THE Southland Times PUBLISHED EVERY MORNING. Luceo Von Uro. SATURDAY, 29th APRIL, 1899.

Southland Times, Issue 14333, 29 April 1899, Page 2

THE Southland Times PUBLISHED EVERY MORNING. Luceo Von Uro. SATURDAY, 29th APRIL, 1899.

The severe 'Comments of the Lord Chief Justice in a recent case on the subject of secret commissions in trade and business excited much interest, and led to the appointment, by the London Chamber of Commerce, of a committee of investigation, which brought up, on Bth March last, a report containing many startling disclosures. From the evidence brought before them they find that secret commissions in various forms are prevalent in almost all trades and professions to a large extent, and that in some trades the mischief is increasing. They are' of opinion that the practice is productive of great evil, alike to the morals of the commercial community and to the profits of honest traders. Bribes in all forms, they remark, owe their existence sometimes to the desire of the donor to obtain the assistance of the person bribed; sometimes to the demand expressed or implied that the bribe shall be given. Many cases, the committee state, have come before them in which traders have believed—and apparently not without reason—that the entire failure to obtain orders has been due to the want of a bribe. It is not suggested, however, that these practices are by any means universal in any trade or profession. In regard to bribes the report states that these are generally given in as a money payment, the worst form of which is a pro rata commission on the business done; sometimes in the shape of a loan, which places the borrower at the mercy of the lender; while sometimes it consists of presents of plate, wine or other things, and not infrequently in the form of lavish hospitality and treating. Often it is described as a discount. A witness who had been trying to secure business for a German firm of ink makers is cited to this effect. “In England, unless you “ spend your money freely, exercise a “ large amount of faith, and ask no “ questions about it, you will stand “ very little chance of getting any “ business. Even life insurances have “ to be purchased, even villas have to “be purchased. Villas upon villas are “ purchased to-day.” Most of the evidence tendered to the committee was under the seal of confidence. Among the detailed statements was the following:— Recently a man of scientific eminence in Scotland received a very large commission for recommending a certain make of microscope. Ib is an open secret that hospital doctors receive commissions from makers of surgical instruments. A consulting and electrical engineer deposed that secret commissions are paid and received in every department of business, and by almost every grade of men. The Electrical Construction Company, in correspondence with the Corporation of West Ham, called attention to the fact that a higher tender than theirs had been accepted, and they asserted that an offer had been made to them of the assistance of a member of the corporation in getting the contract if they were prepared to negotiate for his services—which offer was at once rejected.

One witness, who is in an influential position, charged solicitors, stockbrokers and bankers with being frequently in collusion with regard to the division of fees on investments for clients of trust and other funds. The steward to a large estate pointed out that the practice was growing for the surveyor or engineer employed on one side to be paid by the other as well. “ For example, ”he said, “ rail- “ way companies pay the surveyors “ and inspectors of these owners “whose land they take.” Among many cases, the committee say, where no such system would be suspected is that of “ chemists paying to medical men “ commissions on their prescriptions, “ in some instances amounting to from “25t0 50 per cent.” With reference to traders the report contains much significant information derived from oral and documentary evidence.

A Sheffield cutlery manufacturer wrote : “ The misohiev< us practice has done a great deal of harm to the proprietors of houses, in London especially. The mode of levying blackmail goes right through in some houses, even to the boy who takes in the manufacturers’ card to the buyer, their civility and attention having to be paid for by the unfortunate traveller.” Electro-plate makers say; “ The system of bribery we have to contend against in London exists to an alarming extent. If not stopped it will become impossible for an honest man to do business.” A large firm of Yorkshire woollen manufacturers depose: “One of the greatest evils in the textile trade is the bribery of dyers by drysalters. It would not be too much to say that there are firms of very prosperous drysalters whose every aocount depends on bribery. ” A draper in the North of England said: “The Cooperative Stores have been the hotbed of the system. I can give many cases where £25, £lO, £5, flitches of bacon, chests of tea, have been given to managers for orders. Sometimes ten per centdiscounton the total account is taken.”

A machine manager to a large firm of publishers stated that some time ago a firm of printing-ink makers offered to give him 10 per cent commission! f he would use their ink. A country

gentleman reported “that all, or nearly all, nurserymen and seedsmen pay secret commissions to gardeners.” A country brewer informed the committee that his firm “found their brewer, who for thirty years had enjoyed their implicit confidence, and who received a large salary, had been receiving commissions frem nearly every firm from whom they purebased goods, the to al amounting to no less than £635 during the year previous to his detection.” Sir Edward Fry, who has written and spoken much on this topic, is cited, in a published letter, as saying : “Of all commissions that have come to my notice the most gruesome is that of a commission to be given by an undertaker to the medical attendant of the deceased. An informant of the highest credit tells me of a quite recent case, in which a poor governess died in a school, and as soon as she was dead the medical man pulled from his pocket a sheaf of the cards of an undertaker, and, giving ( one of them to the person concerned,’ suggest e 1 the employment of the undertaker. The undertaker was employed, but the medical man has not since been called in. What a psychological study is presente 1 by the doctor standing by the bedside of a patient hovering between life and death with a pack of the undertaker’s cards in his pocket.”

The committee recommend the more

frequent enforcement of the principal’s civil right to recover from his servant everything he has received as secret commission ; that all professional and trade bodies should declare against secret commissions, and provide by law for the expulsion of any member found guilty of receiving ; that traders should make a definite agreement with all with whom they deal not to give bribes or commissions ; that masters should insert an explicit stipulation into their contracts with their

agents ; that a public meeting should be held to call public attention to the evil. The committee express, their belief that the discussion of the subject and the publicity of some cases before the Law Courts have already done some good; and they recall the undoubted fact that corruption formerly existed in this country in regions where it is now entirely unknown ; that there arc cases in past times in which bribery threw a stain upon occupants of the bench ; that at one time a large number of the members of the House of Commons were in the pay of the Crown; and that commissions and other secret forms of bribery abounded in Government departments. They accept the improvement which has taken place in these directions in the last fifty years as a fact full of encouragement for the commercial community of Great Britain. “If legislation is to be at- “ tempted to check the abuses which “ still remain, it appears to the com- “ mittee that such legislation should “ render criminal the payment, receipt, “ offering, and solicitation of any cor- “ rupt payment.”

It appears to be already settled that Mr Gilfedder will have to fight for his seat at the coming election, and we hope it will be a fair single-handed contest, whojvir may be his antagonist on behalf of the Opposition. The only candidate announced on that side, so far, and indeed the only one we have heard spoken of, is Mr Allan Carmichael, of Otautau. Mr Cannichael has been a possible candidate for a long time, and might have been in the field on former occasions, with a probability of finding himself in the House. He is, in many respects, an ideal representative for an agricultural district, such as Wallace chiefly is, bub possesses also the qualifications that would enable him to fitly represent the other interests within its borders as well. He has had a long experience in public business in connection with local government, and is admittedly favoured in the matter of shrewd good sense and practical sagacity. The fact that he will have a very strong supporthasbeen admitted evidently by his opponents, for Mr Carmichael has quite recently felt it necessary to. discredit a rumour set afloat to weaken his candidature. This he did in a letter to the Western Star, which follows: “ Having been informed that it is rumoured that the object of my candidature at the next general election for Wallace is to split votes for the purpose of facilitating the return of another, I now beg to state that such a report does not contain a fragment of truth, while I take this opportunity of assuring you that I contest the election in opposition to the present Government for reasons forthcoming in due course.” This is a definite aud outspoken declaration of the writer’s position as between existing parties. He declares] his intention of setting forth his reasons for assuming hostility to the Ministry “indue course,” On this point we think it would be advisable for Mr Carmichael to declare himself more freely as early as may be convenient. It cannot be forgotten that he was a strong supporter of the late member for the district, if not of the party to which that gentleman clung with such surprising tenacity. It would not be right perhaps for Mr Carmichael to take to the platform just yet, while members of the House are everywhere on the wing. They have unquestionably a prior claim to be heard, and we would nob suggest an infringement of their prerogatives. We have no doubt, however, that the pres's would afford Mr Carmichael facilities for setting the minds of the dubious ab rest on matters affecting his political antecedents, and our own columns are reasonably at his disposal for so good a purpose.