THE HEMP INDUSTRY.

Manawatu Herald, Volume XXX, Issue 386, 7 March 1908, Page 3

THE HEMP INDUSTRY.

Masting to Discuss Reduction in. Wages. Men Favour Closing Down The downward tendency of the hemp market has created a feeling of uneasiness among local millers, and they are face to face with a crisis. The success of the industry depends upon a market price for the finished article that will enable the miller to pay his way and receive a fair percentage on capi-

tal invested. But the hemp market fluctuates, and the miller never knows what a year may bring

forth. Men who have invested their all in the industry when the market has been high, with a backward turn of the wheel, have suddenly faced ruin ! The miller takes big risks. The employees claim they are justly entitled to every penny they are paid, and even at the present prices, claim that hemp can be milled at a reasonable profit. True, the miller or employer has his fat seasons, likewise the lean. The employees’ wages are concrete, and his worries end there. The position at present is a falling market. The man affected is the royalty paying miller. He is banked ahead with a dull market, and on either side with royalty and wages. The three barriers at present are closing around him, and his outlook is not too promising. It will take much of the profits of fat years to keep the barriers at a safe distance, if he is to continue. This fact inspired Mr W. Ross, a local miller, to get an expression of opinion on the situation from those interested in the industry, and he convened a meeting in the local Masonic Hall, on Thursday night. The Secretary of the Employees’ Union, invited members to attend, and about 200 turned up, there being also a number ot local millers present, including Mr Seifert, President of the New Zealand Flax Millers’ Association, and also a number of the general public. Mr B. G. Gower, Mayor, was asked by the convenor to preside. The Hall was filled when Mr Ross arrived, and he was received

with mixed feelings. The Chairman, in opening, referred to the present state of the hemp market, and added that it was a difficult matter for the miller to make both ends meet.

The object of the meeting was to try and amicably arrange something in order to obviate the necessity of closing down the mills. Employer and employee were mutually dependent upon each other* and he hoped they would pull together for the good of themselves and the industry. He apologised for the unavoidable absence of Mr Bell, miller, of Bulls, who stated in his message that he was in favour of closing down, and Mr E. S. Easton, who was unable to attend, owing to private business. He then called upon Mr Ross to address the meeting. Mr Ross was received amidst a chorus of “boo hoos” from the rear of the Hall.

Mr Ross, who was apparently annoyed with the reception, remarked that there would be no “booing” from those present if they had to find the wages. He desired that the meeting should be conducted in a friendly spirit, and would be sorry if they approached the subject in any other way. If some arrangement could not be come to between the millers and

the employees, then the mills would have to be closed down, as the present price obtained for fibre was unpayable. The question was merely a local one, and the meeting was called, independent of the New Zealand Flaxmillers’ Association or the Union. He took upon himself the responsibility of calling the meeting and trusted that in doing so the men and all interested would accept it in the same spirit which prompted him to do it, namely in a friendly spirit and not in a spirit of antagonism to the men in any way whatever. Local flaxmillers were placed in quite a different position to any other millers in the Dominion, that is with regard to the position we are in as to the supply of leaf. Other- millers cutting on royalties as we are can close down their mills for six or twelve months and then start again without being called on to pay If local millers shut down, before they could start again the Moutoa syndicate demanded that they should pay The question was will the flaxmiller in this position work until he loses or will he at once close down and pay the syndicate ,£3OO. (Cries of “shutdown the mills” and up-

roar.) He had paid since commencing milling f° r right to cut leaf off this property, first on the transfer of the mill from Mr Jupp to himself and another we paid for our rights. He then bought out his partner’s interest and had to pay another /150 or his supplies of green flax were to be stopped, and if I stop now, and want to start again I, would have another to pay (A voice: “ serve you right.”) All this expenditure inside a year and nine months. All this must be taken into account as to the cost of our fibre. My leaf last month, cost me 25s 3d at the mill. He was told that he was to be asked if he would allow an authorised accountant to go through his books together with the Secretary of the Union, so as to] see whether he is making a profit or not, but to save the question being asked, he said, I shall allow no man-to examine my books while I am not indebted to him in apy' way. and if the same were thought of, which X am sure

could only have been doue without thinking, no man would allow his private affairs to be gone 1 into like this, and practically become public property, but as he had given the cost of the leaf at the mill, and as the treasurer of the Union was in his emplqy, he had not the slightest doubt" that they would be easily able to see whether it was paying him or not ; and bearing in mind that it costs a flaxmiller for expenses, outside the actual milling, 40/- a ton, .and no miller will close down his mill for the mere sake of closing down, and the men could rest perfectly assured when a man closes down, it is because he is losing money. Had he at the present time to accept market prices, the engine would be stopped to-morrow, and he would take the consequences of having to pay another £3OO, or never start again. He wished simply that the men should know what must come to pass, and know it betore it was too late. He understood there are some, men connected with the Union, and there are a good number who are not, and it was simply for them to say if they will consider whether they can give any relief to the industry or not. (Cries of “ Shut down!”) You have it, he said, entirely in your own hands. The employers were helpless, excepting that they are still left with this power : They can cease work. He was pleased to state that some of his men had offered to take a reduction in wages until things improved. (Cries of “mongrels” and great uproar). But, continued the speaker, as this was not a question of one miller carrying on, but the broad question of the welfare of the industry, which all had to consider, the individual carrying on or stopping would make little or no difference. He thought the most fair-minded men would admit that in a case like the present, it is a pity the awards in the Arbitration Court are so made that it is not possible for either employees or employers to come to some mutual agreement without having to go again before the Court before any alteration can be made by either party, and at mills where millers can stop until such alterations are made to meet cases such as this, then the men by closing down are the losers. When the award was made, everyone was up in the Seventh Heaven, and never thought we would again come to earth, but we have all come down with a crash. He hoped that among the men themselves wise counsels would prevail, and as there was upwards of 1500 men engaged directly and indirectly in this district and Manawatu, and only some 30 or 40 millers, they could see how much larger the employees’ interests were, so far as numbers went. He sincerely hoped hoped thata friendly spirit would be shown, and carried through all deliberations in this matter. The point was, whether they were prepared to meet the millers. To show what it would mean to the men and district, he would give them an idea of what would happen, if only one mill closed down. Since August, 1906, to February, 1908, he had stripped 3,898 tons of green leaf, and had paid ,£3,815 in royalty. He had paid in wages ,£6,190 16s sd. Punting had cost ,£621 5s yd, besides other incidental expenses. (Avoice: “Tell us how much you have made out of it ?”) Continuing, Mr Ross said if they multiplied the above figures by the number of mills working in the district, they would then see what it meant if the mills closed.

A voice: “ Its a bare living for the employees now. ’ ’ Another interjector asked why the millers didn’t raise the wages of the men when fibre was up to per ton. Mr Ross stated that the flaxmill employees were paid higher wages than any other unskilled labourers in the Dominion. It was no use arguing that point. If the men were not prepared to meet the millers, then the only alternative was to close down. Chorus of voices,: “ Close down.”

At this stage there was considerable interruptionsMr P. T. Robinson, Secretary of the Employees’ Union, said it was strange that if Mr Ross had called this meeting on his own initiative, that he (Mr Robinson) should receive a letter dated February 29th, from the N.Z. Flaxmillers’ Association,, quoting the fall in hemp, and pointing out that the price was considerably below the cost of production for quite 70 per cent, of the mills in New Zealand, even for those milling their own flax. The letter further stated that the Association would be glad to learn whether the Union would entertain any suggestion as to making joint application to the Arbitration Court, with the object of getting the award cancelled. Mr Robinson said it seemed strange that Mr Ross, in face of that letter, should have called the meeting “ on his own.”

Mr Ross, in reply, said he only knew of the letter quoted about half an hour before the meeting. In reply to Mr Robinson, Mr Ross emphatically refused to allow his books to be investigated.

Mr Robinson asked Mr Ross how he could expect the meeting to accept his figures quoted as correct. He further asked, whether Mr Ross had invited Messrs Levin and Co., to be present. Mr Ross replied in the negative. . Mr Robinson said it appeared to him that the employees were to be used throughout the piece, as the chopping-block (great uproar). Interjections were made to the effect that it would be impossible for men to live on less wages than they now received. A bilious-looking gentleman,

occupiug a front seat, asked to be allowed to take the platform. He wanted to know whether the employees could workfor less wages and pay for tucker (great uproar). Mr Ross said the meeting was called in the interests of Foxton millers and employees, in order to get an expression of opinion, and endeavour to arrange a conference between the Union and Association. Mr Ross was asked why he didn’t go to the men who owned the flax, and ask them to reduce the royalty, instead of coming to the men. Mr Ross explained that millers had approached the syndicate, and they were asked to state what profits they had made, before the syndicate would consider a reduction, The Syndicate had placed the royalty on a sliding scale and they were now paying 11/- per ton. A voice ; “ Let Easton and Austin have a go.” “Where’s the other millers?” “Where’s Seifert?” Other interjections about motor cars and capitalists were made. After further uproar, Mr Alf. Seifert, President of the N.Z. Flaxmillers* Association, ascended the platform at the invitation of the Chairman, Mr Seifert said he did not know anything of the meeting until he was telephoned to by Mr Ross. He was not present to express any opinion. The outlook was bad, and Mr Ross had stated the position fairly. The question of closing down would have to be considered, but it would be iu the best interests of all for the. mills to continue, and the men to' be kept employed. They should discuss the matter as men to men.

A voice: “That’s where the tucker comes in.” (Uproar.) Continuing, Mr Seifert said no opinion should be expressed offhand. Both employees and millers should be given time to mature consideration. (Hear, hear.) He referred to the impossibility of milling at profit under existing conditions, and an inter] ector remarked that the loss might be due to mismanagement. In reply to a query, Mr Seifert said that he never told a reporter that he could mill fibre at £l7 per ton.

Mr Newth stated that he could mill the fibre from the scales, and dump it on the wharf for £9 10s per ton. Mr Ross said he had a manager who couldn’t do it for £l4.

Mr Newth took the remark to himself, and said if he had been allowed competent men at reasonable wages, he could have done it. He hoped Mr Ross now knew the difference between a good and bad catcher.

Several other questions were asked and the audience was getting restless. Mr Murphy wanted to know what the meetitlg had been called for ? Why weren’t there any proposals to place before the men ? The Union repudiated calling the meeting, and other millers did not appear to take any interest in the meeting. It appeared the men had been brought out on a wild goose chaseMr Seifert considered a conference between millers and employees, to discuss the situation, would result in some good. Mr Seifert was asked why he did not increase the wages when the price of hemp was up.

Mr Seifert said that for a number of years hemp had only averaged and last year it shot up. A number of men had invested money in milling, and had lost it. He was a poor man af far as ready money was concerned (uproar) and had a great deal of worry. What money he had made he had re-invested.

There was much interruption and banter at this stage. A Maranui mill employee said that the men had decided not to have their wages reduced. He represented about 900 Unionists. He then dilated upon the benefits of Unionism.

Mr Murphy, in the midst of a hum of voices, said they were all talking against each other, and apparenttly didn’t know what they were talking about. He moved a hearty vote of thanks to Mr Ross for his lucid and interesting address.

The meeting then resolved itself into a great talking machine, the shrill voice of the hungry man in the front seat rising above the babel and demanding the platform, at the same time asking whether a cook was a man.

The meeting was practically abortive so far as any mutual understanding having been arrived at between millers and employees.