THE FLAX INDUSTRY.

Dominion, Volume 2, Issue 443, 27 February 1909, Page 6

THE FLAX INDUSTRY.

ROYALTIES AND WAGES. : EMPLOYEES INTERVIEW HON. A. W. HOCO. ' MINISTER'S 'SYMPATHETIC REPLY. ..' ..Tlirce members of.the Manawatu Flaxmill Employees' ..Union, Messrs;, 6. S.'WJitbiey' (p'residemtj, Percy T. Robinson (secretary),, and R.' H. Dalhousie, interviewed tte ;Min-, isterfo'r Labour (Hon. A. W. Hogg) yesterday, aiid urged' him,to: ask the : Government to inquire info their, contention : that the rear cause of the trouble in, the .flax industry is high royalties, and not the conditions imposed .by the;-Arbitration Court award.!;.' :.-';':' 'In' support of .the' view, that the' royalties, were at the root of, the trouble, Mr.. Robinson, said'that one flax estate in,the .Foxton district 'was yielding .36 per cent, on .'the cost of the land now. that flax was down in price,. and had yielded 100. per cent, when flax was high. Those of itllie milters -who had to pay royalties. did' not.: want.: wages reduced; tney. wanted--.the;royalties to come' ddwn..-. ...,;, ■ ..;': The Mini;.- :. ■> iy« ,ou"and,the employers agreed in ty't v^" l^"-^, .:.: . Mr., Rbbii,;~»i:'.,, :.iSI. Those who do not '.'own, the laiw,- but-have to- pay vroyalties agree with, u5."..,' The royalties: (continued Mj. Robinson) had :been greatly They went' .up' oh. account: of .-the .boom in flax, and when the,fall.came they did not come downin proportion; althbugh.they were ■ reduced to. a, oertajn extent. The representa:- . tive'sl of. -tie- Haxmillers' Association' -said they..wanted revision, of the award,;ahd that' nothing eke would keen the industry ■ going. One: miller, however, had 'resigned from the •association; because..it refused, to consider ■the question of royalties.' The position .was that millers who owned the- flax they were milling bought 'it'-at' boom prices, and now ■that tne market had gone down,.they wanted to. take it out of. the. workers. . .;. .-.■' •. An Alleged "Cag, Clause.!' ■ ; Tho Minister, then put! a number'of questions, to. Mr> Robinsott, who. stated in ■■ reply 'that about half the millers owned .their; flax, and they were keeping the at"work, but only oh sufferance. : As.faf'aa'the Manawatu'was concerned, only two or.'three mills had closed down, and that .was because they ■had no flat; ;.The others were working just' as they were,in the'boom J>wo .'years ago. ' . ■ The Minister: " Is- there; a. general ..desire on the part of the mill-ownefs 'that the' menShould work .on-different terms??'.'' v . Mr. Daßlousie: "A:large majority of"tihe Foxton millers, are convinced- that; it : is the: royalties,;'■;and. not\ the wages, that are; the cause .of the trouble, but tSey 'don't venture to make any public';statement.";■' The puttiffg .oon-tracts were".'so'framed'-that 'they: were iminediately: convertible ;into''a gag-if - -the , miller - gave pubMc utterance to 'any objection ; to the royalties,.he wbb paying.;; There-was no.;slump at. present, but there'was simply .not. a. boom; and it was,-therefore,:;utter]y, unfair to, chargcthe award with'the, pre'seait ■state-oi.-.affaiw.---v•;■.,'-:■:::'■•''■•;.'••■-•:-'.■•.■-■■ ./■.-.■'■■

.'.';. Coat of Labour at Fp'xton; ■; ■ ..The. deputation : handed'.te-'the 'Jiiinister , Mmo:>typewTitten J -';sh«etß ) ..stb"Tmg:''oort-'-of'' labour, and royalties .on .'certain Maniiwatu flax, lands...;'.,'.-. ...■,.' ! ; ''",.■'•'•.■■,'■'; ';■. ."':., ■' '.' The' wages' "paid, when 'fibre;was £11''per ton. as, .taken.;from • the .books of -.'a- Foxtoh miller, were.given as-follow. £3 per week; stripper-keeper- aid feeder, £2 Bs. per- week; 'catcher, £1 .'.' los? per week; :bench' loader, £2 2s. per.'week;, two.fly boys £3 .per week; washer, £2 2s; per week; paddockuig, at 225. pert-bh,V£B 165.; "scutohing and tow, at 20s.' per .ton, £8'; tramming and cuttmg 1 60,tons,.at:6s:.per,tbii,.,£18:'total labour.costfor 8 tons of fibre, :£4Blßs.Labour, costvper ton, £Q:2s.-.3d:- :•.. :. •. ,? t 'j wS 3;' s to t ed;that'to-days.'pribe''for "good fair, Wellington, was'V£2lr' Difference in pnce; n £lo.'Difference in cost of 'labour per .ton,--£2 ss. 9d. •",'•:, ■..,;"' - ';■■ ' f ; "' V The .wages ,paid under the' award''by. the : s n a . me , """«" w«re shown as follow:—Manager, ■** i°, s -"• P.* feeder,: £3; catcher, £2 bench-loader, £2 125.; two'fly boys, £4 16s.;; ; washer,'. £2,.85/; rouseabout,.£2 2s. ;.' driver,: £2 "10s.'; driver; £2 6s.;'. head pad- «? k 3f-N £ 2^ '"' P add «*er, £1 Bs. ;--scutcW w> *U Bs. j'tramming and cutting 60 tons, 'St B H£ 2 l ; ' t ? t , al - labour °° si i or 8 tens' of ,nDro,;£67 4s; labour cost per-ton,"'£B'Bs.■■■ •■■'. ■It was further, stated The filler whose ? g, J res ? UO H atove.is milling Riverdale .wages."on" Scale, A,. he; paid 'a royalty of ,245. per. ton dry. fibre.-, -To-day 'lie pavs 20 per cent, on his contracVprices as a royalty charge. The block of flax from whioh be is cutting measures-257 acres/120 acres of ■whiclr gave him 1.8 .'months' cutting.-, in this , period.he paid in royalty £2500, viz.,. £20 lbs. Bd.. per acre, equivalent' to a return.of ±.10 per acre per annum. ; Sis' weekly .-royalty th6ref( !^.«SS eß "£32i.royalty on4alf.the amount rfqjtssi for.'labour."' ." ,■...-. . , Mr. DalhfflisW informed the Minister'.that the miller who had supplied this information : was prepared'to submit his books for inspec.tionby Minister or any person appointed by him.but did;not wish his name to appear in public, saying, If I open my mouth: I close my mill." ,"'-.'"■ .'"'■:'.' - ' 7 , . , ..'. A Makerua Contract. :. ~ : ■">,' A 7S? -offered: toa niem-' ber of Unionand five partners by the owners of the Makerua Estate was submitted' as follows:'—"The plant tor the entire, mill was on'the ground■ The contractors were rto, pay £100 , per annum rent, to.keep all drains clean.' (Mr. Greig in. his evidence before the Labour Bills Committee estimated .this item a« £200 -per an■niim), and to keep all fences in repair. In t io'nn to f% tne y; h >d to deposit a .bond of £300, or failing this, to: guarantee to sell their entire "output through-.the estate. It will be noticed that this -last restriction practically , precluded them from '.taking! advantage of the ..slightly;better'.;• price■'usually.-ruling ■for spot" v fibre. The scale of royalty to be charged- was as follows:—. : /

"In'\ estimating Royalty on' the ■dry. fibre, wo have taken a basis of 8 tons of green leaf to' the. tonof fibre." . ■'.."■.■•'...■..'.'■-,-.■' '.'.'./•■ Moutoa! Estate.; ; ;< .: The following' particulars were'" given as to the Moutoa Estate:— , : ; '• •. . "The Assets Realisation Board- handled this estate for many years, charging a royalty ranging from'.ls.■■ per- ton .at the lowest point of the market te,3s. ! 6d. per ton. at the' highest. The top price during-this period .was £27 10s.'; the average' yield per acre at this time was 30 tons. . Taking, the- price paid by'.the present owners, £7.105., as. a basis, -this would: give a. return.'on. invested capital of 23i per, cent. . .■ .',,:. "At the top price of the recent boom, £39, 'the;royalty charged :,was'£l.2s.;'.6d. : per ton, green. : On thosamo:basis as the foregoing (£7 10s. per acre) this gives, a return of 100 per pent, per annum: on' invested v capital. This calculation is based on a. yield,of 20 ; tons per acre; to allow.for a Very.rapid depreciation caused' by neglected - drainage, •blight, etc. -The-present royalty paid is Bs. 6d.,; per ton green. ;The ; price .on : the same 'basis as both the foregoing, gives a: return. df_36 per cent, per annum.oh invested capi'tal. -. .-.;■•■,;. :; •■■.".- ..-\\ '■■■:._• •■••. ' "In an ordinary niill's' ehtiro- staff .there are 22 men, receiving under award rates an aggregate of 20s. per hour,' The royalty paid.

by such a mill, using Moutoa leaf at present prices, would work out atlOs.Gd; per hour. " "The following are the'principal.items.in the contract:under, which millers dress Mou«. toa leaf:—(1) Acharge of £300 is made, in'' respective of royalty, for the right to cut, (2) Three iinonths':: notice, 'will..\ nullify -the ' right to cut. (3)' No'rebate is given if tha right, is taken away.. (4) No guarantee ia... given' that the 'right .will not be taken' away.. - (5) The fact of any miller, stopping cutting without permission from the estate manager t : . or failing to - start after, receiving, notice, ,ij:. equivalent, to cancelling-the right to cut; (6)' . In the'event selling his millj his purchaser is required to pay! another.' £3M. ''Tlris>paymeut ,is to accompany .'each':. ohangein the proprietary of the null." ~-..:>.. ,-The wa'sistated to be,an;actual,. example of.'.'cutting-right'■' charges:—Hickspa and Reeves were three day's late'.with''their:.; royalty'payment;---they -.were' fined'-■'/■£l6o.y. Hickson sold; his hatf-share .to :Broad, :,:Wb.d.\ paid £160.: This sale, wasvnbt completed,.:, and Hickson came back on payment 'of £300* ,■'■. Hickson sold-to. Jl .Hose, Who paidi another £300. .Thus,£9oo.;.was taken.from;oneimill , within twelve months for cutting rights.'•:'.": Rlverdale. Estate. "Thiß is a' case,"'it "was stated, "in which the royalty is'charged on apercentage basis. There is a charge.of, £300-fbr. : the right to' cut, as in the'Case'.'of..the".';Moutoa. - -. The.royalty charged ft 20 pel-cent-.'oh the selling' price.- ":. The estate comprises 3000 acres', V al«" lotted as;follow:—Tivo;millSj ,L.;.Seifort,'soo ■ acres;.tw'6; ■mills,"; Broad-,.aiid. Reeves,., 1000.. a.>res : -niill,. Hehnessy and ■ Gibbsj 250 'acres; one: millj Green Flax-dressing . Com- . 'pariy,'soo acres;,one mill,: W. Waldeh,.2so acres; one mill, Page,and,Co., 500 aores (two yoars not,working).'.; '• v;;"\"'. : .":.';.■;;;. '■■- : . "'-.r.,' . . j'The amount of-royalty paid by,the. abbva i ■ ■ mills in one,- season .was £13,000:- The small, est;.monthly. royalty> paid by. - mifling 'firm: was; £132';. the; highest,.-£328.,.: During\the entire season . they paid' £1400 - in :' royalty, :The-previous season.their payment £2000.:'.. When the recent fall:in',values:.top'k-.,;; place all .the millers, on'this estate-formed-a-' , deputation, and- suggested the i alteration, of, the 20 percent, royaltyito,the;following\pro.:; portionate' scale:—Pnce<of : hemp,-£2l 'and? under, 10 per cent.' royalty; £22 ;to : jfi2ij--IS:''-' .per cent;:.£2s -to £27, 20'per':cent: jr£2B to'-, ; £30,: 25 per, cent:; £31 and. over^v SO; per ': ;cent..:: This.was .refused,,with a.recommendai, tioia• to;;reduce wages'instead;;;; and'; failing'; "th&t.to lower, the .'cutters' : rates,: wMoh.ftero' ' not under:an award. ;v ;,^ : •;; u,.\-:;' /:^ \ V ; ; ; ;-. ■-:<■■ Heaton' Park- Estate.: M ':'"-■•- ' i: f< '■'■■ "This 'was' .inithe'hahds '.of the .Bhodes : : :Tnistees,' who charged iii,1900.155. iper;,,ton :'. on.tHe dry.fibre. -1n.1905 this.was,raised to • 'lOsi-ed.: per ton.on.ihe r.greenvleaf. InilSOO ; .the. average -value of.;fibre ; was £20' 25...=.-la'.-.-: 1905 'the -average .value'of fibre' was £25.189. : Rise in value,.£s,l6s. (28£ percent.). ■ Rise in royalty, -£3 .9si(46o;per cent.;). Increased ;ccstof -production,,'as/given ".by. .'Mr. Greig, : equate'£l;3s. ; per;t6ri ofdry fibre, a 12J per : : ■.:;.':^'. : .' s ;.. v,;, ; ■-' '■ ;,- ■'■ iy /'Awfully■• Exacting.;' ,'v>;;:■'}.-;..•■' , Mr. [Dalhousie, drew the: Minister's; special attention-to the,'clause, in the Moutoa cpn« .ditiohs .'enabling-jthe,: proprietors' to \closo ' any mill ■■ at .three months''riotioe,'involving the loss : qf,the; £300.; paid :for s cuttmg.:rights.-- - The..Minister:; '-'l;. see the terms ■■ are<;aw« - fully esaoting;";.-He /thought'; thevfullest ; : pilblioity; should,be-, given ;to the'-matter.: Flaxmillihg provided -a'-great ; deal. of; ,em-'• ; pl6yment,' and-no:ddubt mpst:of. the money'" in the,;industry,went-,tp: labour. ..•■' ■.-' :^-':-'iy

, - Mr. VDalhousie". then. quoted. the following ■; rates of-weekly ..wages paid -by "a Foxton,' millers-Feeder; £2'; 125., catcher'' £2, bench •" loader: £2, shakers and rouseabouts £1 165.,-■'-.' paddocker £2.; ,10s., .three i. outers £4 .each/.one.'cutter-.£2 7s;,",one cutter £2 16s; j-lt "would -be: seen;,that the .highest wages .were" paid.' to .the cutters; .who . iwere; not under ■ the award,'-and. that was '•■ not exceptional. '-,-■.-'' v-•■ -; ; " ",■,■.-",■'-. '■.-.'■ : . Tho- Award.' -'■-,-',' .■;'■-';.-::;";. -. ,' In repl^ , --to''^Mti6ns : 'asW ; MrA Robinson'.- stated.Hhat" .;the,V.- minimum. ■ award -.tsftgesS wera';iiom. J ,i7s. ? ila'■'•. day""(forv* .to. 10si'; ; , The .union, considered... that'some; classes, of the,"employees; did.;nbt>,,; get justice, by- the; award, ;but their idea "was; : .- •to'" observe it loyally ,'as>ilong; as .it remained in; force,.- aiip\ : -^hen : - to-fe. to; obtain"justice.• for all "employees.;-.,- The, hours."were ,48;' per ■ Week;,; ..-."' .;>.;' -:-,':'^,-'-'.-n.^ r }< .': '.-, '."Ht. .Dalhousie "said; most'.'"of the,Fpxton... millers -Were, paying/.'niore'than the" award rates.,-t Thus,-the Award rates for,. drivers., .Was £265/, a. week,. washers'Bs.a day, and.; rbuseabouts 7s. -a"'day,'' while-they. were,ge(>-.,. img'.'£2 k 105...'93i t 'and'Bs.-'rssp^otivel^.'': : .-:Tlie.,.. deputation did jnot-'wish-.to; complain, ;hut, thought.,it;.was illogical-to, 6sk; for tha-. award rates-7to>bo, -reduced -' while:' higher" rates Wefe";being- paid-i .-. -~ ■:■ ;'■■'■■". •.- ■•".:< : 4: :vyniWMUis : cu^ ' The' Minister' asked' whether'"the union' feared that an' alteration' of, the award would •be. forced, upmv them;;'''";"' •"'■. '";."-■'■' i'"-'. ;;:"' '.' Mr. Robinson .said,that what they-feared; .was,', that "the 'mills would be "closed, .Sbnw'i'time; ago ''Mr.- Ross .called' a .meeting ; and ; said the mills were, not' paying.'""He (Mr.. ■Robinson) asked Mr" Ross ■' if; he' would Bub* mit' ;his 'books; to, 'a.public :,accountant;. : so that his,statement might' be."substantiated, but .he refused.: .The" employers:then.'Baid:"" that -,if .:■ the men "• would - not; consent"; to,- a ; reduction.- in.' wages" they;"would"'closeHhe ;- mills. They did so,"but opened;.them.again" afterwards. 1 ,,, The'' same; course' was. now" threatened-'again:-"This would be much.more" .serious for the men'now than it.was, twelve', months ago,.because' of 'the' present" amount ■" of unemployment.:,-"-' ■ • " ;.':" " '■ ,' " : • Mr.' -Dalhousie urged "that "inquiry.; should be made into all the- conditions of. the ihdus*"" ■try";::. :"• v " ;;" ,".'•'- ',;.""■" ■/.'••-.-,■■ ;"■;";:" ,'■ THE MINISTER'S STATEMENT. " . : The Minister said he could not'"promtw' tha.t'.a :commission would b© appMnteoTi or. an .inquiry .instituted. ,:'All-'he: could'.'do- : .was to lay. the .whole matter before- Cabineti"and if his.colleagues .thought-prpper.'BtepS would ; be s taken to'.have -the" whole •'matter. iEvesti-,: : : The^"'figures;'.' thai" had "been" Bub.mitted to" hira bore but' the. contention "that' since' the"price of flax increaeed, the. royal* •. ties.had gone up'toa very .hjgh rate,':md,:' apparently, although a reduction:had place, heavy. royalties: were still 'maintained, Thiamust be severe-on those "who : had. in- ■ vested their 'money"iu.miUs and'.machinery," •But. had .no flax-bearing land!"' lie depute . ,'tion knew how; difficult. it. was ';to deal with ; land-owiiers',"onoe they had oecoine possessed of, the property of the Crown. ."When land beoame private property,,the control of the'." State was almost fjone, and this', was particularly, unfortunate. ui ■ ;yiew of "the effects , that might:follow in/.cb-imectipn.'with;tho.labour market. The -land was the 'mainstay "'of -labour,' arid,: in; his- opinion, it ; 'was;;'a"pity" that greater "care, was not taken, to.' reserve". 'land: containing valuable mineral or yego-, table'products in tho;hands of the State, for , labour "purposes. . He'would "do "all ;he could" 'to have prominence".given;:to the facts and figures'-'that' had been laid- before him, and'' he thought' that if .full Bublicity was given,.. the: aggressors, unless they .were'very,.pal-,: lous,- must feel'.a'cutely what they "were.' do- ; iiig. It was for Cabinot"to; .decide ;whethe>._: ttere should be - an 'investigation, ind, if.'SO," :what form it should take.:'; ."v':""" ; ";"

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