ANOTHER PROTEST

Evening Post, Volume CX, Issue 134, 4 December 1930, Page 10

ANOTHER PROTEST

DETRIMENTAL TO TRADE

ACTION TO BE TAKEN

Another protest against the issue of coupons and certificates for prizes was made to the Minister of Internal Affairs (th© Hon. P. A. do la Perrcllc) to-day by representatives of the Associated Chambers of Commerce, tho Dominion Grocers' Association, tho Watchmakers / and Jewellers' Association, tho New Zealand Employers' Federation, tho Wholesale Warehouses Association, tho Wellington Bctailers.' Association, and other commercial associations. It was contended that tho coupons had a most detrimental effect on legitimate business and were injuring both the trader and the consumer. A sympathetic reply was given by the Minister, who promised to place the whole matter before Cabinet immediately. He said that he realised the seriousness of the position. Mr. A. Seed, representing the Associated Chambers of Commerce, said that the system, was pushing itself into tho legitimate channels of trading and was having a pernicious effect, as it was interfering between the trader and the customer. There was no guarantee of continuity with the coupons or no guarantee of value of the goods, and there was a risk of blackmailing tactics being used. Blackmailing might bo a hard word, but some of the processes adopted verged on that word. Tho promoters made a clear profit out of the unredeemed coupons, and the system, had been condemned by traders not only in New Zealand but in other countries. Very few had gone into tho system voluntarily. Tho Act of 1928 had been designed to prevent the system, but apparently there was a flaw in the legislation. They asked the Government to take immediate steps to prevent the coupons being continued. BUYER PENALISED. The president of the Wellington Chamber of Commerce, Mr. D. J. M'Gowan, said it was obvious that no one would give away anything for nothing, and when a third party interfered in trade the buyer had to pay. The- whole thing was pernicious, and they sought Government aid in the matter. At the present time business was bad enough without an extra profit being made from the public. The secretary of the Employers' Federation, Mr. T. 0. Bishop, said that the question had been raised at the annual conference of the- federation at which every class of trader had been represented, and a unanimous resolution had been, passed requesting the Government to take urgent steps to discontinue the system. Mr. Perrclle: "I understand the biggest bugbear is the Universal certificate?" Mr. Bishop said that their resolution, contained a proviso that 'no exception was taken to a trader giving coupons and redeeming them with goods out of his own. stock. "VICIOUS SYSTEM." Mr. J. Myers, representing the Wholesale Warehouses Association, said that his association was thoroughly in sympathy with the move to suppress this vicious system. Although it had been in operation only a short time, they had already had letters from clients stating that they wore being seriously affected by it. In his opinion the > hole system was a deception. In the ordinary course of events a retailer gave 2t per cent, discount, but this now went to the coupon people. In some cases retailors did not give coupons unless they were asked for, and many of these were not redeemed. Tho whole thing was an illicit interference with trading and opened up an avenue for dishonesty. There was nothing to prevent a man with £50, or just enough to print the coupons, starting a system, and then getting away with the cash before redeeming the coupons. It was only a matter of time until other companies started, and it was essential that the matter should be nipped in the bud. "ONLY BEGINNING." The representative of the New Zealand Drapers' " Federation, Mr. W. Simm, said that his body was widely fepresentative and was right behind the Associated Chambers of Commerce on this question. Many of the smaller traders had adopted the system through fear of competition, and there was no doubt that it did stimulate trade, but it had an extremely detrimental effect in tho long run. The system was only beginning, and if it was allowed to continue traders would be forced into it with disastrous effects. Mr. M. M. Heinemarin, on behalf of the Watchmakers and Jewellers' Association, urged that the Government should take the matter in hand as soon as possible. The Universal certificates were already in existence, and another company was starting. There was no question that the coupons would do an infinite amount of harm, and he was sure that those people who had subscribed to the system would be in favour of it being squashed. The coupon companies were having a detrimental effect on the trade of the watchmakers and jewellers and tho fancy goods merchants, as many of the prizes come under these categories. A number of these lines were being imported into the country for prizes—the prizes for cigarette certificates were also having a serious effect on the jewellers' trade, and it was time they were stopped. MINISTER SYMPATHETIC. "I am naturally impressed by the representative nature of this gathering," said Mr. de la Perrelle in reply, "and I feel that there can be no doubt that the coupon system must be having a damaging effect on business. It was suggested to mo yesterday that I should take action in the matter, and, I think you can safely leave it to me. If it is at all possible the matter will be dealt with by Order-in-Couneil, but if that is not possible we will have to wait until next session. According to the Crown Law Office, the present Act is worthless. I acknowledge tho importance of the representations, and I am placing the whole matter before Cabinet." It seemed to him that the Universal coupons wero particularly dangerous to business. A voice: "So are the tobacco coupons." Mr. Perrelle: "Are there any tobacconists represented?" Mr. F. Campbell: "I know that the tobacco people are tired of it." Another member of the deputation said that the directors of W. D. and H. 0. Wills were opposed to the system. In the case of one brand of cigarettes which did not issue tho certificates the effect had been disastrous, and he quoted one large firm which had formerly sold 50,000 of this brand a fortnight, but which now sold only 1300. Mr. de la Perrelle said that they would realise that it might take a little time to put the regulations into force. They would have to give the people an opportunity of redeeming their coupons, but the matter would be placed under consideration immediate]}'. Mr. Campbell said that do exception could bo taken, to a trader issuing

coupons and redeeming them with his own goods. That was only another way of giving discount, but they strongly objected to the cigarette coupons, tho Universal certificates, and similar schemes.