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REPORT.

I have the honour to report that, owing to the large volume of evidence which was tendered to the Committee and the limited time available for consideration of such evidence, the Committee could not, without further investigation and inquiry, come to any definite conclusion, and as the subjectmatter of the Bill is of such importance to the public it should be subjected to further inquiry during the next session of Parliament. The Committee therefore recommend that the Bill be not allowed to proceed. A. D. McLeod, 28th October, 1935. Chairman.

NOTES OF EVIDENCE TAKEN BY INDUSTRIES AND COMMERCE COMMITTEE IN CONNECTION WITH THE COMMERCIAL TRUSTS ACT AT PARLIAMENTARY BUILDINGS, 9th OCTOBER, 1935. The Chairman : The Committee has decided to take to-day the evidence of those objecting to the Bill, and it also proposes to ask for leave from the House to sit again at 3 p.m. so as to give the objectors every opportunity. The Committee would be very pleased indeed if the objectors could complete their evidence to-day if at all possible, but we cannot see our way to hear any further evidence from the objectors after to-morrow. A recent communication has reached the Committee from the Wellington Coal Merchants' and Dealers' Association against the Bill. Is there anybody representing that request here ? [jVo reply.] (The Secretary explained the position to the Chairman.) Counsel for the objectors (Mr. H. F. O'Leary, K.C.) : I appear with Mr. Jessep to make objections to this amendment. Therefore I name the companies and persons whom we represent: — National Distributors, Ltd., Head Office, Wellington. Self Help Co-op., Ltd., Head Office, Wellington, with 145 stores throughout New Zealand. Hill Bros., Ltd., Wellington. Rimmer and Co., Levin (Grocers). (National Distributors are wholesale grocers, the others are retail grocers.) J. Norrie, Timaru (Grocer). G. H. Horsburgh, Grocer, Hawera and Taranaki generally. Tudehope Stores, Whangarei. Darby's (N.Z.), Ltd., Napier (Fancy Goods). W. S. Millar, Service-station Proprietor, Auckland. (The Chairman agreed with Mr. O'Leary's suggestion that he (Mr. O'Leary) would make detailed statements and quote authorities in opposition to the Bill, and then call witnesses.) Mr. O'Leary : We summarize our submissions in this way : We submit, first, that there should be no amendment in the way of lessening the effect of the Act —the Act is weak already ; second, at the present time sections 3 and 4 are of some effect in preventing price-fixation —and boycott—the Bill will nullify the effect of those provisions altogether ; third, the alleged ground for the Bill is the prevention of price-cutting —we will call evidence that in the trades in which we are concerned price-cutting, if it exists at all, exists only to a negligible extent ; four, this Bill as amended will have the effect of enabling high prices to be fixed to the detriment of the consumer. The Bill that it is proposed to amend is the Commercial Trusts Act of 1910, which, as is well known, was drawn up by a very eminent gentleman —Sir John Salmond —and it has been looked upon in other countries as a model of draftmanship. Certain propaganda is being issued in an endeavour to have this measure passed, and in it the naive suggestion is made that as only two sections out of the fifteen sections are affected by this proposal then the amendment is only a little one and it does not really affect the position very much. I want to refer to the Bill to show that sections 3 and 4, which are the sections it is proposed to amend, are most important. Summarizing section 3, it. means this-: that it is an offence to give concessions to A. for any of the five following reasons : (I) That A. deals exclusively with B. or B.'s class ; (2) that A. undertakes not to deal with C. or C.'s class ; (3) that A. restricts his dealing with C. or C.'s class ; (4) that A. is a member of a commercial trust ; (5) that A. acts in obedience to a commercial trust. Section 4, which is a vital section, makes it an offence for any person to refuse to sell to A. because : (1) A. deals with B. or B.'s class, or will not undertake not to so deal ; (2) A. is not a member of a commercial trust ; (3) A. does not act in obedience to a commercial trust. Section sis the monopoly section making it an offence to monopolize the demand or supply of goods in New Zealand and it is an offence to so create a monopoly if such monopoly is contrary to the public interest. [Mr. O'Leary quoted sections 8 and 9.] You will see that lam correctin saying that the crucial sections are sections 3, 4, and 5.

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