BOOMERANG LEGISLATION.

Taranaki Herald, Volume LIX, Issue 14398, 5 January 1911, Page 2

BOOMERANG LEGISLATION.

The Commercial Trusts Act passed last session was intended to protect the public from monopolists like the Colonial Sugar Refining Company and the Standard Oil Company. It has been the practice of both these concerns—the latter through the VacuumOil Company—to bind their customers by means of a signed agreement not to buy supplies of sugar ami oils from other sources, and as an inducement they have given a bonus or rebate off the monthly accounts. Both companies have, on the coming into force of the Act mentioned, issued circulars advising their customers that in consequence of the new legislation all rebates and discounts must bo withdrawn us from December 51. The el loot of this will be an immediate increase to the merchants and retainers of the cost of sugar by over 10: per ton and of kerosene by a few pence per tin. The retailers must for n.eir own protection pass the added cost on to their customers, for on neither of these lines is there more than a very small margin of profit. Thus the Aet which Parliament passed to protect the consumers from monopolies reacts upon the consumers by adding to the cost of their supplies, and at the same time passes larger profits into the hands of the monojK>*lists. New Zealand imports something like 50.000 tons of sugar annually, and the rebate of JUs per ton on this quantity amounts to £25,000, which sum, approximately, the Colonial Sugar Refining Company will, it would appear, now save by the working of the Commercial Trusts Act. Tims, so far as we can make out, it is these trusts rather than the consumers who have to be thankful lor the legislation. Of course, the Act leaves the merchants and retailers free to buy thensupplies elsewhere—*of they can; but the trouble is that there is nowhere else to go for sugar or kerosene, both of which must still he bought, at a higher price, from the same suppliers, who are probably laughing up their sleeves at the ‘‘cleverness*’ of the Now Zealand legislature, which has helped so materially to increase their profits.