NEW SCALE OF PROFITS

Poverty Bay Herald, Volume LXIII, Issue 19025, 27 May 1936, Page 5

NEW SCALE OF PROFITS

CIGARETTES AND TOBACCO DOMINION CONFERENCE (Per Press Association.) WELLINGTON, this day. A new scale of profits for cigarettes and tobacco has been adopted as the result of discussions by manufacturers, agents, merchants and retailers in the tobacco trade, the scale to become effective not later than September 1, 1936. It will not involve increases in the price of cigarettes, and on lines of tobacco the changes, it is ' stated) ' afe likely to be few and small. : '■■■>-- Arrangements for the new scale have been made as a result of extensive! but amicable negotiation by the threeterests in the trade, manufacturing, \ distributing and retailing. ; ~, Since the price maintenance system came into operation on November 1, 1934, discussions have been conducted with a view to arranging co-operation toward orderly conditions in the industry by manufacturers, agents, merchants and retailers. At a conference held on April 28 and 29 at Wellington, attended, with very few exceptions, by all manufacturers and agents, as well as merchants and retailers, from all parts of New Zealand, it was agreed to set up a tobacco trade council consisting cf four representatives of manufacturers and agents, four representatives of merchants, and four representatives of retailers. A new scale of profits was adopted to become operative not later than September 1. In working out this scale of profits, the conference had in mind the margin which was necessary to enable a man mainly dependent on cigarettes and tobacco to make a reasonable living. The council’s view is that the public need have no fear that the margin of profits has been fixed on the high side, as it is only a fair standard scale. The council held its first meeting cn May 19, electing as chairman Mr. A. S. Falconer, of Dunedin. Sub-commit-tees with representatives of manufacturers, merchants and retailers were set up for Auckland, Christchurch and Dunedin.