The Taihape Daily Times AND WAIMARINO ADVOCATE. MONDAY, AUGUST 23, 1920. FARMERS AND WOOLLEN MILLS.

Taihape Daily Times, Volume XI, Issue 3559, 23 August 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

MONDAY, AUGUST 23, 1920. FARMERS AND WOOLLEN MILLS.

With which is incorporated “The Taihape Post and Waimari&o News.”

Any industry into which the .use .of New Zealand wool largely enters is of supreme national importance, therefore when one of the foremost woolgrowers makes such a statement .as that read in Parliament it should -certainly have more than passing notice. New Zealand woollen-mill owners were permitted to buy wool .at requisitioned prices, and, it is said, they exploited that permission to the extent of laying in large stocks for use in years to come; that these mills did a large exporting business, creating a shortage which enabled them to demand high prices for goods sold within the Dominion, thus victimising the New Zealand public; that these mills did, in fact, do a large profiteering business, and that they still hold large stocks of wool bought at requisition prices. The writer of this also states that, “A very grave scandal exists. It is a grave scandal if the companies, having taken advantage of 'the permission to purchase, are allowed to profit by such, conduct; or it is a scandal if there he no grounds for such report. ” A return has been furnished to Parliament of wool purchased • and goods exported, hut it did not ’by any means supply the details that either the House or the public require, and notice has been given that more complete returns will he asked for/’Most people will realise that the wool question has no compeer amongst 'New Zealand primary products; that any influence detrimentally affecting it reflects adversely upon the earnings of this country, a circumstance that would be felt, more or less, "by every individual man and woman. There has been quite unwarranted envious-* ness at farmers receiving fifteenpence for wool during the war; that price was offered to them; they did not clamour for it; they merely accepted without demur what was 6fferod_ It is more than* passing strange that so many people regard that fifteenpence as all profit; they do not hesitate before expressing their views that the farmer has the land, sheep, labour, shearers, bags, transport, and general farm equipment to pay for out of the fifteenpence. We say without fear of truthful denial that although woollen millers made a great noise about the cost of labour in working a pound of wool into clothing their cost bears no comparison with the cost to the farmer in growing it. Despite the enormous expense the farmer is put to in producing wool, he is the one. virtually the only one tc> suffer in case of an adverse wool market. It is a fact that farmers are at this moment being offered ninepence for their wool, and not more than an advance of sixpence until it is disposed of by the authorities. Here it is seen the farmer has to get little more than half the price he was getting while the cheap wool is costing him as much, perhaps more, to produce than the fifteenpenny wool. His labour; his land; his equipment all cost as much or more and he is only to receive a little more than half the requisition price. Woollen mills will be in an exact parallel position if they, on buying wool at little more than half-price, reduce their goods to the same extent that the farmers’ wool is reduced. Their labour, mills, equipment will cost them as much as when wool was at fifteenpence; in that respect they will he on an equality with farmers, but will they reduce the price of their output by exactly twofifths as the farmers’ price on output is whether it, p'fiys rjim or 1 not? Woollen mills are taking up an unfair position; they are neither'just to farmers or to tailors an*'* r r, tafl n ”S. The Chairman of the Wellington Woollen Company has made a studied effort to clear his company of any semblance of profiteering, but, the effort certainly lacked the all-important virtue of carrying conviction. We do not say that claims made were lacking in truth, but we can truthfully, state that while it was claimed that tweeds were made from the highest priced merino wool, and that while the

Chairman’s case depended upon such high-priced wool, we have not observed such tweeds on sale,- in business houses, in the ordinary way. If all tweeds are made from the highestpriced merino wool, in New Zealand and other country mills, it is surprising that there should be such a disparity of price per yard in uniform weights. Most people who have had occasion to ascertain what the wool and clothing price situation is, have undoubtedly- seen many invoices, and also quotations. They have seen quotations made to a very large tailoring firm, in 'Wellington, and admit that British tweeds have been much higher-priced tha n New Zealand made tweeds, but neither have been reasonable when compared with price of wool. They have seen instances iu which New Zealand tweed has been offered at twnty shillings, but the prospective buyer is suggestively told that he would he expected to take an equal quantity of British material at forty-two to forty-three shillings. The Wellington Company does hot sell to retailers, according to what the chairman states, but somehow or other their tweed gets on to the market if dealers speak truly. A New Zealand mill that compels retailers to buy through another party compels the public to pay an unnecessarily high 1 price for goods that are made under a protective duty. The position now is, that the farmer during his receipt of requisition prices has made good pi’ofits; the Woollen Companies, according to their balance-sheets, have probably made twice that profit made by the farmer, but where does the poor public stand? From infant to octagenarian, abroad or ‘ asleep all have been subjects of profiteering. But what concerns that public is to know whether, now’-that wool has dropped two-fifths in price, will tweeds, blankets and baby flannel come down two-fifths in price If the manufactured article is only to he reduced by sixpence for every pound of wool it is composed of, the price of a lady’s woollen jacket costing five pounds will henceforth, be sixpence less. Then is there not disgusting insincerity in Millers claiming that cost of wool makes any material difference to ths selling price of the manufactured woollen jersey? It is claimed that price of merino wool has doubled since 1914, but so has the manufactured article; other things have notably increased in price, including labour, but no increase in anything in any department can commence to compare with the increase in profits. Nobody can go wrong in. making that statement. We urge that all protected industries should Tie brought as closely as possible to the consumers who have to pay for that protection; no unnecssary middleman should be introduced, for upon such trading depends largely the maintenance of industrial peace an ( ] progress.