ESTABLISHED 1875. Manawatu Daily Times. The Oldest Manawatu Journal. Published Every Morning. MONDAY. JUNE 17, 1907.

Manawatu Times, Volume LXIV, Issue 140, 17 June 1907, Page 4

ESTABLISHED 1875. Manawatu Daily Times. The Oldest Manawatu Journal. Published Every Morning. MONDAY. JUNE 17, 1907.

The Arbitration Court, in making its awards, adopts the theory that any increase in the cost of manufactures or services can be " passed on " by those who have in the first instance to make the increased payment. The advocates of restriction of imports and cutting off cheap supplies also argue that the increased cost can be "passed on." It is therefore worth while to briefly examine the working of this theory. As nearly every trade and industry has a union attached, and as all are coming before the Court and securing either advances in wages or shortening of hours of work, or both, it is obvious that all are engaged in "passing it on." The butcher " passes it on " to the baker, and the latter returns the " pass," while the grocer " passes " to both, and manufacturing industry "passes it on" to all the others. The commercial and professional classes also. " pass it on" whenever increased charges can be made. Now in all these processes there is obviously no increase of wealth in the colony, no addition to the general stock or fund ; it is simply the interchange of a little more from each for services rendered or goods supplied. The process is continued through all the grades of service and supply till it reaches the man on the land, and then there is finality to its operation. For the men working on the land or j engaged in the natural industries [ cannot " pass it on." The dairyman, I flaxmiller, wool, grain or meat producer cannot "pass it on" by increasing the selling price of his product, because no matter what the cost of production may amount to here the selling value of the product id governed entirely by its price in the London market, where it has to come into competition with the products of all the world. It therefore follows that all the cost of the artificial increase has to be ultimately borne by the primary producing industries. These alone bring money or value into the country, and it is clear that any artificial increase of service or supplies is an indirect handicap on the industries from which our wealth is derived. There can be no benefit to the worker on the land, or in any of the natural industries, by making him pay more for his supplies. On the contrary he is injured by being compelled to support others doing useless work and shutting out cheaper supplies. The " pass it on " process not only adds nothing to the wealth of the

people, but drains the pockets of those working on the land, and those employed in all the allied industries.

In connection with the demands of Taranaki Dairy Factories Industrial Union, and the meeting with employers, Mr Astbury, formerly of Palmerston, addressed a letter to the Eltham Argus, in the course of which he said :—" I write with the hope that the dairy companies' delegates chosen will keep the policy of

" live and let live" before them when the meeting takes place, and. strive not for a settlement on the lowest wage possible, but on the standard adopted by those factories paying the highest wages. This is the truest policy in the long run, and is bound to encourage the centring of the best intelligence and most effective labour in and around the dairy industry. To the employees I would say: Remember that a large number of the men who are yearly entrring in on Taranaki lands are paying rents and prices that call for the exercise of their very best powers, coupled with the labour in ! many instances of their families, to meet the financial demands made upon them. Any disorganisation in the industry must bear hardly on this unfortunately increasing number of Taranaki settlers. Employees, therefore, must be moderate and not inclined to rush matters, because here and there grave injustice has been done. Let all personal feeling be eliminated by both parties. Strive for a standard commensurate rate with a fair day's pay for a fair day's work; give and take as between the workers interested in the progress of a splendid industry, and a basis can be arrived at that ought to forward its progress and growth, help the employees, and in no wise hamper the factories." All this is excellent advice and a fair statement of the position, though it does not touch on the reasons why the employees require more than they formerly did. Here we have a clear instance of the "pass it on " policy reaching finality at the primary producer. Adding to the cost of supplies by the aid of restrictive tariffs and the working of labour legislation and trades unionism has compelled others to " pass it on " to the dairy employees, and as it is thus costing these more to live, they, naturally, are "passing it on" to the employers. But the farmer cannot get higher prices for his butter—indeed, he may be forced to accept lower. And as, according to Mr Astbury, he has had to "exercise his very best power, coupled w ; th the labour of his family" to make both ends meet, it is difficult to see how he is going to carry on if he has to pay higher wages. It should be plain, to him at least, that the purchasing power of the money he gets in return for the butter he exports has fallen. In time the farmers will probably begin to see that they are vitally injured by the imposition of a restrictive tariff, and that it is at the root of all the labour troubles.