CORRESPONDENCE.

Manawatu Herald, Volume XXXI, Issue 449, 30 January 1909, Page 3

CORRESPONDENCE.

The Flax Industry.

[To THE EDITOR.]

Sir.'—Few instances illustrate more aptly the aphorism that “one half ot the world doesn’t know how the other half lives’’ than the plentiful lack of knowledge shown throughout the Dominion with regard to its hemp production. This indifference is the more regrettable as it has been one v of the factors in retarding the more rapid growth of a trade, which, given reasonably fair play should by this time be occupying a relative position in this country, to that held by the cotton industry in Lancashire. Even in the exceedingly unfavourable conditions existing the output of this staple has increased enormously during the last ten years, the total for 1906 reaching 27,779 tons, valued at £776, 106, as against a slightly larger tonnage for the previous year, which was, however, valued at ,£BO,OOO less. Before the fibre was graded by more or less qualified officials, slump followed boom with automatic regularity, the cause being that as the prices rose so in inverse ratio, the quality fell off. With flax at ,£27 in the early days anything that had even the semblance of fibre was delivered and accepted as “ good fair quality,’’ the arrival of this trash upon the foreign markets being the cause of the ensuing tall in values. Since the Government has taken hold of the grading, however, a much more uniform quality of output has been secured and the producers have been assured of a price which has been at the lowest, even payable to all concerned had ordinary decency been observed by the owners of green flax in their dealings with the millers. But the former gentlemen have taken a strangely shortsighted view of their position, and have, in my opinion, by excessive royalties, and the imposing of inflexible, unreasonable contract conditions, and by (in some cases) a ridiculously high price for the cutting rights—in addition to the royalty—so crippled and hampered the millers dependent upon them for supplies, that the wonder is that the “ golden geese ” have not perished of sheer exhaustion. To the average man in the street there is no doubt that the foregoing will seem sweeping and extravagant charges. But they are not, and in support of them we will glance for a moment at the record of the premier swamp of the Manawatu, the Motoa, which has always set the main of prices for green leaf ruling throughout the district. The Motoa estate was for many years in the hands of the Assets Realization Board, whose managers

were in receipt from various millers of a royalty of 2s 6d per ton on all green leaf cut upon the property. Even at this low price it was a payable crop, requiring as it did no cultivation beyond a little draining which was necessary apart from the flax. The estate was eventually sold to the present owners and the millers found that “ a change came o’er the scene.” The first act of the new owners was to raise the royalty 100 per cent —making a charge of 5s per ton on green leaf. Their next move was to levy a charge of £3OO

for the “right to cut,” this amount to be paid by any miller taking up a block of Motoa flax. This •‘right” was forfeitable if they stopped cutting without the consent of the owners of the leaf. Then, as rapidly as a barometer in the dog-days, the royalty _ rose until it reached the set fair price of £\ 2s 6d per ton green. At this point the owners of the estate realised that the camel’s back was

strained to the proverbial breaking point, so they paused. Careful consideration, however, was given to the manipulation of cutting rights. One firm which had been milling Motoa leaf for some considerable time was three days late with its cheque for the monthly royalty, but the owners did not, like Pharoah of old, harden their hearts. They were mercifully inclined and merely mulcted the misguided millers in the sum ot £l5O. One member of the milling firm disheartened, strangely enough by this forbearance, availed himself ot the first opportunity of disposing of his share in the business and the new comer paid ,£l5O for the privilege of cutting. Owing, however, to some hitch in the transaction the sale was cancelled, (the £l5O was not, of course, returned), and the old partner came into his own again upon the payment of for the necessary right to hut. When at length another man purchased the mill, he also cashed in the inevitable £3OO making a total (including the fine for late payment) of £9OO secured from one mill for nothing. Cutting rights indeed! At length , the firm laid aside considerations of earthly dross and rose to the supreme height of a royalty sliding scale. It was to range from 5s per ton, the price at which they started to 30s per ton, i.e., 7s 6d behove the top price paid ! There no doubt that there are other j minor details that check the naturally rapid development of the hemp trade, but millers, merchants, employees all voice the same opinion, that the prime factor in producing stagnation in the hemp industry is excessive royalties such as I have indicated.; 1 contend that a Royal Commission should be asked for to inquire into the question of royalties, etc., In order to place the industry on a sounder position than at present. Apologising for taking up so much of your valuable space. —I am, etc,, Flaxie.