PRICES INVESTIGATION.

New Zealand Herald, Volume LVIII, Issue 17802, 8 June 1921, Page 8

PRICES INVESTIGATION.

THE OUNEDIN TRIBUNAL.

REVIEW OF WORK DONE.

FINANCIAL' LEGISLATION. [BY TELEGBAPH. —OWN CORRESPONDENT.] DUNEDIN, Tuesday. The chairman of the Prices Investigation Tribunal, Mr. J. M. GallawaVj made a statement to-day as to the work of the tribunal in Dunedin. The tribunal commenced operations on March 17, 1920, and held 182 meetings, including visits to Invercargill, Oamaru, and Gore. The complaints received up to the time of its report to the Board of Trade numbered 232, the principal subjects being food 82, clothing 47, housing 20, hardwarCj etc,, 26, and repairs 22. Since that date other complaints were received, making a total of 259. There were five prosecutions, all resulting in convictions, and the fines came to £660. •The duty G f the tribunal was to report to the Board of Trade, and as a result of the Board of Trade's action following investigations by the tribunal the people of Dunedin and suburb* have been saved £13,000 per annum on one commodity alone. There is ample evidence that the work of the tribunal has brought prominently before the business community the importance of fixing selling prices so that an intelligent reason can be given for the percentage of profit attained. The members of the tribunal are of the opinion, although it is difficult to put their finger on the exact spot, that the public do not get the full benefit of trade competition. If it be true that traders are overstocked the tendency will naturally be to force sales for the purposes of finance, but it la more necessary to exercise supervision on a falling market than during a period of fictitious prosperity. The tribunal does not believe that apart from Such supervision the community will (receive the full benefit of the fall in prices. Although it seemed natural for traders to insist on the cost of replacement when that cost was rising, it is extremely unlikely that, if left to their own devices, they will take into consideration the cost of replacement on a falling market. Sound finance is an important factor in the Dominion's affairs. The fact that the Government has deemed it necessary to extend the moratorium to deposits taken at interest by companies other than banks may be taken as an admission of the unsoundness of such finance. It cannot be supposed that legislation with regard to deposits is at an end. It ia obvious that the provisions of last year's statute require, and will no doubt receive, serioui consideration. It is not to be expected that the 1 per cent, above the rate of interest paid by companiee'"to depositors will be considered by the latter a fair and equitable arrangement, in face of the fact that the current rati of interest is 7£ per cent. It is in the tribunal's opinion inevitable that the position must eventually be made mora, unsound if companies which have taken deposits are permitted to appeal to the public for large sums of money without any security save general Undertakings of the company in competition with other creditors. No publio appeal for fresh capital in any guise should be permitted without the consent of the Minister.