A FADING INDUSTRY.

Dominion, Volume 2, Issue 422, 3 February 1909, Page 8

A FADING INDUSTRY.

.-•'■ SCUTCHED OUT OF EXISTENCE. ■■'The flax-industry-is threatened with extinction, chiefly, (it is : stated) because the men want f morej wages than millers say they -can pay. ; 'It is sad "to 'see\a flourishing. industry ring-barked to its' death by whatever the cause. In a recent ; issue containing interviews on the Employers' Federation's proposal to establish„a fighting fund, Mr. Goo.' Shirtcliffe (who*'has- been connected 'closely with. the. flax, industry for a quarter, of a century); mentioned- the consequence of Wages ori ..the', industry^, to which Mr; M. J. ; royalties imposed were'moreVto blaineithan wage.demands. To investigate .',the.,ppsjtion. a Pominion repor^r u calledfon!Mr. Shirtcliffe for a stateindustry. . ;.'

r.-'r -£;tv>vf 'ax"Royalties. .•..-'■ !';';,.■...■ ;; ; •," This,-.:.;, important.: iivihdustry," ■' said ■'; he, " appears.to betin; danger of extinction owing to-tha ißcreased cost -of. production as com-, pared, witjK-that-.of a, few years ago. 'In this cost,the factors/are royalties and wages. Royalties haye/been greatly redtfced since' the marketvprice commericod to recede in 1907, ahd..are,now.::fo"r:the;'most part on ;a sliding s9ale.;based,iUpon the.;Lbndon selling values as quoted, by- the Highv.Commissioner weekly. •They high, and should ■he:f^her!ore4uced.^.:r.)'' -:■'■'::.::■. , :n; '■■'< - ; ; v: 'l^riaVJ;Wages.:"];■ ■■; :; ::;'- :

(^.WSgeS,• on''the.'otEef hand, have riot only "hot shared:'iri"the'' depressed prosperity of. the trade; Duty were 'actually raised-by the Arbitration; Court" after'th'e slump set m, in dead,op^siti6n?t6'the; > fexpressed opinions of those •who' | Vvere' : well'-qualified to: judge the prospects labour portion: of the cost "of p'rdductibS'has increased, since ,1898 .'by s.6m«'-'£4 i jper ! ;t;6ri. While the boom :pfices;-lMted''the' i _mdustry was able to bear, this r now, that millers' .profit¥:Kave reached?the "vanishing: point the position''""'.calls V 'for -'ijai /"readjustment .of ;wages/as/affectin'g;'Jthe';'oost of production. o<,'i^'t'Shoiild,.W/a|;Vßarners, : l>ause. ,

;;! ;'if the'.indu'stry, be completely extinguishe'dr .-the] wage-earners would do well t6 endeavour" tq'iease.the burden of the millers by-agreeing to ;'a readjustment of'.wages ;(perihaps,on;;a„sliding'scale)',- pending an improvevalues.'. : Otherwise; it d6e'sv.not ; .*seeni.i possible;^for-.'millers', to carry '6n la,! business ~whioh is:surrounded with' uninsurable! ..values,.,sucltf.as fires, floods, ■'• etc., arid .which' - atVthe! present, moment leaves p'ra'clically,no, margin': of profit for the miller with ; which ? to provide against such contingencies.- .That, the! matter is one of importance, to •■the/wage-earners is proved by the f act. that, at - •' nearly three4juarters of the total cost of production (not includ- 1 ,'ing .royalty);/ is ), represented ;by" labour pure and 'Simpleiithei-remairiing 'one-fourth' being .for.-fuel,-.-freight;-grading, '■ oils,: a'cciderit';assurance, etc.,,-. This means that, in! industry, distributed in wages -alone' some £390,000, %.addition.to'which"the holders of the; flax -rights" spent cbnsiderable sums fpr.- labour -in: the r improvement l of .'their BwampsJ ;,In.these ,days of alleged' scarcity of employment the country cannot afford to lose an'industry that absorbs so. much labour, and greatly as■one-'may'-regret'tbe necessity for'a,reduction in the cost of production,'if l-'is' far.!.'better^fof'.aliiconcerned; to -.face the positiori,, ',iud,' by;agreement,' to whatever is possible"!to• enable^the..industry to-be maintained,- that it should .'be ex.tingaish'ed'JaltOgether. '*.' i - ! :■-.- '">;.. ■

Evidence Jhat;theVFla»; Trade Is Dyingl' , 'That the; process of .extinction''.has already' commenced; is;,shown by the fact-that while, graded, ; the quantify ,'in f: l9o3;>fell" to-i89,000 bales," and ■ will iprobably- show, a ■further' decrease '.'this year, owing,_to>the;!-lower ;■■ prices hdw obtainable renderings jl:{impossible"for some' millers 'to :o,arry.. : onvat-; the' presentl cost of production.' Jh jSeptombei>Jl9o7i" there "were 130 mills' at -wort,.while',''in September 1908, there were only,7o.that-iwerevable_to keep going. -And' itUooks asiif some of'these may have.to!clo'se down .very, shortly;if, present conditions c'ontinuoirjrffhe.'ipresent perilous'condition of the ;industry.;shows, L think,;how'a policy of trying; to'-.:artificially waise'.-the- costof a commodity? .that.ihas.ito; compete -in the world's marketsf-withimmiia'r goods'that are produced in muchvlargetigaantities in other countries where'-,'similarrconditions'"do not.exist, must sooner biylaterS either! 'break down ; or end in the', destruction of ; : ■