THE HIDE MARKET

Otago Witness, Issue 3442, 2 March 1920, Page 12

THE HIDE MARKET

DEPUTATION TO PRIME MINISTER. AUCKLAND.. February 27. A deputation of representatives of the leather industry, both employers and employees, interviewed the Prime Minister to state their apprehensions regarding the effect of the new hides regulations and the lifting of the embargo. Mr 0. A. Watts, secretary of the Boot Operatives' Union, said that the purposo of the deputation was to ask the Prime Minister to reconsider the decision made to alter the regulations governing the sale of hidt s. It was felt that the change would result in increased prices for leather and lent her goods, an increase in the import of such goods/ and a consequent increase in unemployment among those engaged in leather industries. It was the opinion of those whom he represented that the former regulations were of general good to the community and productive of harm to nobody. The v were asking, first, that the old regulations should be re-established; second, that hides#i?ow held in store should be commandeered by the Government at the prices paid to the farmers for » ; iem, plus interest; and., third, that a r-ir profits board should be established to determine, among other things, the rates at which leather goods should be sold to the public. Mr G. W. Coles, on behalf of the manufacturers, said they were faced with a serious position on account of the increased price of leather. The day after the embargo on the sale of hides was lifted they wero given notice of increased prices for leather.

Mr Massey: I can only say these people are making a very serious mistake. The Government is not going to stand that sort of thing. Mr Coles said his assertion was a fact, nevertheless. The result would be increased prices to the public. The claims made by Mr Coles were supported by Messrs H. Clark and A. Trenwith, for the tannery employees. Mr Rosser eaid they viewed with alarm the prospective increase in the price of footwear. Children could go barefoot, and in many cases were doing- so, but they had yet to see workers going to their work wearing sandals or barefooted. Mr Massey: You do not suggest that, surely? Mr Rosser replied that it might not be an exaggeration if boots went up in price by from 9s to 10s a pair. Mr Rosser also said that if the export of hides resulted in a shortage it was going to cause much unemployment in the tanning industry. He said, further, that hides were undoubtedly being hoarded. Mr Massey, in reply, said that for some time there had been a great deal of agitation among producers on the grounds that they were not getting the fair world's price for their goods. It was the duty of the Government to encourage production. The country at the present time was in a very good position, both financially and commercially, but it must be made even better, and the way to do this was by increased production. This would not be encouraged if the producers considered, as they t had been doing, that they were not obtaining fair prices for their products. It was also the duty of the Government to encourage industries. They seemed to have overlooked the fact that no hides could go out of the country until they had been offered to tanners. The time might come when the whole of the output might be required by tanners. There might be a way out of the difficulty placed before him by the speakers. The matter was in the hands of the Agricultural Department, and was bein# directed by Dr Reajkee, who was a man particularly well fitted to handle it. The system just put into operation was working in Aus-

tralia. Conditions there were not quite the same as here. He knew they had been faced with the same difficulty, however, and the system was working very well. In mitigation of it, he believed that under it tanners would be able to get all hides they wanted. In fact, he hadhad assurance from them that they wore satisfied with the arrangement. The old regulation worked badly. Australian buyers came here _ for hides, which v. ere taken over, turned into leather, and then made into - boots, which were exported to New Zealand. After paying freight, handling costs, and duty, they were under-selling the New Zealand made article on the local market. Answering ob jections, Mr Massey said: "I can prove itj and if I do not prove it I will do &way with these regulations."—('" Hear, hear.") He undertook to-look closely into fine matter of the price of boots. He said, however, that these matters took time, but when he returned to Wellington he would fjive them his full consideration. In regard to allegations of hoarding, Mr Massey said that the Agricultural Department kept a record of every beast that was slaughtered. Dr Reakes had assured him that'full returns of hides had been obtained, and he was satisfied that there was very little hoarding. The statement had been made that there were £1,000,000 worth ot hides being hoarded. He had noted the name of the man Who had made it, and had asked him for full information, so that the department might investigate. Very many exaggerated statements were being made on the subject. He did not think that there was much danger of tannery employees being thrown out of work. _ The Government did not want to do any injustice to any industry, but, on the other hand, tie interests of producers must be watched. Mr Watts asked whether the benefit of the increased prices in hides would go to tiie small farmer, and not be confined only to the squatter and freezing companies, with their wealthy shareholders.

Mr Msusey said he believsd so.. It must be* remembered that, at any rate so far as this •end of the dominion was concerned, the squatter was non-existent. This was the place of small holdings, and, so far as the past year had been concerned, the movement had all been in the direction of subdivision. The whole of the requests placed before him would be remembered, and the position and working of the new regulations would be watched very with a view to the rectification of any injustices that might arise. INDUSTRIAL UPHEAVAL THREATENED. PALMERSTON NORTH, February 22. A meeting of the Palmerston North branch of the Amalgamated Society or Railway Servants passed a resolution on Saturday: "That the Executive Council of the Amalgamated Society of Railway Ser- e vants draw the attention of the Prime Minister to the hoarding of hides in the dominion, causing inflated prices of boots and boot repairs, and request the Government to take immediate steps _to release the hides as a means of preventing an industrial upheaval in the near future." EFFECT OF REMOVING RESTRICTIONS. SENSATIONAL ADVANCE IN PRICES. AUCKLAND, February 25. The first auction sales of hides under the newny gazetted regulations showed a sensational advance in the prices of those submhMwd. Alfred Buckland and Sons report that record prices for their store were received on Tuesday for ox and cowhides of good grades. Eight ox hides in one lot made a record net price of £44 5s 7d, or 20d per lb. Other lines of o:k hides averaged from £4 Is to £4 12s net each, or from 19.1 to 20d per lb. Cowhide*

weighing 451 b and over averaged £3 5s net each, or 18d per lb. One stout ox hide made £5 18s 4d at net weight. Supplies are short according to exporters and tanners' requirements, and prices are sure to rule higher.