on exposure to the air.

Mr. W. A. Watkins, of Birmingham, has not imported New Zealand produce, but the samples of cheese which have been sent to him from London were good, both in quality and condition.

In order to ascertain the opinions of a firm experienced in the Continental cheese-trade, and to ascertain their views upon the subject, as connected with a possible introduction of the system of manufacture of certain varieties of cheese in New Zealand for that English market, I called upon Messrs. Crowson, of West Smithfield E.C., who have a large trade in Gorgonzola, Parmesan, and Gruyere, and a still larger trade in the leading soft cheeses of France, which I understand they sometimes sell at the rate of a thousand dozen per week. I was informed that the wholesale price of Gorgonzola has, page 69 during the past few years, fallen from 11d. to 7½d., and that moderately good cheese now advertised to the trade at 8½d. is being purchased at 7½d.; "but," said the member of the firm," it is not a first-rate article, and we would gladly, even at the present time, pay 11d. per pound for really choice cheese, which is most difficult to obtain." Messrs. Crowson express the opinion that, in order to meet the price, which has fallen just as the demand has increased, the Italians use milk which has been partially deprived of its cream. Although not acquainted with the colony, Messrs. Crowson believe that this cheese could be made in New Zealand, but they do not appear to be satisfied as to whether it would travel so far as Great Britain. That point, however, would soon be settled by a test-case. I asked a question whether a market would be found in England for cheese of this variety, and was surprised to hear an expression of opinion that it could be sold in any quantity if it were good and cheap; and it must be remembered that the very lowest price named, 7½d. per pound, is much higher than the present type of colonial cheese is making in England. In the ordinary nature of things, however, we must be prepared for a further fall in Gorgonzola, just as English cheesemakers must be prepared for a fall in Stilton when it is made in the colonies for shipment to this country. Where Messrs. Crowson were able to sell a hundred Gorgonzolas five years ago, they now sell from two to three thousand, and it is by no means an uncommon Recurrence for them to sell a thousand in a single day. This firm, it must be remembered, supply retail shops, sending out their vans I daily throughout London to call upon provisioners and deliver goods at their doors.

With reference to Gruyère, it is a somewhat remarkable fact that, although much comes from a district where the Gorgonzola is made, this cheese can be sold in England at a lower price. Competition is undoubtedly the cause. The very best Gruyère costs the retailer 8d. per pound wholesale; but, again, this is much better than colonial price, while it pays the Swiss farmer well for his milk. Gruyère is a cheese which, as it becomes better known to the large body of the public, will command an enormous sale if it can be brought within their reach. The absence of quality in the Gruyère is chiefly owing to the poverty of the milk; yet the Swiss, like the French in the mountainous districts surrounding Switzerland, are, as a class, first-rate makers. The consumption of Gruyère has already extended in London very largely, the sale being at least five times as great as it liras a few years ago. With regard to Parmesan, which was exhibited during the past summer at the Italian Exhibition, where it was intended to give away large quantities of prime cheese as tasting-samples, there is a greater margin for profit than upon either of the varieties already mentioned. There are two reasons accounting for this. The cheese is made of milk partially skimmed—sometimes, indeed, wholly skimmed—while the price of a good sample, on account of its rarity, is always very high. At this moment a firm like Messrs.

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Crowson sell high-class Parmesan at 1s. a pound, paying the exporters 11¼d.; but these are for cheeses which are three years old, hence something has to be added to the cost of manufacture in the shape of interest upon the money invested, and for depreciation in weight. I believe that the Parmesan merchants, such as those with whom I have become acquainted in Milan and Parma, are among the largest cheese-factors in the world. In one store, or series of cellars, I was shown ten thousand old cheeses, the majority of which weighed over 100lb. each, many being of considerably greater weight. This represented a very large sum, but the business realises great profits for the factors. At one time Messrs. Crowson used to sell no more than a hundred of these cheeses in a year, but now they get through the same number in from two to three months. The public will not buy either Parmesan or Gruyère unless it is good; and of the former cheese in particular it may be said that there is a greater distinction between a good and a bad sample than is the case with any other variety of cheese with which I am acquainted.