RISING COSTS

Poverty Bay Herald, Volume LXVI, Issue 19900, 30 March 1939, Page 7

RISING COSTS

FEWER HOURS; MORE PAY EFFECT UPON INDUSTRY. Taking into account the many difficulties experienced, the net profit of £62,148 must be considered satisfactory, saftl Mr. F. W. Mitchell, chairman of directors of Kempthorne, Prosser and Company, New Zealand Drug Company, Limited, at the sixtieth annual meeting of the company held in Dunedin. Because of the decline in the prices of primary products, coupled with the unusually wet season, the demand for fertilisers had not been so good as it might have been, but turnover had been fairly well maintained. “Industry generally has now had a full year’s experience of the 40-hour Week and has been able to gauge its effect upon manufactures,’’ Mr. Mitchell said. “I think that in almost every instance this effect can be claimed to be a material reduction in output, which, naturally, has an influence upon costs. Competition has been no less, but it is satisfactory to record that business, as measured by turnover, has been fairly well maintained over the year. “On the manufacturing side we have encountered! the full effect of higher wages With shorter hours, while in the case of our warehouses, in addition to higher wages, the import restrictions have had a disturbing effect. “As so large a part of our operations is linked up with primary production, the financial position of the farmers is a matter of concern. Owing to the decline in prices of our primary products, particularly wool and higher costs of produuotion, most farmers have had a less satisfactory year than the previous one, and it is to be hoped that some assistance to the producer may be made available during the coming year. “I feel sure that in the light of what I have said about conditions generally, shareholders will have reason to be gratified with the .balance-sheet and the proposals olaced before them and with the directors will look forward hopefully to 'the future, though it > is at the moment -somewhat clouded.” The dividend was approved and the retiring directors re-elected.