WELLINGTON NEWS

Hokitika Guardian, 20 October 1927, Page 4

WELLINGTON NEWS

BRADFORD WOOL TRADE. ' (Special to “Guardian”.) ’ WELLINGTON, Oc t. 18. The wages agreement between the wool textile workers and the employers at Bradford has been determined by the latter, and in explanation of the reasons that have led up to this it is pointed out that since 1020, about 104 firms have gone out of business, including 10(5.000 spindles, 8390 looms and corresponding quantities <>l carding, spinning and finishing machinery. The main cause of Bradford’s trouble is the high cost of production, as compared with the ( ontinent, which makes it difficult- for Bradford to compete successfully in foreign markets. What the result of this new movement is likely to be it. is difficult to say, but it certainly comes at a very awkward time for the woolgrowcrs of New Zealand. The Bradford correspondent of “The Economist” (London), iit a review of it.be wool position ill England points out that reduced machinery consumption lias coincided with the keenest competition for wliat restricted business was passing, and prices have fre-cjm-iitly been cut so line that those who have secured the. business have made little or nothing out of it. The trade lias had no opportunity to recover from the depression of 192 b, which was more disastrous than that of 1920-21. It is stated that a number of spinners were still working (end of August) under a committee of creditors or under the supervision of their bankers. Others had not paid what they owed in differences to top makers cn account of contracts made in that year and cancelled for a consideration. Spinners and top makers are reluctant to continue paying for their connections. In other words, if raw material, plus conversion costs, equal U> 4s, firms who own mifchirory ; !i.a\!e frequently bold nt> 3s lOd by sacrificing their machinery profit, in order to maintain relations with their customers. During the past six months more and more top .makers, 'instead oH comMiig woel, havo merely morchanted it. This they were able to do at a fair profit, t.fie best customers tieing America an 1 tbo Continent for English, and Germany for Colonial wool. The correspondent goes on to say that values on the whole have been fairly steady for over a year. Not once but a dozen times, in that last two years, top makers havo kept up prices for tops, not ■'because of what they could sell, but because of wliat wool was costing. On two or three occasions Russian purchasers, though not large, havo had a. definite influence on the market. During (s\» last right or ten months Germany has been an influential customer for raw material but there has been considerably less business in raw material with Fraik Stated broadly, tlie tendency i f 'the Bradford trade over the past two years has been to relinquish its old position of doth manufacturer working for export, and to become a wool merchant. The idle looms in Bradford are said not to lie due to inefficient management. In Germany to-day there is plenty of unskilled labour to .be had at no more Ilian Cl per week. In England a girl in her 'teens, after .spending a dozen days learning to attend a machine in a combing shod, can command 3ls lOd per week. In various textile centres in Germany wool sorters are paid about a third of the Bradford wage or less. Even cn tkr bar is of cost of living, the rates of pay are far less than the English workman demands. ft has taken the better part of two years of bad t:ad- and unemployment to impress on the average textile worker and his trade union leaders that unless ti e proprietor of it mill (an obtain remunerative orders the mill hands cannot expect employment and good wages. 'I he correspondent is of opinion that it is just possible that during the next six or twelve months Continental competition will he less formidable. Owing to monetary deflation wool nianufacttiring costs in Italy are now in many taxes higher- than in Bradford. Tn 'Germany the cost .of wool combing has risen and to-day shows practically no advantage over casts in Bradford. The chief part of Franco’s production is sold at home, blit tho man in the street will not (buy. At the beginning of 1923 almost all top-s were paid lor in about fourteen days, now prebal'v a third (•f the business is done i:a!f cash and half by two or three men tbs' hills. The outlook for the new clips is quite good, observes the correrspondeiit, hut j it is almost certain that the clean bases now ruling in Europe arc C o high. The chief consumers of Colonial wool to-day are Germany and England.