WOOL PROFITEERING

Dominion, Volume 13, Issue 56, 29 November 1919, Page 9

WOOL PROFITEERING

THE ALLEGATIONS AGAINST THE j . GOVERNMENT j STATEMENT BY DIRECTOR - OF RAW MATERIALS By T»leerai>h-.PreM AsMctatton-OopyrleW London, November 21. The Deputy-Controller of Raw Materials, on behalf of the Director, Sir A. 11. Goldfinch, assured an Australian Press representative that lie has no knowledge of the proposed investigation as to profiteering in wool. Ho admitted that the high current prices had resulted in considerable profits, but the Government wool was subject to open competition at the tuitions, which appeared to be the fairest and most equitable way of disposing of the stocks. Tho hish prices could bo corrected by reestablishing the system of fixed issued prices. Such artificial interference with tlio restoration of normal trade, however, was undesirable, and was also unfair to Austialian and New Zealand growers, who were entitled to the highest market price, and to a share of the profits with the British Government. Tho only other way of reducing the price to 'prohibit export and eliminate foreign buying. Approximately half the imported wool would be re-exported if foreign buying wore, eliminated, as during the earlv uart of the year the _ quantity available would bo greatly increased; but in viow of the adverse exchange, the Government was anxious to encourage exoDrts. It was satisfactory to note that the export of manufacture©.' woollens had already considerably _ revived. Wo wero trying to market an increased ouantitv. but tlio capacity of the Workers to handle it, owing to the reduction in the hours worked by dockers, warehousemen. and railwaymen, limits the efforts, while the difficulties of transport and the congestion at the docks increase the task of satisfactory oistributioii to tho manufacturers. Meanwhile tlio world demand for woollens is enormous, particularly in view_ of the destruction caused by the war in Europe. It is improbable that the artificial reduction of pricM of raw wool here will be effective in seriously reducing the P™es of manufactured goods.—Aus.-N.i. table Assn.

STATEMENT BY MR. HUGHES. (Rec. November 28, 9.55 p.m.) • Sydney, November 28. Mr. \V. M. Hughes (Prime Minister), referring to the cablegram concerning the alleged Government profiteering in wool, states that he is taking steps to protect the interests of tho Commonwealth. He says: "Wo are entitled to half the profits, and ought to be consulted as to the price and the method by which was fixed, exactly similar to tho wheat contracts."—Press Assn.