THE FLAX INDUSTRY

Dominion, Volume 2, Issue 451, 9 March 1909, Page 6

THE FLAX INDUSTRY

SOME INTERESTING CORRESPONDENCE. TWO CHALLENGES. To the Editor. Sir,—ln TVe Dominion's report of tho Faxmill Workers' Union deputation to tho Hon. Mr. Hogg it was stated that: "Labour cost per ton £8 Bs. Mr. Dalhousie informed the Minister that the miller who had supplied tho information was prepared to submit his books for inspection by tho Minister or any person appointed by him, but did not wisli his name to appear in public, saying, 'If I open my mouth I close my mill.' " I wish publicly to ask tho Minister to appoint sonic well-qualified person to inspect tho books referred to, and if it is proved that this miller can produce on an average throughout the season 8 tons of scutched fibre of good fair quality from every CO tons of green leaf, at an average cost for labour, including cutting and tramming, and manager at £4 10s. per week, of £8 Ss. per ton, I will contribute £25 to somo charity. On the other hand, if it is found that the deputation wore misleading the Minister, they must agree to publicly apologiso to him through the medium of your paper. —I am, etc., H. GREIG, Flaxmiller, Shannon. March 6. VIEWS OF THE EMPLOYEES' UNION. Sir, —I am instructed by tho Management Committee of the Manawatu Flaxmills' Employees' Industrial Union of Workers to reply as follows to Mr. Mabin's letter which appeared in your issue of the 6th instant. Mr. Mabin characterises tho information which wo laid before- the 'Minister as "absolutely unreliable." Let us deal with his attempts to confute our statements seriatim. First, then, he doubts that there is in existence a mill whoso output totals eight tons of dry fibre per week. As we stated to, Mr. Hogg, this record was taken from the books of a miller now working, who offered them for tho inspection of the Minister or any representative he might appoint. To further emphasise our certainty of the correctness of this tally, wo make tho following offer. Mr. Mabin may como up and see tho miller's returns: wo will take him out to tho mill, whero ho can satisfy himself that tho necessary quantity of green loaf is going through, and if we fail to satisfy him that our estimato of an eight-ton output for this mill is correct, wo will gladly donate £5 to tho funds of the Palmerston Hospital, provided that Mr. Mabin agrees to contribute a similar sum if our statement is proved correct. Wo contend that if one miller can do this it is only a question of attention to detail to enable any miljer in ordinary circumstances to do it. We did not omit any of tho staff in calculating labour cost. This miller eemploys neither sorter nor vegetation man, and two paddockers, together with a fibre carter, do all tho work in the paddocks. Wo did not deal with tho items of cartage, punting, freight—there is at present no chargo for grading, as Mr. Mabin. should know—as it was tho cost of labour only with which wo were concerned. How Mr. Mabin or anybody else could havo gained the impression from anything that wo said that the difference between labour cost and market values went to the landholder passes our comprehension. Wo gavo details of both labour and royalty charges, and wo fail to see how anyone, after even a cursory glance at tho two items could charge us with putting forward the ridiculous suggestion attributed to us by your correspondent. Wβ admit that, as Mr. Mabin says, royalties have fallen from 225. Gd. per ton to Bs. Gd. The fact remains that in tho caso of the Moutoa Estate (which he is evidently quoting) this Bs. Gd. means a return of 36 per cent, on invested capital. Does Mr. Mabiu consider this a fair percentage to be drawn out of the trado in its present precarious position by a non-producer? Your correspondent is surely speaking very "generally" when ho asserts that most mills nowadays draw their supplies from cultivated flax! How many of the estates with which we dealt expend tho sum (£350 per annum per 500 acres) estimated by Mr. Alfred Seifert as necessary to maintain drains, cut toi-toi, etc., for a crop of flax? Wo shall bo glad to havo somo figures from Mr. Mabin on this- subject. In his conclusion Mr. Mabin inveighs against the "arbitrary action of the Arbitration Law" as affecting the industry. It may be, in this connection, interesting to glaiico at the actual wages paid under the award by Mr. Ross, of Foxton, whoso mill ran during tho season in question more constantly than any of tho others in town. His figures work out as follows, per week: — £ s. d. Feeder 2 12 0 Catcher 2 0 0 Hencliloader 2 0 0 Fly-boys and llouseabout ... 116 0 Pad dockers 2 6 0 Scutchers 2 10 0 3 Cutters (each) 4 0 0 1 Cutter 2 7 0 I Cutter '. 2 16 0 Tlieso were tho actual wages paid in ono season —10 months —worked out per week for tho wholo year, and wo claim that for the class of work in question they were not exceptionally high. Tho only really big money, curiously enough, was made by the cutters, who aro not under tho award. It must ho borne in miiid that during tho two winter months work -is very hard to obtain, and that it is necessary for a married man at any rato to earn enough in tho season to tide him over tho eight weeks in question. These figures may also be inspected in tho books by Mr. * Mabin if ho so desires it. Our reply to Mr. Mabin re the eight-ton output covers also the ground broken by Mr. Geo. Seifert in your issue of tho sth instant. —I am, etc., PERCY T. ROBINSON, Secretary. Foxton, March 6. ANOTHER CONTRADICTION. Sir, —Some of the statements of the members of the Manawatu Flaxmills' Employees' Union which interviewed tho Minister for Labour, the Hon. A. W. Hogg, on tho 28th ultimo, aro so obviously unfair that I consider the industry wouid suffer at the hands of the general public were they allowed to go unchallenged. I am pleased to see that in an interview your correspondent had with Mr. George Seifert, cf Palmerston North, ho (Mr. Seifert) refuted the statement that tho wages in connection with the production of a ton of Qbro amounted to tho small sum of £S Bs., and/that Mr. A. E. Mabin, of Wellington, lias also written you in respect to this and other mis-stiitements.

Under tho heading of Moatoa Estate, tho deputation has endeavoured to show that tho present owners of this estate are getting the high return of 36 per cent, per annum on the present rato of royalties, viz., Bs. 6d. per tou. They baso their calculation on. the fact that the land was bought many years ago at £7 10s. per acre, and to tho unthinking and lay mind it might appear that all ownors of flax land who dispose of their green blade on royalty aro making this high return at the reduced royalty now charged. In tbo first instance, if they wish their argument to ho taken in a general sense, their starting poin6 of £7 10s. per aero is calculated to mislead. Because- a syndicate happened, many years ago, to purchase land at a low figure, that surely should not constitute a fair starting point. Tho basis should" be the value- of the land when tho last valuation took place, and I claim that the value, of the Jloutoa Estateand other similar lands from which our grcon blade is drawn was more like £20 per aero. So you will -ee that for a start ono must divide their 36 per cent, by three, which at oneo brings it down to 12 por cent. ' Further, they baso their calculations on a roturn of 20 tons to tho aero every three years, while tho average plax-producing property 18 tons per aero maturing every four years is a good return; and they have studiously made- no allowance for up-k«cp of property, draining, taxation, local rates, etc., which, as 1 show as under, bring tho 36 por cent, down to a not return of practically 7 por cent, per annum. Assuming that flax lands of tho naturo referred to aro worlli £20 per acre, and that they boar a crop of 18 toii3 to the aero overv

four years, and that the landowner soils the crop at tho existing royalty, viz., Bs. Gd. per ton, he will get a gross return of £1 18s. 3d. per annum, less taxes, rates, upkeep, etc., say, 9s. Oil. per aero, bringing liini in a net return of £1 Bs. 9d., .or practically 7 per cent, on tlio capital value, surely not a very largo return for invested capital, when ono takes into consideration tlio hazardous nature of tlio industry. In addressing you; I do not for a moment wish to uphold tlio cruel and excessive royalties and cutting rights that were charged by somo of tlio property owners somo timo ago, as I consider these iniquitous charges have, among other things, been tlio moans of placing a lever in tlio hands of the deputation, and have, in many instances, alienated from tlio flax landowners any sympathy the general public may have had with them. I simply feel it a 'duty which devolves upon me as ono much interested in the flax-milling industry to refute tho statements made. Yours faithfully, A. J. TOOGOOD. Feathorston, March G.