WOOLLEN TEXTILES.

Otago Daily Times, Issue 20800, 20 August 1929, Page 9

WOOLLEN TEXTILES.

INFLUENCE OF SUBSTITUTES. ADVERSE EFFECT ON TRADE, (Special to Daily Times.) WELLINGTON, August 18. The adverse influence of substitutes on the woollen textile trade was stressed bjr the chairman of the Wellington Woollen Manufacturing Company, Ltd, (Mr W. H. P. Barber) in hie address to shareholders to-day. "The balance sheet,” said Mr Barber, in moving the adoption of the report and balance sheet, “ must, in view of the prevailing conditions of trade and other unusual factors, be considered satisfactory as the figures closely approximate those of the last year. Our indebtedness is less by £6774, and whilst we added £1094 to the plant, the book ✓value has been decreased by £SOOO for depreciation. The stock totals of this and last year are practically the same, being £210,154 and £216,081 respectively. The profit and loss charges are £528 more, whilst the gross profit is lower by £2049. The year has been one of persistent depression iri the woollen textile trade, both in Great Britain and in New Zealand, and competition, especially from importations, has been unusually keen. The unstable position of the wool market aggravated matters. In the 1927-28 season the cost of wool was relatively high and the 1928-29 season opened with but a small drop on the closing rates of the previous year which caused a hope that prices would remain firm. Unfortunately they did not, and from sale to sale small decreases occurred. This was in contradistinction to the previous year, when increases instead of decreases happened. As our supplies for 12 months have to be bought in advance in the short time the sales are on it will be seen how awkward it is to meet these unexpected variations, especially as we have to take indents before the wool is bought, to make the goods, and the decline in the price of wool obviously necessitates a writing down of stocks made from purchases on a higher scale with consequential lower selling prices. This variation in the cost of wool, which happens without visible cause, is a considerable set-back to both the grower and the manufacturer, and without doubt forces the use of substi- i tutes, the cost of which is lower and not subject to such a rapid change in value. There are so many substitutes and synthetic ‘ wools 5 now put forward that it is not surprising to hear that overseas manufacturers turn to them when met by the unusually high and unsteady • costs of the real article. Reliable statistical information on wool supplies is not available therefore, and buying becomes more or less speculative, which, for the private person, may be enjoyable, but when the responsibility to shareholders is a factor it is not a ' happy- position. An association. of growers in Australia and New Zealand has lately come/into being to provide funds for advertising the merits of wool, and whilst such suggested slogans as ‘ use more wool ’ may give a measure of comfort to contributors, it is in my opinion playing with the matter in so far as making converts ie concerned. We should welcome any attempt on effective lines to encourage the further use of woollens, but I think better results would be got by a strong .endeavour to remove the causes of the erratic prices, and to institute research calculated to improve the appearance as was done with inferior substances. There is one thing clear to us and should be to the grower and to Parliament, and that is that a check on manufactured substi- s tutes coming into the country should be ' established as well as on the term wool. It is not on behalf of ourselves that I say this, as we can, if pushed to it use substitutes as an adjunct to wool and should no doubt find an easy market if we did, .as low price in these extravagant days of quick change is a first consideration.