GO-OPERATIVE MANUFACTURES.

Star (Christchurch), Issue 8376, 24 July 1905, Page 3

GO-OPERATIVE MANUFACTURES.

PREVENTION OF TRUSTS

MR TAYLOR'S BILL

Mr T. S. Taylor has introduced into Parliament a Bill " to consolidate and extend New. Zealand manufactures by providing for the production by our own people, as far as possible, of all articles required for our. own use upon a, basis of combination, protection maximum rate of interest to . capital employed and the co-operative division of surplus profits between tho workers and committee, together with the right of the State to control and, ii : necessary, take over any consolidated industry as provided for in the Bill." The preamble of the Bill sets forth that it is desirable that the most profitable and easily accessible markets should bo provided for the products of the farms of this colony ; *hat it is desirable to provide all possible employment for tho population of New Zealand in arts and skilled industries and manufactures, to foster and promote the highest possible standard of living for our own people and protect them against the inequitable industrial conditions of foreign and older countries; to prevent the growth in this colony of the manufacturing trusts so. rapidly developing in older countries at the expense of the people ; that the destructive competition and want of system at present existing amongst the colony's industries and manufactures should be remedied by the adoption of a system that will lessen the cost of production to the consumer and ensure permanent and profitable employment to our own people; that the interest payable to capital invested in manufacturing industries should be defined ; that any advantages accruing to capital invested in manufacturing industries through the levying of Customs taxation upon goods imported into the colony shall not be appropriated by manufacturers, but be equitably distributed to the public who provide the tariff protection ; and to do everything reasonable and possible to make this colony self-contained and independent of foreign supplies.

Mr Taylor proposes to provide that the articles of association of every combined co-operative industry, registered under 1 the Companies Act of 1902, must include that the net annual interest shall not exceed 7 per cent. The price-* charged for the wares produced by the company ai*© to he as low as, or lower than, the average prices paid for similar goods in ths seaports of the cities of the colony during the previous three years. The shares are to be £1 each (no preference), and in the election of directors each shareholder shall have one vote tor each share held up to 5000 shares, over which shareholders shall have only one vote for every 3000 shares. Employees and customers are to have the privilege of investing their savings in the company's shares, in addition to any shares received by way of a share of any division of surplus profits, so long as the sale or issue of shares is necessary for the further extension of the business and the quality of the goods, wares and merchandise manufactured must be maintained fully equal in every way to the best produced for the same purpose in any other country, and experts must be kept for that purpose, co as to maintain, a high v standard of. efficiency. The net surplus earnings, after setting aside a liberal reserve, must be divided between customers and employees. Uniform prices must be charged to all customers of the company in New Zealand, and no special discount will be allowed. The Government will be given the power of taking over and nationalising any company's business at any time if required in the further interests of the people, by giv-' ing three years' notice, arid in that ovgnt the Government will pay the company the amount of its cash value and accumulated reserves. The Bill also provides that when all the persons or firms in the colony engaged in the. manufacture of the same article unite ac a combined co-operat ; ve company, Parliament may revise the tariff and may abolish the Customs duties on the articles affected. SOME LOCAL OPINIONS. Several business men in Christohurch, who were seen in regard to- Mr Taylor's proposals, expressed an opinion that the measure would not be likely to meet the author's aims, and a few said they thought that it would be impracticable. On© merchant eaid^ that a minimum of 7 per cent was too* low. He stated that his firm had been operating for about three years without making any profits at all, and he expected to make more than 7 per cent in order to counteract the bad years. He thought that legislation in this* direction was starting at the wrong end. New Zealand, so far as he could see, was not suffering from internal trusts, and was in no danger' from that quarter. Trusts would never succeed here. The country was against them, and the peculiarities of the colony's business would always prevent their formation. What it was suffering from was the operation of trusts outside the colony. That was where a real danger existed, and 1 that was where legislation should direct its efforts. New Zealand was being threatened month by month, almost week by week, with the great American trusts, and New Zealanders were not being protected from their operations. . A great deal was talked about reciprocity in these times; his opinion was that tho colony should reciprocate, in a way that left no doubt as - to its feelings in the matter, with those countries that raised their tariff walls against its products. Another gentleman states that although it might be possible to regulate the prices of some goods in accordance with the average prices paid during the !previo'us three years, such a regulation would be impossible in regard to wheat, for instance, as Ausr tralian droughts and other causes had a material effect on prices. He looked upon the Bill as an attempt to add to the fabric of the co-operative base, but he did not think that any addi- , tion was needed, as co-operative socie- ' ties would do all that was required.