COST OF LIVING COMMISSION

Oamaru Mail, Volume XXXVI, Issue 11658, 13 June 1912, Page 4

COST OF LIVING COMMISSION

(Per Press Association.) ; Clixistehurch, June 12. G. F. T, Rows', accovju'.taut for Messrs Fairbairn, bright, and Co., stated that he. possessed some information regardscaled prices introduced by the Merchants' Association. In September last- his principal considered that the law had been broken by the New ZeaJandJlfirch.ants! .Association, which had entered into an agreement to control the price of sugar, and his principal had addressed the following letter to the Minister of Commerce. The, witness

read the first sentence of the letter. Mr M'Donald: I.don't- think this letter should be read, seeing that proceedings are pe'nding against the company. The Chairman (to Mr M'Donald): You think it should be handed to us? 4 Mr M'Donald.: Yes; wo might see it. : Witness handed in the letter, and proposed to read one on the same sub-, jeet addressed to the then AttorneyGeneral. ■ - • : The Chairman: Does it deal with the sugar monopoly?—" Witness: Yes; there is some reference to it. The Chairman: Well, put it. in also. "■Thei letter was not read, but was' handed in. Witness stated that the proof of the ;allegations, made in-v the . letter justhanded in was contained in correspondence from which ho.would] quote.. Witness "first quoted' f ronv a tetter to ; the proprietors of CoTana-n/s' f m'ustard, in. which his principal wrote: "Our reasons for having refused to accept the ..selling conditions in New Zealand for your proprietaries arc —(1) that the wholesale prices are. too high, (2) that no protection is given to the retailer, (3) that, in view "of the fact that you supply certain retailers' on tho same

terms* as wholesalers, it is obviously unfair that traders in competiion with these favored retailers should be compelled to pay 12A- per cent, more ipr the same goods. Colman's d.s.f. mustard («ilb and lib) costs Is 2d per lb in store, and the Christ church and •Dunedin scale rates are Is 4d per lb." Further on the writer trusted that Colman's would see- their way "either to reduce the profits or permit any retailer ordering a, stipulated quantity of vour goods to" buy direct on equal terms with other retailers. If you cannot see. your way to fall in with our suggestion's we have no alternative but to accept the selling conditions." The tariff was submitted bv Colman's in. a communication dated Witness stated that'/the...Scaled., price (net) for Colman's' mustard., 'in. boxes, was 16s, and his firm's price before the scale was introduced was. 14s sd. The ,pvices for starch were 47s 6d, and 45s 6d'per cwt. The manufacturers' prices of, these articles had not been altered, but there had been a reduction in the duty on mustard. Robinson's groats (in less than six dozen lots than one dozen) were scaled at 7s 6d. HLs firm's price was 7s; Robinson's barley 7s 6d and 6s lOd. On October 14, 1911, the proprietors of NVave's .food wrote to his principals:—"Having received complaints from New Zealand merchants as to underselling of ouaNeave's food bv the retail trade, wo have decided that the selling price to the; retailers be fixed at 9s 6d per dozen, less the ordinary terms, allowed them, and thus ensure, the merchants a fanprofit.. We have, therefore, agreed that from the commencement of the Year wo can only supply direct to mer- ■ chants who.are willing to comply with! these terms, and in receiving 'any orders hereafter we shall assume, that the merchants agree to this condition, which we need hard.lv point out is to their mutual benefit;" An invoice attached showed that .150 dozen Is Neave's food was charged at 9s, less 20 per cent., and less 2.V per cent. Witness stated that before'the dutv was removed the wholesale price; of Neave's food was between • 9s 7d and 10s. The scale price at present was 9s 6d, which showed that prac-. tieally the. reduction in duty had made no difference in the price to the retailers. ',,,..,. , Mr Fairbairn: The general public has - hot benefited? —No. To whom has that <l,uty gone?—To the merchants, who have kept it. They have kept that in .addition to - the profit made-before?—Yes; and the profit made before was not so great as' ' it is now. .Witness then read corres spondence regarding ."Sapon," the ' the agents for which, on November d, ; 1911 regretted that they could not i'ulfil an order for -Christ-church without : breaking a- current contract. There was a tariff for Sapon in Christchurch, : -which the agent asked the firm to sign. 1 When this was done, it would give them much pleasure to send on the 1 Christchurch orders.. The tariff at pre- ': sent operative in Christchurch was, m their opinion, too high, and did not leave sufficient profit to the retailers. It was probable that a tariff would be adopted for the whole of the Dominion, which would deal equitably with ali concerned. Witness stated that the scale for Sapon Gd packets, in case lots, was 54s 6d, and his firm's price was 51s. The smaller lines vere 22s 6d and 20s \ 6d. Witness then read a. letter to his principal from Messrs James Keiller and Sou (Ltd.l, dated London, August 4. 1911. It stated: "We have been, compelled to take steps to prevent the persistent cutting of our marmalade and conserves in New Zealand, and with this end in view, have; effected an understanding with the Merchants' Trade Association of New Zealand, which comprises all the foremost, and most influential wholesale distributors in New Zealand, by which we have agreed to decline to accept indents either direct or through Loudon indent agents for other than members of the association. We can assure you that this action is takein solely in ' our mutual interests, and has been strongly advocated for some considerable time by all the larger distributing houses.' We appeal with confidence for you? support by requesting you to disclose the name of the indehtor when ordering," which the circumstances as explained above .compel us to have knowledge of. Needless U mention, wet wish this information simply to satisfy ourselves as to whether the firm are members of the association, and for no other purpose." Tho proprietors of Van Houten's cocoa wrote from Weesp, Holland, om August 4, 1911:—"Wo regret to have to bring to your notice a. complaint which has reached us. It comes from New Zealand, and relates to one of your customers—Messrs Fairbairn, Wright, and Co., of Dunedin, Christchurch, Wellington, and Auckland. Members of the wholesale trade: out there are complaining to us that this firm has adopted a policy of cutting prices to the detriment of the trade generally, and we have been approached with the object of getting the firm in question to adopt tlie ruling prices for Van Houten's cocoa instead of underselling. We suggest that you write to them and endeiavor to .get them to conform, to the trade in the matter of tlie price of Van JJquten's cocoa,...as ."by underselling a. "state'of things' is created which ends 'to the disadvantage of all concerned in the • trade;.--We. trust you will, bring', about ithe xlesiml, .result,,'.innd we .feel sure ■ .you will co-operate with us in, the matter, as we endeavor to maintain prices as much as possible in the interest of; both wholesaler aiid Tetailei'." Witness stated that his principal had forwarded; an order to.the British Empire Trading. Company for 14 cases of tobacco and cigarettes for shipment to Christchufch i and eight.for Dunedin. The Dominion: representative pf the company in October 9, 1911, after acknowledging receipt of the order, added; "We beg to state, however, that we are not at present, opening any new accounts, and therefore have .not entertained your order.

Mr Fairbaim: What was the infer-, drawn from that? —That_,4t was through the operations .-of the Wholesale Merchants' Association. Witness stated that the prices of galvanised hoi-, low ware had been recently sealed, with the effect, that there was «, large increase in prices. An llin bucket was • increased- in price about 20 per cent. The, old price was 10s, less 10 per cent., and the present one was 15s 9d. less, varying discount, there being asliding scale, with a. maximumi o$ 33V per cent, and 5 per cent.-, and, for '.the ordinary trader 20.per cent. and.24 per. cent,. ..'. .. ■ Mr .FaiKbaifn.:" Who' gets'' the .maxiV raum discount?—The-hardware people for/ quantities' of £SO. Continuing, he stated that his. principal had issued a circular informing., the firm's clients that the firia-w;as::'ari'a l nging to import, galvanised, hollow ware >at prices much

less than, those quoted by' New Zealand manufacturers. Mr Fairbairn: What is the general effect of these advances? Who gains by them when goods are scaled? — The merchant gains. < They are not passed on to the retailor at a 1.1. You know ia .number, of .jines" scaled that are inipori&d.:by'i;ebVi.lors ;a.l> exactly the same price that is'paid'wholesale?:— The public are paying two profits—one to tlie wholesaler and the other to the [retailer.

The commission then adjourned