COST OF LIVING COMMISSION

Oamaru Mail, Volume XXXVI, Issue 11657, 12 June 1912, Page 6

COST OF LIVING COMMISSION

(Pee Press Association.) Ciir'stchurch, June 11. Giving evi<\enco. before the Cost of Living Commission to-dny Harold B. Low, general ret-ai? grocer, said there wa.<i not ;i free »>pen market for retail grocers t<» buy, certain lines bring tariffed «r scaled. In the P'.l.st twelve mont-fes the number «f failures in busin«<S. had' shown shat the retail trade Was not profitable-! This was du'e to the excessive charges of merchants and the working -of the Federation of Merchants' Association. When he started <>ui his mvili account, he wa.s buying n j a .small Way, he found the prices higher because the quantities Were not large Mliough. The two Alternatives were to pay the rates, which lie could hot do, o; to amalgamate with another firm. He was forced to go into the wholesale trade. To relievo, -himself of the surplus h'e had through purchasing in large quantities, several grocers took advantage of this, and iciieVed him of his ove; stock, helping: him and helping themselves-. The. scale was hardened, and it bei-tUiie harder to purchase all lines. Sa>Tie merchants told him that if he exceeded the limit he would be prohibited from doing business, and if he bad not been relieved he would have iiftve to carry £2OOO to £3OOO of stock instead <;f £6OO, the amount he required. Flag matches in 1908 or 1909 were handled outside, the Association. <and- Used to be 3s oid per gross net '■ cash. The Federated Merchants' Association! applied to the firm to give it the enth-e output so as to be able to control the selling price. He produced a letter from Phillips and Pike, the Wellington agents of P. Hell and So., written in reply to a. letter dated December 30, 1907. staring that the Company's entire output had been given over to the wholesale- merchants, so that-they could sell at rcinun-erative rates. Two years ago, under the control' scale, a single gross rose to 4s, and in a case lot to 3s lid, while for oO case parcels—an opening for a. big'merehant—the price was 3s 6d per gross. The case cost £lO-5. In tinned fish they had to buy two gross parcels. He was fully satisfied as '.o the names of the members of the ring in the Chiistchurch Mcichants' Association, which had the power to scale charges. In many cases small grocers did not know when trading with the Federated Merchants that there were lower prices. In his own business his gross isi'ofit was lo per cent., from which the- expenses were taken.