TOBACCO TRADE

Hokitika Guardian, 28 May 1936, Page 6

TOBACCO TRADE

NEW SCALE ADOPTED. } . (Per . Press Association— Copyright). WELLINGTON, May 20. A new profits scale for cigarettes and tobacco has been adopted after discussions by manufacture! s,’ agents, merchants, and retailers in the tobacco trade, to become effective not iater than September 1, 1936. It will no* (involve .increases in the price oi cigarettes and on lines of tabacco. The changes, it is stated, are likely to.be few and' small. Arrangements for the new scale have been made after extensive but amicable negotiation, by the three interests in the trademanufacturing, distributing, and re-, tailing. . [

Since price maintenance came into operation on November 1, 1934, discussions have been conducted with a view to arranging co-operation toward orderly conditions in the industry by manufacturers and agents, and merchants and retainers. At a conference held on April 28 and 29, at Wellington, attended with very .few exceptions by all manufacturers and agents, as well as merchants and retailers from all parts of New Zealand, it was agreed to set up a tobacco trade council, consisting of four represon-: tatives of manufacturers and agents, ( four representatives of merchants,) and four representatives of retailers. A new scale of profits was adopted to become operative not later than September 1. In working out this scale of profits The conference had im mind the margin which was necessary! to enable a man mainly dependent on. cigarettes and tobacco to make a reasonable living. The council’s view is that the public need have no fear that the margin of profits has been fixed on the high side, as it is only a fair standard scale.

The council held its first meeting on May 19, electing as chairman Mr A. S. Falconer:, of Dunedin. Sub-commit-tees with representatives 'of manufacturers,' merchants, and retailers were set up for Auckland, Christchurch, and Dunedin.