N.Z. FLAXMILLERS’ ASSOCIATION.

Manawatu Herald, Volume LI, Issue 4506, 18 September 1930, Page 3

N.Z. FLAXMILLERS’ ASSOCIATION.

annua l meettn g

The annual meeting of flu* N.Z. Flaxmillers’ Association was held in the Racing •Club Office this afternoon, presided over by Mr. H. A. Seifert (president). Also present were Messrs A. L. and H. Seifert, E. Sutton, C. and W. Speirs, A. Eraser, D. R, Ogijvy, Geo. Rough, J. S. Moir and 'the secretary (Mr. G. V. Eraser). An apology for absence was received from. Mr. Greig. MOTION OF SYMPATHY. A motion of sympathy was passed to Mr. J. 'S. Moir in his resent bereavement. THE ANNUAL REPORT. “The year passed has witnessed a decline of hemp prices to the lowest level reported since pre-war and considering to-day’s eosts and conditions our prices are lower than any time during 30 years past,” states Air. Herbert A. Seifert in his annual report. “The price decline is not eonlined to our product but is general With rakv materials throughout the world; cotton, rubber, tin, jute and wool are instances of other commodities suffering to-day from what is a world-wide depression,” be adds. “The whole country must readjust itself to the changed conditions'. Hemp prices have fallen to a less degree than wool and but a little more than butter prices. Our great difficulty however, is to reduce costs. Indeed, there appears little hope of substantial reductions being made by the industry itself without a national effort* at cost reduction. “During this winter the hemp in alike t has been so dull that almost the whole of the mills are closed down. The present situation is, of course, an, abnormal one and we must await a return, to normal before we can sum up what is to lie Ihe future trend of the industry. It is all too evident, however, there will he a constant and heavy lessening from natural (lax owing to the comparatively prosperous, -condition *of the dairy industry. Practically all flax land suitable for dairying seems likely to be put to. this use. Also certain natural conditions are constantly diminishing, the yield of natural flax and,to-day no factors are present to cause any increase. The only hope for the future of the. industry lies in cultivated flax with all the great economies permitted bv. such a raw material supply-

“An exception to this statement must be made of the Auckland province where several large areas are in process of development and these should probably maintain a natural flax output to some extent for many years.

“Hemp values for the twelve months ended ,311st March, 1930, averaged : —Good fair, £29; high fair, £27 TO/-; low fair, £25; common, £23 10/-; rejected,, £22. Tow averaged about £l4 per ton. From April 1929 to September the market continued steady with little or no variation in prices. In October a weakness developed. This is coincident with the beginning of the great financial crisis commenced in New York last October. Tn flic months following until January prices weakened steadily. Eventually it became evident that the, market was overloaded with sisal and manila and from January to the end of March sellers of New Zealand hemp /were hard put\ to find an output for the current production. A cablegram received in Wellington on August 12 shows clearly in a few words where fibres are to-day and what, buyers’ present limits are. The International Harvester IGo. are reported to have completed a. purchase of 222,000 bales of Mexican sisal at a price etpral approx. £2O a ton f.o.b. main port.- This transaction is large enough to influence other fibres for several months at least and in the circumstances it is not reasonable to loojk for an early advance in the price of our own fibre. “The hemp output for the year passed was 13,200 tons. This is about 00 per cent, of pre-war average. Last season’s output was 1.1,700 tons and the previous year’s 17,050 and the pre-war average was 21,000. GRADING. “The industry made strenuous efforts to improve the quality during the last season, particular attention being given to “tails” of our 1 fibre with the object of having this free from, flax tips and towyness. Some sample hanks selected in November to replace a set selected two years previously gave strong evidence to a hardening of the grading standard by almost three points so possibly the real improvement in quality is greater than, would appear from the grading statistics. “£IO,OOO bonus for improved methods. —This was so hedged about with unreasonable conditions to be of little inspiration and it would be unwise to expect any results from this offer. FLAX OU TTIN G DISPUTE. “Re cone and A shaped cutting. This is an illustration of the completely impracticable attitude of the Arbitration Court, a Court which will judge solely upon so called evidence often manufactured and ignore a sound basis of common sense reasoning. The present crisis facing the industry should direct attention to the Court and it is to be hoped that necessary amendments shall be made. At present the Court is an absolute brake upon the progress of this Dominion. SUPER TAN ON LAM). “Our association fought strongly to relieve flaxmilling lands. Al-

though the Act was passed without ■our industry being omitted, nevertheless our representation apparently had an effect in drawing attention to the serious hardship which would result from Collecting the tax. The tax has not beft*n levied to any great extent upon the industry, which is certainly only right. “Hemp stabilisation fund. —At present representation is being made to the Government in this direction. So far nothing definite has been achieved. PERSONAL. ‘‘During the year we have lost by resignation two members. One, Mr. A. A. Brown, of Wlaiknnae, wlio lias been a member of the association almost since its inception. We also have to record the resignation of Air. Thompson, of Southland. I desire to thank members generally and Mr. Ogilvv in particular for the help that' has been given me in carrying out the presidential duties for the past year. Also to thank our secretary (Mr. G. V. Eraser) for his care and attention to our affairs.”