Second Shetland Truck System Report Part 71

2185. I am speaking now entirely of the purchase system. I will ask you something afterwards with regard to the system of knitting with the merchants' own wool; but you understand that you have hitherto been speaking about the system of purchasing?-Yes; hitherto I have been referring to the exchange of articles over the counter.

2186. Your general observations have applied to both systems?- Yes, to both.

2187. Speaking then, in the meantime, about the purchase system, there is now in point of fact a difficulty in getting cash?-There is no doubt of that, because it is the custom of the trade, and has all along been, that these hosiery articles should be paid for in goods.

That is known and understood on both sides.

2188. Will you tell me exactly where the advantage to the woman lies who sells her hosiery for 20s. in goods rather than for 16s. in cash? Are these 20s. of goods worth more to her than 16s. in cash would be-I mean, apart altogether from the question as to whether she wants other goods than hosiery?-Is the money value of the 20s. worth of goods greater than 16s. in cash?-The money value of them cannot be greater, because the retail profit is included in that.

2189. Yes, but the money value to you is one thing, and the money value to the woman may be another?-I a.s.sume, as a general rule, that all the goods which the women take they are actually requiring.

2190. Is that the fact?-I heard some statements made here by some witnesses yesterday, and I suppose they were quite correct, since the women made them, but I was not aware of it before, that they had to take goods and re-sell them afterwards.

2191. You were not previously aware of the existence of such a practice?-No; I was not aware of it until I heard it deponed to yesterday.

2192. You say there are periods of depression in the Shetland trade?-Yes; for many months there is little or no demand for Shetland goods, and at such times our stocks lie over and acc.u.mulate.

2193. In such a period of depression I presume that your prices, whether in money or in goods, are lower than at other times?- They naturally tend downwards, as in all other trades, because in many cases we really don't want the goods. Having quite sufficient and more than sufficient of the article, we don't want any more of them; but very often we take them, just as you may say, to oblige the women, and give them tea for them, or things which they may actually be requiring, although we may have no prospect of selling these articles for a year or so.

2194. Is there not a difficulty in the trade also from the nature of the articles which are made?-There is a very great difficulty in that respect, owing to the want of uniformity in the articles, and the great variety of them. You can never get two shawls alike; you cannot even get a dozen pair of half-stockings alike. If you were to get an order for twenty dozen socks of a particular colour, size, and price, you would not be able to get that number of socks alike in Shetland.

2195. The result of that is, that you cannot give a large order?- We cannot undertake to execute it; and it is only such houses in the south as are acquainted with the Shetland trade, and who know that, when they give an order for a certain quant.i.ty of goods, they must get them varied in colour and in quality, and who make up their minds for that, and don't expect anything else it is such houses who generally deal in Shetland goods.

2196. Does that fact, and the want of knowledge of that fact, restrict the number of houses in the south with which you can deal?-There is no doubt of it. Suppose an English house, who had never done anything in Shetland goods before, were to send down an order for a certain quant.i.ty of goods, they would expect to get them as uniform as if they were sending that order to Leicester, or any hosiery district in the south.

2197. In what way does that affect the system of paying in goods?-There are limits to the demand. It affects the market.

We don't have such a large market.

2198. And it increases the inducement to merchants to make their payments in the drapery goods which they sell, and upon which they have another profit?-Exactly.

2199. I suppose the reason for paying in goods is really, that you manage to make two profits: the profit upon the drapery, and then the profit upon the re-sale of the hosiery?-For the most part, we have to be content with one profit. No doubt, like all other men, we would be glad to make two profits if we could; but I think it is a rule in the Shetland hosiery trade, that [Page 44] the dealer is quite content if he gets the price for the hosiery goods which he would have paid for them in cash, even with a very good discount off; that is to say, with 10 worth of Shetland hosiery, for which he had paid that sum in goods, he would be willing to sell them for 10 in cash, and 5 per cent. off for cash. He would not expect to get a profit on the hosiery also.

2200. Do you mean to say that a lot of hosiery purchased for 10 you would sell to a merchant in the south for 10, and give him 5 per cent. discount besides?-Yes.

2201. Then you would make a loss?-No; because we have paid the 10 in goods at retail prices, and we have the retail profit on them, which is more that 5 per cent.

2202. You mean that you have a profit on the goods?-Yes; the goods amounting to 10, for which we have got the hosiery.

Perhaps the profit on these goods is 15 per cent.; and if we sell the hosiery afterwards for 10, and take off 5 per cent. for cash, we still have 10 per cent. for our trouble.

2203. That comes to this: that, keeping it apart from your trade in goods, you make no profit upon the hosiery at all, but you will pay 5 per cent. discount to a wholesale merchant in the south for paying it promptly?-Yes; and I believe, in some cases where the dealers in Shetland don't have good connections in the south and good markets, they generally sell at a much lower price. I believe it is quite common in the Edinburgh auction-rooms for parcels of Shetland hosiery to be exposed for sale, and sold at a rate much lower than they could be sold for in Shetland. That, I suppose, is done by dealers who are pressed for cash; and they have to sell their hosiery stocks at any sacrifice, at what they can get for them, because they cannot get them sold in the regular market at a profit.

2204. Does it not seem to you that it would be a more reasonable way, in such a state of matters, to reduce the price of your hosiery?-It would be better to introduce a system of cash payments.

2205. But, whether there was a system of cash payments or of payment in goods, would it not look better in your books, and would it not be the natural way of dealing, to purchase the hosiery only at such figures as would enable you to make a profit upon it?-Yes; that would be better, decidedly. It might practically make very little difference to the dealer; it would just be taking it out of the one pocket and putting it into the other, but it would be more business-like, and a simpler plan.

2206. Is it not one result of that system, that as the merchant runs two risks,-a risk upon the hosiery and a risk (not so great, but still a risk) upon his goods,-he is obliged to make a larger profit upon his goods than he otherwise would?-I believe that is so.

2207. So that the goods are really dearer to the retail purchaser here than they would be if another system were adopted?-I think

2208. You say you are quite ready to adopt a system of cash payments, and to carry it out if it were usual in the trade?-Quite ready.

2209. Is there any difficulty in a single house proceeding to act upon that system?-There has been no proposal made for it.

2210. Do you mean there has been no demand made for it by the sellers of hosiery?-I mean there has been no proposal made among the dealers in hosiery to adopt such a system; and it would be difficult for one house to begin to attempt it unless there was some plan agreed upon, and some tariff of prices. I think it would be necessary, in the first place, to have some scale fixed.

2211. Would the market not fix the prices just as it does in other trades?-By and by I have no doubt it would; but what I mean is, that at the beginning of the new plan, in the transition between the present state and a new system of cash payments there would require to be some sort of agreement.

2212. With regard to those women whom you pay for working, do you generally keep pa.s.s-books with them?-I don't think many of them have them now. In fact, within the last seven years we have not been very much in that branch of the Shetland hosiery trade.

We still have a few knitting to us in that way, and I think some of them have pa.s.s-books.

2213. How many women do you employ in that way?-I could not say precisely, because for several years our shop-woman has attended to that altogether, and the books which I have brought with me are kept by her. I can give her name, and she will be able to give any information that may be wanted on that subject.

2214. What is her name?-Andrina Aitken.

2215. I suppose your books will show at once the number of people you employ in that way?-Yes, these books will show, but I cannot say from memory how many there are.

2216. Has not each woman whom you so employ a page in the ledger?-I think, for the most part, they just settle for each article as they bring it. If a girl or woman is knitting a shawl, she comes in with it; there is a price put upon it, and she settles up there and then for it. If there is a balance, whether for or against her, it is noted up as at that date. We don't keep long accounts with them.

2217. How is it noted?-It is noted in the book at the place where the work is marked as having been given out. The balance is stated there [produces book].

2218. What is that book?-We call it a work-book.

2219. Is it kept as a day-book from day to day?-Yes.

2220. Is that the only book you keep?-It is the only book used for that purpose.

2221. Therefore you keep accounts, because when a balance stands against a woman you have to look back to where the balance is?-Yes; and where work is given out again, the balance is marked against her, that balance being agreed upon between the shop-woman and her.

2222. Is there any index to the names of the women in that book?-No; the girl knows them all.

2223. I see that the entries on two pages of it serve for a month?- Yes; the entries from December 5 to January 2 are all on two pages. These contain all our transactions with that sort of people, and it shows that we have very few of them.

2224. I see here an entry: 'December 5-Barbara Hunter, 11/4 oz.

black mohair. D. 1s.-retd.' Will you explain that entry?-D.

means debtor. It means that the woman got supplies to the extent of 1s. The 11/4 oz. black mohair was the worsted which she got at that time to knit up. Then on the 21st she comes back and returns it. At that time there is this entry: December 21-Barbara Hunter, 11/4 oz. black mohair. D. 1s. 4d., D. 6d.

2225. What does 'retd.' mean in the first entry?-It means that the work was returned on a certain day. The return would be made on the 21st, when she got out the same quant.i.ty of additional stuff, and then the balance is carried forward.

2226. Are there any entries in your books showing how the D. 1s.

or the D. 1s. 4d. was made up?-No; I could not even tell what it was for.

2227. But it was a balance upon goods supplied to her?-Yes. It may have been tea, or some small sums of cash, or anything. Our shop-girl would go over it with her, and they would agree upon it that this was the balance due at that time; and then, when she came back with the work she had got out on the 21st, there would be another balance.

2228. Here is another entry: 'December 15-Christina Sinclair, 2 oz. black mohair. D. 1s. 4d., D. 13s. 3d., D. 5s. 1d.-retd.' How does it happen that, under the same entry and in the same line, there are three separate sums?-The girl came on separate occasions and got these supplies, and they have been, entered separately. She has been back since then, because the work which she got out at that time has been returned.

2229. Then follows the entry: 'December 26 [Page 45]-Christian Sinclair, 2 oz. black mohair. D. 10d. (in pencil), D. 11s. 11d.'

The 11s. 11d. would be the balance on the previous three debtor entries, and the 10d., I suppose, had been got subsequently?-I presume it had been quarter it pound of tea for 10d. Christina Sinclair lives in Hancliffe Lane.

2230. Does she support herself entirely by knitting?-She lives with her father. She knits a good deal on her own account, and comes and sells it to us. These had been some veils and other things, which she makes for us occasionally when she happens not to have worsted of her own.