TRADING STAMPS.

New Zealand Herald, Volume LXVII, Issue 20690, 9 October 1930, Page 15

TRADING STAMPS.

QUESTION OF LEGALITY.

EFFECT OF PRESENT ACT. INVESTIGATION BEING MADE. [nr TELEGRAPH. —SPECIAL KEFOnTEB.] WELLINGTON, Wednesday. The issue, of discount stamps and coupons in Auckland, apparently in con travention of the Trading Stamps Prohibition and Discount Stamps Issue Act, 1903, was referred to by Mr. H. G. It. Mason (Labour —Auckland Suburbs) in an urgent question to the Minister of Justice, the Hon. J. G. Cobbe, in the House of Representatives to-day. Mr. Mason mentioned particularly the advertised issue called "Universal Certificates." He asked the Minister whether he would tako steps to secure tlio enforcement of the Act, or if tho Act wero defective, would lie introduce legislation to amend the deficiency in order that the nuisance suppressed by the Act might not bo allowed to spring up again. Mr. Mason also asked whether tlio Minister would inquire whether the company issuing the certificates had for ono of its objects the issue of coupons contrary <o the Act and, if so, whether the registration of the company would be cancelled. Mr. Cobbe said the issue of the coupons had already been brought under his notice and the question of the legality of the scheme was being investigated. If it could be found that no breach of the Act had been committed the suggestion that the law should be amended would receive consideration.

PROVISIONS OF THE ACT. HI.STORY OF FORMER SCHEME. The Trading Stamps Prohibition and Discount Stamps Issue Act, 1908, is a reenactment, without alteration, of a measure passed iri 1900 to stop the operations of a concern bearing the myne of the Trading Stamp Company, which had its New Zealand headquarters in Auckland and conducted altogether nine branches in the colony. It, was stated to have 89 branches in Great/ Britain and 230 in the United States.

The company sold trading stamps to tradesmen at. 2s 6d a 100, and customers were supplied with albums containing spaces for 990 stamps. When an alburn was filled the, company would redeem it and allow the holder to select, from its showroom goods to the marked value of 255. It was alleged, however, that the company, after being ill operation a short time, provided only inferior goods not worth the amount stated. In additioji, all stamps lost or not presented for any reason yielded it a clear profit. .According to one statement its Wellington branch collected £2936 in ]0 months and its expenses in the same period amounted to £570.

The coinpaiiy's manager vigorously denied Ihe charges ai/d especially that !t had made, extortionate profits. He asserted that on sales of stamps amounting to £16.425 in 19 months it- had made £1376. However, the Seddon Government, introduced the measure referred to and after inquiry by a Parliamentary Committee it was passed. - The Act prohibits transactions in trading stamps, which are defined as including "any stamp, coupon, cover, package, document, means or device, issued by any trading stamp company or by any trader which entitles the holder thereof In demand and receive from any trading stamp company any money or goods." "in order to provide a simple means for granting discounts on cash purchases," the Act authorises the Minister of Stamp Duties to issue, discount stamps, to be sold at. their face value and to be redeemable at their face value at any post office in amounts not, less than Is.

WAI.HOU FLOOD DAMAGE. INQUIRY RECOMMENDED. REPORT ON PETITIONS. [pY TELEGRAPH.—SrKCIAL REPORTER. ] WBLLTXCTOX, Wednesday. Compensation for losses incurred through the Wailiou stop bank scheme was sought in petitions presented to Parliament on behalf of William Symc, of OneIninga. and J. W. Silcock and others, of Wnitahi and Mangaiti. The Lands Committee, reporting on the petitions to-clav, recommended (hat the Government, should appoint a commission of inquiry to report on the extent, if any, of the, flood damage, the cause of such flooding and ivhat compensation, if any, was due to the occupiers of the land affected. Tt was suggested tho commission should comprise an independent engineer, the chairman of the County Council. and a representative of the Public Works Department.