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disposed of. Soda is practically cleared, but out of 400 cases Dry Ginger Ale and Lemonade half remain. An over large quantity of bacon and hams, viz. 36 cases and 69 bags respectively were forwarded, and Merchants pointed out with some reason that as the bulk of their white customers had been deported, they could not possibly accept the lot. To date 31 cases bacon and 43 bags hams have been purchased and Burns, Philp and Coy. state that to return the balance to Sydney would mean excessive depreciation.
A quantity of Herrings and Salmon, Soap, best quality, Tea and Tobacco Mr. Lucas has agreed to return to Sydney, and as Burns, Philp and Coy. supplied these lines ex their store the proposition is reasonable.
A large quantity of rice (160 tons), Tobacco, Benzine, Kerosene, Sugar, Soap and Tea has been taken into charge of Government Store for administrative supplies to natives, etc. and I would specially draw attention to the point of original Sydney cost bearing surcharge of 10 per cent; as no difficulty arises regarding special terms of payment as in the case of Merchants, this commission seems much in excess, particularly in view of the fact that Messrs. Burns, Philp and Coy. do not appear to have given the Government any concession in freight to Rabaul, supplies for Troops despatched per "Moresby" being manifested at ordinary rates. Rice in 200 lb bags has been charged £14-10-8 landed at Rabaul, Burns, Philp and Coy. supplying at £11 per ton in Sydney. Per "Matunga" an outside firm - Messrs. Aitken Bros. - shipped a small parcel of 5 tons, also in 200 lb bags, and the landed cost at Rabaul, including Sydney purchase at £10-12-6 per ton, works out at £12-12-7, a truly remarkable difference to the shipment per "Moresby", more especially in view of the heavy consignment of 560 tons.
Mr. Lucas is under the impression that the authorities in Australia had agreed to all the prices charged per "Moresby" but no official communication or endorsement on invoice to this effect has come to hand.
[In margin] Since recd. W.H. 27/10.
The parcel of 5 tons is the only instance I have to base a comparison and, therefore, may possibly not be fair criterion; however, the matter seems worthy of investigation. Trade tobacco ex Burns, Philp & Coy's Sydney Bond at 1/2d per lb has been the subject of considerable difficulty in disposing to Merchants with added commissions, freight charges, etc.
In the final conference with Merchants and Messrs. Burns, Philp & Coy. regarding repayment for supplies ex "Moresby" I acted as Umpire, and a satisfactory basis was eventually arranged as to lien on copra on sight at Rabaul, also further shipments plus ruling rate of interest, viz. 8 per cent.
I have the honor to be,
Sir,
Your obedient servant,
(Sgd.) Keith Heritage, Lieut.
Supply Officer for Administration.