YORKSHIRE LETTER

Dominion, Volume 10, Issue 3199, 25 September 1917, Page 8

YORKSHIRE LETTER

MERCHANTS' TRADE ENTIRELY RUINED

(From, Our Special Correspondent.) ■ ' Bradford, August 2. ■It was always expected that the present soheme or Government cuutrol of llritish and colonial wools would lead to big hardships, but it was never thought that it would ruin businesses nnd eliminate an important branch of the wool trade, which has been Jargely responsible for bringing the wool' textile' tirade to its present gigantic proportions. Ever since Australasian and South African wools camo to Great Britain there have been men prepared to buy them, individuals who could not lay claim to having machinery to work up same, but had capital and a natural disposition to handle the raw material. The result is that & great army of woo! brokers, merchants, and dealers have sprung up, all of which have manifested practical interest in (the purchasing of the raw material. They have put their capital into it, and have Euilt up. in many cases large businesses. Do as we will there is ■ no. denying that wool brokers and wool merchants have been <i big_Xcictor in developing the colonial wool business; and connections of fifty years' standing have been mined by the present measures of Siato control which the officials of the Government have introduced. In these days of stress and strain, straight, honest dealings seem to ten. thing of the nast,' a« Mr. -Buhner stated at the skinners' meeting. I'russianism of the very worst type has been introduced in tho wool textile trade, aid whether colonial pastoralists know it or not, thore are. hundreds of men to-day who have not bought or sold a single ounco of raw material for tho past three months. This his brought about conditions which but for the war would have led to very serious trouble. Official statements. It has been the writer's privilege to attend tno public meetings in Bradford during the past week, and to hear various speakers • assert what they have heard officials say. .One of the speakers hailing from a Lancashire town was attending a meeting of flannel manufacturers along with, a Government official in Manchester, when a plea. wa« being made for the" continuance of wool merchants , ' business in Rochdale, who ha,ve made a speciality in catering ifoV flannel and ihirting manufacturers by buying essentially clothing wools, namely, locks, pieces, bellies, ana lambs: In the.discussion the official node the frank statement: "If the merohanta are in the way then they must be cleared out." ' Ofclier. officials have been board to say fhat they regarded all merchants as nothing moro than mete parasites," their services were not wanted, and therefore they must be dispensed with. In this Mheme'of State control no one but those ha-ving machinery seem* to have counted! One of the best buying brokers who hare done a huge business in representing ma4y clients in Australia, New Zealand, South Africa, made some very caustic remarks at the .protest- meeting of wool merohants a week ago, when he slated that his businese had been ruined. His standing charges were well -en tho top side of £10,000 per annum, and yet ho was allowed t« do practically nothing under the proeent .M.heme because, as a buying broker, he had put his ejpert knowledge- at tho hands of a la-rgo clientele, and bought for them in London and all overseas markets. , The Government cffloials seem to have had no knowledge ot the fact that are 6Cores of little firms of spinners \uid manufacturers who have engaged merohants; and ... buying brokers to purohaeo tho wools they wanted, they have relied upon thoir judgment 'even more than ;their own, and yet tho time comes when large 'and important businesses which h«.vo been the chief prop of the colonial trade hate been literally smashed. .■■■'■■ ~ '

While , on this point wb might mention that one wool merchant in Rochdale said that ho had been warehousing wool which had cost him in standing, expenses £67, and he had received from the Government £17 10s.', a statement, that was greeted with loud-laughter. At- the , meet ing of waste ; dealors, held in :Bradford last Monday, one '■ wool' merchant stated that he had : chad i £40,000 of wool, held un for four months, his' standing charges were soinsr on all the time, and yet he had never been able-to sell a single pound of wool all because Government orders prevented him ' doing business. From the above statement-: the reader will easily see what kind of feelings obtain to-day in the wool textile trade of Great' Britain, simply because of ■ unnecessary interference with businesses which-could have beon continued without the least detriment to the whole eohemo of State, control.. ■ . ' ; ' Merchants' Protest. '•At the meeting of. wool-brokers and merchants in Bradford a week ago, it was decided to put. in. email" committee to draw, up a memorandum of proteet and forward.same to the' local members of Parliament,, and to Mr. H. W. Forster, M.P., Finanoial Secretary to the War Office. That memorandum ie an astounding document and we think that every colonial reader should bo put in possession of the actual state of affairs, and sco where things stand. Tho following is a copy of the memorandum and the, statement set forth is well worth special attention:— • ... The merchants whom the committee renroßent are concerned in all branches (both colonial and Home) of the wool merohantins trade. They wish to lay before Mr. Forster the facts in regard to their position under the Government scheme o£ wool textile control. Tho effects of that scheme are ae follow:— . ■■ (a That hundreds of expert dealers, buyers, and brokers of raw wool, noils, and wasto aro deprived of their bueinese and mo»nB of livelihood so long aB the present system of control lasts. . (b) That work which such traders have hitherto done, and ,\ could now do, Is being done instead'either by permanent officials or by specially appointed Government servante, who are to a very larse extent junior membere or employees of the larger wool and topmaking houses. (c) These Government servants are com,petitors in trade of the merchants, "whose business methods, connections, and trade secrets they aro now learning; On the termination of control it will, therefore, be moat difficult, if not impossible, for the merchants to recover the position they -held in the' market before the war. (d) If the policy which leads to these results is continued, a very largo body of traders will bo permanently deprived of their means of livelihood,' and tho ey.pcrt knowledge and eljill acquired by tnem by years of labour and diligence will be lost, not only to them, but also to the trade of the nation., I , " It is' understood that these results are due to a. determination on the part of the Department or its permanent officials to do away with those whom they call "middlemen." and whom they are pleased to regard a-s non-essential to tho wool textile trade, and of no value to the natiou. This view has, in fact l«n expressed by certain l>epartonental officials. Such a determination and point of view can only bo due to a mitapprehension ot theposiMon of the merchants, and a Tf'Uit of realisation of their functions in the trade. '• The raw wool businoss reauires the most careful and expert ha.ndllnir. and a knowledge that/ is only acquired by years of training and experience. Every U6er of wool has to call in oxnert aid of the kind which it is the merchant's business to give. Sometimes he las an expert wool buyer in his own employment, but more generally he utilises tl)O skill and experience of a wool merchant or broker. fore tho control scheme came into operation and threw the merchants out of employment, these merchants were the chief factor in bringing iccessury and suitable supplies from all the world's centres of production direct to the consumer. The effect of tho present policy will be _ to crush the merchant exporte out of existence, so that when the control is ended the industry will be deprived of vhat • is essential to its life and vitality. Several methods of .utilising the services of merchants have been suggested. It is, however, useless our discussing or .putting forward any snch suggestions unless and until we know whether, on the one hand, the policy <.f dispensing with us is a deliberate one,' or whether,_ on the other hand, it is only due to misapprehension on the . part of the Department or to inability to see lww. ttie merchants ca.n be made use of. If the former, it must be our' duty to combat the policy with all our power. If the latter, then we say that we are prepared to make practical suKitesiions if allowed a suit a-blo opportunity. The wasto merchants were recently asked by the. Department to nppoint a committee to make proposals fov working their branch of trade. 1 They did so, nnd put forward a- scheme wider which what weje understood to bo Government _ requirements would be met. economical working of the trade would bo secured, and all merchants would have their full share of husiness. Instead, however, of accepting the proposals of the waste merchants' committee who know tho trade thoroughly, tho Department have, in direot opposition to their ' views', promulgated a scheme for working through selocted controlled firni3, the result of which will be leas economy and the shutting out of a- large number of firms from ie carrying on of thoir businesses. We cesoectfullT submit that it l< not in tho

interests either of the nation, the industry, or the individual traders that the views of the trade 6hould bo over-ruled. With such an pxperianco before us v-« respectfully ask that if a scheme affecting ua is desired, bo allowed an opportunity of laying our proposals before a committee who understands the trade and have full authority to settle the matter. The merchants we represent claim to he as loyal in, their wishes and acts as any other meinbore of the community. They reoognise the necessity of some scheme of control. They have in all the different stages of recruiting encouraged their employeee to join tho forces, guaranteed that their situations would be open to them after the war, and voluntarily undertaken financial responsibilities to tho dependants of the employees. They therefore justly complain -when they have their businesses taken from itheni and their knowledge and skill acquired by years of labour thrown aside as useless. We feel that tho position in which we are placed .is evidently not understood by His Majesty's Government, or is due to some such misapprehension as is indicated above. We are afraid, also, that tho indignation and resentment caused liv the present situation is not realised. We therefore desire to place before tho Eight Hon. H. W. Forster, M.T., as representing the Government, a full statement of the faci-s and of. the.views "f the trade, and for that pirpose we respectfully ask that he will receive at-the earliest possible moment, a deputation of wool, noil, and waste merchants.

The above statement is so plain and praotical that it needs no further comment. '