Manawatu Herald. TUESDAY, OCT. 20, 1891. Flax.

Manawatu Herald, Volume III, Issue III, 20 October 1891, Page 2

Manawatu Herald. TUESDAY, OCT. 20, 1891. Flax.

The Eangiora correspondent of the Canterbury Times has written in a very dispirited manner of the flax industry. During the past few months, he states, that there has been a decline in the industry, more particularly in Canterbury. The largest mill owner in the district whose intake of green blade amounted to over 100 tons per week, and output of finished fibre to fifteen or sixteen tons, and who employed about one hundred and thirty hands, has his works now standing idle. The Southbvook mill has but half the stripping plant running to complete contract orders, and it is more than probable that work will cease within a few days. This mill was at one time employing from fifteen to twenty hands, and turning out about four tons of fibre per week. The i Waiknku works are also running I slack, and the proprietor states that unless matters improve he will be compelled to stop work on the completion of present contract orders. i The only mill in the district running 1 full time with all the plant is that j on the Cam stream, but this is accounted for by the fact of the proprietors having a water-power and owning a large area of flax situated with a stone's throw of the works.

The correspondent then attempts to explain the reason for the decline, and asserts that the expected increase of sisal, and that the price has been arranged at £20 in London or New York, is one of the causes, because hitherto the selling price of sisal has been from £80 to £34 per ton ! ! Again he writes : — I write advisedly I when I say that the flax industry in i Canterbury is being crushed by the high price' demanded for the green blade by those who are fortunate enough to possess any quantity of it. In North Canterbury, at the present time, it is almost impossible to induce farmers or others to part with green blade at a price less than from 7s Gd to 10s per ton. A millowner told me only to day (Tuesday) that he had been riding about the country trying to purchase raw material at a reasonable prioe to enable him to start his works again, but he managed to secure only a small quantity at 7s 8d per ton. In one instance he was asked 10s per ton for flax growing on land he estimated to be worth only about £6 or £7 per acre ; while in a single cutting from forty to fifty tons of blade could be taken from every acre. At the price above quoted the cost of the raw material landed at the mills is from £1 to £1 8s per ton. These prices were all very well, and were readily paid when the fibre commanded from £88 to £40 in the London market ; but now, when it is down to about half the latter figure, the dressers can no longer afford the old prices. This, however, the holders of the green blade cannot be made to understand, and many state positively that they will keep it rather than take less than 10s per ton. It is very evident that tho Eangiora correspondent has taken a gloomy view of the industry from misapprehending the real state of the case. This is particularly noticeable in his statement that sisal is so much cheaper now than it used to be. A single glance at any broker's report for the past three years will show that N.Z. hemp has always commanded better prices than sisal, and that the latter article has seldom reached £25 a ton. Nothing therefore is clearer than that N.Z. hemp is more in favour than sisal and that the price of the former, in a large measure, rules the price of the latter fibre. The industry may be considerably hurt by the price that landowners are asking for green flax in the South, but in this district most of the millers are not paying more than two shillings and sixpence a ton on the green flax, and taking the cost of haulage into consideration, the green flax stands them in 15s 6d a ton, as against 28s a ton in Canterbury, and taking seven tons of green flax to produce a ton of dressed fibre, the miller here makes a saving of 28s 6d a ton. Wo hold that everything points to the industry being' a steady ono, provided the mills are worked on business principles and with capitnl. We cannot say that the land-owners here are too greedy, evidently they are better by far than elsewhere, but wo do say that the business, as a whole, is most disastrously carried on, tho millers disunited, being the objects "for daws to peck at." Take any similar business, the frozen meat or export of wheat, there: the exporters combine to secure reduction in charges, and quick despatch. If the industry is killed. it will be the fault of the millers and the Government.