GOAL VEND.

Dominion, Volume 2, Issue 313, 28 September 1908, Page 7

GOAL VEND.

THE ANTI-TRUST PROSECUTION. (HI TEI.EGBAFH—PRESS ASSOCIATION— COrTKIOHT.. Melbourne, September 26. In connection with the anti-trust case against the Huddart-Parker Company, one of the questions ' put was ' whether the agree monfc to carry coal applied to New Zealand.

CRITICISM OF THE VEND. Saturday's cablegrams stated:—"Summonses have been obtained by the Federal Crown Solicitor against the Huddart-Parker Company for ha-nng refused'to answer questions put to them under the Anti-Trust Act. The questions had reference to an alleged coal vend agreement between tho coalowners aud the steamship companies. The case is to be hoard next Monday. • ■" f : * *""*1 vend"—an agreement between the colliery owners and the steamship companies, alleged to be in restriction of trade—was brought into prominence last year by the rofira' ?f a caren to the Ennerdale at Newcastle, It was alleged that the agreement of the colliery owners to s.ell only to certain shipping lines at fixed prices, and the agreement of the auos to buy tie whole of their coal iroin the said colliery owners, prevented any person outside the combination from doine business. With regard to the question mentioned in the cablegram—whether the agreement applies to New Zealand—the coal vend agreement as published in the Australian press contains the following clause:— 1. Thei vendorsi.agree,to sell to the purchasing agents the whole of the coal which may be required by the purchasing agents to supply the trade of the States of Victoria, South Australia, Western Australia, and Queensland. Such coal snail be gotten from the collieries mentioned in the schedule hereto, or from some of them, and shall be of the quality usually obtained irom such collieries respectively. . In connection with the Ennerdale incident, nowevor, it was alleged that the effect was to prevent any new "bottoms" entering into the Australian-New Zealand coal trade, unless under chafer to the Union Company or one of the steamship lines in the combination. It was pleaded on the other hand that the regular shipping lines had a right to protection from the dumping proolivities of tramp steamors with a rovinr commission, which occasionally, having nothing else at the mement to do, would load, up with coal at Newcastle for New Zealand at a cut freight. The form of contract note used in the Australian shipping trade was printed in one of the Sydney papers. Under it the purchasing steamship company agreed not to re-sell for export. Tho paper also published an internew with "an authority," who saidr— ' Tliero can be no mistaking the fact thai these documents (vend contract note and a»reeme i-i p T, ove beyond .any doubt that persons outside the combination cannot do any bnsint .What good is it of anybody buying coal; when he is not allowed to resell it for eiport as cargo? The purchaser being,provented from .reselling c.i.f, in Sydney, is deprived of tho option of going 'outsido the interstate combine for freights. The whole conditions are such as,to bo absolutely prohibitive to business outside the combination. If a man has a colliery of his own, and be outside tho vend, he cannot, expect to carry on for any length of timo selhnjr below vend prices. Bathor than permit of this. underselling, tho vend would put down a colliery close by to work the samo seam, and run that man off tho market by sqllm? similar coal at considerably less per. ton. Thus, tho vend not only regulates its own output and prices, but exercises, at the same timo, an influence over tho output from collieries which are not in it. Through the interstate shipping combines tho vend has a farreaching effect. For instance. Southorn coal, owners, for tho most part, will not quote or sell coal unless they aro satisfied whore it is going, what price tho purchaser is getting for it, and for whom it is beinp; shipped. The man might put up a dummy to havo the coal landed for him, but, if ha does, tho rate of freight will be sueh as to render the business unprofitable. The Melbourne Steamship Company is supposed to be outsido the combine. But, the fact remains that it is said to have refused to carry coal when tho consignee would not say which colliery it was from or for whom it had been purchased." A considerable section of Australian steamshipowners also have capital in collieries. Tho Newcastle miners, it seems, support tho "combine," because wages are based on prices, and the miner, therefore, Sees the wisdom, from his point of view, of controlling the price to the outside worldt ■ J