HOTEL TRADE.

Lyttelton Times, Volume CXVII, Issue 17664, 17 December 1917, Page 8

HOTEL TRADE.

EFFECT OF SIX O'CLOCK CLOSING. ARBITRATION COURT CASE. The hearing of an application by the Christchurch Hotel Employees' Union' for increased wages was continued before the Arbitration Court on Saturday. John T. Sutton, proprietor of the Dominion Hotel, Gloucester Street, stated that he had dismissed a barman and a day porter in consequence of six o'clock closing, and he had personally to assist in the work. His experience was that female workers did not do as much work, as male workers. In the first week in December his business had decreased by 39 per cent. He put in confidential figures, showing the effect of six o'clock closing. The Hon J. Barr, representing the union, said that there was a natural slump in hotel business after the race week. It was dull right up to Christ* mas. Mr Sutton, continuing his evidence, said that the overhead charges continued, and it was very hard to reduce them and keep up efficiency. Christchurch was well supplied with licensed houses and private hotels. Competition therefore was very keen. As to liquors, one had only to increase the price sufficiently to bring about total prohibition. Since an increase had been made in Christchurch there had been a marked decrease in business. Mr Pryor, representing the employers: Then it would not do to make a further increase?

Witness: Very dangerous indeed. Witness stated that his overhead charges since six o'clock closing had come in, had increased by 11 per cent, in spite of. the fact that he had tarned off two hands.

To Mr Barr: Witness now hoped to, develop his house business, as an offset to the loss of bar trade through six o'clock closing. All hotelkeepers in Christchurch increased their boarding tariffs some time ago. Witness had made no fresh increase since December 1. The price of liquors had been increased in respect to spirits and other bottled liquors. In some cases the size of glasses for 3d beers had been reduced from half a pint to onefifth quart. To the President: The increase in the wholesale cost of spirits was in some cases 200 per ceut. The increase in .selling price was 50 per cent. To Mr Pryor: If sixpence was a fair iprice for a glass of spirits before the war, one shilling was a fair price today. Alexander Storrie Duncan, manager of Mace and Co., Ltd., aerated water manufacturers, said he had considerable experience of hotel valuation. The consumption of aerated waters by a house was a fair test of its trade. It was a test he always relied on. In eighteen representative houses in Christchurch city and suburbs, from December 1 to December 12, in 1917, as compared with the same period in 1916, there was a f alling-off in the consumption of aerated waters amounting to 86.21. per cent. The falling off was undoubtedly greater in hotels further out of town.

To Mr Barr: Witness was also manager of Ward and Co., Ltd., brewers.

Mr Barr proceeded to examine the witness regarding the difference between the wholesale'and retail prices of beer.

Mr Pryor objected that this had no bearing on the falling off in trade, and the Court upheld the objection. Witness, continuing, in reply to-Mr Barr, said that aerated water manufacturers could not control the retail selling price of their wares in hotels. The wholesale price had been raised since the war started.

John Thomas Souper, proprietor and licensee of the Clarendon Hotel, gave evidence that he employed on an average thirty-two hands in the hotel. Recently, when he wanted a barman, he got ten or eleven applications'without advertising. It'was the same with other situations. He could get all the hands he wanted without reference to advertising, registry offices or the union. His business was faced by a very serious loss as a result of recent legislation. He had tried employing girls in the place of men in kitchen and scullery, hut the experiment was not a success. Women could not do the work. To Mr Barr: He had no grievance against the union whatever, but the union had never been able to supply him with satisfactory employees. Timothy Cotter, proprietor of the City Hotel, said that since early closing he had reduced his staff from ten to seven. That meant additional work for, himself, his wife and daughter. Witness gave details of the duties undertaken by members of his family. The reduction in trade, compared between the last week in November and the first week in December, 1917, according to his books, was about 40 per cent. John Beveridge, wine and spirit merchant, Wellington, said he had consid-

erable financial Interest in hotel properties- When the employers met the Wellington Union nobody expected that six o'clock closing would bo •, carried, otherwise the agreement entered into would never have been made, though conditions for the trade were hotter in Wellington than elsewhere in New Zealand since the war started. Tho president: That is a matter of common knowledge. Continuing, the witness said that the loss to hotelkeeners through six o'clock closing varied from 20 to 50 per cent reduction in profit*, according to situation. He believed that the limit had been reached in prices that could be charged bv hotelkeepers for liquor and board. It seemed an eminently sensible thing to postpone these proceedings for twelve months, so that definite data could be obtained. To Mr Barr: The increases in Wellington had amounted to about 4s per week. At first the union demands had been so extravagant that the employers would not consider them, but subsequently these demands were modified and an agreement was arrived atMr Pryor said the general reduction in the business at Warner's Hotel was 84.5 per cent. Rebutting evidence in regard to lot. chen staffing was called by Mr Barr, and Mr Pryor called one witness in further rebuttal. ' Messrs Pryor and Barr addressed the Court, and tho Court reserved its'decision.