PRICES INVESTIGATION TRIBUNAL.

Otago Witness, Issue 3509, 14 June 1921, Page 23

PRICES INVESTIGATION TRIBUNAL.

STATEMENT BY THE CHAIRMAN The Chairman of the Trices Investigation Tribunal (Mr J. M. Gallaway), seen last week hy representatives of tiie press, gate an interesting summary of the work done by that body in Dunedin since tlie members commenced their duties on March 17, 1920. The tribunal, Mr Gallaway said, had held 155 meetings, these including trips to Invercargill, Gore, and Oa-maru. 1 tie complaiius received tip to the time of the report to the Boaril of Trade numbered 232, the. principal subjects being: Food 62, clothing 47, housing 20, hardware, etc., 26, repairs 22. Since that date other complaints had been received, making the total 259. There had been live prosecutions, all resulting in convictions, and the fines canto to £660. The duty of the tribunal was to report to the Board of Trade. As a result of the Board of trades action, following tlie investigations by iho tribunal, the people of Dunedin and suburbs had been saved £13,900 per annum on ono commodity alone; and there was ample evi donee that the work of the tribunal had brought prominently before tint business community the importance of fixing selling nriecs so that an intelligent reason c-ould be given for the percentage of profit attained. Members of the tribunal were of the opinion, although it was difficult to put their finger on’ the exact spot, that the public did not get the full benefit of trade competition. If it were Irue that traders were overstocked, the tendency would naturally be to force soles for purpose* of finance :' but it was more necessary to exercise supervision on a fading market than during the period of fictitious prosperity. The tribunal did not believe tiiat anart from .-nch supervision the community would receive the full benefit of a fall in prices Mi hough it seemed natural for : traders to it.st-t on the cost of replacement 1 when til-if cost was rising, it was extremely | unlikely that if left to their own device* ' they would take into consideration tlie cast j of replacement on a falling market. Sound finance, Mr Gallaway continued, was m important factor in the dominion a affairs. The fact that the Government bad deemed it necessary to extend tlie moratorium to deposits taken at interest by companies other than banks might be taken u= an ad nission of the unsoundneas of such finance. It could not be supposed that h ' Glut-on with regard to ucposuts was at an end. It was obvious that the movi.-ions of last veer’s statute required, and would no doubt rr.-eive. seri-.u* consideration, ft was not to be expected that the 1 per cent, above the rate of interest raid oy tne companies to depositors would be coasioered bv them a f-atv "n<l equitable arramroment in face of the fact that the current rale of interest v.-as ?*. per cent It was in the tribunal’s opinion inevitable that ihe position must eventually i.e made more unsound if companies which had taken deposits were permitted to appeal to the public for large sums of money without am Tec-urn\ save the general undertakings cf ihc comnanv in competition witn other creditors. No public aimed for fresh canttal in any gui-e should be permitted without the consent of tne flimsier. . Mr Gallawav concluded by stating that the members 'of tlie tribunal thought and he believed that Mr Brown (who is at present awav front the dominion) shared tlie view that on the whole the work done had "been of use to the community am that the investigations had been as lie pful to ' the honest trader as they had been salutary to certain others.