COMMERCIAL TRUSTS

Timaru Herald, Volume CXXXVII, Issue 19625, 20 October 1933, Page 8

COMMERCIAL TRUSTS

DISCUSSION IN LEGISLATIVE COUNCIL. By Telegraph—Press Association WELLINGTON. October 19. Moving the second reading of the Commercial Trusts Amendment Bill m the Legislative Council this afternoon, the Rt. Hon. Sir Francis Bell said that under the present Act the practices of traders in agricultural implements, coal, food, oil and tobacco were considerably restricted while traders in other commodities could carry out any legitimate commercial practice. The Act made it illegal for dealers in the goods mentioned to give concessions to other traders in consideration of exclusive or principal dealing, and his Bill sought to modify this prohibition by making the practice legal so long as it was not contrary to the public interest. The present Act greatly hindered commercial activities because any advance made by a merchant to a trader in consideration of custom in the goods mentioned was not recoverable as the contract had no legal standing. It was ludicrous to have one set of rules for a draper and another for a grocer. The Hon. R. Masters said that the present was a most inopportune time to amend the Commercial Trusts Act, as the amendment might have the effect of increasing the price of food. The amendment would make it necessary for the Crown to prove that any prosecution was in the public interests, and this was extremely difficult. There was no doubt that the Bill would be welcomed by those who had been forced into price cutting, and although he (Mr Masters) did not believe that any person should be forced into unprofitable trading, he had also to see that the Government was properly safeguarded. He would be pleased to consult his colleagues in the matter to see if anything could be done. Sir Francis Bell said he did not wish to take the second reading and withdrew the Bill.