PRICE OP WOOLLENS

Dominion, Volume 13, Issue 238, 2 July 1920, Page 7

PRICE OP WOOLLENS

9 CASES OF UNDUB PROFIT-MAKING;

After a, long inquiry into the Victorian woollen industry, the Fair Profits Commission has arrived at the decidcd opitv ion that unduo profits have been made, and ire still beiny made, by the manufacturers.. And although the, industry, according! to the report, is strongly opposed to any control, oil tho grounds that only ' a minority of tho manufacturers wete making undue profits, tho commission found tlmt clear cases of undile pro-fit-mft!iih|; -had been established in the oaise of 'some' mills, and that a control Of the industry was Essential. Otherwise, it was eniijliaticalljr declared, the investigations 6t the committee would beconie alffioSt nugatory in their results. The commission, therefore, made tho follo\Vinir fe^ommeiidntiohs:— ■ "hat for all manufactures of woollen goods (including Mixtures of wool and other materials), except tops, and yarns, ana except . hosiery, the maximum gross rate of profit oh.the salo or supply to a wholesale trader 'shall be cither 33 l-3fd pei cent, on tire manufacturing cost; or 27$ per cent, on the manufacturingi'cost, together with a total sum equal to 9 per ceilt. oil a yearly basis and distribute over the output for a year, on the capita] valna as (Shown in the last bal-ance-sheet 5n the year 1919, of buildings and machinery used iii the business, and on the cost ef bulldihgs and machinery Since erected or installed. That on any stile or supply df any siioh manuiactmtis direct to a retail trader, tho manufacturer may charge a further maximum amount of io per cent, on the maximum, price chargeable to the wholeBalo trader.

, '-''hftt tho following items only may lie included in Jnaiiufacturiiig cost:—Delivered cost of Wool find other indterinls; delivered Cost of chemicals, oils, soaps, (lyes, and other auxiliary material;' delivered cost of stores, inoltidihg fuel, cost Or faCtufv processes and power other thaw fuel, including lighting; hefltlng and cooling; manufacturing wages; where iaotqry buildiiigs or machineiy erected fL ' Ifitor tlian December 31, i ii ?!'•? emulated on a j'eafly basis niul distributed over tlio outpiit for the year* equal to 10 per cent, on the actual cost. -

That all manufacturers Shall keep a manufacturing account on a yearly basis, showing stocks of all kinds on hand at the Wginnnig ahd the end of the year, and purchases) manufacturing expenses find sales for the year.