"Our Industries": History of First Woollen Mill in Otago. TO THE EDITOR.

Otago Witness, Issue 2086, 15 February 1894, Page 14

"Our Industries": History of First Woollen Mill in Otago. TO THE EDITOR.

Sir,— Re your report of the Mosgiel woollen mill. There were prior links in the chain of events which culminated in the results you chronicle) and these particulars, with your permission, I will give in order that fuller justice may be done to the memory of the late James Macandrew. Mr Macandrew, when returned for the Superintendency, called on Mr Forsyth, of Tokomairiro, and spent some time going through the wool-scouring works of Smith and Co., of which Forsyth was the managing partner. Mr Macandrew, during a long conversation, remarked on the fact that our wool was sent Home, subject to very heavy charges for freight, insurance, comnrssion on sales, brokerage ; and then manufacturers' profit ; and' before the manufactured goods were landed here similar charges were again incurred, with the addition of an import duty on the goods ; then there were the wholesale merchants' and retailers' profits. Mr Foray th had a long experience in various brauches of manufacture, and was requested to give an estimate of the cost of a manufactory suited to the wants of the province with room for expansion. The class of manufacture originally suggested was what is known in the old country as Lccil — that is, a mill with machinery adapted to card, spin, weave, and dye wool sent in by farmers and wool growers for blankets, flannels, hosiery, &c. The quantity of wool coming to similar mills in the old country during the summer months keeps the works going nearly all the year, and the company is never called upon to lay out capital to keep a stock of wool on hand, or keep a stock of goods manufactured in the warehouse. The goods made in this manner go out as soon as made, and are paid for in cash. The buildings, machinery, and finishing plant would not exceed £4000, but to allow of a surplus reserve £6000 was the amount ; and the basis of support which was originally laid out was that the promoters were to have 10 per cent, on their capital for two years ; 7£ for two years ; 5 per cent., for two years ; 2£ for two years ; then support to cease. During the period of this early correspondence Mr Vogel became Provincial Treasurer, and through his influence altered the conditions to a bonus of £1500 for the first 5000 yards of cloth manufactured. To secure this bonus it is not necessary to refer to the painful scenes that occurred iv the Provincial Chambers, and the double shuffle of men we would suppose above such acts ; or how the bonus was ultimately disposed of before the conditions were in any way fulfilled. However, we

have now a woollen mill that is a credit to the country, a credit to the promoter, and equally so to those who guided the business affairs of the company. But let us see if the original conception, viewed in the light of economy and a distributing force, could not have been more in the interests of the people. On the score of economy, blankets and flannels could be supplied at fully one-third less, and the quality of the goods would depend entirely on the quality of the wool farmers send in to be manufactured, bringing the consumer and manufacturer in direct contact without the aid of middlemen, commercial travellers, and all the very expensive machinery of advertising ; and instead of two mills in our province, we might have mills in Dunedin, Milton, Gore, Invercargill, and all the towns northwards. This phase of manufacture will force itself to the front more and more as the country gets more and more settled, because, in addition to the margin of expenses already mentioned, the consumer is still burdened with a heavy duty on all such goods absorbed by the manufacturer. — I am, &c , February 3. Old Colonist.