The Press MONDAY. FEBRUARY 16. 1903. A CO-OPERATIVE "COMBINE.

Press, Volume LX, Issue 11509, 16 February 1903, Page 4

The Press MONDAY. FEBRUARY 16. 1903. A CO-OPERATIVE "COMBINE.

_he news we publish in this issue of the amalgamation of most of the principal New Zealand firms which manufacture farm implements and machinery, will not come as a surprise to many persons. Such a movement has been " in the air " for some time, but the actual negotiations for amalgamation have been carried through during the past four or five weeks. The object of the "combine" is stated to be "to economies in the purchase ol " raw materials and in the manufacture "and distribution of farm implements and " general machinery now handled by the "various constituent concern*." So far as these intentions form the object of the amalgamated company, it is a move in the right direction, and ought to benefit all concerned. Labour having combined for ,ts own benefit, manufacturers have undoubtedly an equal right, and are indeed practically forced, to combine. There is x|ne feature of this latest " combine" which distinguishes it from similar organisations, and especially (from the " trusts" ol America. It is, as we have indicated, a " co-operative combine." By the rules of association, all surplus profits, if aoy, after payment of a dividend which must not exceed 7 per cent., and allowing for depredation of property, are to be distributed on a co-operative basis among shareholders, clients, and work-people. VVe are given to understand that there is to bo no rise, as the result of the "combine," in the pricee of the articles manufactured by the firms conoerned. There may be no deduction, except such as may be afforded by the above-mentioned bonus, but there will be no increase, unless there is a rise in the price of the raw material or in the cost of labour—two factors upon which the prioe of every manufactured article in the world depends. So far, therefore, as can be seen, there is nothing in the business arrangement just concluded which need cause anxiety to the purchaser of agricultural machinery. On the contrary, if the amalgamation of businesses expedites production and' distribution, effects any improvement in the articles produced, and widens the field of the local manufacturers' activities, it will be a good thing both for farmera and workmen. Still, such combinations may be abused, and therefore they must be watched, especially if At any future time there is any indication of an attempt te invoke the aid of a protective tariff for the benefit of manufacturers of agricultural implements and machinery.