HEAVY BLOW TO A LOCAL INDUSTRY.

Dominion, Volume 1, Issue 142, 10 March 1908, Page 6

HEAVY BLOW TO A LOCAL INDUSTRY.

-—— — The hemp industry is in "a state of collapse. According to' the High .Commissioner the spot quotation for good, fair grade hemp is £25' per ton; a fall of 20s. , as compared " with last week and £12 10s. per ton less than at tlie correspondingdate of 'last" year'. March-May shipments of the' sanie grade" are quoted at £24 iPs;,' .'as against ' £37 last' year/' and -'private cable "messages from' London forecast a 'further, decline. At ( £24 10s. hemp is a losing proposition,' for; according to the" m'ost' reliable 'authorities, cost of production and and other charges approximate to £26,' and are made up :a's'under , \ £ s. d. Cost of milling, per ton ... . 18 0 0 Rov'alty7 i.. ... 400 ~ Shipping charges . .. . £ 0 0 : • £26 6 0 This show? a loss of £1 10s. per ton, ahd' Ve ' haye' not. taken into "consideration interest on capital, and the fire risks, which are appreciable. \ The royalties, it may be mentioned, have been reduced ih the districts cpiitigiious. to' Wellington' by from' '225. ■ 6d;' to about lis. per ton.' v An effort on the partVof the millers to get'a "readjustment of 'the'/wage's by friendly conference 'with the 'workers has proved futile, ancf the ! millers' have ' been told < to '' close down" if they cannot pay .wages." ' When, the/wage question was before the .'Arbitration -ppurt the un- . desirableness of. fixing wages ajid;'.for a period of time was urged; and it . was pointed out that the market was, liable to fluctuations.. But, the 'Court -fixed . the wages at'a time .when the industry Was Booming, and when the general feeling ~was i: one of optimism;.".' The Court held that if the'' industry .couMi not pay a reasonable wage, it should cease to exist. ' ■■ ■ ,

; Hemp is not paying, and a readjusts inerit : of '"wages is not practicable;' at any rate, the workocs refuse'. to ■: sider the matter of reduction. .What is'' to happen now? Obviously the mills must be- closed down. Many have already beesn closed, and those that are running •: will cease' operations '-as' soon as they • are through ; with' their ■ contracts. The cessation of the.hemp industry will seriously , affect Poxton, and will cause a depression ■ throughout the Manawatu; furthermore it' >yill help to close'our markets. At- the time of the \var between America and Spain, New Zealand hemp got its opportunity,' and by, systematic' effprts' and .attention to detail' the product was forced- into' the market.': ; ; Manufacturer's adapted. their machinery for the- manipulation of Zealand hemp, and- now,' through bring .unable .to- ship any quantity, we will compel those manufacturers to turn, their ..attention to other fibres, and when we are again able to hemp - there will be difficulty'in'again getting a footing in- the market. Finally the closing of the mills will throw.-out of work hundreds of' unskilled workers who will find it iio 6asy task- during the winter months|o procure work in. other directions. .