WOOLLEN MILLS

Wanganui Chronicle, Volume 72, Issue 291, 7 December 1929, Page 8

WOOLLEN MILLS

Sir, —The correspondence which has appeared in your columns anont the affairs of the local Woollen Milling Company has dealt with certain phases of the position which has arisen, but fails to touch the real nerve centres. Mr Carrad has touched one of the many faults of management and as a practical tradesman we can take his assurance upon the point dealt with by him. Mr G. F. Moore, in his letter of optimistic hopes has, however, failed to diagnose the crux of the whole trouble that faces the Wanganui company as well as other New Zealand woollen mills. The real difficulty is that we have too many woollen mills opm-ating in New Zealand, and consequently it is impossible for all to obtain the requisite sales so as to enable the bills for overhead expenses and manufacturing costs to be met. In this respect the woollen industry is on a par with the freezing industry in New Zealand and until more of the weaker concerns go to the wall f ’:erc is a thin time ahead for the remainder. Our local mills are not alone in their inability to obtain sufficient sales to wipe out or stop the huge losses that they have been making annually. At least three of the older established and better managed concerns are experiencing an extremely lean time and have incurred very heavy losses whilst others are languishing, and it must be remembered that these are mills whose plant enables an ifiintcly wider range of goods to be turned out.

I believe I am correct in stating that the local mill has no knitting machines for woollen underwear, pullovers, sox, jerseys, etc. Briefly summed up the failure of the local company can be attributed to: —

1. The mill buildings were erected and plant bought at peak prices. 2. In many cases the wrong type of plant and machinery was bought. 3. Bad mill management and inadc quate range of output. 4. The fact that there are too many woollen mills in New Zealand catering for woollen goods, there being 14 mills manufacturing for our small popula tion. 5. And not least, the steadily increasing demand for art silk and other wool substitutes with the consequent increase in demand for woollen manufactures. This fifth reason is forcing other mills to compete more kecn’> for the class of goods manufactured by our local mills in order to keep staffs and plants going even at the cost of re: tailing at bare cost. It would seem that the only chance of salvation for the local company is to subscribe sufficient capital to put in full range knitting plants, but even this holds little chance of real success ‘‘WOOLLEN GOODS”