OUR YORKSHIRE LETTER.

Otago Witness, Issue 3829, 2 August 1927, Page 15

OUR YORKSHIRE LETTER.

XFrom Our Special Correspondent.) I. BRADFORD DEALINGS WITH RUSSIA. BRADFORD, May 26. A good deal of talk has been heard in Bradford about the police raid upon the "Arcos” premises in London. With the object of that raid and with its ultimate results upon British relationships with Moscow this letter is not immediately concerned. Our only responsibility at the moment is to say anything which bears upon our wool trade connections with Russia. Under this head it may be mentioned tnat several large firms iu Bradford have been selling wool, noils, and other manufacturing materials to the All Union Textile Syndicate which operates on Russian account, and through which a big volume of trade has been done during the past 18 months. When the syndicate commenced to buy wool in Coleman Street it paid bigger prices than anybody else, more attention thus being directed to its operations than the actual weight justified, though a feature of its operations with Bradford was that it seemed prepared to buy almost any quantity. The representatives of the Syndicate have since realised their mistake. They have been content to buy more reasonable quantities, and to pay prices more in accordance with other buyers’ ideas in London. A good deal of the spectacular effect of the Russian buying in this country has therefore been removed, but it has been impossible for the syndicate to improve its terms of payment. Anyone selling to Russia has had to accept long credits, receiving immediate cash for only a small proportion of the purchase value. BRADFORD’S RUSSIAN BUSINESS. The knowledge that extensive credits are still outstanding against the syndicate, and the suspicion attaching to it, which applies to almost anything, commercial or political, of Russian origin, has led to fears being expressed that the Bradford sellers to the syndicate will be involved in serious loss. This, however, is an anticipation for which there does Pot appear to be any justification. Large sums of money are admittedly involved, but so far credits have been honoured as they have become due. The only thing that has happened is that no further orders have been accepted, though deliveries of contracts have not been suspended. At the moment the only parties really concerned are those who have taken the responsibility of doing this Russian business. That country was an important outlet for wool before the war, and so long as trade is conducted without any sinister political influences worming their way into it, it should be allowed to go on. It is probably impossible to say that the All Union Textile Syndicate is entirely free from any connection whatever with “Arcos,” but the position in a nutshell appears to be that the British Government has entertained certain suspicions, and no loyal Englishman will pass any critical comments about investigations being made in order to check any such enterprise as has had only too free a hand in Russia itself, and has prevented it making the progress of which it would be capable under wise rule and educated liberty. Bradford firms will no doubt continue to sell wooi and other commodities to Russia so long ■as their clients are reliable and there is a reasonable guarantee of payment. CONTINUED CONTINENTAL DEMAND FOR WOOL. An interesting feature of the market for wool is that since the third series of London sales closed further inquiries have been made on Continental account, and decent quantities of fine crossbred wool have been sold. This demand is of some significance as indicating the continuance of Continental manufacturing requirements, but is of chief interest to Bradford merchants because it is affording them a channel for the sale of their stocks of wool which is more profitable than turning them into tops at home. It is not considered that any great margins are possible in doing this export business in the raw material, but knowing that there is an outlet and that stocks held in Bradford and district are not large, they see in the existent demand an influence tending to prevent any declension in prices during the remaining months of this year. It is quite probable that the calls which Continental buyers are making will enable a good weight of wool to be disposed of at such values as will pay transit charges, interest, and incidental expenses, and leave just a small margin. Capital will thereby be kept moving, and more money will be available for purchasing any supplies which come to London in the near future, or for operating in Australia when the new season opens. These considerations indicate that even the home trade will be able to play at least a reasonable part in taking oncoming supplies of wool. On the other hand it may be noted that the Continental textile trade is in some respects very similarly situated to the West Riding industry. Here we find, as already shown, a good demand for wool at firm prices. Combing inachinery is being kept fairly busy, which means that large weights of tops are being turned out. Some of oui' worsted spinners are also well employed. Others are much worse off, and. taken altogether, there is not the same activity in the spinning section of the trade as in combing. Then, again, manufacturers are worse employed than spinners, and according to recent estimates about 40 per cent, of the looms in this district are standing. According to the latest information received from France, very much the same state of affairs exists there. Employment of combing machinery is well maintained, and sorters are busy, but the demand for yarns is not satisfactory, and manufacturers are finding less call for cloth. Germany seems to be the best situated of any Continental country at the present time, and it is from that source that a good deal of the demand for wool is coming. TEXTILE UNDERTAKINGS. The straitened financial position * of wool users in Bradford is indicated in the published reports of individaul firms. One of the largest worsted spinning and manufacturing firms in the district is Salts (Saltaire), Ltd. In a report of

the year’s trading of this firm it is stated that after meeting debenture and other charges, writing off an investment of £5OOO, and transferring the usual £40,000 to depreciation fund, the net profit amounted to £19,737. Last year there was a net loss of £139,186. It is added, however, that the preference dividend is nowtwo years in arrear, and that, like other firms, the. effect of keen foreign competition is felt. The firm is up against a reduction in the demand for manufactured goods, and is incurring various losses which are attributed to the injurious effect of the miners’ strike. The improved results attained by the firm appear to have been noted by the public, for there has been some recovery in the market value of the company’s shares. Such reports as the above make encouraging reading, but there is scarcely any worsted spinning and manufacturing firm in Bradford to-day which is really satisfied with its financial standing, and unless wider and more profitable outlets for yarn and piece goods can be found no general development can be expected. It may be easy to represent trading profits in the balance sheets, but an entirely different aspect is put upon things when all overhead charges and taxes have been deducted. Taxation alone is a serious burden upon industry to-day. BRADFORD AND BRISBANE.

Cable information received in Bradford last Friday from Brisbane was to the effect that the three days’ sale in that centre had closed with firm values. Readers will probably be aware that the quantity available for the series was 40,000 bales, and that another 35,000 bales is expected to be offered in the same centre at the end of June. The firm close last week comes as further confirmation of the soundness of wool values, particularly as our own information is that the prices paid were 5 per cent, higher than those current in London at the end of the May auctions. It may be noted that prices for both average and good merinos were Id per lb clean scoured below the previous Brisbane sales held in March, except that 64’s warp wools were no cheaper at 42d. What actually takes place in London at the July auctions remains to be seen, but with wool dearer in Brisbane than in London there is no prospect of tops coming in any cheaper.