UNDER COST TRADING.

Auckland Star, Volume XXXIV, Issue 216, 10 September 1903, Page 2

UNDER COST TRADING.

(T<J the Editor.)

Sir, —I note with satisfaction the remarks in your commercial column of "Star" re excessive cutting prices by many retailers. Sir, this is an evil that calls for legislative action. Just fancy retail grocers selling many lines at a rate much below the wholesale cost in order to secure an increased trade! But the evil effects recoil on themselves, for this wholesale under cost trading has the effect of reducing all lines and bringing traders to a condition bordering on despair, and in its wake reduces rents, wages, etc., and must lead to nefarious methods of all kinds, including short weight, adulteration, etc. And who benefits from all this foolish, not to say insane, woxk? The puFie, more especially the lower and middle classes, who,to their credit, have established their own various trades and callings on a firm and secure basis by the arbitration enactment. True, the Court has adjusted hours, wagea, etc., in the grocery trade, but still this under cost trading goes on. The only solution of tiJs evil is one step further, by. legislation, in making it a penalty to sell any commodity below the market cost. While wholly deprecating high prices and profits, I maintain 'that there is a limit and a fair thing as regards retail profits. The wholesale houses are muich to blame for offering these cutting traders certain inducements ' and advantages, thereby conducing to this state of things. I think it can be safely said that na wholesale house is foolish enough to sell under cost, and I give them credit for it. This illicit class of trader should be discountenanced by the wholesalers till prices are adjusted.—l am, etc., FAIR TRADER. .