Grey River Argus FRIDAY, February 10, l928. PRICE-FIXING IN NEW ZEALAND.

Grey River Argus, 10 February 1928, Page 4

Grey River Argus FRIDAY, February 10, l928. PRICE-FIXING IN NEW ZEALAND.

'l’he proposal lieCnre lire N.Z. J Master Grocers’ I 'onTerence, a f i Nelson this week. Ilial. the Stall' I empower maiiul’avt urers to fix relail prices, illustrates the sorry I pass into which moilern eapital--1 ism is ilrii't ing. The eon Terence proposes that manti Tael, urers, packers. and wholesale distributors should adopt measures to prevent price-cutting' among retailers, the contention being that the manufacturer or distributor owns his goods lill they pass Io the eon sunier. This is simply an untruth. When the retailer handles the goods he is in the same position as the maker or distributor. The fact that he is supplied surely shows the supplier gets his due. No doubt, price-cutting may in some eases be mischievous, but the cure proposed is far worse than the disease. At the Grocers’ Conference it was suggested that prices in Queensland are subject to Government approval, but the point is that action was taken in Queensland, not against pricecutting, but against profiteering. The Minister of Lands told the Master Grocers they had only to educate the public, but that is far easier said than done. The crux of the matter is simply that capitalism, as we have it to-day. is a system that cannot maintain the free competition which its defenders claim to be its virtue. The growth of trusts is a proof of this. The grocers are really working for a combine among manufacturers. The fixing of prices is the very essence of a trust. In the Old Country and America the law is today at the mercy of the trusts Competition used to be called the life of trade, but it is a disappearing quantity in the wide world today. Yet capitalists are averse to measures by the workers to prevent competition in their ranks, leading to exploitation. If there is any call for Slaty, interference in the fixing of prices, the only, 1

one is for a maximum limitation, nol a minimum one. Wholesalers have rooted out retailers in all dired ions, and now they aim to hamstring 1 hose who remain. In any ease, if a fair profit rate were Io be fixed, il would be unfair to allow Ihe consumer and retailer no say in the malter. The Master Grocers appear to overlook- that point altogctlijdr. Al anyratc, if they are going to educate, the public, they should begin by making known Ihe present profit margins, and. also the extent to wliich they wish io increase them.