THE FLAXMILL INDUSTRY.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9384, 2 March 1909, Page 6

THE FLAXMILL INDUSTRY.

The following account of the interview between Messrs G. S. Whibley, P. T. Robinson and B. H. Dad--housie (representing the Flaxxaill Employees’ Union) and the Hon. A. W. Hogg (Minister for Labour in Wellington on Friday is condensed from the Dominion’s report. Mr Robinson stated that about half the millers owned their flax, and they were keeping the mills at work, but only on sufferance. As far as the Manawata was concerned, only two or three mills had closed down, and that was because they had no flax.' ■ ■; ;; Mr Dalhousie : “A large majority of the Foxton millers are convinced that it is the royalties, and not the wages, that are the cause of the trouble, but they don’t venture to make any public statement.” The cutting contracts were so framed that they were immediately convertible into a gag if the miller gave public utterance to any objection to Bhe royalties he was paying.The deputation handed to the Minister some typewritten sheets, shoiwng cost of labour and royalties on certain Manawatu flax lands. The wages paid when fibre was £ll per ton, as taken from the books of a Foxton miller, were given at £6 2s 8d per ton. It was stated that today’s price for “good fair,” Wellington, was £2l. Difference in price £lO. Difference in cost of labour per ton £2 5n 9d. The wages paid under the award by the same miller were shown at £8 5s per ton. It was further stated:—“The miller whose figures are quoted above is milling Biverdale leaf. With wages on Scale A, he paid a royalty of 245, per ton dry To-day he pays 20 per cent, on hia contract prices as a royalty charge. The block of flax from which he la cutting measures 257 acres, 120 acres of which gave him 18 mouths’ cutting. In this period he paid In royalty £2500, viz., £2O 16s 8d per acre, equivalent to a return of £lO per > acre per annum. His weekly royalty therefore averages £32, royalty one-hall the amount required for labour.” A synopsis of> contract offered to a member of the Flaxmill Emg ployees’ Union and five partners by the owners of the Makerna Estate was submitted as follows:—“The plant for the entire mill was on the ground. The contractors were to pay £IOO per annum rent, to keep all drains clean. (Mr Greig, in his evidence befcre the Labour Bills Committee estimated this item at £2OO per annum), and to keep all fences in repair. In addition to this, they had to deposit a bond of £3OO. or failing this, to guarantee to sell their entire output through the estate. The royalty varied from 16s to £l2 per ton dry fibre as the London price varied from £2O to £35. : The following particulars were given as to the Montoa Estate:— Taking the price paid by the present owners, £7 10s, as a basis, this would give a return on invested capital of 25% per cent. At the top price of the recent boom, £39. the royalty charged was £l2s 6d per ton, green. On the same basis as the foregoing, £7 10s per acre, this gives a return of 100 per cent per annum on invested capital. This calculation is based on a yield of 20 tons per acre, to allow for a very rapid depreciation caused by neglected drainage, blight, etc. The present royalty paid is 8s €d per ton green. The price on the same basis as both the foregoing, gives a return of 36 per cent per annum on invested capital. In an ordinary mill’s entire staff there are 22 men, receiving under award rates an. aggregate of 26s per hour. The royalty paid by such a mill, using Montoa leaf at present prices, would work out at 10s 6d per hour, “The Biverdale estate is a case,” it was stated, “in which the royalty is charged on a percentage basis. .There is a charge of £3OO for the right to out, as in the case of the Montoa. The royalty charged is 20 per cent, on the selling price. ” The Heaton Park estate was in the hands of the Rhodes Trustees, who charged in 1900 15s per ton on the dry fibre. In 1905 this was raised to IOsJOd ner ton on the green leaf. In 1900 the average value of fibre was £2O 2s. In 1905 the average value of fibre was £25 18s. Rise in value £5 16s, 28 per dent. Rise In royalty, £3 9s, 460 per cent. Increased cost of production, as given by Mr Greig equals £1 8s per ton of dry fibre, a 12 per cent rise. The Minister, in reply, saidlthe high royalties must be severe[|on those who had invested their money in mills and maobniery, but had no flax-bearing land. The deputation knew how dicfflnlt it was to deal with land-owners, once they had become possessed of the, property ;of the Grown. When land became private property, the control] of the State was almost gone, and this was particularly unfortunate in view of the effects that might follow in connection with the labour market. The land was the mainstay of labour, and, in his opinion, it was a pity that greatero are was not taken to reserve land containing valuable mineral or vegetable products in the hands of the State for labour purposes. He would do all l\e could to have prominence given tQ/the facts and figures that had been laid before him, and he thought that if full publicity was given, aggressors, unless they were very callous, must feel acutely what" they were doing. It was for Cabinet to decide whether there should be an investigation, and, if so, what form ik should take.” ______