WOOLLEN INDUSTRY

Hokitika Guardian, 9 October 1920, Page 2

WOOLLEN INDUSTRY

board OF trade finding. (Our Parliamentary Correspondent.) WELLiINGTON, 'October 8 The Board of Trade’s report on he woollen industry was presented to . House to-day. The Borjrd has been investigating the industry from the ~# w wool to the sale of the manufactured products, but the report deals solely with woollen companies. Another report will come later. The finding ~f the Board is that the woollen companies have not taken excessive prohts during recent years. The profits have increased during the war period and the average net profit on the gioss capital outlay in 1919 amounted -to about 12 per cent, hut a reduction of less than 8 per cent in prices would extinguish the profits of the average company, while at least two of the largest companies would be conducting business as a. loss. The cost of raw wool advanced about 75 per cent, and of labour about 65 per cent. All other costs have also risen, the increased n!riee of coal being one factor. The net profits on the gross capital vary widely among ten companies -now operating in New Zealand. The lowest profit in 1919 was slightly under ten per cent, and the highest was over 30 per . cent, the ayerage being 11.9. Further WT investigation is to i b© made regard-;; 1 ing- the operations of one or two of • the more successful companies.