PROFITEERING.

Star (Christchurch), Issue 12718, 13 August 1919, Page 3

PROFITEERING.

HIGH PRICES EXPLAINED, [PUO.M Ovjl CoHRESPOXDiI.NT.]

Wellington, August 12. At a meeting fit' the Wellington Woollen Manufacturing; Company, when the balance-sheet showed a prosperous condition of affairs, Air AV, H. P. Barber, chairman of directors, dealt with the cry of profiteering, which, ha said, is carelessly .applied to every business house, no matter what the surrounding circumstances. The company’s selling price of cloth, he declared, had never been raised more than necessary consequent on the increased cost ot production. Wages had been substantially increased and hours reduced by three weekly in the woollen factors’ and one in the clothing factory during the year.

Referring to what he termed the unquestionably high retail prices of clothing. Air Barber proceeded: I wish to make a short explanation which might cause some of the adverse critics to modify their views before making sweeping assertions in connection with all manufacturers here. Speaking for ourselves, it should be known in the first place that wo have not been in a position to supply the. tailoring trade, as the bulk of the output of our worsted and woollen suitings is , required for our own clothing factories, therefore but a small quantity of Petone tweed reaches the bespoken tailor, and that mostly in country districts. In the second place, I want to make it quite plain that with few exceptions all tlic very numerous commodities required in both woollen and clothing manufacture have been obtained abroad. The exceptions are wool, costing G2i per cent more than in 191't, coal costing 100 per cent more, and soap al=o 100 per cent more- The scarcity of dyes is fairly well known, and as an example of increase I mention the cost of dyeing black, which is now (i-30 per cent greater for material alone, without labour. Alany fancy are much above that figure. The advanced prices apply ie every department using its own particular stores. Although there is much cause for the discontent of consumers, those whose emotions run to public expression should endeavour to acquire somo rudimentary knowledge of the trade before making loose assertions. The assumption of many anonymous writers appears to he that because they imagine every quality of wool can be bought for Is 6d per lb that all between that and the selling price is profit. They don’t even know that greasy wool bought at, say. Is 3d to 2s per lb, is half full of grease and dirt, therefore the cost is doubled when it is clean scoured. Many do not’ even include wages as part of the cost- Now, to begin with, it is fairly clean wool that docs not lose 50 ! per cent in scouring, so doubling the price- The average clean scoured merino wool used by us is 4s per lb. There is waste in each following process of dyeing, willeying, carding, combing, spinning, drawing, warping, weaving, milling and finishing. This loss, of course, adds to the price cost, besides every bought article used throughout the process of woollen, 'worsted and hosiery manufacture has advanced in price. In many cases expensive substitutes have to he used. There are increased overhead charges in salaries, travelling expenses, freights and the many incidental items, not forgetting extensive pillages in transit, before the goods reach the buyer. In the clothing branch, apart from the higher cost of tweed, all other indispensable articles wanted, such as linings, thread, buttons, etc., are imported and have, risen in price enormously. As an example— Italian cloth 200 per cent, printed silesia 400 per cent, hessian 400 per cent, hymn 200 per cent, buttons 1-50 per cent, tape 350 j>er cent, calico 400 per cent, and so on. It seems superfluous to mention it, hut there is not one item of a large number of absolute necessaries imported by us and used by us over the price of which we have the slightest control. As our sales arc confined to the trade only, nud we have nc dealings with the consumer direct. I air not at liberty to make a public statement of the advance in our ,sclling prices since 1014, but I can rcqieat whal ' T have before said, that they have noi j been raised more than we were legitimately entitled to ask to cover tin actual cost of'bought supplies and othe: increases. It might interest you P know that the return in dividends re reived by the shareholders, includin' this year’s payment, averages 6 1-3 pe cent per annum. AVc have paid twenty eight dividends in thirty-six years.” At a. later stage of the meeting i was announced that the company pro poses erecting a number of dwelling near the woollen factory, also a hoate for girl workers. The building of ; warehouse and clothing factory fl Christchurch has begun. The chairman of directors made pass ing reference to profit-sharing scheme 1 recently announced in Now Zealand I remarking that it was easier for old ’ established and wealthy private.' em plovers io decide promptly on such I policy than For a public company hat j ing a largo list of shareholders, and an I ill-digested scheme would probably de feat "its object. In adopting snob change it was essential that a metbo for maintaining output should b evolved.