The press. MONDAY, JUNE 22, 1903. CAPITAL AND LABOUR.

Press, Volume LX, Issue 11616, 22 June 1903, Page 4

The press. MONDAY, JUNE 22, 1903. CAPITAL AND LABOUR.

Ono cannot help feeling a strong sympathy with tho working men of Dunedin, who very pluckily started a co-operative boot factory about a year ago, and aro now proposing to abandon it, having lost the money which they put into the venture. It was a bold attempt to eolvo the labour difficulty on the right lines. The members of the Bootmakers' Union were the prime movers in the affair. They were no doubt impressed with tlie idea, which we so oft ; en »x promulgated, that labour in their particular industry was not getting its fair" share- of tlie profits of the manufacturer. They thercforo determined to try whether they could not secure both the manufacturers" and tbo middlemen's profits for themselves. With tnis object in view (as we learn from tlie 'Otago Doily Times") they put asid9 one-third of their income annually for some years, until they had accumulated a thousand pounds, and then they decided to embark on their co-opera-tive venture. They purcha-f-cd tho bootmaking plant of a firm which had decided to give up this branch of its business, and made arrangements for a five years' lease of premises in which to establish their factory. This, we further learn, was to be merely a starting point with them, for it was part, of their design that they would open shops for tlie retail sale of their manufacture. Unfortunately, they found that their caprt_l was insufficient. Probably, us our Southern contemporary suggests, the promoters, not "aaving had any practical ; tioquaint-nce with tlie _nancial management : of a concern, had not rea'.ised bow .•juickly money melts away in the conduct. of business. There is another point which they had perhaps overlooked in tho begin- . ning, but in regard to which tb?y are wiser ru>w. For the successful conduct of busi- ■ b'.ss under modern cond_t»o_s, it is not ohly S neceftaary t&at the employer should provide a .**ufficieacy of capital, but be must bring to bear upon the ***a_e*rt_lri_-g unremitting attention, keen cormnercial foresight, and

the power of effective organisation. Either he must provide these essentials Idinself, or he mU>t lie prepared to pay liberal salarii-s tl> competent •tnanagfrs to do the work ior '?<!••. these aro points which the worker* - i;re apt to lose sight of entirely in wagts disputes. They lay great emphasis on the part, which they themselves play in the acbiul production of the goods, but they overlook or undeT-estimato the very important share which ia taken by the employer in making the business a- success. They probably see and admit that the capable managers to whom we are referring are not to be obtained unless they are well paid. They seem to think, however, that employers ought not to expect fair remuneration for the skill and experience they put into the business, and some of the-mi even imagine that if an employer does not get fair interest on his capital, wages for -the workers wiU still be forthcoming in) come miraculous way if only the Arbitration Court makes an order to that effect. AYe need hardly say that -this is a complete fallacy. If tho demands of the either in the boot industry or any ether, are pushed to sudi an extent that au employer no longer gets fair "wages of supermten- " denoe" and interest on his capital, he will, as soon as possible, divert his money ond his energies to some more profitable channel, probably tlie importation of the goods which ho formerly manufactured. In this regard it is significant to note that the importation of boots and shoes into this colony is steadily increasing, especially from America. Last year no less than 87,353 dozen pairs, valued at £191,204, were imported into the colony. Nothing less than cordial co-operation between capital and labour, with the adoption of tho most up-to-date methods, will enable our manufacturers to hold their own. If the result o3 the Dunedin experiment should impress this fact upon all concerned", it wilt have had a beneficial result, much as we regret the losses incurred by those who had the courage to make tho venture.