MASTER GROCERS' FEDERATION

Nelson Evening Mail, Volume LXI, 7 February 1928, Page 2

MASTER GROCERS' FEDERATION

FIFTH ANNUAL CONFERENCE • OJPEN.E9 -TO=.OAy liY MINISTER OF INDUSTRIES AND COMMERCE The fifth annual conference of the NewZealand Master Grocers' Federation was opened this morning by the Hon. A. I). McLeod, Minister of Industries and Commerce. There are more .than fifty delegates present, and many of them have brought their wives and families with them" to Nelson. The conference is being held in the Rachabite Hall, Bridge street. Proceedings were begun with the National Anthem, after which the president (Mr A. Goodley) called upon the Mayor of Nelson (Mr W. J. Moffalt) to address the gathering. The Mayor said that be" was very pleased to welcome yet another conference to Nelson. Many similar gatherings seemed to be choosing Nelson and he could assure them that the city deserved such popularity and that they would enloy their stay 'here. The Master Grocers' Federation was, he understood, something in the nature of a guild formed by the grocers for their mutual benefit and protection. He was pleased to Bo able, to say that there was nowadays a general realisation that all parts of the community were interlinked and dependent on each other, and lie was sure that the result of the conference would be of benefit both to the trade itself and to the Dominion as a whole.

Mr Harry Atmore, M.P., was next called upon/and he added his welcome on behalf of the Nelson electorate. Gatherings such as the present one were a great thing for trade and the people generally, and showed that the spirit of cooperation was abroad. Under such conditions the public must benefit. Mr Atmore referred briefly to many of Nelson's points of interest that he hoped the delegates would visit before they departed. They must pot miss the Cawthron Institute, Nelson College, the Public Hospital, and the reservoir. The Hon. W. W. Snodgrass, M.L.C., said that it gave him very great pleasure to be present as he had been a grocer himself for 25 years, and he always took a keen interest in the activities of the Federation. He went on to give some very interesting' historical facts about the first federation of grocers that was formed "in London 600 years ago, in the' reign of Edward HI. They, too, had problems to deal with very similar to those that were before the trade to-day. The President of the Nelson Chamber of Commerce (Mr E. H. Thomson) briefly addressed the gathering. The grocery trade, he said, was suffering from the gre?it evil of the credit system. The hire-purchase method of buying was pushing traders into unsound courses against their wills. However the high prices now being realised for the Dominion's primary products was more hopeful. One the great slogans of the Government had been "more business in Government and less Government in business," and it was hoped that the application of that slogan would become mdre apparent. A motion of welcome to the Hon. A. D. McLeod was moved by Mr J. R. Burley (president of the Wellington branch of the Federation). He wished to thank the Minister for coming to this, one of the, most important trade conferences in the Dominion. It was an indication that the Government considered the .trade_ to be an important section of the trading portion of the community. _ This was rightly so, for growers dealt in the distribution of foodstuffs which was of direct importance to everyone. The speaker in referring to the last session of Parliament, said he was sorry the request of the Proprietary Articles Traders' Association had not met with a better reception. In his opinion the proposals were submitted to a committee which, except for one man, was incompetent to deal with them. The motion was seconded by Mr J. H. Beale (Otago) and carried unanimously. The president then called upon the Hon. A. T>. McLeod.

MINISTER'S SPEECH

The Minister said he was always glad to meet the representatives of any trade or industry, for it was the only sound way in which a Minister could learn what- was going on in the industrial life of the country. In addition to that the present occasion was made even more pleasing to him because Nelson was one of the places in New Zealand that he always liked to re-visit. Referring to criticism of the Government, the speaker said that fair criticism founded upon fact was to be welcomed, but there was no doubt "that a great deal of it did not have this foundation. He could assure his hearers 4hat the committee that dealt with the recommendations of the P.A.T.A. did not come to a decision until it had given the very closest consideration to all the best" evidence available from all parts of the world. As regards Government interference in business, it was hard to know where it was going to start and where it was going to end. If a trade was going along all right and making a fair profit then it should be left alone, but where an unfair profit was taken for services rendered then the public would demand chat the Government step in. Mr McLeod said that he did not think stability in a country was built up by the growth cf huge monopolies, but he was sure the Empire owed its present solidarity to the multitude of small shopkeepers who exhibited a spirit of healthy independence. Where monopolies existed then the Government had to interfere either by entering into competition themselves, or else laying down fixed prices for the corn-

modities concerned. Tims it would be seen that the necessity for Stale interference arose, in the trade itself, and if it was properly conducted then the Government had no cause to step in. In conclusion the Minister said lie wished to pay a tribute to (he. relations existing between his department and (ho leaders of the trade. He had frequently had occasion to discuss the most intimate side of his Department's business with thorn, and they had never boh-ayed his confidence. 'Mr'J. W. Collins,'of the Department, would be at tho service of the conference during its session, and would do anything lie could to help them.

Mr J. Oit (Stratford) moved a vote of thanks to the Minister. Mr Gilbert (Hawera) second the motion which was carried unanimously. Mr McLeod said'that he had overlooked stressing the need for the trade to encourage the use oT New Zealand-made goods. When vegetables and similar commodities were being imported into New Zealand then it was obvious there was something wrong. The President delivered his address as follows:

This year our fifth annual conference is being held here on the hearty invitation of the Nelson Master Grocers' Association, and I am sure we all appreciate their kind invitation, and sincerely trust that this meeting will lie the means of strengthening their and all other associations in. the Dominion.

Wo all recognise that we have been passing through a difficult period, competition has been exceedingly keen and trading has in no small degree been affected by the system to which reference was made at length at our last conference, namely the growing prevalence of what is known as the time payment system of business. The experience of ono lias undoubtedly been the experience of that money which should have, been used in paying for the necessaries- of life, has been frittered away on time payment purchases of luxuries, for the purchase of which there could be little if any justification. It is said that every cloud has its silver lining, and if there be any silver lining to the cloud of time payment which has been hovering round, and which has Geen thickening through the year ,then it can only be through the determination of those who are supplying the necessities of life, to restrict credit if not insisting upon cash payment on delivery. This leads me to throw out a suggestion that the indiscriminate giving of credit 'is not in the best interests of either the giver' or the receiver, and I would offer a further suggestion that the delegates in conference assembled should seriously consider the desirability of insisting that all applications for credit be in writing, and with this object in view some definite form of application be adopted by Federation mentbers. Much disappointment was, I am sure, felt as the result of the enquiry made by the committee. appointed into the operations of the P.A.T.A., an association which many of us hoped was going to be of considerable assistance to us in eliminating undesirable competition, brought about by the reckless cutting of prices on certain articles. Price cutting has been acknowledged as an evil, I believe it is neither good for the distributors nor for the public, and surely if the Government are unwilling to allow a body such as the P.A.T.A. to continue its operations, then the least it can do is to suggest some other methods, whereby this kind of destructive competition can lie dealt with and an opportunity given the trade to secure for itself a fair return for the labour and capital it has to employ, just in the same way as the Government made it possible for our employees to secure an adequate return for the services they are rendering. I am hoping that during the conference the Department of Industries and Commerce will realise some measure of responsibility towards the trade and will have some suggestions to make 'which will prove helpful in meeting the class of competition referred to.

There probably has been a wrong impression created having regard to different methods of trading, namely, that of the cash and carry system, and that of the grocer who sells for cash, but at the same time gives credit and delivers his goods. The reasonable man would, I think, object to a differentiation in'regard to the price at which the respective traders shall sell, but if there is to be any difference it will preferably bo I suggest by way of a discount on the part of the cash grocer, or on the othft Sund by a booking fee to be charged by the grocer who gives credit. I firmly believe that the honest trader is now selling his goods as low as any of the cash and -carry stoiws who cut certain lines only for'what they call a draw. I have here with me the following copy of the cash and carry price list, of 16 articles of daily use and their prices. COMPARATIVE PRICES OF THE CASH AND GARRY STORES AND OUR PRICES

• .-.-.- . .• • 16 5h 17 0 3i% 0 7| 16 4i Cash and Carry prices were nett and carry away yourself, our prices were for delivery free. You will see from the addition that after taking off the usual discounts of 3| per cent. that, for the 16 articles our prices are Id lower and besides we deliver the goods. Shortly after leaving for Nelson I received from Mr McFarlane, a member of our executive, this memo which I shall read and also draw your attention to the fact that- one of the Government, departments now are calling for tenders for 13oz tins of one aiticle. Surely they are not asking us to break tho law. Several conferences were held in Wellington during the year in reference to amending legislation in connection with the Shops and Offices Act, and these- undoubtedly did good, and whilst c.ongratnlnting the tobacconists upon the marked advances they have made, and the concessions which they have received at the hands of the Government, I suggest it is only right- that, the grocer should receive like consideration, for sureTy it should lie recognised that he is dealing with necessaries of life, and has a right to look for a return which will compensate him for his labour.

In conclusion I again desire to thank delegates assembled for the honourable position to which they so graciously elected me, and to express the very sincere hope that in the coming days there will be in increasing numbers' those who will be prepared to place (heir services at the disposal of the Federation. King Albeit of (lie Relgiums ai a large Rotary conference said : "To- accept (he sacrifice (if self lo one"s neighbour, (o accept Hie idea of ethics in trade and profcs-

sions, is to be well aware of the responsibilities of a modern citizen." Groups of individuals working close together like you do, for a common purpose can accomplish wonders. The annual report staled, inter alia :

The year 1927 has been ono wherein members of the trade have had to contend with many difficulties, probably more so than in any previous year since the Federation came fnto.-'cxistenc.e. Parliamentary legislation, an ever increasing competition—some of the. most undesirable nature—the unemployment problem, have, all in their turn more or less directly affected the grocery trade of the Dominion.

PRICE FIXATION AND MAIN TENANCE

It is with profound regret we have to report that the proposed Proprietary Articles Trade Association, following an enquiry instituted by I he" Government, ceased to exist. The attitude of the trade was presented in a. comprehensive statement, submitted by the secretary before the committee appointed to conduct the, enquiry, the finding of which conimitteo was m due course communicated to affiliated associations through the medium of the official organ of the Federation, the "New Zealand Bakers' and Grocers' Review." Without wishing to in any way reflect, upon the personnel of the committee, your executive expresses its regret that the parties interested had no opportunity of making any recommendation as to any appointments which should be made thereof Whilst fully recognising that such appointments must necessarily finally rest with the Government, tkeiio is no gainsaying the fact that if the approval of the parties concerned was first sought it, would tend to make impossible much dissatisfaction such as was manifested during the enquiry to which reference is here made. Your executive does not feel called upon to pass any comment on the value of the evidence which was brought forward, recognising that members were well able to form their own judgment from the detailed report of the enquiry. Suffice to say that those directly interested were' far from being satisfied with the committee's findings. Federation of grocers' associations of the United Kingdom.—lt is peculiarly gratifying to he able to report that n't the annual conference of the Federation of Grocers' Associations of the United Kingdom, your executive was ably represented by Mr T, Sawyers, of Auckland. Mr Sawyers was accorded the hearties/, of welcomes, and we here acknowledge our indebtedness to him for having represented our Federation. It is equally pleasing to make mention that your executive is hoping that at the next annual conference it will again be represented, Mr J. H. Beale, a member of I the executive, visiting the Homeland) this year.

WEIGHTS AND MEASURES ACT

It is to be regretted that during the year complaints were received from the Labour Department that many members of the trade were failing to comply with the new regulations, and as a result your executive felt called upon to issue a warning through the affiliated associations, recognising the absolute necessity of the regulations as introduced by the Department of Labour being given effect to. It is gratifying to report that during the year the Labour Department again sought the co-operation of your executive in matters pertaining to the issuing of new regulations, and opportunity is here taken of acknowledging tho great courtesy which throughout the various negotiations has been extended by the departmental officers. It is recognised not only by members oj the trade, but by others who are affected thereby, that*the Weights and Measures Act is undoubtedly in the best interests of manufacturers," the distributors and the general public. There are, we understand, further regulations under consideration, which Will be gazetted in due course. It is understood that among the regulations to bo shortly issued, is one restricting the sizes of the bars into which soap can be cut. "The varying sizes which have hitherto existed have not been in the best interests of the trade, and undoubtedly have too often been used for unfair competitive puri r ° SC SHOPS AND OFFICES ACT

During the year the secretary attend ed several conference, having reference to proposed amendments to the Shops and Offices Act, and whilst the legislation now in force may not meet with the the trade, an advance has undoubtedly whole-hearted approval of members cf been made. Mention should' here be made of the very definite pronouncement which the executive was during the year able to make relative to the sale of groceries by other traders during such hours as gropers were compelled to close. The unfair competition which has been the cause for complaints for many years past can in measure now be satisfactorily dealt with, and it behoves the individual members of the trade to as opportunity offers bring under the notice cf their respective associations any cases where in this respect the law is being transgressed. In addition to attending the conferences referred to the Federation was represented by the secretary when evidence was given before the Labour Bills Committee.

COUPON AND PRIZE SCHEMES

The rapid increase in the use of coupon and prize schemes per medium of newspaper and other advertising has occasioned much anxious thought during the year, and your executive has not been lacking in its endeavours to wherever possible seek for united action on the part of affiliated associations. It is gratifying to report that at least in one or "two instances the efforts of your executive met with some measure of success. It- has all along been felt that this unsatisfactory method of trading was such that warranted and demanded the introduction of amending legislation by the Government. With consistent- persistency your executive has continued to bring this matter under the notice of the Department of Industries and Commerce, and members win learn with much satisfaction that at last opportunity is to be afforded of definite action beirig taken, the results of which it is hoped will be given effect to by amending legislation.

SUMMERTIME BILL Following the instructions received by resolution of last conference, all members of Parliament were communicated with, urging tho support of the Hon. T. K. Sidey's Summertime Bill, which needless to point nut ultimately became law. TIME PAYMENT BUSINESS In accordance with a resolution of last conference copies of the paper delivered by Mr J. H. Beale were circulated among members of the various Chambers of Commerce throughout tho Dominion, many of whom acknowledged receipt of same. It is regretted that there, is no

diminution in this class o*f trading; on the contrary, it is rapidly on the increase, and although the Government is -.veil aware of the conditions that at present exist, there has apparently been no effort to introduce legislation to effectively deal therewith. Your executive is satisfied that immediate action is necessary, as there is on every hand evidence that- this method of trading is not only injurious to the legitimate trader, but is detrimental having regard to the moral welfare of the general public. OBITUARY It is with feelings of much regret that reference is here made to the death of Mr John Henderson, a gentleman who lor two years occupied a position as president of the Federation, and who as our members have already testified, throughout that period rendered valuable service by his ability and leadership. The sympathy of the federation was duly conveyed to the bereaved widow and members of the deceased gentleman’s family, and opportunity is here taken of expressing the appreciation of your executive, and of that large body of traders whom it has the honour of representing, of the service rendered by one who had endeared himself to the hearts of so many.

Cash & Carry Our Prices Prices s. d. s. d. Butter , 1 5^ 1 7 0 10;L 0 11 V.H. Cocoa . 0 11 1 0 C. Flour packet* 0 6i 0 6 Cheese . 1 0 1 0 Tasty Cheese . 1 4 1 2 Caster sugar . 0 6 0 5 Robinson's .Groats 1 4 1 4 Maizena . 0 7i 0 8 L. and P. Sauce 1 4A1 6 Sunlight . 1 5' 1 7 Brasso . 0 10 0 10 Lebo „ 0 10 0 10 Sultanas Mildura 0 7A 0 8 Creamota . 1 11 2 0 Milk .... . 0 ll 2 i 1 0