WELLINGTON WOOLLEN COMPANY

Dominion, Volume 12, Issue 272, 13 August 1919, Page 2

WELLINGTON WOOLLEN COMPANY

A SUCCESSFUL YEAR

ANNUAL MEETING OP SHAREHOLDERS

PROFIT-SHARING AND PRODUCTION

The thirty-sixth ordinary general mcctinjr of the Wellington Woollen Manufacturing Company, Ltd., was held in tho Chamlwr of Commerce at noou yesterday. Mr. \V. H. P. Barber, chairman of directors, presided. Tho annual report of tho directors stated that tho working for tho twelvo months 'hud boon satisfactory, The chauffO from military to civilian manufactures, which occurred early in tho filianoia. year, .was effected without serious curtailment of output, but tho demand for tihe company's Roods has been greater than the mill and clothing factories; t»uM supply. The early installation "of more machinery not being jxxsBi'bte, owing to the disturbed conditions in England, tho directors regret that additional production was unobtainable, and therefore much of the requirements of tha company's clients could not 1m delivered. The building of warehouse and clothing work-rooms in Cliristchurch on the site secured last year has commenced, and it was expected that within tho next financial period tho company would be established in promises there more- suitable to development than fljio location of this past eleven year*. Tho plant and buildings have 'been efficiently maintained out of revomie, and the aran. of .25000 written off for annual depreciation. Tho reservo account has been added to by i'7ooo, and the iire insurance reserve strengthened by $20(H), Tho payment of'a further dividend of i per cent., with -bonus qf 3 per oojtfc., was reconimcndod, and that the balance be curried forward.

World's Industrial Transition, In moving the adoption of the annual report and balanco-sheet. tho chairman Eaid that it was fitting that they should join in tbo public expressions of eatisfaction that a favourable ending had come to the long period of affliction endured by Britain and tho A'.iics. "As the aftermath of battle, wo we now in the midst of what is undoubtedly the world's greatest industrial transition," Mr. Barber added. "Uncertainty and distrust are in evidonoo everywhere. It could scarcely bo expected that the greatest upheaval ever-known should leave- tho industrial and commercial community free to"-pro-ceed calmly in tho way of restoring business to pre-war conditions. Tho natural laws of change have been hastened by tho war, and industrial problems crowd on employers suddenly "instead of gradually, but with a little time and mutual forbearance I believe that tihcy will bo sqlve i to tho satisfaction of all concerned. Following examples set in tho older world, sovoral firms in New Zealand havo .announced the introduction into their businesses of certain methods of profit!'sharing, which are expected to benefit their permanent employees in other ways • than direct wages. II: is easier for old- j established and wealthy private employ- { ers to decide promptly on such a policy than for a public company having a largo list of shareholders, and any ill-diee-itcd schome would probably defeat its object. In adopting such a change, it is essential that a method for maintaining .output should be evolved. Many suggestions havo been mane to, that end, and" in England and America double shifts of six hours a day seem to bo most favoured, as that puts the strain on tho •machine and not flic man. Whitot that could be effected whero population is.larger, it is at present impracticable hero because of tho scarcity of fkii.led operatives, and the disinclination of voung New Zealand to undertake work in our industries. Much argument has been used by tho workers' unions generally in favour of shorter hours, which are said to give. comiienfating output, but I do not know where the theory has been put into practice successfully; for report? from employers who havo adapted ■shorter hours tentatively, do not sustain tho claim.:' With reduced .hours and higher pay.there should be somo intensification of energy to maintain output, <jo enabling employers to. make: good their undertakings. In this, connection Lord Leverhulmo, .who was, prior to tho war, accepted as a model employer, has recently published his views on tho future of British industry, and any statement coming from him is entitled to respect of tho worker. He holds the ki'ief that shorter working hours and higher pay arc ussless unless they result in increased output. He sees no difficulty in increasing production as a healthy consequence or in increasing wages, but he comlonins a mere artificial sbandai'd of short hours and high pay as a road to ruin. Perhaps those who indiscriminately blamo the, manufacturer for tho increases in living costs, will weigh the words of a man who has done so much to improve tho conditions of his employees.

\ M-onace of Japanose Competition. "It will not 'be necessary for mo to remind tlio older shareholders that for vt-rv many years after incorporation this company, like many other manufacturing concerns in Now Ken-land, had to stniß#o against fiorco competition from abroad, and shareholders had for a lons timo to accopt the satisfaction of building- up an essential industry in lieu of dividends. It was only when the industry received some protection from tho tanft on manufactures produced -l>y cheaper labour that tho full output of tho New Zealand mills could lie placed, so providing shareholders of this by tho greatly increased turnover, with a .legitimate profit, previously denied them. Whi-Ht the British manufacturer cannot for some time he so formidable a rival as before for tho Dominion woollen fcrndo, there are others, overseas who still produce under conditions of low wages and very long hours, and, unless- held in check, will prove n serious menace to the industrial lifo of this and the older country. I refor to tho Japanese, ami as an illustration, of what may ho looked for. I quote from an English trado paper, whioh states that tho silk industry of England is threatened by that nation. Since 1913-J4 the imports of Japanese silk had increased from about ono million sterli.ni? to nearly five millions sterling per annum, whioh ..was expected to be" doubled as soon as shipping became normal. The wages in-the Japanese fjiik industry havo been recently raited, and now sllaud «t old. to lid. a day for men, and 4Jtl. to 7!d. for women. Woollen manufacture in Japan is advancing rapidly an'd tho Engteh 'Wool Heconl' is responsible for- the statement that orders from there for textile -machinery to tho voluo of eight millions sterling have been offered in England recently. In tho face of such conditions, it is strango that there, are still to 'be found here speakers and writers who refer to tho industries of Nbw Zealand as 'highly protected.' Tho standardising of wages, as forecasted in the Treaty of Nations, is likely ■ to provo a difficult problem. ' Meanwhile it remains to be seen what action -Labour will take [lending such standardising to protect those workers here who look to benefit in the now era of profit-sharing and co-partnea-ship. ' Rationing Customers. "The figures of the balance-sheet, now before you, call for no special) comment, n-s they vary in but slight degree from those of last year. Although tho business of the period was larger than ever before, the gross profit; is. slightly lower, but as the debit for interest is loss it allows for an increased net profit oi ,Cl-'-fl. The stock has an ote(»luto cash vnlno equal to tho balance-sheet amount, so in that item ytm have a surplus of /:28 700 over tho current creditors. The book de'uts aro good, but suitable proision Ims been made for possiblo losses Tlu total is a little larger, because ot increased business spread over a greater number of accounts, due to Oho ohaiigo from military to civilian trade. Tho directors' report states that the volurno of tirade offering could not bo accepted; .more producing plant not; being obtainable. As a result wo have been placed in the position of having practically to ration our customers. Tho cutting otl of our ordinary manufactures for so long a period in favour of military orders, of course, accentuated the general shortage in supplies-here—due to lack of imports—and which has become more acute by tilio large demand for oivilian suits for the great number of demobilised men. Even in normal times i;ho clothing of so many men in so brief a poriod would have

"been a strain. Last year, when addressing yon, I stolid that tho largo business offering from overseas indicated that (horo was a universal shortage of woollen goods-, which was evidenco of depleted warehouses everywhere, and that tin enormous demand would be set up when tho war ended. As audi conditions do provail, my conclusions arc. fully borne out. Houses for Employees. After dealing with tho question of profiteering, tho remarks upon which tiro reported under another 'Jittiding l , Mr. Burber went on to refer to tho matter of providing houses for the employees of tho company. "Tour directors have given a great deal of time to the question of providing suitable houses for Ihoso of tho company's employees who require them," lie said. "A surveyor has submitted n plan of the land adjacent to the mill, showing what could bo done, but so far wo havo not decided on tho initial number of houses, nor on the location. It is hoped to build cottages that will bo modern in every way, ami a pleaeuro to those who occupy them. It may also be expedient to establish a hostel for young women, as there is difficulty in accepting workers offering, because of. scarcity of suitabf.e accommodation near the mill, Petone.

"With tho housing of employees at Petone, tho new Christchmeh building, additional machinery for the mills, and tho higher prices of mill and warehouse flecks, it is possible that wo may havo to look to shareholders for an iiierraso in tho capital. Whilst there is no difficulty in securing ample out.=ido financial assistance, there can be no difference of opinion that a self-reliant poi'.icy is the 'bettor. Shareholders would doubtless bo pleased to find their shares an even hotter security by the removal of the liability on them". I have no definite statement to make on the subject, except that the directors have discussed tho matter, and will givo it their immediate atten-' ticn." t Mr. Barbe.r concluded by voicing the thanks of the direoto'rs to all concerned for the manner in which the difficulties ! of tjio past five years were faced, It waa a truism to say that tho immediate future held difficulties, but tliey felt that they had a staff that would meet them cheerfully, and would ovoreomo them when they arose. Dr. C. Prendr-rgast Knight seconded the motion, which wns"catTied without discussion. Messrs. W. H. P. Barber and W. G. foster, the Totting directors, were reelected. Messrs. Henry Kember and Ron and E. W. Hunt were re-elected auditors. |