WAR AGAINST TRUSTS.

New Zealand Herald, Volume LVI, Issue 17253, 1 September 1919, Page 9

WAR AGAINST TRUSTS.

EXPLOITATION ALLEGED.

FIXED PRICES FOR GOODS.

MERCHANTS AGREEABLE.

Probably the most important item in the report of the Industries Committee, said Mr. M. M. McCalluro, president of the Chamber of Commerce, was the proposal to deal vigorously -with monopolies and combines, including the shipping ring. It was felt that the commercial community, and through it the public, had for years been extensively exploited *yll j ■ larff9 trust *> etc -. which controlled the prices of certain commodities Ui almost universal use. The report particularly mentioned the American meat trust, but there were other trusts which were even worse, and whose tentacles had been sucking the life-blood of the Dominion for a long time past. The proposal of the committee that the suggested Board of Industries and Commerce should have the power to fix prices was approved by Mr. McCallum. He said the great body of merchants and importers were not exploiting the public, and would be only too glad to have the proposed board fix the prices of commodities. The exploiting was being done by. .he large trusts. The only ones who could do it were those who held great monopolies. General importers of goods and merchandise were competing with each other, and getting the best prices they could, and there was nothing to prevent one man cutting under the prices of another. It was *° be presumed that in tbe fixing of prices by the board, merchants would be given, say, three months' notice, in order to enable them to unload the stocks on hand and make a fresh start at the fixed rates, thus avoiding loss.

Opinions on Control of Prices. The president of the Auckland Industrial Association, Mr. Frank M. Hills, said that body would have every confidence in the proposed board investigation and control of prices. In the opinion of Mr. Robert Burns the proposal that the suggested board si)ou d be empowered to engage in trade should be approached with great caution, last experience in this direction had not been encouraging. x, .ila.approving of the setting up of a Board d? Industries and Commerce, Mr. ■j J - L Entrican ' speaking as a merchant, said the only thing he was afraid of was that it might be well nigh impossible for such a board to deal effectively with the programme as outlined. Proper investigation into all genuine trading concerns would be welcomed, and the profiteering one heard so much about in these days would be either established as a fact or eke blown to the winds.

Credit System and Living Costs. There was one thing, however, that the committee did not touch upon, and which was to Mr. Eritrican's mind most important, namely, the credit system which obtained everywhere, and which was largely responsible for some of the cost of living- If prices were to he fixed then they must be fixed on a cash basis, and all risk from bad debts must be eliminated, and in this connection there must be some means, through this board or through improved banking facilities, whereby the savings of the people could be profitably employed in local industries and sound trading concerns. Under normal conditions, and where there was healthy competition there would be little necessity for fixing prices, but as the hoard would have power to 30 into business and compete with any line regarded as being sold at more than a fair profit, the board could amply deal with the matter. He did not, however, object to the board having the power to fix prices, the same as the Board of Trade r had' been doing for some years. ,