COSTS BURDEN

Waikato Times, Volume 121, Issue 20275, 18 August 1937, Page 8

COSTS BURDEN

! NEED FOR PROTECTION. WOOL MANFACTURERS. DIFFICULTIES INSTANCED. (By Telegraph.—Press Association.) WE LLINGTON, We dn esday. Addressing the annual meeting of 1 the Wellington Woollen Manufacturt ing Company, Mr W. H. Barber said - the year could justifiably be described as satisfactory. Liabilities were less than last year s ! and gross profits had increased 1 j though they had been reduced by 1 j profit and loss debits, interest charges ! being greater as a result of increased costs. He announced an Interim dividend of 3 per cent. The retiring directors, Messrs A. E. Allison and J. E. Dyer, were re-elected. While shareholders might expect increased returns because of the trade revival during the past year, said Mr Barber, the trade revival had many attendant drawbacks. Production time • had been shortened by the Labour , legislation and extra -shifts could not be arranged because operatives were 5 not available. He indicated that be--1 l cause of competition it was not ali wavs possible to pass on increased easts, and activities had been reduced because of orders placed earlier by buyers who expected prices to rise. When it was manifest early in the year that wholesale prices were sure to rise prudent buyers increased largely their normal indents at the old rates. Effect of Competition. “ Those orders we had to accept,” said Mr Barber, “ or allow them to go elsewhere. There prevails to some extent a wrong Impression as to passing on of Increased costs.” He added.:— ” Where a monopoly exists it Is, of course, possible, but certainly not where external and internal competition Is keen, as It keeps selling prices, as we have sometimes experienced, below the cost of making, selling and distributing. “ A new alignment of manufacturi lng activity with its many side-issues - cannot be arranged just by request. In n a large woollen mill it is necessary to e have from four to six months’ work ahead to maintain essential continuity. - j ” The Prime Minister had affirmed 1 his pronouncement that the industry d will not bo let, down. ” Protection - from unfair competition.” said Mr. Barber, “is as vital to the workers as e j if is to manufacturers.” j New Zealand manufacturers of woollen goods were being menaced by Australian Importations. Australia was not affected by the exchange rate and lie considered New Zealand should demand that Australia should take as much as she sold as reciprocal trade for the protection of New Zealand manufacturers. Australia herself adopted some time ago quotas and, on l - j certain classes of woollens, complete - embargoes.