HIDES AND BOOTS
■ «, IS THERE EXPLOITATION? A BUSINESS MAN'S VIEW "Any unbiased individual who has looked into the position must admit, I think, that the arrangement in existence regarding hides prior to tho recent alteration did an injustice ■to the pro-, ducers, who were prevented from receiving the fair market value of the article tlwy produced," said a well-known business man, interested largely in hides, to a Dominion reporter yesterday. "It is very doubtful indeed, judging by what has'taken place since that date, whether the public was receiving. the benefit that it ought to have received awhile the embargo was in operation. It is significant that the Government Statistician's ' index number for leather in "December, 1910, was 1510. -In December. 1919, while the embargo was still in force, the index number had risen to 2314. Yet the price of hides in 1919, under the embargo, was pretty muoh the same as at the end of 1910. ' ■ , "Paragraphs aro going the round of tin newspapers suggesting that the result of tho change will be an enormous increase .in the price of Mots. That may be the case if the public is willing to put up with it, but it takes a lot of thinking about. How.much leather is there in an average 'pair of hoots? Mine, a, fairly strong, pair, weigh less than 31b., and it seems a safe that the average weight of all men's and women's boots sold would not be more than 2lb. • According to newspapr reports of the recent hides sales the outside increase is not more than Is. per pound, and apart from calfskins the average increase doubtless would be ltss. What I want, to know, therefore, is how the )x>otmnking trade justifies the..suggested increase, of from 10s. to 12s. To j my mind such a proposal is outrage'ius, i coiring on top of the increased prices charged for boots under the embargo. If it is not exploitation or profiteering, then ■'■', I ant one of those who do'not know the meaning;of the terms'..' Further,! would-' lit' to know if any increase lias already been made, in the wholesale, price of , ' boots, seeing that 'boots.-now' in process of manufacture must necessarily be made of leather derived from hides "purch.ised at the. embargo price. "So far as I knov/i and it i.s to? business to watch such matters pretty close- . ly, there is no country in the world where an arrangement _' is now in existence with regard to hides such as was in operation in New Zealand until just latelv. . The new arrangement is exactly the arrangement that has been in operation in Australia for some time past. It works very well there, and I nm confident it will work very well in New Zealand when matters settle down. But the market has been bare for eome time past, and in consequence there has bee;, more than tho usual demand at the sales which have been hold during tin last few weeks, with the result that unusually high prices nave been reached.'. These aro already showing signs of steadying, and when the American exchange gets back to normal, or something near it, as it is in a fair way of doing, a quite reasonable hide market is to ha anticipated. "Boots and leather are coming iti fiom Amorica and also England, though not yet in any great/quantities. While, official figures were published only recently showing that Australia last year ■ sent into New Zealand an average of over ,10,009 pairs of boots _ per month, the tanning and hootmakinff trades in New Zealand have betin in this position: that aides conld be bought in New Zealand, taken to Australia, turned into tho finished article there; then the finished product, with charges for duty, freight, insurance, handling and storage to pay. ha 3 been sent into New Zealand and been able to comuete successfully with the boots produced by tanners and bootmakers here. This is a very extraordinary state of affairs and one which requires a lot of explanation. "Personally I have no doubt that if tho bootmakers and tanners arrange to put up prices imports will increase and' their business will suffer. The Minister of Customs informed the' public a few days ago that it was intended by the Government lo have the Customs • tariff revised during tho term of tho present Parlinment. If so, I hone the representatives of (he people will see that such an alteration will be made in the Customs duties on boots and leather as will prevent the exploitation which is threatened. "I would snsgest to Mr. Massey that a public inquiry 1« held in rcsnect of this matter and the whole' question bo thoroughly ventilated."
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Dominion, Volume 13, Issue 157, 29 March 1920, Page 5
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781HIDES AND BOOTS Dominion, Volume 13, Issue 157, 29 March 1920, Page 5
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