WOOLLEN CO’S. BID

Grey River Argus, 19 August 1937, Page 7

WOOLLEN CO’S. BID

For Tariff Protection (Per Press Association!. WELLINGTON, August IS. Addressing the annual meeting of the Wellington Woollen Manufacturing Company, Mr. W. H. P. Barber said the year could justifiably be described as satisfactory. The liabilities were less than at last year, and gross profits had increased, though they had been reduced by profit and loss debits, interest charges beinggreater as the result of increased costs. He announced an interim dividend of three per cent. Retiring directors, A. E. Allison and J. F. Dyer were re-elected. While shareholders might expect increased returns because of the trade revival during the past year, said Mr. Barber, the trade revival had many attendant drawbacks. Production time had been shortened by Labour legislation and extra shifts could not be arranged because operatives were not available. He indicated that because of competition, it was not always possible to pass on increased costs, and activities had been reduced because of orders placed earlier by buyers, who expected prices to rise. When it. was manifest early in the year that wholesale prices were sure to rise, prudent buyers increased largely their normal indents at the old rates. “Those orders we had to accept," said Mr. Barber, "or allow them lo go elsewhere. There prevails to some extent a wrong impression as to the passing on of the increased cost Where monopoly exists, it is of course possible, but certainly not where external and internal competition is keen, as it keeps selling prices as we have sometimes experienced, below the cost of making, selling and distributing. A new alignment of manufacturing activity with its many side issues cannot be arranged just by request. In a large mill, it is necessary to have from four to six months’ work ahead to maintain essential continuity.

The Prime Minister had affirmed his pronouncement that industry would not be let down for protection from unfair competition, said MiBarber. It is as vital to the workers as it is to the manufacturers. New Zealand manufacturers of woollen goods were being menaced by Aus tralian importations. Australia was not affected by the exchange rate, and he considered New Zealand should demand that Australia should take as much as she sold as reciprovical trade for the protection of New Zealand manufacturers. Australia herself, adopted some time ago quotas, and on certain classes of wool, complete embargoes.