PRICE-CUTTING.

Press, Volume LXVI, Issue 19974, 8 July 1930, Page 12

PRICE-CUTTING.

EFFORT TO CHECK PRACTICE. [THE PBESS Special Service.] AUCKLAND, July 7. An endeavour to obtain legislative power to enable manufacturers, wholesale merchants, and retail distributors to fix "fair maximum and minimum prices or rates of proprietary articles" is being made by Auckland grocers. The object is to check price-cutting, which is rampant in the grocery trade. A resolution passed at a largely at tended meeting of retail and wholesale grocers, together with a number of manufacturers and their representatives to-night urged that the Government be approached with a view to amending the existing legislation and giving authority to mauuracturers and distributing interests to fix and control prices and rates of proprietary articles. It was also decided to appoint a committee to draft "proposals for submis; sion to another meeting to be held in three weeks' time. These proposals, if approved, will be brought beiore the Government.

Explaining the grocers' objects, the chairman, Mr W. J. Evans, said there was no intention to be hostile to anyone. Grocers needed co-operation of manufacturers and traders in combating a serious evil. lie mentionod specifically the competitive prices at "cut price stores.'' Mr R. H. A. Potter, who moved the resolution, said the present economic difficulties of grocers consequent upon the world movement of prices were being aggravated by unnecessary and absurd cutting of prices. The Board of Trade Act, 1919, actually provided for the establishment of maximum or minimum prices, and so paved the way for -united action. To allow articles to be sold at a loss, even though the public benefited temporarily, was an absolute national waste. It was the duty of the Government in uuch a case to see that the manufacturer made a fair margin of profit in order that the national capital and tho national wages bill might be protected.

AUSTRALIAN STOCKS.

A BETTER MARKET. Discussing the position of Australian stocks, H. Byron Moore, Day, and Journeuux, sharebrokers, Melbourne, state in their ninthly Review for June that tho best market for several months was experienced on the Melbourne Stock Jixehango during the cany wecKs ot June, wiioii consiuoruojo activity ami rising pricey prevailed. Die movement was more or less professionally inspired, being principally covering up operations by "boar i>ellen>, in anticipation ol better conditions following the widespread ruins and encouraging reports from pastoral and wheat areas, together with the settlement of the prolonged coal dispute. l,ack of selling orders and the cautious attitude of "bears" resulted in higher prices for most of the front rank industrials. The strongest section of the market has been the demand for firstclass preference shares, and tho allround increases in prices. Tho average return on tho principal stocks is now almost one-half per cent. lower than was obtainable a month previously Whilst the demand for this class of stock has strengthened, tho offerings have become smaller. > "We are now approaching,' continues the Review, "June 30th, which is the close of the financial year for the majority of companies, and in tnjp next three • months ■ balance-sheets will be freely released, in many instances reflecting the difficult trading conditions through which we have passed With the reduced profits which may he expected it is onlv natural to as* sume that further reductions in dividends will be essential. Fortunately, most of the leading companies have strong reserves, good liquid resources, and competent management, which is a vital factor.in determining the policy of directors in regard to dividend distributions. Other companies in less fortunate positions in this regard inay be compelled to husband their resources and profits in order to preserve their financial strength, ®the outcome _of which may mean the passing of dividends. Other factors to be considered are the possible effects of increased taxation, which is certain to be dis. closed bv Federal and State Treasurers in budgeting to meet their deficiencies, preliminary forecasts of which reveal a total exceeding £9.000,000 Taking everything into consideration, it would appear that still lower prices will prevail in the immediate future for most ordinary shares, but to those investors who are prepared to take a long view, opportunities will be presented to acquire investments at attractive prices to look awav for future benefits. The Pastoral Companies. Discussing the position of the leading pastoral companies in the Commonwealth, the Review states that "without being unduly optimistic, we feel sure that there are strong reasons to suggest that the industry has received its severest shock and that a more hopeful outlook in the future may be taken. The splendid widespread rains throughout the principal pastoral areas and the improvement in wool orices arc factors which should not be overlooked by the investor. • With a return to more normal conditions ana the lifting of the prevailing financial stringency, this section of the market should respond, as it-has in the past, following similar depressions. After completely surveying the position of all companies, those which appeal to us as the most attractive at present prices are Goldsbrough, Mort and Co., at 31s 3d cum dividend of Is per share, and Younghusbnnds, Ltd.. at 335, the respective returns being 6.61 per cent, and 7.01 per cent." A comparison of the market as between August 31st. 1929. and Mav 31st, 1930. shows that the price of the former stock declined in the nine months from £2 7s 6d to £1 12s 9d. and of Younghusbands from £2 7s to £1 12s 6d.

dairy produce. The New Zealand Dairy Produce Board he* received the following market report from its London office, dated July 4th.— T> t ittpr——New Zealand, Halted, July 4th, 1980 to 136 a (last week 135s to 188 a) ; unsoited. 146s to 150. (146. to 150.); first whev 128n (128b); second whey, 126s rt26s) Deliveries New Zealand this week. 755 ton.: in store New Zealand this week. 11 258 tin. Australian, salted, 182s to 188. extra 186s (132s to 185g); unsalted, 132't0 134s (132« to 134.): Argentine, inunited 124s to 130s. extra 138s (124s to 180b) ': Irish cream, Baited, 136s (186.); unsalted 140s (140s); Danish, 142s f.0.b., 148 s to 148s spot (140s. 1465): Dutch, unsalted, 146s to 150s (146s to 148s); Esthonian, lill. Siberian, 130, (130s to 1325): Ukranian, 132s (1325); Polish. 110s to 126s (108s to 1265); French baskets, salted. 138s to 140s (138s to 140s). Market quiet. Danish retail price increased to IS Cheese—New Zealand, white. 75s to 765. extra 77s (75s to 775); coloured. 81. to 82s, extra 83s (82. to 84s). Demand improvinc. Deliveries New Zealand this week. 23,850 crates: in store New Zealand this week, 122,056 crates. Australian, white, 74s 0755)! Canadian, whi(# 78s to 83s (82)'; coloured 80s to ' 83s; c.t.x.. 78s. Market quiet. • Deliveries Canadian, 4000 boxes; in. store Canadian, 110,418 boxes.