PRICE-CUTTING PROBLEM.

Auckland Star, Volume LXI, Issue 173, 24 July 1930, Page 6

PRICE-CUTTING PROBLEM.

A MANUFACTURER'S VIEWS

(To the Editor.) The fact that Mr. J. 0 . Sheerer .J the Auckland branch of the Economic S on the question of unprofitable p rice calls for some comments on his vom , taking for his title "Unfair GomS S '., ltt clearly shows that Mr. Shearer S m « are "wrongs to be righted." csting to know what evidence Mr Sh» er ' adduce to support his statements tw r Cati facturers desire to repeal certain 1 .®a»uand that an effort is belli* made\ 8 -' Slatioi > prices to the public. Mr. Shearer aLlrf ease rectly ascertain the desire and wishesl moving to try and improve the nrew ° Se unsatisfactory conditions. The "l Ver ? trade is, with others interested • battle to try and prevent the present » 8 a waste and the Economic Society 'si,!?®'' operate to try and improve rather ttoTS ° 0 ' Mr. Shearer suggests, letting' matter! tI s themselves. In the meantime as a g pondent has just, pointed out in vour »Bala,,c o - s hcets of public, p, and firms generally show a great 66 profits, and in a large numbSo& eof losses, thousands of decent men have hadm or no work for many months, and hav, their savings shrink and disappear " r ' 1 sound economy to say that the public f n = " extent benefits from competition from 2 fitable price cutting? At a.recent large?!? nig of the trade it. was stated.' that grocers and distributors were bein? formal, serious difficulties. They were beina comn . J to trade on a. gross profit of six per ceriSl less and employees had .to be dismissed a! such conditions in-the best interests ' n f T community? Mr; "Shearer referred to i existing legislation, but.', overlooked tho 2 that the Board of Trade Act empowers it .Government to give permission to fix maxim ,! or minimum prices and the right to coat same. Mr. Shearer's cost of electric tt tram fares are fixed by Acts of Parliament Surely, therefore, it is only fair if- the c cumstances .of many private traders demand it to approach the Government with a view k asking consideration of any reasonable m posals to improve the'present serious condi tion of trade. If the Government interest 011 capital outlay being secured is it wrong for'citizens whose capital is invested in wholesale and retail distributing seeking, fair and proper means, to protect their rights' If Mr. Shearer is conversant- with ■ the present position can he suggest a sound Ctimmon-semc J remedy for the disturbed and disastrous conditions of trading amongst wholesale' and retail distributors of household commodities! The problem of "checking price cutting," which affects the wholesalers, retailers and, manufacturers, is being taken up earnestly throughout the Dominion., So it is apparent that any constructive help Mr: Shearer and the Economic Society can' render will be very welcome •V . . ,' . R. H. A. -POTTER, '