ARE TRUSTS HARMFUL?

Auckland Star, Volume LVIII, Issue 43, 21 February 1927, Page 4

ARE TRUSTS HARMFUL?

—— — THE TREND OF COMMERCE. 1 N.Zi WOOLLEN MERGER URGED, i Addressing the members of the Insti- c tute of Chartered Accountants recently, and referring more particularly to the '' British chemical combine with an issued capital of £57,000,000, Mr. Phillip Snow- ( den, who was Chancellor of the Exchequer 1 in the Ramsay Macdonald Labour Govern- l ment, said: "These amalgamations will . tend to become not merel national, but international in character, and I look for- . ward to the development of international trusts as a great instrument in the preservation of world peace. I have had occa- - sion in the United States, that classic . land of trusts, to go into the question ' thoroughly, and I came to the conclusion, without hesitation, that the general effect ' of trusts in the United States has not j been to increase prices.''" { r Following up this theme, the "Mercantile Gazette" says:—There are several industries in New Zealand that admirably lend . themselves to merging, and chief among these are our woollen mills. It would seem ' that if we had fewer of such mills in the Dominion there would be benefit to the shareholders as well as to the consumers. Overhead charges would be greatly reduced, and there could be specialisation in production and mass production of the "bread- ' and-butter' : lines. There is no reason why an export trade could not be developed, * especially in travelling rugs, for which a . world-wide demand could be created. It ' requires somebody to take the initiative . in the matter, and, although it may seem ■ a big problem, it will, on examination, be found not a difficult one to solve. Those controlling the secondary industries must get out of the groove into which they hare worried themselves and cultivate a wider vision. Trusts or combines are not harm- ; ful to the community when properly controlled.