TEXTILE INDUSTRY

Wanganui Chronicle, Volume 83, Issue 48, 27 February 1939, Page 8

TEXTILE INDUSTRY

DIFFICULT YEAR EXPERIENCED VIEWS OF MR. PERCY C. FISH. Speaking at the ordinary general meeting of Messrs. J. F. and H Roberts, Limited, at Manchester, on January 20, the chairman and managing director, Mr. Percy C. Fish, said: lhe textile industry has again passed through a most difficult year. It is' acknowledged in all quarters that the reason for the perilous position of the textile market is occasioned mainly by the loss of export business. This is because many of our former customers abroad are nowproviding their own requirements. To enable them to do this they erected insurmountable barriers to prevent British goods entering their markets. We have, perhaps, no right to complain at this turn of events, on the grounds that each country has a perfect right to foster its own industries to the fullest extent, and it re not reasonable to expect that we shall ever get all this trade back again. Not only have we lost export business, but our own home trade is suffering from unhealthy competition. Government and Trade II is out of my province to attempt Io tell lhe Government what they should or should not do, because 1 have no doubt that they realise the grave position of the industry far more than any one individual in the trade can possibly be aware of, so I suppose we ought to be content that they are doing “their best” to overcome the difficulties. Apparently, from reports in the Press, it would appear that the trade does not consider “their best" is good enough. I am not unmindful that they have done something. They have granted an increased amount for export credit, and opinions have been expressed that this will be a wonderful help to the textile trade. It is to be hoped that any additional business accruing will be of a healthy nature and not only a palliative that will have to be corrected later by increased taxation. The Government has also given much time and thought to the proposed Enabling Bill. This seems to bristle with difficulties and restrictions. The proposals have not yet received the unanimous approval of the industry. The scheme seems to be on a par with building a house by making the roof first before you have put in any foundations to build on. T should have thought the first consideration would have been to think out ways and means of getting more business before putting into operation rules and regulations which are so complicated. The Company’s Year With regard to this company's financial year, this is the sixty-third ordinary general meeting of the company. In view of prevailing conditions throughout the year, it is not surprising that we have been unable to keep up our returns to the level of the previous year, which, for this company, could be classed as a good one. The net profit for the year is £30,047. and has been supplemented by a small transfer from an inner reserve which is no longer required, and compares with £35,129 for the previous year. We have paid our accustomed bonuses to the staff, and have been remarkably free from bad debts, having followed our usual policy of only trading with customers of sound financial stability instead of taking undue risks to force sale. The usual interim dividend at the

rale of 5 per cent, per azinum was paid to the preference shareholders on July 1 last, and the final dividend was paid on January 1, 1939, amounting together to £5OOO. The directors recommend a dividend on the ordinary shares at the rate of 71 per cent, per annum for the half-year, which, with the interim paid on July 1, 1938, makes 71 per cent, for the year, and, in addition, a bonus of 2i per cent., less income tax, Cott-on Trade Practices The way that, lhe cotton industry is carried on to-da.v leaves much to bo desired. The principal of one of lhe leading Manchester houses told mo himself that, his firm bought several hundred pieces of grey cloth from a Lancashire mill who hafi quoted to the specifications of one of their branded lines. The price was attractive and the mill was given the order. After the goods had been processed complaints came along from their customers, and consequently searching investigations were made, when it was found that the Lancashire mill had actually sent the order for grey cloth to Japan, where the cloth was made, and on arrival all distinguishing marks had been obliterated and the cloth delivered by the mill in the ordinary way. Then again, large organisations continue to establish manufacturing and finishing plants abroad, finding employment for competitors and leaching others our business, which all means less work for our operatives at home. Firms, in order to get business from their own customers' clients, float, subsidiary companies under other names to hide their identity. Australia

The outstanding event which ha.taken place during the year so far a; Lancashire is concerned, I would say is the new Australia-Japan Pact. The former agreement having broker down on account of Japan's failing tc take up the arranged quota, it war necessarv for a new agreement to b< made in'.lu.ne last. This provides that in consideration of Australia agreeing to import from Japan 51,250,001 square yards of cotton piece good: and the same quantity of artificia silk or staple fibre piece goods ir twelve months Japan will grant per mission for the importation of Australian wool representing two-third: of that, imported from all countries tn Canberra it is hoped that it wil result in the export of between 350,000 and 400.000 bales of Australiar wool to Japan. New Zealand The Labour Government's term o office expired in October, and thej were re-elected by an overwhelming majority. Their policy has been om of lavish spending with a view t< making New Zealand far and awa: the best country in the world to livt in. Their social security scheme pro vides benefits sufficient to satisfy any body’s dream of avarice. By materially increasing wages anr working less hours it was hoped tha it would create more purchasin; power and give the recipients suffici ent leisure time to spend it. Manu facturers of secondary industries wen told that this idea would lead to in creased turnover for them whicl would more than compensate for th

additional expenditure incurred ir producing the goods. Theoretically this may he a reasonable view, but in actual practice it. led to increased imports, and the difficulty in financing them is now a first-rate problem, especially as during the l&t twelve | months, commodity prices of their exports have fallen. The Inevitable has happened. Imports have been ruthlessly curtailed and licences have to be obtained before any goods ran be shipped to the Dominion. When the Government took office they had a very fine reserve of funds in London for exchange purposes which has nowdwindled down to danger-point. It Is a thousand pities than anything of a disturbing nature should have arisen, and I am sure that everyone who has had trading connections with the Dominion for many years will join me in expressing the sincere wish that the Government will immediately take steps to remedy the weaknesses so that they can earn the confidence that has always been enjoyed by their predecessors not only inside but outside New Zealand also.