WOOLLEN FACTORY.

Gisborne Times, Volume V, Issue 124, 5 June 1901, Page 3

WOOLLEN FACTORY.

SPEECH IN FAVOR OF FACTORY IN NAPIER.

At a large meeting held at Napier Mr R. A. Baxter made a speech that should be of special interest to this district, where* the arguments have application. He said: — I shall now deal with the objections

which have been raised in the press and by private individuals against the pro: posal to start a woollen factory. As the initiator of tho idea at the present time, I have probably heard of more of these objections than any other individual in this room, and as I conceive it my duty to place before you the arguments against as well as for the idea, I will take you fully into my confidence regarding both. It is no desire of mine that anyone should be misled in regard to this proposal, and should it appear to this meeting that the objections, or any one of them, are fatal to the success of such an undertaking in Napier then I for one should counsel the, abandonment of the idea altogether. I have taken careful note of all the objections, and although they arc 14 in number, I feel certain that I shall prove to your satisfaction that they are either not tenable or can be easily overcome. The first objection is that the existing woollen factories in the colony have not at first been successful and that their original shareholders have lost the money invested by them in such concerns. Whether this double-barrelled statement be true or not it has no force as an argument against the success of a company that may be started at the present time. Prior to 1895 . tho customs duty on machinery for , woollen factories was at the rate of 20 per - cent ad valorem ; after that date the duty ' was reduced to 5 per cent ad valorem, so ; that there you can sec what no doubt ( militated, to some extent at least, against j

the success of the companies formed up to the year 1895. In addition to a reduction of 15 per cent in the duty on woollen factory machinery, present day buyors would also be in a better position to obtain their requirements at considerably less cost from the manufacturers owing to the lower cost of iron and of the improved methods used in the construction of tho machinery compared with those at which the majority of the existing factories in tho colony purchased in years gone by. Another factor which may have militated against the success of the industry in tho early days was the expense of introducing tho necessary skilled labor from tho Old Country and the higher rate of wages which labor commanded in those days. The second objection is that even at the present time they are not profitable investments. With tho exception of the Bruce mill, which was rccontly burnt down, the woollen companies whoso shares are quoted on the market have shown for several years past a return to their shareholders of from 7 to 8 per cent, per annum, besides adding considerably to their reserve funds. I will give you some particulars regarding the Oamai-u company, which I think will prove conclusively that that company at least is an exceedingly profitable investment indeed. Tho balance-sheet for the year ending 31st October last disclosed a net profit of £2947, and after paying a dividend of 8 per cent, they carried forward to next year’s account a sum of £1476, equal to an additional dividend of 8 per cent on tho paid-up capital of tho company. A sum of £IO9O was also written off premises and plant for depreciation, thereby reducing that asset to the very inconsiderable amount of £9700. It will be seen, thoroforo, that the Oamaru company might have paid 16 per cent instead of 8 per cent dividend, and the low figure at which promises and plant stand leads one to suspect the existence of what is known by accountants as 1 hidden re-

serves.’ The third objection is that practically none but boys and women are employed in woollen factories, and that therefore tho industry does not provide sufficient wages to enable men to marry on, and bring up families. According to the New Zealand Official Year Boole, 1899,

the number of hands employed in the nine woollen mills of the colonyyvas males—6ss, females 761. The wages paid to the males amounted to £59,588, and to females £32,036, the average annual wage per male boing £9l, and that of females £42. In tho same publication it is estimated that the averago'annual amount of wages paid to mail hands employed in manufactories was in 1895, £77.27, and for fo-

males £34.69; thus showing that the male and femalo hands in woollen manufactories earned say £l4 and £7 over the general average for tho colony. Tho fourth objection, and one arising out of the undue alleged proportion of female labor employed, is that it would further interfere with tho supply of femalo domestic sorvants. It is rather surprising to me to find that in a freo and enlightened country, such as New Zealand prides itself upon being, an attempt should be made to prevent our femalo youth from engaging in an industry which is in every way suited to their sox. Further, by inference, one gathers that tho proper and only occupation for females is that of domestic service. I shall leave the decision of this matter entirely in the hands of the girls of Napier when the time comes for them to choose between one or other of the employments named. A fifth objection is that the hours of labor- in woollen manufactories are from half an hour to one hour longer than in other industrial occupations. lam not in a position to say whether this is the case or not, and as the eight hours fetish does not appeal to all minds in the same .degree, and as there may ho compensating advantages for the alleged extra three or six hours per week, tho objection is not particularly vital. Probably, too, under the provisions of the Arbitration and Conciliation Act, a union of the workers could bring the hours "of labor into lino with those of other occupations. The sixth objection is that there are already too many factories

in the colony. I have before mentioned in connection with the number of hands employed and wages paid that there are nine woollen factories in the colony, seven in the South Island and two in the North Island, the latter being at Petonc and Onehunga (Auckland). It will therefore bo seen that as far as the North Island is concerned the trade cannot be said to be overdone. We are informed in the New Zealand Official Year Book, 1899, that the total value of the goods the nine mills manufactured for year 1895 was L 802,428, and, in the same publication, that the total value of imported woollen piece goods and blankets was L 266,516 and L 14,488 respectively for year 1898. But in a dition to these imports there was ‘‘apparel and''slops” to the value of L 853,258, and if only a third of this sum

be credited as of woollen texture it would ( give a tqtal of imported woollen goods to f The value, in round figures, of L 400,000. j Surely, it is possible for the New Zealand factories to secure a large proportion of , this business, and in at least one article j of manufacture, namely, blankets, they are evidently making headway in this direction ns the value of imported blankets in 1899 was only L 10,971 os against L14,488 in the previous year. It is therefore reasonable to suppose that what is possible in quo article is equally so in another. The present home consumption, in short, of woollen piece goods, &c., is in my opinion sufficient to- maintain not only nine mills but a round dozen. In this connection I have been charged with provincialism, and if by provincialism is meant the furtherance of the interests and trade of this province, then I plead

guilty to the charge. That the establishment of another woollen factory- might affect prejudicially the prospects of the existing factories, is doubtless within the region of probability for a time at least. But, I daresay, no ono present will con- 1 tend that considerations of this character should deter us from starting an industry which we have every reason to believe will prove not only’ a success, hut a decided acquisition to the town and province. Another objection urged is that the population of Hawke’s Bay, and by that I understand the consuming population is intended, is insufficient to warrant a factory being established in Napier; and furthermore that Napier is not central enough to compete with the other factories. My reply to theso objections is that if tho mill we are about to form has only the good fortune to suppy all the inhabitants of Hawke’s Bay, with their requirements of woollen goods, then the' success of the undertaking would be assured beyond the posstyUty of doubt,