Page 14 Advertisements Column 1

Press, Volume LXI, Issue 18486, 14 September 1925, Page 14

auctions. H.. MATSON AND CO. T MATSON and CO. TAKE THE LTB- ' ERTY OP REPRODUCING AN ARTICLE FROM AN AUSTRALIAN PAPER WITH REFERENCE TO THE WOOL POSITION. OCR WOOL IN AMERICA. INTERESTING REVIEW OF POSITION. CLOTH COSTS IN RELATION TO WOOL VALUES. AUSTRALIAN QUALITY IS SUPREME. (By Albert E. Barton, F.C.P.A.) Australian pastoralists, and others connected with the wool trade, will be srestly in a report recently furnished by nmissioner lor Australia in the United ataies (Sir J. A. M. Elder) to the Minister lor Markets and Migration. „„„..TenUT the position of the wool manufacturing business in America has been unsatisfactory for some time past, and «•«**»« been a great deal of comment on the high price of Australian wool. .These high rales aVe put forward as on. of the chief causes : 0 f the American manufactorers difficulties. In view of the importance of the subject to the Australian wool-growing industry, investigations hare been made in America which go to show that the relatively high price of wool has little, or nothing, to. do with the situation, but that the trouble is due almost entirely to local conditions. TOO MANY SEPARATE PROCESSES AND PROFITS. In the flat place, it ia found that wool from its raw state up to the stage where it is retailed to the public, passes through quite a number of hands, and that, as each person undertaking the process, requires hisJ>*°Mthis causes a heavy loading whteh results n the prices to the public being abnormally high The report mentions no fewer than seven different industries which take a profit out of the wool during the process of its conversion into clothing. »bd of ,ta disposal to the public. An endeavour was made to ascertain the Value of the raw wool contained in the average American snit ofr clothes. It was found that Aostrallsn merino formed only a small part, and that other Australian wools, for- - - -■- --*-s and the liker ,„ 01l „„„.. .- icture of the cloth. After going into the matter closely, it was estimated that, taking wool at the highest point which the market reached in 1924, the value of the t»w and greasy wool in an average suit would not be more than about 12s. It would be seen, therefore, how absurd | is the suggestion that the great increase in the price of cloth' is doe to the high value which the raw wool has reached during the past season. It was further fottnd that the cheaper woollen suits sold during the present season contained from 25 to 40 per cent. of shoddy, and that the substitution of reworked wools from rags, tailors' clippings, etc/, is extending owing to the higher prices paid for wool. COMPARISON OF PRE-WAR AKD PRESENT COSTS. The 'average price of the cloth used in a suit of clothes ranges from, about £2 to £2 10s. It was found impossible to ascertain what are the total charges on wool from its raw state until it is sold in clothing to a cuscess of manufacturing has retained his old percentage of profit, and that, as wool, wages, and other costs have advanced, so has the amount of profit at each stage of manufacture. The cost of clothing to a customer illustrates the extent to which prices have advanced in America since pre-war days. Take, In the first place, a low-grade suit of woollen cldthes. Pre-war, the cost to the retailer Vis £2 lis 4d, and this suit was sold to the customer at £3 16s. In- 1925 the same class of suit now costs the retailer £4 8s 4d, and it is sold to the customer for £6 13s 7d. In .connexion with the better class of clothes, the same result ia noticed. Pre-war, the 1 retailer paid £4 8s 4d for a suit and sold ,it to the customer at £8 4s 4d. In 1925 the same salt coats the retailer £6 13a 7d, A ready-made suit of clothing in America is, in most cases, a very good article, th* material being first class and the tailoring excellent. A made-to-order suit costs from £2O upwards. TOO MANY KICDIiBMHK—ADTANOB ORDBBa STOPPED. : In the course of the enquiries made, it was ascertained that Most of the mills sold their cloth onl? through their own office*, or through edmraisslar. men. These take advisee orders, or. if they can, sell out of sail 16 Jobbers who maintain warehouses and carry stocks of cloth so as to have it available for immediate delivery. Although buyers prefer, as a rule, to get their goods from the mill direct oMroih .the mill's agent, when they" 'Want prompt delivery, they are often compelled to buy from the warehouses. For many years the retail trade purchased its estimated requirements a considerable time ahead, but to-day the position is entirely different, as the retailer is not prepared to order supplies ahead in order to anticipate the public demand. He now prefers to play for safety and cater for the demand when it arrives. This attitude on the part of the retailer, of course, reacts right throughout the trade, and in the long run must have a serious effect upon the position of the warehouses. The altered conditions also affect seriously the manufacturer, who has not now art everready market into which he can unload his supplies, and,,with the position as it is today, he is unwilling to pile up stocks which ho Will have considerable difficulty in selling. ALTERATIONS IN BIGHT—DIRECT TRADING POSSIBLE. The general opinion seems to be that th near.futurd will tee a considerable alteratio in the Uethdds of handling the woollen an clothing trades in America. There ia alread a move on toot to ensure more direct dealin between the retailer and the manufacture This means, of course, that the manufacture will fife JreqUirad to assume larger risks, bot financial and otherwise, and it is considerc that before long the mills will como togethei and adopt some collective method of carry - log' the new burden. - In summing up the situation. Sir J. A. H Elder says that he is convinced that prcson conditions are only a phase through -whic! the business is passing. The America] people have to be clothed, the mills have t< ritn, the country is prosperous, wages ar more likely to advance than to decline, an the general prosperity of the country is o the upgrade. The move towards vroc-en trating a number of the'processes connecte< with wool and the provision of more direc dealings between the manufacturer and th retailer will greatly reduce costs, and shoul have a most beneficial effect on the positio: of Australian wool in America. AUSTRALIAN WOOL FOR WORSTED.* ADMITTED SUPREME. He (mentions also that he looked closel: into the question of the spinning of worete yarns in the woollen industries in its relatio to Australian wool. The result of his en duiries is that he considers the prospects foi Australian wool are satisfactory. The qual ity df American wool is poor and diminish ing in quantity owing to the spread of agri culture, and the only likely rival on th' horixon is South Africa. His advices ar that the Australian wool is looked upon mor favourably than that coming from Souti Africa, owing to the facts that our elassin, is more carefully done, our wool contain very few "black hairs," our packing ii superior, and there ia a lesser quantity o extraneous matter. These points will be all interesting to Aus fralian growers, in their own in the classing of the sheep in order to iraprov continuously the quality of wool, and, as fa us possible, eliminate the "black hair' trouble. It is also of the greatest Import ance ,that every care should bo exercised ii the-packing and general gei-up of the wool ii }"« to ensure that Australia will continui to lead the world in her wool production ii all its phases. M 664: lili f