THE HEMP INDUSTRY.

Manawatu Herald, Volume XLI, Issue 1948, 6 March 1919, Page 3

THE HEMP INDUSTRY.

MILLS CLOSING

Most of the (laxmillers in (his district have decided to close down (his month. This decision has been arrived at on account of the present unsatisfactory state of the market, it being contended that the prices (hat can bo obtained are too low in view of the high royalties and general high cost of production. The English market for hemp is very inactive, due undoubtedly in a great measure to (lie labour unrest (here, and also to the fact (hat there is at present in this Dominion a large (juantity of hemp bought by the homo manufacturers at high prices which has not yet been shipped. It is not known at present bow long (he mills will remain closed, but it is hoped that the signing of peace will see a hardening up in the market, and if this is so no doubt (he mills will at once re-open.

ENTIRE INDUSTRY THREATENED.

Referring lo tliis subject, (lie New Zealand Herald says: —The flaxmilling industry throughout New Zealand is reported to ho throatonod wit!) the necessity of having to close down. Already if is reported several of the lower Waikato mills have had to cease work, and similar reports are to hand respecting the Southland mills.

Mr J. A. Duncan, secretary of (he Northern Flaxmillers’ Association, slated yesterday that the millowners were placed in this unfortunate predicament hy tlie extraordinary increase in outward freight rates, while the increase ofi inward rates was comparatively slight. The prewar outward rate was £3 5s a ton. In October, 1918, this freight: had increased to £2O a ton of hem]), and £32 for tow. The only reduction yet made was one of 25 per cent, in December last.

On the other hand, the shipping charges from England, which were £1 2s (id before the war, and £lO in October last, had been reduced, on January 29th to £3 a ton. In consequence of this difference in charges, the millers found that export was not a profitable proposition. Furthermore, there was no market for the output.

In view of the seriousness of the 'position, the executive committee of the Northern Flaxmillers’ Association has referred the matter to the Minister for Lands, the Hon. I). H. Guthrie. The letter to (lie Minister, after setting out the anomaly in existing prices, states that, unless immediate action is taken in reducing the outward charges, the flaxmilling industry throughout the Dominion must close down, thus throwing some 2,000 men out of work. Owing to the epidemic, the increased rates and the reduced prices, many of the millers have, accumulated large stocks of hemp, and in such cases the continuance of high freights, together with the lowering of prices, spells disaster to the industry. No reply has yet been received from the Minister.