PRICES OF HIDES SOAR

Dominion, Volume 13, Issue 132, 28 February 1920, Page 7

PRICES OF HIDES SOAR

FROM 80' TO 100 PER CENT. RISE ON GOVERNMENT SCHEDULE .PRICES DEARER BOOTS IN PROSPECT .' ■After the Auckland sales earlier'in the week it was anlicipaied that hides would, realise firm prices at the first, sale to he-held in Wellington since the embargo nf Jiii-c last was lifted. This solo'tonic nlaie nl. the Oddfellows' Hall yesterday afternoon. There wore approximate!;! 13;000 hides and calfskins offered. Tho prices constituted a record for such sales In Wellington, and an appreciable advance on those realised at Auckland a rew days ago. Generally speaking the prices realised ;,l veslerday's sale were from 80to : 100;per'cent. higher than the Government' schedule prices, which js taken' as. indicating that sellers of hides have not'been giVen anything like what !heir goods would realise in the onen ninrSet. • Buyers were operating yesterdnvoii behalf of England, Canada.- the United States, and Australia. With the lifting of' the Government' embargo (wherebv local tanners could select their hides at a fixed ririe'e before' any. were Offered' for sale for export), another change in the 'method of sale was made in- accordance with regulations gazetted <i'few days ago and published in full-in this paper.'- • -- .-.•■• Before the sale commenced,- Mr. Fago (chairman of- tlie-''Woolb ,, okers' .Association) briefly referred to the new regulations, pointing out that a seller might have his reserve on a lot and 'he end of the bidding did not necessarily n.'ean Hint the last bidder was the buyer, nor had the tanners'.buyers the right to take o«ev at that price. The owner'had tho riffht to put on what reserve be. chose, and if <the biddin? wore short of the reserve tanners couM not obtain such lots without paying -tlh'e reserve.'

"'Under'th'n new order the shippers' bnynrs took tho front seats and the 'farriers' buyers the back. The former had tft- do all the' bidding, and ' if' at the "knock" a tanner's buyer wanted the line'he could'get it by speaking up. By this means the New Zealand tanners now have to pay.' the real ■ market the'public will, in turn, most probably ha"» to pay the piper. •■■'■• U'dos''and skins were offered by-the W.F.C.A:. Murrnr. Roberts and Co'., levin nntl C.Oi, Dnlcrety and Co., Abraham and W'l.liams. Wright.- Stenhenson and Co.. and the Farmers' Distributing ,Company. .It'will be remembered thn.f the fixed nrice. for ox.hides (best 'was "13d: "per lb. The first firm to sell yesterday obtained as high as 22-' d. per lb..for first .nualitv ox liit'eii. 22d. for cow hides. -Sfijtl. for kins, 28Jd. for yearlings, and : 41d. for calfskins. " The last-named w'"» was mid for a. shipping' line.

Beef tallow realised .£Bl 10s. ner ton; mixed'tallow, .E7B and tinned tn'low MA' per ton.' '

\ When: the buyers decided on an adjournment nf the"'snle ,for dinner, the WnolbroVers' Association, by r»?olnti<in. decided that reports of the sale by the firms concerned should not be pnbli«hpd that day,- -lis the late hour at which thp sale would conclude nrp'-luded. the ■sccretn'rv from o-ptting out the average ranee of prices for the various lines off°red. It was also decked thit firms should not "notify' tlipir clients of the-'Te-'fiu]ts of the s'ri'li- until, tn-diiy. The detailed reports will'be made available this -morning; '

DEPUTATION FROM LEATHER

INDUSTRIES

'DESIRES EMBARGO AGAIN' fears expressed to' mr.' ;. . masset; .- •■;-■''■ By.Tolegra'pH—Press- Association; ■■•'■' ■ ■.■: ; : Auckland, February' 27- . ■A deputation of representatives ~. of those engaged in the leather industries, ..both employers and .employees, inter.vieiral the Prime Minister to state their apprehensions rofrarding the effect of the: hew hides,regulations and iho lifting,of: the embargo.

Mr. C. A.'Watts, secretary of the Boot Operatives''..Union, .said that-the purnose of the deputation was to ask the Prime Minister to reconsider the decision, .made to alter the regulations governing the sale of hides. It was felt that the chnnge -would result in increased prices for leather, and leather goods, an ihcreaso in the import of such goods, and ii, conseaupnt .increase -in unemployment among''those engaged in the leather industries. It was. the opinion of thoso whom he represented that the former regulation" wero productive of general, good ■to the communitv., and productiveof harm to nobody. Thev were asking —(1) That the old regulations should bo' re-p-;ti\blisliP(l. (2) That the hides now held in store should be commandeered by the. Government'at .tlie prices paid to farmers for them.: nlus • interest. .-(S) That a Fair .Profits Board should bo vhtablisked to determine, among other things.-the rales at, which leather goods should he <-"1d to the public.

Mr. G. W. Coles.-on-behalf of'the manufacturers, said that thevwere faced with a serious position on account of. the increased price of leather.' The day ■after the embargo on the sale of hides was lifted, they we're civeii notice of incropsed nriceg for leather.

Mr. Masse.v:.L.cnn orly say that thess nennle "re making a very serious mistake. The Government is not going v stand that soTt of thing. Mr.' Coles said that ''is assertion was a fact, nevertheless. The result wonld be increased prices to the oublic. Thp claims made hr Mr. Co'es we/'fl supnnrted by statemee'.s of Mr. H. Clark. and' Mr.' A.'Trenwith.'

' Tanners Fear Unemployment, ■• .■For the. tannery employees, Mr. Ros- • R"r saidtl>!>t. tliey. .viewed with .'alarm ;tlw prospective increase in ♦]>«. price of footwear., Children could eo barefoot and in many '.asos were dointr so, 'but .ithev had, yet...to see tho workers "oihg to th"irwork wearing sandals or..barefooted. - . ' jdr.-'NiAssey.: Tou dr. not suggest.that, sii'nly!-' •Jlr. Ti.oswr renlied. ihnt it might not, .-be- an exaggeration if boots .wont,up .in nrice l)i-from !)?. to 10*. a pair., "r.. Rosser-.al'o, «aid that if. the export of. hides resulted.in a shortage'it was going to cause much unemployment in the tanning industry. Re f aid.fcrther.that hides were undoubtedly being hoarded. ./-Prime Minister Replies. Aft. Mn»i?v, in reply, said lhat for some time there had" been a great deal of .agitation among producers on tlie grounds that'they were notgettinz a.fair world's price for their goods. Tt was tho dutv of tb'e'Gpvernnient to encourage production.. ' The country at the present time was in a .very good position, both financially and commercially, but. the. position, must hi made even belter, and. the way to this was increased production. This would, not. be encouraged if producers considered, as they had]>een. doing, that they were not obtaining fair' p'ric;s for their products. Tt was also the duly irf the Government, to -encourage, industries. They seemed to haw overlooked I ho fact that no.'hides could go cut of l.ho country until they had been offered to the tanners. The.'time might, soon come when the whole of tho output n.ight be required by !he tanners. There might be a, way out of. tho difficulty placed before him by tho speakers. Tho matter was in tho hands of the Agricultural Department, and/was being'directed "'by Dr. Renkes, who was a man particularly -well fitted to handle the matter. The system just put into operation was working in Australia. Conditions ther; wore not'quite the same as here. He kn»w they had been faced witii tho same difficulty, however; and the system was working very well! Ho behoved that under it tho tanners would to able to g/-t all the hidos they-wanted. In fact he had had an assurance from thorn that they were satisfied with tho mrarigenu'iii. The old regulations had worked badly. Australian buyors camo here .for hides which wore-taken over, turned' into leather, and then made into boots, v-hich were exported to Neir Zealand, After

paying freight, handling costs and duty, they were .underselling tho New /(alandmade articlo on the local p.arket.

Answering an objection.'' Mr. Mnssey said; 1 ca.n prove it, and if I do not crave it I will do away with these regulations. (Hear, .hear.)

.Ho undertook to look closely into the matter of the.prico'of hoot?. 'Ho said, however, that these matters took time, bur when he returned to Wellington he would-give thcin his fnll consideration.

The Alleqations About Hoarding. , In regard to tho allegations -of hoarding. Mr. Massey said that tho Agricultural .Department kept record of every beast that was slaughtered.'. Dr. Eeakes had assured him that full returns of hides had been obtained, and ho was satisfied that there was very little hoarding. A statement, had been made that .£1,000,000 mirth'of hides was'being hoarded! He had noted tho nanio of tho man who hnd made it, and had asked him-for full information, so .that . the Department might investigate. . Very, many .exaggerated statements were .being.made, on the subject. He .did not think that, there was much clangor of the tannery employees being, thrown out of work-. . Tho Government did not want to do any injustice to any industry, but on the other hand the interests of producers must be watched. : " : '

Mr! Watts asked whether tho benefit of the' increased prices in hides wouldgo to' the small farmer, and not be confined bnlv .to'tho squatter and the freezing companies with'their, wealthy shareholders. ' ■'■

Mr. Massev said he believed- so; It must'be remembered that at any-rate so far as this.ehd of the Dominion was "concerned, the 'squatter was non-existent. Tnis was a place of small holdings; and so far.-as past years had been concerned, the movement lmd ; all been in the direction of subdivision. -All the. requests nlaced before him,would be reniembered, and tho.'.working. of- the-new regulations would be- watched' very, carefully,.with a view■■ to.rectification.of any..injustices that might; arise.,,- ■ ... ............

EFFECT ON BOOT TRADE

"DISASTKOUS TO INDUSTRY."

One Auckland boot, and shoe:manufacturer .when- seen on, Thursday, said, tho result of- the big advance in the/ price of hides is.-.going to be V.isastroiis to. the hoot industry of- the Dominion.. "While the embargo was on- we were able to produce the cheapest footwear-in. the world at- the present time.'- he said. -"Now that condition of ,aifairs is ended ..and there-is nothing for.it-but an advanceof 25 to 50 percent..upon the.presentence of boots.a.nd.shoes. -You see,.we can now only, buy leather at such plienomemil prices, to meet immediate requirements, personally, I fear n-still-further.increase in.the price'of hides, unless .some of the stocks held in the! Dominion now cbnie on the' market.. Ytfit will'no doubt'remember that a. statement was'made.recently that a firm' of' dealers in' hides had'hides'valued, at one million, pounds in store. If that is correct, the removal of ihe embargo on exnort, followed by this sensational'.'rise in! the market, 'means an advance .in valne of their big holding of from 25 to 50 per cent.,.all of wh : ch will in the end have to be paid bv'tho -users of.-jthei-leather.' Under' such circumstances yaucvn readily, understand ■why dealers iff hides were'willing to jniii •the. producers in:, getting a. free market again."

.i The result of the price. paid for hides .this week • is that '.tarinerM have -raised quotations' for leather—sole: over -60 per rent., chrome'So..ner,''cent.y:aiKl'km nboiit. '50 .per cent., bnt'lhis cnlv for-one week (says the "Star")."".This means an increase in the retail price of boots and shoes as follows*:—Women's and children's. 3s. 6d.- to Bs':-and men's boots .from's3..lp lis. •ner.-pair.-;.-' :■•'