CEMENT ALLEGATIONS.

Press, Volume LVII, Issue 17277, 15 October 1921, Page 9

CEMENT ALLEGATIONS.

SCOPE OF MR JUSTICE SIM'S ENQUIRY. (press association telegrams.) WELLINGTON, October 14. A warrant appointing the Commission under tlio Commissions of Inquiry Act, 1!)0S, promised by the Government, to inquire into and report upon allegations made recently in the House of Representatives by .Mr 11. Masters, member for Stratford, relating to the production, distribution, importation, and price of cement during certain periods of control bv the Board of Trade, was signed this morning by the Governor-General. Ihe Commission is to be Mr Justice Sim. The scope of the Commission was made available this afternoon by the Minister of Industries and Commerce. It is as follows: — (1) Whether the Board of Trade in December, l'Ji-'O, in maximum retail price of cement of New Zealand manufacture of £9 13s 6d per ton, ex store, Wellington, was guilty of anv impropriety or of a grievous error ol judgment. (2) Whether companies manufacturing cement in -Vow Zealand during the period )f acute .shortage of cement from January Ist. 1920, and thereafter, took advantage of the excess of demand oyer supply to extort unreasonably high prices from the public. (3> Whether the agreement dated May oth. 1921. set out in the schedule hereto constituted an offence- against the Commercial Trusts Act 1910, or any other Act, or was in any way criminal or illegal. (4) Whether the price for cement of New Zealand manufacture was directlv or indirectly determined, controlled, or influenced by the parties to the agreement in such manner as to make the price unreasonably high. (5) Whether the said agreement ,">as in anv manner operated detrimentally to the public interest. (6) Whether the Board of Tiade, i.-e----ing aware of such agreement, was lacking in any duty in taking no action with respect to such agreement. The date upon which the Commission is to sit will be decided by Mr Justice Sim. DISCUSSION IN THE HOUSE. (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, October 14. Jn the Houso of Representatives this afternoon the Hon. E. P. Leee, in reply to Mr T .M. Wilford, stated that the order of reference in connexion with the Cement Enquiry was now in the hands of Mr Justice Sim, and it was for him to fix the date of the enquiry. Mr Wilford said there were several directions, in which ho thought the order of reference should bo ahiended. In the first place the period over which the enquiry was to extend started with January Ist 1920, when it should have been 1918, for that was the period covered by Mr comments, and on which he based his calculations. The order of reference also spoke of the retail price, ex store, Wellington, win e Mr Masters had spoken of the wholesale price at the works. Another clause in the order of reference asked the Judge to sav whether the agreement made between tho Cement Companies constituted an dffence against the Commercial Trusts Act 1910, or another Act, or was in any manner criminal or illegal. He suggested that the last part of this should bo altered to read "criminal, illegal, immoral or in restraint of trade.' He further suggested that the Judge should be asked to enquire into the Gov*eminent's knowledge of the agreement ertered into between the Cement Companies. The order of reference only mentioned the Board of Trade. The Hon. 15. P. Lee: That, is the same thing. . Mr Wilford contended that it was the same thing, and the enquiry should go into the question of whee.ier or not the Government had knowledge 'if the agreement. He also asked that counsel aro aid be allowed to appear at tue enouiiy. ' JVIr Lee: That is for the Judge to Mr Wilford: I know it is, but the Government can assist. Mr Lee: I do not object. Wo vill ask that, counsel'be allowed to appear. Mr Wilford said Mr Masters wish** ..> get counsel from a distance, and he wanted to know' 1 if the Government would pay his costs. Mr Lee: That is another story. The Hon. W. Nosworthy: You must attend your own funeral. STATEMENT BY MR MASTERS. (PBXSS ASSOCIATION TELEGRAM.} : WELLINGTON, October 14. . '- Mr It. Masters, M.P., who mad© charges against the Board of Trade, the Government, and the Cement Trust or Combine, was interviewed to-night by $ Now Zealand "Times" reporter regarding the order of reference for the Commission of Enquiry. Mr Masters asserts that the order of reference is far too limited m its scope, and that it appears to be made with a view to burking full enquiry, such as the public require in their own interests. Referring to the sections of the order of reference in detail, Mr Masters pointed out that the scope of the enquiry was limited to the period between January Ist, 1920 and March, 1921, whereas for the purpose of considering the companies' procedure it was necessary to go back to January ' 1918, because his charges referred to transactions on that, date. He further pointed out thai in Clause 1 the enquiry was limited I o the question of the maximum retail price in Ne.v Zealand, whilst his charges wore specifically directed against the wl Jesale prices. In no portion of r.is speech did he refer to retail prices at Wedi ij-to-1 of £9 13s 6d per ton, or any other retail prices, as stated in this section; in fact ,in reply to the Minister, he itaiM distinctly that the basis of the charge? lva-" the price charged at the '. v ork-. Another point raised by Mr Master? wns thai while he emphatic"lv stated that there had been restraint of tra-io no trenlion in plain terms of this charge was to be found in the Ministerial order of reference. Instead, the Minister in Clause 3 asked whether the transaction or agreement constituted an offence against the'Commereial Trusts Act 19U', while everyone knew full well that an offence was only possible under 'lie provisions of that Act if the commodity ccr.eerned was specifically mentioned m the schedule of the Act, and cement was not so mentioned. In conclusion, Mr Masters said he made the charges solely 'in the public interest. Only an enquiry of the fullest scope, with tho widest order of reference would satisfy him. If these were given, then, he said, he would undertake to prove every charge made.