WATCHING THE PRICE

Evening Post, Volume CXI, Issue 23, 28 January 1926, Page 7

WATCHING THE PRICE

OF LEATHER AND FOOT-

WEAR

WORK OF BOARD OF TRADE

Interesting evidence as to the endeavours made during the war and immediately following the war to control the price of leather and footwear was given before the.Woolston Tanneries Commission yesterday afternoon.

Tlie Commissioner is Sir Jol'.i Hosking. Sir John Findlay, K.C., with him Mr. C. H. Taylor, appears for the Government, and Mr. M. Myers, K.C., with him Mr. H. K. Evans, for the company.

William George M'Donald, chair i man of the Board of Trade in February, 1916 y until October, 1922, said the other members of the board were 1 Messrs. Hart and Halley. In the fixing of prices the work devolved more or less on witness. The Board at Trade had nothing to do with the fixing of prices of hides until the Im- ■ perial Government control ceased in October, 1918. Prior to that date it had been concerned with the. price of leather, which was a burning question during i9lB, 1919, 1920, and f 1921. The prices were not fixed by Order-in-Coundl, as in August, i 916, the board met Mr. Ollivier, arid rift arrangement was come to that so long 1 as prices which he was charging for his manufactured products ro-. turned to him the same rate Of profits' as he received prior to the control the board would take no action. Mr. Ollivier submitted arty alterations he made in prices to the' board. Woolston produced 50 to 60 per cent. ofVleatlier for the New Zealand mar- ; ket, arid it Was felt that if their prices were right the prices gentitally would be right. Prior to 1918 there was not much alteration m prices, Uut in 1918 the general level of prices for all products began to soai'. He had personally been satisfied that no charge of profiteering could be preferred against Woclsto/i Tanneries. Prior to October, 1919, the board had been asked by the Government to try to check the price of boots. Prices had gradually risen during the previous three years, and Were higher in New Zealand than they were outside. There was natutally very little export. Witness had written to the Government asking if it wanted the price of hides to be fixed under a free market of whether it was prepared to sanction some measure of control. It was pointed out in thdt letter that the regulations were working inequitably anl causing a good deal of dissatisfaction. The board had in view a scheme of standardising the quality and price of boots. After some time the embargo on the exportation of hides was lifted, but the Government still pressed the Board of Trade to endeavour to control thas price of leather. A series of conferences with boot manufadt'urers and tanners took place. The tanners definitely refused to meet'the Board of Trade in regard tp the stabilisation of prices. Under the proposed standardisation of .footwear scheme, it was proposed to issue licenses to boot manufacturers and to mark each bbot with the imprimatur of the Government and the retail price to be charged. Bootmakers were asked to take out licenses, but the first thing they Want-. Ed to know was how much they wpuH have to pay for the leather. They also wanted an embargo on imports. Witness proceeded to give details of 6, conversation he had in Christchurch with Mr. Olliviei*. At that interview Mr. Ollivier hinted at the possibility of closing down, but he (the witness) asked Mr. Ollivier to carry on. At that time he wanted to get the standardised footwear scheme going in the interests of the public. They could not hope to carry on that scheme without the assistance of Woolston Tanneries. Tha scheme came into operation, but it did not last very long, as the article did not meet with the public fancy. That was- no fault of the Wcrolstob Tanneries. '<It Was due to the uneducated taste of the public in buying boots." (Laughter.) Witness did not think that if Mr. Ollivier had closed dowri he would have lost anything like what he was stated to have lost by carrying dn, lit 1920 the board did cdnsiaef the advisability of an embargo on imported boots, but th* proposal was turned down.

THe Commission adjourned until this morning.