YORKSHIRE LETTER

Dominion, Volume 10, Issue 2994, 3 February 1917, Page 3

YORKSHIRE LETTER

GOVERNMENT CONTROL

HOW WILL SUPPLIES BE DISTRIBUTED? (From Our Special Correspondent.) Bradford, December 7, IIIIC. ' Wool markets are all alive with interest, although activity is outside the question. We are' writing this without any announcement being made by the Imperial Government as to 'whether there is going to be any series of sales this year, the whole industry waiting for it with breathless interest. Since'last writing an important meeting lias been held in London representing all sections of the trade, at which matters relating to the Government commandeering the colonial clips received very full consideration. The Government action has struck at the very vitals of the industry, and without knowing the full facts of the case it seems to a large number in the trade that colonial growers must have been animated by a magnificent spirit of patriotism to have parted with their wool at 53 per cent, above the prices current in January, 19U, bemuse even with freight at id. per lb., they would have made more had their wools been sold by public auction. However,' the Government stepping in to control the colonial clips seems to the writer to be the outcome of the Economic Conference held at Paris a few months ago, the step being taken for the purpose of controlling completely the raw material supplies of the British Empire in order to prevent the enemy countries obtaining a single pound. If that xan be done, it will be some compensaffisu for the disturbance of the entire industry and for dislocating everything from the grower to the manufacturer. That the Government intend to carry out thoroughly the measures they have introduced is indicated by. the fact that telegraphic information has .been received in Bradford to the effect that the Liverpool sales have been postponed by their order. This is an--other step in the direction of acquiring even ■ stronger control of, all wool supplies. Trade Recommendations. As already indicated, an important conference took place'in Loudon last Friday, the following being the oilicial report of the proceedings:—A private conference, consisting or representatives of the Colonial Wool Merchants' Association, the Associated London Selling Wool Brokers,,and the Colonial Wool Bayers Association, was held at the Wool Exchange, Coleman Street, this day. The meeting was fully representative of all departments of the wool trade.- Mr. Reginald Jacomb presided. There, was crnsiderable enthusiasm, and the fcllowing resolutions were unanimously adopted :— (1) That every endeavour 'should be made to ensure that'all wools that left Australia an dNew Zealand or were cold and paid for there up to the date on which His Majesty's Government announced that they had taken iver the Australasian clips should be available for ultimate disposal.. under conditions ruling at that date. (2) That Mr. Lloyd George, Secretary of State for War, be asked to receive a deputation representing all sides of the ( wool and woollen industry at an early date. • - • I • •>

A committee was appointed to carry out the suggestion of the second resolmtion. The meeting unanimously endorsed tho memorandum which the cliainuan of the three associations had forwarded to the Director of Army Contracts, as folloiJS:— , As representatives of the three chief factors in the distribution of colonial wools—i.e., the Colonial Wool Merchants' Association, the Associated London' Selling Wool Brokers, and the Colonial Wool Buyers' Association, we submit that there should bo no change in the channels of distribution between the owners of tho wool aud the consu.mer-3. Elaborate organisations arc iu existence for the financing, sorting, and distribution throughout tho varied centres of consumption. Many of the most important merchants, brokers, and distributors have i been in existence nearly a century, llfcy know tho intricacies of the trade as ojj open book. The practice of selling wool by auction 16 the fairest aud most satisfactory both to owners and buyers, and when protested by limits and tho embargo, the State lias the fullest protection for its commandeered article. Ave strongly press for a continuance of the present system of distribution, commencing in the first instance by public auction. ...... ' The Problem of Distribution. There is no matter that is receiving. so much consideration at tho hands of the entire industry as . the problem of distribution. Everybody, from colonial merchant to manufacturer, has asked himself a''hundred times whether or. not the wool coming to Great Britain is going to be sold in Loudon in the usual way, or whether the Government is going to abolish the auction and .disiiose of the wools by private treaty. On that point no one knows to-day. Of course the auctions were abolished in the country aUtho time of the commandeering of the English clip, but in .Bradford sales are being held every three or four weeks of tho oddments which the Government does not want. Of course the entire trade wants the London sales to be maintained, but whether they will be so or not remains to be seen-. There have already arrived 90,000 bales for, the trons which should have begun last Tuesday, the Government has not as yet commandeered, that wool, and possibly before this letter is posted an announcement will have been made as. to whether the auctions will take place or not. in any case, it is tin' distribution- problem which is uppermost. The writer has not yet come across a single individual in the trade-.who opposes the sale, of colonial wools by public auction, but it is well known lint any sales now held would push values exorbitantly high, and the Army Contracts Department'fear that any further serious advance would cause feelings of dissatisfaction to spread among colonial pastoralists and lead to''trouble. That we believe is at the bottom of any opposition which lingers in the mind of the Government. No doubt the Imperial authorities are in a difficult position ami must pay some 'rsgard to thefeelings of the pastoraliste overseas. Various views are expressed in the trade as to the disposal of the wools as tlif-y come to hand. Some say that all the: arrivals should be staged, 'and (hat the' selling brokers should issuo catalogues i as in the past, allowing manufacturers | having Government orders to select what | wools they want, earmark same, and then tell the'broker.* that they "are prepared to accept them at the prices fixed by them, in conjunction with' Govern-, ment valuers. Of coarse with fixed prices for toils, yarns, and pieces reVnired for military fabrics', some such fixel scale of values, will have to obtain in regard to wool, but a better, system is that wools should be sold by public auction, and that any extra profits accruing from the sale of such wools should then be equally divided between the nation and the growers. There aro those who suggest that the wool should be sold by private treaty, and others that the samples should be inspected by the trade and sealed tenders made for the wool in question. The only objection to the latter seems to us to be that if there aro fomr, five, or even a dozen firms put in the same price, then is that free lot going to be divided between the firms who offer the same price? The writer can see a big amount of work tinder such circumstances, and thero would be in our opinion by far the least trouble, and growers should be treated most fairly if all wodls were sold by public auction, and the knowledgo of fixed prices for tops, yarns, and pieces would tlien regulate very quickly the price of tho raw material. ,; Above everything else, one urges the quick disposal of wool because it is wanted inconsumingcentres. There are topmakers to-day who are very low indeed in merino tops particularly; in fact, the writer has never known a time when they have been so scarce iu Bradford, and while it is true that ss. Bd. has been paid for warp 6i's, we should say that Id. less is a more average price. Since the embargo was placed upon colonial wools, everything has materially advanced, and if any sales take placo next week in London, what wools are free may be expected to make \ery sensible inoreases. ,