THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXVI, Issue 1307, 6 October 1914, Page 2

THE HEMP INDUSTRY.

VIEWS OF THE PRESIDENT OF THE FLAX MILLERS’ ASSOCIATION.

Writing in the Agricultural Journal, Mr W. H. Ferris states with reference to the hemp industry that ‘‘it was thought that the war would have a detrimental effect on the fibre industry, but there is little evidence of this at present. The majority of the mills in the Mananatu district are running at lull pressure.” Commenting on this opinion to a Palmerston Standard representative, Mr H. Seifert, president of the Flaxmillers’ Association, said he did not hold with it. He stated that, as a matter of fact, the war was having an extremely detrimental effect on the industry. “It is quite true,” he went on to say, “that a number of mills are running, but they are taking contracts at prices not at all profitable, so as to make their losses smaller. . Running expenses of a mill are divided into two parts —working expenses and fixed charges. The fixed charges on a one-sttipper mill amount to to £ r.ooo a year, and if this can be reduced to ,£3OO or it is better than losing ;£i, 000. That is one reason why millers are keeping their machinery going. Some of the' owners of flax lands have reduced the price of royalties—in many cases to a price at which it is not profitable. Employees almost without exception, have come down to the minimum in Wages, and before the war seventy or eighty per cent, were getting above the minimum.”

Regarding a statement by Mr Ferris, that “everything points to an improved demand tor binder twine in Australia and America', and good values should, therefore, rule for New Zealand phormium fibre,” Mr Seifert stated that be* fore the war prices for hemp were not considered good. Taking “high-fair,” it was then worth £ 2i to £22 ; to-day “high-fair” is worth los to £l6 155,. and “low-fair” 1 os, and “goodfair” ,£l7 10s. Taking the ordinary one-stripper mill, the smallest possible one to, work, the output is 250 tons a year, so that even £4. a ton difference in price means a year loss. This was proof that the war was having a detrimental effect, not only industrially, but financially. Mr Seifert went on to saiy that quite a number of mills will be working half-time to give a few hands employment, as employers recognise it is not desirable for their hands to become dispersed, and they are working at a loss rather than that the men should go away from their proper employment. Millers feel that they should do all they can for the employees, and help them all they possibly can. In his article, Mr Ferris speaks favourably of the leaf, and Mr Seifert states that the quality is better than for some years past. The result is that the hemp will be of a much better quality, as it is impossible to produce good hemp from bad leaf. “Before the war,” concluded Mr Seifert, “it looked as if the millers were in for a good season. The general feeling was that prices would improve as the season progressed, but that does not apply now. In fact, the hemp industry is in a critical position.”