No Rise In Commission On Live Stock Sales

Chronicle (Levin), 31 May 1949, Page 4

No Rise In Commission On Live Stock Sales

.... — ... w-, -- --- WELLINGTON, May 30. ''It is clear that the general appli^Ation to reduee ' rates ot* commission lhust f'ail, " said the jndgment delivered by the Price Trilrunal todav in the application by the "Dheetor of Price Oontrol for a new schednle of live stock commission rates charged by stock _and station agents. The hearing of the application was commenced by the Price Tribunal on April 26. Tt was adjourned until May 10 and concluded the following day. Tlre Tribunal 's finding states that the rates of commission have been unaltered for 30 vears or more." No application to Lncrease them has been made till now notwithstanding ve'ry eonsiderable inereases in wage and other costs. "It" is admitted that none of the comp.anies whose accounts were investi gated, are maldng excessive profits in this branch of their business, that some are makiTig only a moderate margin of profit and that otliers are operating at a loss. Nevertheless, it is argued that the companies are doing so well over their businesses as a whoje, that fhey can well alford to operate this branch of their trading at red'iced rates. This reasoning seems to the Tribunal to he faljacious. While it would be a good answer to an application for authoritv to increpse the rates, that the companies overall are doing very well although malring little or no profit on the stock department, it is, in the Tribunal 's opinion, no reason for reducing the commissions on the sale of stock. If the companies are making excessive profjts in other departments of thejr businesses or on particular lines of pierchandise. it is in those directions that the Division must look to bring about reduetions. The finding says in conclusion: "While it was shown that the profits made by companies as a whole in the stock and station departments of their businesses, are yery moderate, the survey also showed that over the whole of their businesses the companies are doing very well. Speaking generally, the.7 have paid good dividends, have increased shareholders' funds, and have been able to place eonsiderable sums to -reserve. While the Tribunal has declined to inerease commission rates in view of the fact that returns from stock departments are only moderate, when it .comes to an application to inerease fees, the Tribunal must, in accordance with its well established praetice, look at the overall results of .the industry. These results are such that, in the Tn bunal.'s opinion, no ground has been shown to justify the application for in creased commisison rates and this appli cation must also fail. ' ' 41