PRICES OF CLOTHING

Dominion, Volume 12, Issue 272, 13 August 1919, Page 9

PRICES OF CLOTHING

REASONS FOR INCREASES POSITION OF THE WOOLLEN TRADE • 'Addressing the shareholders of the Wellington Woollen -Manufacturing Co., Ltd., yesterday, tho chairman of directors, Hr. ,\V. H. P. Barber, had some interesting remarks.'to .make on the subject of profiteering. - ' "I wish to.speak briefly about an unpleasant word which is very much before tho public at present," he said. "1 Jefor to .'profiteering,' which is carelessly applied to every business house, no Snattei' what tho surrounding circumBtancos. I am not excusing tho figures we lvavo been able to show, because there lias been no advantago taken oi •'the trade's. requirements.-' Tho results— Svhich aro not in excess of a fair return on the capital invested—were secured by increased sales,-obtained in u favourable market,' with- applied enthusiasm, endeavour, arid loyalty of tho staff.- Our selling prices,to the trade—wo do not reach Hhe consumer ■ direct—have been raised only in actual sympathy with the rises in cost of production. .1 repeat that there has' been no desire, nor attempt, to seize the opportunity of a- depleted market, for, as just mentioned, wo have tried,to our utmost to divide our output in fair proportion among, our regular clients. 1 . Had we chosen, to open new accounts,, or to direct goods into other channels.available, or given preference to larger .buyers, wo could have, obtained better prices. We aro not c)aimiug',any special-.virtue,for that, as our intention was to be loyal to those who supported us in ■ tho past, and to whom we hope ■to:'-sell in. the future. -High and ..constantly increasing prices of tho many bought articles -used by us como from outside, and obviously we could riot exercise any control in fixing them. During the financial period, new labour.conditions have been mada for both tho mill and clothing-factory operatives. In «ioh case- agreements were settled amicably without tho'aid of tho Arbitration Court or Conciliation Commissioner,, and satisfaction was expressed by the employees' advocates at tho settlements effected. Tho weekly hours for Woollen mills Wore reduced by,threo, and for clothing' factories by one, making 45 and H_ hours per week, respectively.. Substantial increases in wages were also made, and 1 am'pleased to bo able .to say that,no' reflection can-be cast on trade's/wages in comparison -with other industries. : . "Reverting for a moniont.to the .unquestionably high retail'prices of clothing, I wish to make a short explanation, which might cause fiome of the adverso critics to modify their views before mat-ing.-sweeping assertions in condemnation of all manufacturers here. Sneaking for ourselves it should be known in the first place that wo havo not beon in a position to supply tho tailoring'trade, .as the bulk of tho output of our worsted and woollen suitings is required for our owu clothing factories. Therefore, but a small quantity of Petone' tweed reaches the bespoke tailor, aild that mostly in tho country' districts. In the second place, I want to make it quite plain that with few exceptions, all'the very numerous commodities required in'both woollen and clothing manufacture have to be obtained abroad." Tho exceptions' are wool, costing 62| per cent, moro than in 1911, coal, costing 100 per cent, more, and Bbap, also 100 per cent.' more. Tho scarcity of .'dyes is fairly well known, and as nil-example of the increase, I mention tho cost of dyeing black, which is now €50 per cent, greater for material alone, without labour. ' Many fancy colours nre much above that figure. Advanced prices apply to every department using its own particular stores. Although there is-much cause for discontent of. consumers, those whoso emotions run lo public expression should endeavour to acquire some rudimentary knowledge of the trade before making loose assertions. The"' assumption of many anonymous writers appears tg bo that because they imagine every quality of wool can be bought for Is. Gd. a lb., that all between I that .and the selling price is 'profit; | They don't even kiiow. that greasy.' wool bought' at, say, Is.' 3d. to 2s. a. "lb., is half-full of grease and dirt, and therefore tho cost is doubled when it is clean scoured. Many do riot, oven include, .the wages as part of the cost. Now, to begin with, it is a fairly clean wool that does not lose 50 per cent, in scouring, so doubling tho price. The average clean scoured' merino wool used by lis is -4s. n lb. There is waste in each following process' of. dyeing, .willeying, carding., combing, spiuning, drawing, warping, weaving, milling, and finishing. This loss, of course, adds to the cost,'and besides every bought - article used throughout the process of woollen, worsted' and hoisery manufacture has advanced in price. In many cases expensive substitutes 4iavo to bo used. There are increased overhead charges in'salaries, travelling expenses, freights, and the many incidental items, not forgetting extensive pillages 'in transit, before the goods reach the buyer. In the clothing branch, apart from tho higher cost of tweed, all other, indispensable articles wanted, such as linings, thread, buttons, etc., are imported, and have risen in ■price enormously. An an' example, Italian cloth 200 .per cent., printed silisia 400 per cent., hessian 400 per cent., hymo 200 per cent., buttons 150 per cent., tapo 350 per cent., calico 400 per cent.,' and'&o on. It seems superfluous to mention it, but there'is not one 1 item of the large number of absolute,necessaries imported by us, over tho price of which wo havo tb» slightest.control.

"As our sales tiro confined to the trade only, and we havo no dealings with the consumer direct, I am not at liberty to make a public statement of the advance in our selling prices fiinco 1914, but I can repeat what I havo before said, that they havo not been raised more than we were legitimately entitled to ask, to coyer the actual cost of .bought, supplies, and other increases. It might interest you to' know that the return in dividends .received, by shareholders, including this year's payment, averages Gl-3;per cent, per.annum. Wo havo paid ?,8 dividends in 36 years. I havo dwelt on this matter longer, perhaps, than you may.think necessary, but thero beintr so much careless .talk which inferentially. involved us, I feel I should be wanting in a duty to. you if I did. not refuto it, and put the facts before you." '