Pearlshell Price

Efforts To Stabilise Industry

Letter to the Editor WE note that you state in October, un der the heading of “Pearlshell,” that the contract for the 1949-50 season, made recently between the majority of the Torres Strait pearlers and the principal USA Mother-of-Pearl shell-buyer (under which Thursday Island shell was fixed at prices ranging from £A32O to £AI3S) has been made void by the recent devaluation of the Australian £• and that TI pearlers are negotiating for a new contract at prices that will return them something like last season’s rates.

As we are the Australian Agents for the Otto Gerdau Co. of New York, which took these contracts with the pearlers at Thursday Island, we desire to give you the following information, and trust you will make a correction.

In the first place, the Otto Gerdau Company took these contracts with the Thursday Island pearlers for a three years’ term, at contract prices fixed at £325 a ton FOB, TI, for Sound Grades; £225 for D Grade; and £125 for E Grade.

These were only the commencing prices, and were subject to bonuses, which would be paid by the Otto Gerdau Co. as they succeeded in stabilising the market price.

They are aiming at a stabilised price in the vicinity of £4OO a ton, FOB, Thurs day Island; therefore, these contracts have never become void.

Some three weeks ago the Otto Gerdau Company were able to declare their first bonus of £25 a ton, now bringing the contract prices for the Thursday Island pearlers up to £350, £250 and £l5O, respec tively. This bonus of £25 per ton was retrospective from the commencement of the season, and will remain in force until such time as the Otto Gerdau Com pany are able to declare a further bonus.

We would point out that the Otto Gerdau Company is doing a mighty job, on behalf of the pearling industry gener ally, in endeavouring to stabilise an over seas price which will be a safeguard for the pearlers individually. Therefore, we feel that they should receive the full sup port and co-operation of all who are in terested in the industry.

We are, etc.,

Brown & Dureau Ltd.

251 Charlotte St., Brisbane.