TOBACCO TRADE.

Auckland Star, Volume LXV, Issue 115, 17 May 1934, Page 8

TOBACCO TRADE.

PRICES STABILISED. CIGARETTES UNAFFECTED. SCHEDULE FOR RETAIXERS.

The first step in the direction of stabilising the retail prices of tobacco and cigarettes has been taken by tobacco manufacturers and agents, who have fixed minimum prices for most lines. Cigarette prices remain practically unaltered in Auckland, but some of the leading brands of tobacco have been advanced approximately one penny a tin 011 the lowest cut-rate price. A schedule has been drawn up for the trade setting out the minimum prices to be charged for 29 different brands of cigarettes and 78 brands or grades of tobacco, both tinned and plug.

In a circular sent out signed by twenty manufacturers and agents it is stated that the prices have been fixed fpr the protection of the trade. "In removing tobacco and cigarettes from the schedule of the Commercial Trusts Act during last session," states the letter, "Parliament signified its wish, that the extreme cutting of retail prices should cease, ill order that the retailer, who is dependent upon this business, should be given a reasonable chance to live. The issue of a comprehensive list of fixed prices by manufacturers has been deferred pending the new customs tariff expected to be introduced next session, i '-'Complaints have recently been made to manufacturers that owing to the delay retail ' prices ' have been advertised in some quarters which are so low that they ineaii cost prices or even less than cost, .to the tobacconist. To deal with an outbreak of this extreme price-cut-ting in Wellington, representative sections of the retail trade there, in cooperation with manufacturers,, agreed upon "a list of minimum prices, which took effect in Wellington on April 23, and at the. suggestion of the Wellington -District Retail Tobacconists and Hairdressers' Association a similar list (but including additional brands) is now being issued to deal with the position throughout the Dominion. It should-be clearly understood that these -aie minimum prices, and where fail- prices in excess of the minimum are already bein" obtained these should continue. "The manufacturers and agents have decided that the' giving away by the retailer of matches, cigarette papers, cash coupons or any other articles with cigarettes and tobacco will be regaided as equivalent to selling below the fixed minimum prices. The practice of oflcr-in-r cigarettes and tobacco tor sale in combination with other articles (e.g. offering for sale as one parcel a packet of cigarettes- and a lighter) will also t>e regarded as equivalent, to selling below fixed minimum prices."