REGULATING PRICES

Evening Post, Volume LXXXIII, Issue 140, 13 June 1912, Page 3

REGULATING PRICES

COST OF LIVING EVIDENCE BEFORE THE'COMMISSION* fIX TBLBGEAPH— PRESS ASSOCIATION.] CHRISTCHURCH, 12th June. Interesting evidence was given before the Cost of Living Commission to-day. Mr. William Williame, boot machine operator, and vice-president of the New Zealand Federated Boot Trade Workers, stated that twelve years ago; under the log or piece system, the labour cost of a pair of boots was 4e, divided as follows : — 2e for benching, and 2s for finishing. Under the present system the wages cost would not exceed la 6d. This boot would sell for 20s. The last three years was the only period during the past thirty-five years that he had had constant employment. He "had no time" for the retail portion of this trade, as most of the increased cost to the public, as far as boots, are concerned, .was due to the retailers. HOW BOOTS ARE SOMETIMES - BRANDED. Witness said lie had sten exhibited in a, retailer's window boots which bore a ticket describing them as " Clarke's celebrated 22s 6d per pair." On examining them he found them to be of local manufacture, and to have cost 10s 6dl There was no local firm named Clarke. The New Zealand worker in eight hours' work produced more than the British worker m ten hours. The British worker re-~ ceived 36s per week, and the New Zealand worker 46b 6d. To the Chairman : There was one New Zealand factory which produced good work, but stamped their boots "Brockley," " Philadelphia," " British made," or " Commonwealth," for no other purpose than the exploitation of the public. The purchasers, seeing that the boots were branded and appeared to be highgrade American or British bootes, .were prepared to pay the prices asked, whereas the boots were made in a New Zealand factory. The manufacturers in so stamping their goods were out for business, but.it meant that no matter how the New Zealand worker exerted himself he got no credit. Instead of the boot manufacturer being the dominant factor in the boot, trade, tho retailers were the dominant factor. Mr. M. J. O'Brien, boot manufacturer, stated that the previous witness's estimate of the cost of labour (which did not include stitching) was not quite accurate. A boot, the wholesale price of which was 15s, would cost for benching twelve years ago from Is lOd to 2s, and for finishing Is 6d to Is Bd, or an. average of 3s od instead of ,4s. The price nowadays would be about 3s 3d, benching being the samo, and finishing 1b to il« 2d. "There -.was no demand for cheap boots. New Zealand manufacturers could compete with the best imported article. Referring to the brands put on New Zealand boots mentioned by the previous witness, he stated that this was a demand created by the public, and by the retailer. , GENERAL MERCHANDISE. Mr. G. F. Rowe, accountant for Messrs. Fairbairn, Wright, and Co., stated that he possessed some information regarding the sealed prices introduced by the Merchants' Association in September last. His principal considered that the law had been broken by the New Zealand merchants, who had entered into an agreement to control the price of sugar. Letters written by witness's principal to officers of the Government and the Crown, respecting a reported sugar monopoly, were handed in but not read, as legal proceedings are pending. Witness then quoted a number of letters written by. his firm to suppliers or manufacturers of certain leading lines. The fust was to the proprietors of Coleman's Muetard complaining that certain "favoured retailers were supplied at wholesale prices, while others had to pay 12£ per cent, for the goods. In conclusion the writer trusted that Colemans would see their way "either to reduce the profits or permit any retailor ordering a stipulated quantity of your goods to buy direct on equal terms with other retailens. If you cannot see you* way to fall in with our suggestions, wo have no alternative but to accept the Belling conditions." The tariff was submitted by Colemau's in a communication dated 24tli August, 1911. Witness stated that the scaled price (net) for Colcman's mustard in. boxes was 16j., and his lirine pike before the scale was introduced was 14s sd, etarcb. 478 6d, and 45s 6d per cwt. The manufacturers' prices of these articles had not been altoied, but there had been a. reduction in the duty on mustard. ANOTHER INSTANCE. / Oh 14th October, 1911, the proprietors of Neave's Food wrote to his .principals: " Having received complaints from New Zealand merchants as to underfilling of Mr. Neave's Food by the ivjtaJl trade in that Dominion, we have decided that the selling price to the retailers be fixed at 9s 6d per dozen, less "tlio ordinary terms allowed them, and thus ensure the merchants a, fair profit. We have therefore agreed that from the commencement of tlu» year we can only supply direct to merchants who arc willing to comply with these terms, and in receiving any orders hereafter, we shall asbume that the merchants agree to this ■ condition, which we need hardly point out is to their mutual benefit." Witness stated that before the duty was removed the wholesale price of Neave's Food was between 9s 7d and 10s. The scale price at present was 9s 6d, which showed that practically the reduction of duty had made no difference in j price to the retailer.' Mr. Fairbairn: The general public has not benefited?— No. * To whom has that duty gone?—! o the merchants, who have kept it. They have kept that in addition to the- profit made before? — Yes; that is so; and the profit made before was not so great iw it is now. " SUFFICIENT PROFIT." The New Zealand agents of "Sapon ' wrote to his firm on 3rd November, 1911. respecting fhat article stating, amongbt other " tilings : " There is a tariff lor Sapon in Christ-church which we would ask you to sign. When this is done it will give us much pleasure to send on your Christchurch orders. The tariff at prcbcnt operative in Christchurch is. in our opinion, too high, and does iiot h*±% fcufljiciget pruEi in £ejtftij&i»i I>,

is probable that a tariff will he adopted for the wholo ot tho Dominion which will deal equitably with- all concerned." Witness stated that the scale price for Sapon 6d packets, in case lots, was 54s 6d, and life firm's price was 51s. The smaller line 22s 6d' and 20s 6d. MARMALADE AND CONSERVES. Witness further read a letter from James Keillor and Sons, London, dated 4th August, 1911, in which it was staled : — "We have been recently compelled to take steps to prevent- the persistent cutting of our marmalade and conserves in New Zealand, and with this end m view we have effected an understanding with the Merchant Trade Association of New Zealand, which comprises all the foremost and most influential wholesale distributors in New Zealand, by which wo agreed to decline to accept indents, either direct or through London indent agents, for other than members of the association. We can assure you that this action' is taken solely in our mutual interests." HOW COCOA IS SOLD. The proprietors of Van Houten'M cocoa wrote from Wees, Holland, under date 4th August, 1911. complaining that "Messrs. Fairbairn, Wright, and Co., of Dunedin, Christchurch, Wellington, and Auckland, adopted a policy of cutting prices, to the detriment of the tradu generally, and we have been approached with thts object of getting th© firm in question to adopt the ruling prices for Van Houten's cocoa, instead of underselling. ... AYe trust you will bring about the desired result, and we feel sure you will co-operate with us in the matter, as we endeavour .to maintain prices as much as possible in the interests of both wholesaler and retailer." TOBACCO ORDER, REFUSED. Continuing, witness .said that his priticipal had forwarded an order to the British Empire Trading Company for. 14 cases of tobacco and cigai'ettes. for shipment to Christchurch, and, eight for Dunedin. The Dominion representative of the company on 9th October, 1911, after acknowledging receipt of the order, added': "We beg to state, however, that. we are nob at present opening any new accounts, and therefore have not' entertained your order." Mr. Fairbairn: What was the inference drawn from that?— That it was through tho operations of tho Wholesale Merchants' Association. WHERE DO THE PROFITS GO? Witness also quoted examples showing how the prices of galvanised hollowware had been advanced. Buckets, for instance, had been increased in price 20 per cent. Mr. Fairbairn : Who gets the maximum discount 7— The hardware people for quantities of £50. Continuing, he stated that his principal had issued a circular informing the firm's clients that the firm was arranging to import galvanised hollow-ware at prices much less than those quoted by New Zealand manufacturers. Mr. Fairbairn : What is tEe general effect of these advances? Who gains by thorn, when goods are scaled ? — The merchant 'gains by them. They are not passed on to the retailer at all. You know a number of lines scaled that are imported by retailers at exactly the same price that is paid wholesale ?—? — Yes, the public are paying two profits — one to' the wholesaler and the other to the retailer. A FREE AGENT. Mr. A. C. Nottingham (representative of Jeyes's Sanitary Compound) stated that he did not belong to the Merchants' Association, and sold his goods to anyone. The Merchants' Association wanted him to tariff certain articles and sell them 'at a higher price, but he declined. His principals also declined a similar request made in London by the Association. Mr. Fairbairn ! If Jeyes's fluid had been scaled, who would have paid ?— The public would have borne the increased cost. . 1 Is it within your Knowledge that Mr. Harold Beauchainp. until recently chairman of the Bank of New Zealand, chairman of the Merchants' Association of Wellington, and the head of the firm of Bannatyne and Co., called on your principals in London in order to get exclusive control of their manufactures in the Dominion ? — Yes. OTHER EVIDENCE. Evidence was also given by Arthur Smith (carrier), Charles P. Agar (secretary of the Tai Tapu Dairy Company), H. A. Campbell (general labourer), W. R. Gardiner (flourmiller), David Jones (farmer), G. F. Simpson (fiourmiller), and J. N. Defeu (bootmaker). Mr. Campbell attributed the rise in the cost of living to land speculation, while Mr. Jones contended that in tho difference between wholesale and retail prices "a big cut went to labour." Mr. ,Gardiner admitted that the Flourmillers 1 Association fixed tho price of flour, but the i miller got only 4s 8d after producing a ton of Sour.