“MONOPOLY FOR BIG MAN”

Evening Star, Issue 21054, 17 March 1932, Page 17

“MONOPOLY FOR BIG MAN”

DISCOUNT ON COKE PURCHASES OPPOSITION TO PREFERENCE CONCESSIONS To counteract a threatened Joss oi : business the City Council last night decided to offer a concession to large purchasers of coke from the gasworks, despite the protests of Cr Clark that the big consumers would benefit at the expense of the small consumer. Cr Wilkinson moved ,tbc adoption of the Gas Committee’s repo/t, which stated:—“Tho committee recommends that, with a view to encouraging the sale’of coke, particularly in the case of those customers who are prepared to take large quantities, authority be granted to' allow a discount of 5 per cent, on monthly accounts' for lots of 100 tons and over per month, and 2;} per cent. v on monthly accounts for lots under 100 tons and not less than 50 tons per month. There are ample stocks of coke available at present.” He said it was more economical to deal in coke in largo quantities than' small, owing to the reduced waste. The recommendation was made with a view to more extensive sales. The cost of coke was £2 10s a ton. The small consumers had to be considered, bufj they would be no worse off, as coke would be obtained at the present price. Cr Clark reminded councillors that the same proposal had been made on two previous occasions, when ic was emphatically rejected. There was then so much coke in the yard that oho could hardly mqve, but before long the department was hunting round to get coke to supply the demand. The council was set against a monopoly to the big man, and representations were placed before the council then by many of the small dealers that they wohld be crushed out of the coke business. It was unfair that the big consumer should benefit at the expense of the small man. The giving of a concession might be sound business, but it was not fair. Fast experience had proved that an accumulation of coke was an advantage, and if the committee had considered all' the matters the recommendation would not have been made. Some of the councillors would remember the starvation of coke supplies a few years ago. Cr Marlow; There will bo nothing like it again. Cr Clark: It will come again. Cr Begg said big supplies were hold at Christchurch, Invercargill, and other towns.

Cr Mitchell asked if the proposals would increase the sales.

Cr Begg: No. It will keep the other fellows out of the picture. “ What other fellows?” asked Cr Clark, and Cr Begg replied: “The Gasworks.” Cr Clark: The price will keep them out. Cr Wilkinson said consumers were considering purchasing coke from other sources. The largest purchaser had definitely made up his mind on that point unless he obtained a concession. “Good old bluff,” commented Cr Clark.

“ This does not in any way penalise tho small consumer,” said Cr Wilkinson. “Ho can get his coke so long as it is available.” Cr Clark: The other man can sell it cheaper. Cr Wilkinson said this was a detail in the working of the department, and ho took it that tho gas engineer could give better reasons than Cr Clark for his suggestion. “Has ho never made a mistake? asked Cr Clark. Cr Wilkinson: 1 do not make that claim 1 for a minute, but if the manager of a department makes a reasonable suggestion there should bo something obviously wrong before it is turned down. The report was adopted.