CASH ORDER TRADING

Greymouth Evening Star, 2 August 1929, Page 8

CASH ORDER TRADING

PROPOSED RESTRICTIONS.

(Special to ‘‘Star.")

WELLINGTON, August 1.

It has been decided by the Government that the cash order trading system is to be subjected to strict control and limitation of charges and discounts, and that unless cash order companies, and the individuals conducting the system, indicate their willingness to conform to the eight iecommendations of the committee of inquiry, which investigated the system, legislation will be introduced to enforce the proposals by Statute. The committee of inquiry consisted of Hon. J. G. Coates (Minister of Industries and Commerce) and Mr. J. W. Collins (Secretary of the Department. The eight recommendations referred to in the report tabled in the House to-day are:— (1) That the charge to clients should not exceed sixpence in the pound sterling; (2) that the trade and cash discounts allowed by retailers accepting the order should not exceed 10 per cent.; (3) that canvassing for orders should be prohibited; (4) that no mail order propaganda be allowed; (5) that the cash orders be open to any firm willing to accept them, and not limited to one firm or individual; (6) that all orders should be issuable from a registered office only; (7) that no orders shall be issued to persons under the age of 21, or to married women without the consent, in wrting, of their husbands; (8) that no order be issued to any person who has not completed payment of any previous order.

The committee’s report says that, despite the conflict of evidence, it is of opinion that the methods practised by the majority of those issuing cash orders are most undesirable, particularly in the collection of instalments at people’s homes, at the doors olfactories and offices, and the securing of custom by canvassing and signing of orders by housewives surreptitiously. The report says that if the system became more general it would increase the cost of living.