CASH ORDER TRADING

Wanganui Chronicle, Volume 73, Issue 98, 28 April 1930, Page 7

CASH ORDER TRADING

ABOLISHING EVILS BILL NEXT SESSION It is probable that legislation 1 will be submitted to Parliament next session governing the operation of what is known as tho cash order trading system in New Zealand. The legislation will follow the lines recommended last session by the Industries and Commerce Committee of the House of Representatives. The whole subject of the cash order trading system was investigated early last year by the Minister of Industries and Commerce, at that time the Hon. J. G. Cobbe, and the Secretary of the Department, who took evidence in the various centres. The report was presented to Parliament last session. It urged that unless the cash order companies and the individuals conducting the system indicated their willingness to conform to eight detailed recommendations, legislation should be introduced to enforce the proposals. The eight recommendations referred to were as follows: (1) That the charge to clients by way of commission should not exceed 6d in the £; (2) that the trade and cash discounts allowed by retailers accepting the orders should not exceed 10 per cent.; (3) that canvassing for orders should be prohibited; (4) that no mail order propaganda be allowed; (5) that the cash orders be open to any firm willing to accept them, and not limited to one firm or individual; (6) that all orders should bo issued from a registered office only; (7) that no orders should be issued to persons under the age of twenty-one years, or to married women without the consent in writing of their husbands; (8) that no order be issued to any person who has not completed payment of any previous order.

The House of Representatives referred the report to the Industries and Commerce Committee, and subsequently approved the committees recommendation that legislation bo introduced subject to certain alterations in the eight recommendations. The clauses disallowing canvassing and mail-order propaganda were deleted, also the latter part of clause 7 relating to orders issued to married women. Aft addition was made to the final clause providing that the amount advanced should not exceed £lO in any one case. Speaking at tho annual dinner of the Wellington Chamber of Commerce last w’eek, the Minister of Industries and Commerce (the Hon. J. B. Donald) said that he hoped to introduce legislation in the coming session which would do away with most of the evils of the cash order trading system.