THE HEMP INDUSTRY

Manawatu Herald, Volume XLIII, Issue 2251, 15 March 1921, Page 2

THE HEMP INDUSTRY

Our Palmerston morning contemporary, commenting on the serious position of the hemp industry, says that owing to the severe drop in the price of hemp, the industry in the Manawatu is-now facing a serious position, and the millers are considerably perturbed. Several factors have contributed to the present unsatisfactory state of affairs, apart from the fall in prices, which lias, of course, been the culminating factor. In the first place there lias been a big rise in wages and a tremendous increase in freights. An indication of how the latter have increased is given in the fact that for many years prior to the war shipping freight rates were only .<.’2 15s per ton. Just af'teV the pear commenced they rose to £4 4s, and at the present iime shippers have to pay £ls per ton. The railway freights also have increased by over 200 per cent. The millers are now agitating to have the freight rates brought down substantially both on the ships and on the railways. The wage problem is also a serious consideration,‘and the millers have, come _ to the conclusion that a considerable reduction is required to allow of an amount of profit commensurate with the capital involved. Cutters have been discharged from, the Fox ton mills, which will close down for the season earlier than usual. Easter will probably see the last of the cutting at other mills in this district. As this'will release about 1,000 mill hands, the difficulty of securing labour for other work may lie partially solved. The resumption of work at the mills in ordinary times takes place somewhere about the end of June, but whether, under the present abnormal conditions, it will he worth while to open up again at that time this year is still a question to be decided. The nominal value of (lax at the present time is down to £2B per ton for good fair, £26 10s for high fair, and £23 for low fair.