DRAWBACKS TO TRADE.

Manawatu Standard, Volume LVII, Issue 221, 18 August 1937, Page 2

DRAWBACKS TO TRADE.

MANUFACTURER’S STATEMENT. Per Press Association. WELLINGTON, Aug. 18. Addressing the annual meeting of the Wellington Woollen Manufacturing Co., Mr W. H. P. Barber, chairman of directors, said that the year could justifiably be described as satisfactory. The liabilities were less than last year ■and the gross profits had increased, though they had been reduced to an extent as a result of the increased costs. He announced an interim dividend of 3 per cent. While the shareholders might expect increased returns because of the trade revive 1 during the past year the trade revival had ma.ny attendant drawbacks, the production time,being shortened by the Labour legislation and extra shifts could not bs arranged because operatives were not available. He indicated that because of the competition it was not always possible to pass on increased costs and their activities bad been reduced because of orders placed earlier by buyers who had expected prices to rise. When it was manifest early in the year that wholesale prices were sure to rise, prudent buyers had increased largely their normal indents at the old rates. “Those orders we had to accept, caul Mr Ba.rber, “or allow them to go elsewhere. There prevails to some extent a wrong impression as to the passing on of increased costs. Where a monopoly exists it is, of course, possible. but certainly not where the external and internal competition is keeii. as it keeps selling prices, as we have‘sometimes experienced, hriow the cost of making, selling and distnbutinjr. ' “\ new "H foment of maruiacturing activity with its many side issues cannot be avenged just by request in a large woollen mill. Tt is necessary to have from four to six months, work ahead to maintain the essential continuity.” . . -i r> The Prime Minister, said Mr Barber. had affirmed his pronouncement that industry would not he let down. “Proteetion from unfair competition.” said Mr Barber, “is as vital to the workers as it is the manufacturers. Tim New Zealand manufacturers of woollen goods were being menaced by Australian importations. Australia was not affected by the exchange rate, and he considered that New Zealand should demand that Australia' should take as much as she sold as ’■ r ’cum"cal trade for the protection of New Zealand manufacturers. Australia herself had adopted some time ago quotas and, on certaui classes of woollens, complete embargoes.