DEAR CLOTH.

Auckland Star, Volume L, Issue 191, 13 August 1919, Page 11

DEAR CLOTH.

N.Z. MANUFACTURING. PROFITEERING DENIED. SOME EXPLANATIONS. (Special to "Star.") WELLINGTON, this day. At a meeting of the Wellington Woollen Manufacturing Co., when the ba'ancc-sheet showed a prosperous condition of affairs. Mr. W. H. P. Barber (chairman of directors) dealt with the cry of profiteering, which he said is careless! v applied to'every business house, no matter what are" the surrounding circurr*;anees. The company's selling price of cloth, he declared, had never been raised more than necessary consequent on ihe increased cost of production. Wages had been substantially inert >sed, and hours of work reduced by three weekly in the woollen and one in clothing factories during the year. HIGH RETAIL PRICES.

Reierring to what he termed the "unqMcstionablv high retail prices of clothing,'" Mr. Barber proceeded: "I wish to make a short explanation, which might cause some of our adverse critics to modify their views before making sweeping assertions in condemnation of all manufactures here. Speaking for ourselves, it should be known, in the first plate, that we have not been in a position to supply the tailoring trade, as the bulk of our output of worsted and woollen suitings is required for our own clothing factories, and therefore nut a small of Petone tweed reaches the bespoke tailor, and that mostly in country districts. In the second place, I want to make it quite plain that, with few exceptions, all of the numerous commodities required in both woollen and clothing manufacture have to be obtained abroad. The exceptions are wool, costing 62i per cent, more than in 1914; coal, costing 100 per cent, more; and soap. 100 per cent. more. SCARCITY OF DYES.

The scarcity of dyes is fairly well known, and as an example ot" the increase I mention the cost of dyeing black, which is now 630 per cent, greater for material alone without labour. Many fancy colours are much above that figure. The advanced prices apply to every department using its own particular stores. IXCREASED PRICE OF WOOL.

Although there is much cause for discontent of consumers, those whose emotions run to public expression should endeavour to acriuire some rudimentary kno.vledge of the trade before making loose assertions. The assumption of many anonymous writers appears to be that because they imagine every quality of wool can be bought for 1 '6 a lb that all between that and the selling price is profit. They don't even know that greasy wool bought at, say, 1/3 to 2/ a lb is half full of greasedirt, and therefore the cost is doubled when it is clean scoured. Many do not even include wages as part of the cost. Now, to begin with, it is fairly clean wool trat does not lose .50 per cent, in scouring, so doubling the price. Average clean s"0-,red merino wool used by us is 4/ a lb. There is waste in each following proie-? of dyeing, willeying, carding. comDini-. spinning, drawing, warping, weaving. milling, and finishing. This loss, ot r.cr.-.-. adds to the prime cost. Besides. c-«-ry bought article used throughout tne prc<css of woollen, worsted, and hosiery maruia.-turc has advanced in price. In many cases expensive substitutes have to lie used. There are increased overhead i-'i.ireert in salaries, travelling expenses. freights, and many incidental items, not forgetting extensive pillages in transit before the goods reach the buyer. IMPORTED MATERIAL DEARER.

In the clothing branch, apart from the higher cost of tweed, all other indispensable articles wanted, such as linings, thread, buttons, etc., are imported, and have risen in price enormously. As an example, Italian cloth, 200 per cent.; printed silesia, 400 per cent.; hessian, 400 per cent.; hymo, 200 per cent.; buttons, 150 per cent.; tape, 350 per cent.: calico, 400 per cent.; and so onfl It seems superfluous to mention it. but there is not one item of the large number of absolute necessaries imported used by us over the price of which w e have the slightest control. Our silks are confined to the trade only, and we have no dealings with the consumer direct.

ONLY LEGITIMATE INCREASES. I am not at liberty to make public a statement of the advance in our selling prices since 1914. but I can repeat what T have before said, that they have not been raised more than we were legitimately entitled to ask to cover the actual co*t of bought supplies and other increases. It might interest tou to know that the return in dividends" received by shareholders, including this year's payment, averages 6i per cent, per annum. We have paid 2S dividends in 36 years."

HOCSES FOR WORKERS. At a later stage of the meeting it was announced that the company proposes erecting a number of dwellings near the woollen factory, also a hostel tor girl worker?. Tiie building of a warehouse and clothing factory in Christchurch has begun.

PROFIT SHARING SCHEMES. c The chairman of directors made passing reference to profit sharing schemes recently announced in New Zealand, remarking that it was easier for old-fjstab-lished and wealthy private employers to decide promptly on such a policy than for a public company having a large list of shareholders, and any ill-digested scheme would probably defeat its object. In adopting such a change it was essential tsat the method for maintaining the output should be evolved.