RISING COSTS

Dominion, Volume 32, Issue 157, 29 March 1939, Page 11

RISING COSTS

Shorter Hours And Higher Wages

EFFECT UPON INDUSTRY

Dominion Special Service.

DUNEDIN, March 28.

Taking into account the many difficulties experienced, the net profit of £62,148 must be considered satisfactory, said Mr. F. W. Mitchell, chairman of directors of Kempthorne, Prosser and Co. New Zealand Drug Co., Ltd., at the sixtieth annual meeting of the company. Because of the decline in the prices of primary products, coupled with the unusually wet season, the demand for fertilizers had not been so good as it might have been, but turnover had been fairly well maintained. “Industry generally has now had a full year’s experience of the 40-hour week and has been able to gauge its effect upon manufactures," Mr. Mitchell said. “I think that in almost every instance this effect can be claimed to. be a material reduction in output, which, naturally, has an influence upon costs. Competition has been no less, but it is satisfactory to record that business, as measured by turnover, has been fairly well maint'ained over the year.

“On the manufacturing side we have encountered the full effect of higher wages with shorter hours, while in the case of our warehouses, in addition to higher wages, the import restrictions have had a disturbing effect. “As so large a part of our operations is linked up with primary production, the financial position of the farmers is a matter of concern. Owing to the decline in prices of our primary products, particularly wool, and higher costs of production, most farmers have had a less satisfactory year, than the previous one, aud it is to be hoped that some assistance to the producer may be made available during the coming year. The dividend was approved and tl.e retiring directors re-elected.