PROTECTION.

Lyttelton Times, Volume CXVII, Issue 17882, 30 August 1918, Page 4

PROTECTION.

FOB SOLDIERS' BUSINESSES.

HOW THE SCHEME WILL WORK,

[From Our Correspondent.]

WELLINGTON, August 29

It has long been evident that the powers of the National Efficiency Board we're insufficient to deal with the serious problem of the inequality of sacrifice caused through fit men being withdrawn from businesses, leaving behind those who will profit through their physical inability to serve their country, by reason of the reduced competition. In connection with farming, good work has been done by the Board of Trustees, who have supervised farms of absent soldiers. But farmers are not competitors, while this element cornea into the running of a business. Another factor to bo considered in calling up business men is that nearly all concerns, even the largest) pivot on one man, and if that man .is oalled up he cannot be replaced without some loss to the business. In the new regulations approved by the Government, the National Efficiency Board finds itself armed with important compulsory powers which should enable it to do justice to the business man who becomes a soldier. Briefly, the plan is to secure, out of the extra profits of his rivals, something to .compensate him for his loss of income, or, in the' alternative, to preserve his business intact until his return.

The working of the regulations was explained to a representative of the '" Lyttelton Times " by those who have assisted to frame them, and who will have a part in their administration. They cover wholesale and retail. business, and also professions, though the latter presents a limited and difficult field. Occupations have been specifically exempted, for it is considered that the Financial Assistance Board wjll cover that sphere, and there_ is no goodwill asset to preserve, as in the case of businesses. THE SCHEME AT WORK.

The chemists of Hamilton, in the Waikato, must take soino credit for the germ of the schema One of their number, who had a shop in a good position, was called up for active service. It was recognised that he would lose a fine business, and that it would be to the advantage of his competitors. They were called together by the Board of Trustees, and the position put to them. One chemist declined to have anything to do with any pooling of profits, as he considered himself to be outside the sphere of advantage. Four others agreed to do something for their absent rival, and they decided to close down his shop, take his stock at a fair valuation, and ascertain what the absent man was going to lose in profits through his military service. Assuming, for the sake of the illustration, it was £4OO per annum (talcing his military pay into account), the four chemists agreed to make up to his dependents the difference between the military pay and his former income, paying into the common fund for that purpose a proportion based upon their relative profits. And this is how the new system will be adapted to any business. If a grocer goes into oamp, he seeks the help of the National Efficiency Board, which calls together the grocers in the area covered by the soldier's business. They mil be asked to run the business, or if they believe this cannot be profitably done, they have the alternative of closing it, disposing of the stock amongst themselves, and making up the soldier's former profit out of their enhanced incomes through the absence of a rival. ELEMENT OF' COMPULSION.

The Efficiency Board will set up a Board of Trustees, nominated by the Government, to carry out any of these arrangements, and if there is objection on the part of those carrying on the same trade in the district, tho element of compulsion will be applied. The business of the soldier will be classed by the War Regulations as a "protected business," and all the other businesses of the same kind will be classed as " restricted businesses," and be carried on only pursuant to license from the Efficiency Board on terms which will enforce an equitable arrangement on the lines of the Hamilton chemists' plan. If the scheme is adopted voluntarily it will be simpler and less expensive for the remaining business men, for compulsion means the employment of expert supervision, at the cost of the remaining licensed businesses, so that profits carl be ascertained, and the proportion of contributions to the compensation fund equitably fixed. The supervisor will. preferably be an accountant. If any difficulty arises in ascertaining any facts relating to income, profits, and the range of any business, tho board has all the powers of a commission of inquiry, and can secure evidence which will enable the scheme 'to be carried out. ' It is proposed that the scheme shall operate for the duration of the war and twelve months' afterwards if necessary, or, in the event of the dea-th of the soldier, for six months after its occurrence.

APPLICATION TO COMPANIES. The scheme applies to companies, tho share of a soldier being regarded as a separate business, and also to partnerships, in which case the soldier s interest will be regarded as a separate business. The final regulation is worth quoting,' as indicating how thorougli is the whole scheme: — "Without the permission of the National Efficiency Board it shall not bo lawful for any person to establish any new business as a retail shopkeeper, merchant, importer, exporter, commission agent, indent agent, accountant, auditor, land agent, manufacturer, solicitor, medical practitioner, or dentist."

And the definition of " new business " is held to include any extension or alteration of an old business. The whole scheme has been thoroughly thought out, and the National Efficieny Board has the advantage of practical experience of the difficulties of removing ,the anomalies and hardships suffered by men who have had to sacrifice their shops and businesses through the call to camp. The serious handicap to equitable arrangements for the protection of these interests was the lack of compulsory powers, but these have been amply provided. It may almost be asserted that every business man is now liable to make some contribution towards the sacrifices of his rivals who are fit men in the military. sense, for even large concerns of a national character are capable of being drawn into this scheme, if a soldier is drawn out of a business of this character.