A SERIOUS POSITION.

Taranaki Daily News, 3 March 1920, Page 5

A SERIOUS POSITION.

riUCR OF HIDES. DOES IT MEAN DISASTER TO BOOT INDUSTRY. ''The sensational increase in the price of hides is a disaster to the boot tuul shoe industry of New Zealand," stated a Wellington boot manufacturer to n New Zealand Times representative. Under the. embargo, he claimed', New Zealand could produce the chcapost footwear in the whole world, but that happy condition of affairs had now come to an end, and he could see nothing for it but a corresponding advance of from So per cent, to fiO per cent, in (he prices of hoots and shoes. When such phenomenal prices had to be paid for leather, the boot manufacturers had no option but to increase their prices also. As a matter of fact, unless those who had been holding back their stocks now released thorn, lie feared a still further advance in the cost, of hide.:. Dealers in the Dominion were staved to have liau in store hides valued at a million sterling. The great nse in pries, following upon the lining of the p',tibar£;> on the export of hides, would mean to them an advance of HO per cent, in the value of their huge stocks, and all of that would have to be paid bv boot manufacturers and others whose raw materia! was leather, and ultimately by the consuming public. It was ca«y, therefore, to understand why the hide dealers.united with the hide-producers in the demand for a free market.

VIEWS ANT) FEARS OF ROOT OPERATIVES. The views and fears of the hr.nt operatives with regard to the results that must, follow from the removal oi the embago oil the export of hides have been vtry tersely and forcibly stated by Mr. C. A. Watts (secretary of the Root Operatives' Union, Auckland), who was one of the representative deputation that waited upon the Prime Minister at Auckland last Friday. The sales held in the northern city since the embargo was lifted had. sa'd Mr. Watts, demonstrated clearly that the results of the alteration would be: (1) Increase in price of the raw material to the leather merchants; (2) a greater increase in manufactured leather goods; (3) a greater importation of leather goods from countries where wages are low; (4) unemployment in the leather trades, resulting from a big exportation of the raw material and reimportation in the shape of manufactured goods. Already the price of boots had jumped 5s to 10s per pair. It was freely stated, he said, that hides to the value of a million pounds, bought at the old prices, had been stored by dealers in anticipation of profiteering by the lifting of the embargo. A LABOR SUGGESTION. "In v'iew of the foregoing," he added, "ve urge that the recent regulations be immediately reconsidered; that all hides held in store (including the hides, of the holders) be commandeered at prices paid to farmers plus bank rate of interest from date or purchase; and that, a Fairprofits Court be established to determine amongst other things the price at which manufactured leather goods shall be sold to the public, and if the present owners of factories are not prepared to produce under those conditions, the Government take over the factories, paying bank rate of interest on necessary capital actually invested in those businesses, ! and that the Government enter into j agreements with the workers' union to operate the factories in the general interests of the public." On behalf of the tannery employees, Mr! Arthur Rosser stressed the prospect not only of high prices, but also of unemployment as the result of the local tanners and manufacturers being unable to compete with outsiders for the high prices offered. A QUICK JUMP. Speaking for the manufacturers, Mr. C. W. Coles stated that the embargo on the exportation of hides had been lifted on a Saturday, and the following Monday the manufacturers were informed by tanners that the prices of leather lm'd been increased from Is to Is 4d per lb. That meant a rise of 50 per cent, to SO per cent, on leather used in the production of New Zealand boots, increasing the cost of women's and children's boots from 3s to Os per pair, and of men's boots from 7s to lis per pair. That meaijt that the public wa» ffoing to be hard kit " ,<