Exploiting Is Denied.

Star (Christchurch), Issue 18465, 17 May 1928, Page 4

Exploiting Is Denied.

SUPPLY OF PIPES TO DRAINAGE BOARD. “ PRICES LOWER HERE SINCE AGREEMENT,” SAYS HEAD OF FIRM. The following is a* copy of a letter sent tcfcdav by the Homebush Pipe Company to the chairman of the Christchurch Drainage Board:— Dear Sir,—My attention has been called to the Press report of the last meeting of the Drainage Board, which must at first glance create the impression that the pipe manufacturers of this city have been exploiting your board. The publication of a private agreement surreptitiously obtained must, I think, disturb the conscience of the person who disclosed same more than it does me, being a party to it. It is admitted the world over that trade'agreements are essential to the conduct of business as it is to-day, and more particularly so in connection with y our drainage contract supplies, which call for quantities far greater than any one pipe works of this city is able to manufacture. In fact, ourselves as well as Messrs Murphy Bros, and J. Austin and Sons have found it necessary to considerably increase their plant to cope with the demands of the present Drainage Board requirements. It has always been the custom of

your Drainage Board, going’ back over a long number of years, to deal), / not with any one particular works in' Christchurch, but to make an agreement with the three works combined, at prices agreed upon. The publication of the discussion at your meeting will lead the people of this city to believe that the local works had instituted this agreement to exploit the board and increase the price on \Y>u. I wish to state, however. that no increase has taken place in the price of pipes or fittings: in fact, th£re has been a slight decrease in some of the materials since I purchased the Homebush works from the Deans family, and the same position applies to Messrs Murphy Bros., who purchased the Christchurch Brick Company, and since then have carried on their trade here at exactly the same prices which Mr Horsley was selling at. You will therefore see that the agreement with the Hume Pipe Company did not in any way increase the price of' pipes to the Christchurch Drainage Board, but, if anything, reduced same. The letter to the board from the Napier Pipe Company, and published along with the discussion at your meeting, is certainly intended to create the impression that the price or pipes is too high in Christchurch, and urges that if they are given a share of the supplies it would have the effect of a general break in rates. To prove that this offer is not one

of a benevolent benefactor to the board, I wish to advise that the contract prices which the Napier Pipe Company, with headquarters in Auckland, charge, in that c'ay are consid-

erably higher than our present rates to you. and certainly much higher

than the present offer which this Auckland firm has now made. This obviously proves that the present cut rate is given for the purpose of enabling this firm to get established in Christchurch.

To prove my bona fides in connection with the suggestion of exploitation, I wish to make this offer to your board. It is now fully three years since I purchased the Homebush works, and I am prepared that you appoint an accredited auditor of this city to inspect the company’s books, and have access to the last three balance-sheets, and if he is of opinion that the income earned is greater than what is reasonable on the amount of capital invested, I am willing to immediately drop my prices to what he considers a fair Further than this, I feel sure that I can induce Mr John Deans, the late owner of the works, to produce the previous five years’ balancesheets. when the company was operating on higher prices than it is today. As an additional proof of my sincerity, I am prepared to offer to the Christchurch Drainage Board the sale of the Homebush works at the price of the exact cost to me, and will give immediate delivery. The object of my writing this letter is to prove that there has been no exploitation by the local manufacturers, and that agreements made to prevent loss and distress in an industry can be carried out in an honourable way, and without injury to the public. As so much publicity has already been given to the statements made at your meeting. I feel compelled to hand a copy of this letter to the Press and trust I will have your endorsement of this action. If you wish to further investigate any of the statements which I have made, I shall be verv glad to meet your board and discuss the question, as should halve been done in the first instance, considering that the Homebush Company has been suppliers to the Christchurch Drainage Board for the last fortv vears. (Signed) P. M’SKIMMING, Homebush Pipe Company.