The Manawatu Herald. THURSDAY, MARCH 12, 1908. THE HEMP INDUSTRY.

Manawatu Herald, Volume XXX, Issue 388, 12 March 1908, Page 2

The Manawatu Herald. THURSDAY, MARCH 12, 1908. THE HEMP INDUSTRY.

+ The Wellington Dominion on Tuesday last, published an editorial on the hemp industry. Its remarks, although fairly reliable, are tinged with pessimism. It starts off by stating that the hemp Industry is in a state of collapse. We would remind our contemporary that many millers are fulfilling contracts at prices independent of present quotations. True, if the mills had to depend upon the present open market quotations, then it would be suicidal to continue. Our contemporary says:— “ At 10s hemp is a losing proposition, tor, according to the most reliable authorities, the cost of production and transportation and other charges approximate to £26, and are made up as under; — £ s d Cost of milling per ton 1800 Royalty 400 Shipping charges ... 400 £26 o o This shows a loss of £1 los per ton, and we have not taken into consideration interest on capital, and the fire risks, which are appreciable. The royalties, it may be mentioned,. have been reduced in the districts contiguous to Wellington by from 22s 6d to about ns per ton.” We may state that it takes eight and a-quarter tons of green flax to produce a ton of fibre, and the actual cost of the finished article f.o.r at present is Our contemporary has under-estimated the royalty in the figures above quoted by 12s, and has over-charged cost of production by £l. To be more correct, and without splitting straws, the cost to the miller including shipping, and minus interest on capital would be £2s 12s. The Dominion continues; “Hemp is not paying, and a re-adjustment of wages is not practicable; at any rate, the workers refuse to consider the matter of reduction. What is to happen now? Obviously the mills must be closed down. Many have already been closed, and those that are running will cease opera-

lions as soon as they are through with their contracts. The cessation of the hemp industry will seriously affect Foxton, and will cause a depression throughout the Manawatu; furthermore, it will help to close our markets.”

True, the closing of the mills will have a depressing effect upon this district, but we are pleased to be able to state that Foxton has reached that point where, buoyed up by other industries,, its longneglected port, its importance as a distributing centre, it is able to maintain itself on a level with other boroughs throughout the Dominion, should even the bottom fall out of the hemp industry It’s just as well to let the outside world know that our land is as fertile, and as capable of fattening stock, growing wool, producing butter, fruit, and grain, as any other area in the Dominion. Too long has Foxton wrapped itself up in flax, and flax alone. Its people are awake to the fact that ’tis a foolish policy to “ keep its eggs in one basket,” and flax can no longer say, “ I hold you in the palm of my hand.” The Dominion, concluding its article, says that : “At the time of the war between America and Spain, New Zealand hemp got its opportunity, and by systematic efforts and attention to detail, the product was forced into the market. Manufacturers adapted their machinery for the manipulation of New Zealand hemp, and now, through being unable to ship any quantity, we will compel those manufacturers to turn their atteutention to other fibres, and when we are again able to ship hemp, there will be difficulty againing a fco’.in { in the market. Finally, the closing of the mills will throw out of work hundreds of unskilled workers who will find it no easy task during the winter mouths to procure work in other directions.”