CORRESPONDENCE

Evening Post, Volume LXXXVI, Issue 52, 29 August 1913, Page 10

CORRESPONDENCE

COMMERCIAL TRUSTS TO THE EDITOB. Sir, — i\ly attention has been drawn to a letter signed by "Small Trader" which appeared in your issue of the 19th inst. In face of the fact that the evidence and findings of the "Cost of Living Commission," and tho Supreme Court, and the recent. Court of Appeal's judgments, definitely prove that trading combinations are in existence in New Zealand, and have raised prices to the public, the statement of "Small Trader" that "it has neve"r yet been proved that the public has been charg- | ed unreasonable prices or exploited in any way" will deceive no one with a kowledge of the facts. "Small Trader" asks : "Does Mr. Fairbairn give as big a proportion of discounts on his agency lines to the retailers as he did on sugar?" When giving evidence in the Supreme Court in November last, I offered to produce my firm's price-list to his Honour the Chief Justice, for comparison with members of the Merchants' Association prices of even date; that offer was refused. I now have in my possession price-lists of members of the Merchants' Association, and, in order to definitely settle this question, I solemnly pledge myself to retire from business, to dispose of all my possessions, and give the proceeds to public charity, if an impartial audit discloses that my firm's prices are now in every instance lower than those quoted in the price-lists referred to, with the sole exception of scaled lines, where^ prices are fixed by suppliers, generally at the dictation of merchants' associations. The only stipulation I make is that you will agree to publish the comparisons for the information of the public. The essence of "Small Trader's" contention is that some 48 merchants, having combined, are entitled to meet secretly, make full use of contemptible boycotting tactics, and dictate what the people of New Zealand shall pay for commodities. As the law now stands, it is not illegal for such operation's to take place, except only in respect to sugar, flour. Oatmeal, tobacco, kerosene, and fish— which at present come under the scope of the Commercial Trusts Acts. There are, approximately, only 1 2,000 people ; in New Zealand who are paying income-tax (about two-thirds of this number's incomes are from £300 to £700 per annum), so that 95 per cent, of the people's incomes are less than £300 per annum. A close analysis shows that the increased cost of commodities to the consumer, as the result of trade combination, is fully 10 per cent., which means that a working man with a wife and four children to support, having an income of £120 per annum, is compelled to pay £12 more for common necessaries of life , consequently, he is denied £12 worth annually of extra comforts which he is clearly entitled to in exchange for his labour. "Small Trader" may consider this "Socialism." I call it simple justice. Until recent years "commerce" was unexplored territory as far as the gen eral public are concerned. The "land question" and the "liquor question" have for many years been the storm centres of political warfare, but recent statistics show that less than one-fourth of our population ate directly employed on the land (pastoral, agricultural, horticultural, and dairying pursuits). Commercial trust operations, which are free to increase the cost of commodities to the whole community,' must surely be a public question of the first magnitude, as their operations affect every household in the Dominion. Tho legislation now being effected in U.S.A. is destined to reduce the cost of living in that country, and throughout Europe similar legislation is demanded by the masses. In Great Britain the position is largely safeguarded by its free trade policy, which prevents exploitation by leaving the door open to outside competition. Anything that I have done in connection with "commercial trust" operations' has been in the most open manner, and has been subjected to the fullest investigation and cross-examination in the Supreme Court. Can "Small Trader" say that the Merchants' Association have been equally open and candid? The utterly false references to myself and my firm are not matters of public moment. My conscience is that my public actions are against my own and my firm's private interests. The very fact that my firm have repeatedly refused to join an association of merchants, who have in every instance used their combination to raish prices, must be convincing proof of this statement.— I am, etc., ANDREW FAIRBAIRN. Christchurch, 23rd August, 1913.