C.O.D. SYSTEM

Evening Post, Volume CXIII, Issue 125, 31 May 1927, Page 10

C.O.D. SYSTEM

PLEA FOR REMOVAL

RETAILEES' OBJECTIONS

FURTHER INQUIRY PROMISED

The cash on delivery parcels system was the subject of further

representations from the Wholesale

and Eetail Traders of the Dom-

inion by a deputation -which waited

on the Prime Minister to-day. The deputation contended that its

previous arguments had not been

properly investigated, and asked for its case to be reconsidered by the Government. Mr. Coates replied that he would make inquiries from the Post Office officials, and if he thought it necessary he would consider setting up a committee to investigate the objections raised. In introducing the deputation, which he said embraced the Associated Chambers of Commerce, the New Zealand Warehousemen's Association, the it.Z. Watchmakers' and Jewellers' Federation, the Booksellers' Association, and the Drapers, Clothiers, and Boot Retailers' Federation, Mr. T. O. Bishop said they were not satisfied that the previous representations had been properly investigated.

Mr. W. Simm said that certain of the replies received as a result of the previous representations were wholly unsatisfactory. The letter of the Hon. W. Downie Stewart in reply to the last deputation failed to dispose of the claims advanced. "At the outset," said the speaker, "we wish to' establish this position—that we are the best judges of what does or does not affect our own business, and that if we can show that we are being adversely affected in our business by the arrangements entered into by the Government we are entitled to claim an alteration of such arrangements unless it is definitely proved against us that the arrangements, though injurious to us, are beneficial to the community at large. It is quite insufficient reply to our claims to say that we are not being injured or that the degree of injury is not great; we are the best judges of that." :

NOT IN GENERAL DEMAND. v Mr. Simm proceeded to present in detail a complete statement of the case of the deputation against the C.O.D. system, in the hope that the matter would be entirely reconsidered. Discussing the replies of the Government, he questioned whether there was a public demand for the C.O.D. system, and claimed that the figures showing the extent to which it is used in each town definitely proved that there was not;a general demand. Had there been no institution of the system by the Postal Department following one of the Postal Conferences . nothing would have been heard of the demand for the. system in New Zealand. He made it clear

that they had no quarrel with the mail order business, and that if a purchaser in New Zealand wished to send money to England for goods to be delivered by parcel post they .had not the slightest objection. They did object, however, to the Government acting on behalf of British merchants in the matter of collecting and transmitting payments for parcels on delivery. The difference in effect upon New Zealand business of the ordinary mail orders and the C.O.D. system must be obvious. They had no desire to restrict importations, but they objected to the use of the Post Office for a special purpose. They had no objection to the general public making use" of the mail order system so long as the trader in Great Britain who supplied the goods had to take the same

risks as traders in New Zealand in the

matter of collecting the payment for his mail orders. It was submitted that the rapid growth of the C.O.D. system was quite x sufficient, evidence that it constituted a menace to the traders of tho Dominion, especially in small towns. The popularity of ordinary parcel post, the deputation contended, had largely decreased, and if it were not for the in-

troduction of the C.O.D. system a greater proportion of the trade formerly supplied by mail order parcels would now bo supplied by local traders. SYSTEM NOT JUSTIFIED.

After replying directly to other points contained in the letter of the Hon. Mr. Stowart, Mr. Simm said in conclusion that they desired to re-emphasise the point that those they represented were entitled to have their disabilities removed unless it would bo shown definitely that the arrangements of the Government were of sufficient benefit to the whole community to justify placing one section at a disadvantage. "We submit," ho said, "that no proof whatever of the existence of such justification for the C.O.D. systom has been put forward in any of tho communications we have received from the Government. On the contrary, tho letters which, we have received justify only this conclusion—that in building up a defence of a system which was entered into without due consideration of the effect it was likely to have upon tho Dominion, the hon. Ministers have entirely ignored our representations. The alarmingly rapid growth of the system warrants tho strongest possible representations being made by our organisations. It would bo very much easier to deal with the problom now than it will be in five years' time if the multiplication continues at the same rate as for the last three years. We bas ; e our. case upon the obvious injustice which is inflicted upon citizens of New Zealand with capital invested in businesses in the smaller towns, who are takng their share of the duties of citizenship and contributing their Bhare of tho country's revenues, and we confidently look to the Government to remedy their disabilities."'

Mr. C. A. Bowden, president of the local Chamber of Commerce, said the protest had been endorsed by all the chambers in the Dominion, who viewed the C.O.D. system with great concern, and trustedJthe Government would remove "these inequitable provisions." The case stated by Mr. Simm was also endorsed by Mr. M. Hcinemann on behalf of the watchmakers and jewellers.

TRANSFERENCE OF BUSINESS. Mr. S. M. Harrison, principal of the Secretary'3 office of the G.P.0., said the system had been introduced in New Zealand at the request.of the British Government, which asked the New Zealand Government to co-operate with them in the service. The officials of the Post Office were unable to see that the system-had grown to such alarming proportions as had been stated. He admitted that in certain districts, notably on the West Coast of the South Island, there had been great growth in business, but the Department contended that the increase in the parcels system could not very well decline, but must increase in some measure. He suggested that tho increase in C.O.D. busiuess was accounted for by transference from the ordinary mail order system to the C.O.D.

Mr. Simm: "We don't agree with that."

Mr. Harrison quoted departmental figures in support of his contention. Last year C.0.1), parcels coming into tlie Dominion increased by 13,799, whereas the ordinary parcels from Great Britain increased by only 3863 a difference of almost 10,000. The same tendency was shown in the two previous years. It appeared that the public was making greater use of the C.O.D. system. Indeed, protests had been received by the Post Office against any

suggestion of abolishing the system. Bo far as the Post Office was concerned, it was only providing a service "that had been asked for. "

In reply to a question by the Prime Minister, Mr. Harrison stated that- retail firms in New Zealand themselvea had made use of the C.O.D. cystem. Mr. Coates (to the members'of the deputation): "You disagree with thfe Department's reasoning?", •■ ... Mr. Simm: "Entirely*"' •. ■■ .

"The figures rather show that the Department may be right in - what it says," suggested the Prime Minister, Mr. Simm: "We don't think so."

Mr. Bishop submitted that if the C.O.D. was replacing the mail order system, the largest increase in C.O.D. transactions would be in the large centres of population, which" was not the case. He thought the Department's figures were a mere coincidence, and that it could not be stated definitely that the conclusions were true.

Mr. Simm declared that boots and shoes were coming in by the C.O.D. system and "evading the inspection required under the footwear regulations. Importers, on the other hand, were compelled to submit their goods to right inspection to guard against "shoddy." The C.O.D. permitted the regulations to be broken.

PACII.ITIES TOR THE PTOLKJ7" Mr. Coates said he did not know-

that he could say anything at the moment more than that he would go into the matter. He did not intend to fol-

low the mass of argument presented "by the deputation. It was wholly a question of whether the public should he allowed to have facilities for buying abroad.

Mr. Bishop: "The Department Bays they would get just as much service through the mail order system." Mr. Harrison said it seemed to the Department that if the facility granted at the request of the British Government were lemoved it might encourage trade with foreign countries, whereas, the C.O.D. system seemed to tend to encourage trade with Great Britain. (Murmurs of disssnt fiom the deputation). .

Mr. Simm remarked that the C.0.8. system was introduced in Germany before the war, and assumed such tremendous proportions that traders in- the smaller centres were ruined by it: It was most disastrous in its effect 'upoij the smaller communities. . ' . ;

The Prime Minister said it was a matter whether the case made §ut by the deputation was sufficient to' outweigh the point of view of public interest and benefit, Mr. Simm reiterated the objection of the Government acting as the representative of traders in England. Mr. Coateß: "We don't. We say If you like to pay for the facility ~we will take the money for you on delivery.'" "You don't do it for ua/V said Mr. Simm. ■■■ ■ : ■■■■

Mr. Coates: "We do a lot for you. You have the cheapest postage in the wide world, with the exception of America.'' ; .•

_ Mr. Simm: "You give greater facilities to the British dealer than you give to us." He suggested that' the Government should set up ■ a small committee of inquiry. The Prime Minister: "I will consider that, but my main consideration for the moment will first of all centre around, what the disadvantage may be to the retailers and the set-off to the public." He said he would inquire for: certain figures from the Post Office, and discuss ■with Mr. Bishop subsequently the question as to whether it was necessary to carry the inquiry any further. r