A PIPE COMBINE.

Auckland Star, Volume LIX, Issue 118, 21 May 1928, Page 4

A PIPE COMBINE.

DRAINAGE BOARD PERTURBED. ORDER COMES TO AUCKLAND. Something in the nature of a bombshell was sprung at the meeting of the Christchurch Drainage Board last week, when Mr. H. G. Livingstone made a declaration that there existed in New Zealand today a combine, or a trust, of earthen-ware-pipe manufacturers whereby the price and the output of pipes was controlled by a monopoly, much to the detriment of the public and the local bodies of the Dominion. He supported his allegations by a copy of an agreement which he claimed was in operation.

The agreement, as published in the "Christchurch Press," is alleged to have been made on Novemfber 25, 1926, between P. McSkimming and R. J. Murphy, on behalf of the Earthenware Pipe Manufacturers in Christchurch, including the Canterbury province and the West Coast of the South Island, on the one part, and W. McK. Jeffrey on behalf of the Hume Pipe Company (Australia), Limited, Christchurch, of the other part.

By the provisions of the agreement: 1. The earthenware pipe manufacturers agree not to manufacture any pipes or fittings over nine inches in diameter with the exception of field pipes as termed by the earthenware pipe manufacturers.

2. The Hume Pipe Company agrees not to manufacture any pipes or fittings of less diameter than nine inches for sewer or culvert purposes, excepting sewerage or water pressure pipes in competition with iron or steel pipes for a similar purpose, or, in those cases were reinforced concrete or iron-steel pipea are specified to carry out work where earthenware pipes cannot be used. Where such special pipes are required, the Hume Pipe Company shall advise the Earthenware Pipe Manufacture!* before tendering.

3. It is agreed by the parties to the agreement that cable or telephone conduits shall be excluded from thep revisions of this agreement.

4. The Earthenware Pipe Manufacturers and the Hume Pipe Company (Australia), Limited, agree to charge equal prices for nine-inch diameter pipes, viz., 2/6 per foot with discounts as enumerated in clause nine.

5. It i* mutually agreed that the price of second quality nine-inch diameter pipe* shall be 2/3 per foot.

6. The Earthenware Pipe Manufacturer* agree to pay the Hum§ Pipe Company (Australia), Limited, a commission of 10 per cent on all sales of second quality nine-inch diameter earthenware pipe*. 7. The Hume Pipe Company (Australia). Limited, agree* to pay the Earthenware Pipe Manufacturers a commission of 1U per cent on all sales of second quality nineinch diameter concrete pipes. 8. The Hume Pipe Company (Australia), Limited, to have the right to supply the Christchurch Drainage Board with all their requirements of nine-inch diameter and upward* pipes and fitting* during the currency of thi* agreement, while the Earthenware Pipe Manufacturer* hereby agree not to supply the Drainage Board with any of their requirement* for nineinch diameter pipe* and over thi* size during thi* period.

After the agreement had been read the board decided to accept an offer of an Auckland firm, which has not been a party to the arrangement outlined, to supply pipes and fittings to the amount of £5000, delivery to commence in August and to be •pread over twelve month*.