"STRANGLED."

Dominion, Volume 3, Issue 665, 16 November 1909, Page 6

"STRANGLED."

BUSINESS IN OSRAM LAMPS, a AND MUNICIPAL COMPETITION. Ecpxesantdtives of the Wellington Provincial Industrial Association, the Shopkeepers' Association, and importers of electrical fittmg3 waited upon his Worship the Mayor yesterday morning and spent an hour discussing the matter of tho importation of electric lamps and irons by the municipal authorities. Mr. H. J. Allan, secretary of the Industrial Association, who introduced tho deputation, .pointed out that importers viewed tho action of the council in entering into competition with traders rather unfavourably. Protest Against Municipal Sales. Mr. Seaton, representing the Shopkeepers' Association,' stated . that members of the Association, had pointed out what they considered the unfairness of the aty m supplying lamps at prices wh*Sh the traders themselves have to pay for them. Tradesmen required a fair and reasonable profit, but unlike the city they had to pay rates, and a heavy rent, 1 and they had to take tho matter of breakages into account in fixing prices Many of the I traders had heavy stocks on hand, which would be practically useless if the council was going to supply lamps to the public at near cost price He understood the council was stilling Osram lamps at 4s. α-piece Members of his association nad produced invoices to show that the lamps which they held m stock had cost them 45., minus breakages, etc It had been stated m some quarters that there wee a ring or trust working in connection with the lamps, but tins was not so. Retailer-Has No Chance. 'Mr A. Nowton, of the Indiistnal Association, stated that when the Osram lamp first came in it cost 7s 6d., bat within 12 months the cost came down and the lamps could now be purchased for 4s id. over the counter. Of course the council wus at liberty to go into the trade, but it Eeemed to importers to be rather a Socialistic stand to take It did not seem fair that importers should into competition with the municipality wnen they already held stocks purchased at a certain figure, and tho council was purchasing with ipnces coming down. If i tho council was selling at *s, the shopkeeper, ! retailor, or importer had no chanco to com■pote with them, especially when the latter had rates and rents to meet, an expense from which the council was free As an alternative | b tho existing competition, he suggested that the council should import tho lamps, lions, or anything in connection with electncitj, and give them over to the traders for sale at a certain price Snch a procedure would do away with any possibility of exploiting tho public i Mr S S Williams did not think that much exception could bo takon jf the council became a wholesale trader Competition was too keen to allow , of the council entering into retail competition It simply meant that the trader could not exist A voice "It is not fur. We supply the money." The Mayor pointed out that m {he Old Country forty-four cities were supplying the whole of the fittings for electrio lighting, and were doing it inder an Act of Parliament. No Ring Among Merchants.

v Mr. pointed 'but' !the position, in which; traders : !were who - .'had.'large stocks: of 'lamps in;hand,;; purchased at a certain fignre', ; whilst .''thei , council, through- the Notified that in a'short time they would bo soiling metallic filatnpnt lamps- at 2s People saw the notification in the papere, and consequently would not buy Hie traders' piesent stocks, which were, of conrse, purchased on the higher market before prices came down TUt) Mayor Said the counbiMiad called for tenders for 3000 lamps, and as a result theso lamps were bom? imported at a cost .of 2s 2A IJhe council, roVrever, would not sell them at 2s 2d

Mr Blakeloy said the public had been led to bohevo thnt these lamps were to bo sold at 2s 2d, and he considered that this idea should be corrected The speaker went on to d«ny the statement as to a ring controlhnK tho sale of lamps The fact that in the past five months the lamps hud como down from 'Lj 6<l lvaB) ho thought, conclusive evidence that there was no ring of any kind in existence * i, ( "fhe Mayor's Reply. The Mayor stated that ho did not think the council hadjthd slightest msh to interfere with the retail tradore. On tho contrary, the understood that the council's idea was to gain the goodwill oi the retailers, and bo push tho supply of electric current 'Xhe Llectric Light ing lttpartmont of the city had paid well for some time, but of late it had not been so successful. Last year 450 new connections had been put on, and this in lbelf sounded Tteil, but he could say that tho Gas Company had put on over 950 new connections Dr Nowman went on to illustrate a case which had como under hie notice, where at a big meeting in , a room fitted with both electric light and gas, the gas was in full glare and not one electric lamp was being nseo. This position was brought about becauso peopie could not pay tho high price asked for fragile lamps The lighting revenue was falling, and it had been found on inquiry that the high price of electric fittings was strangling tho Electric Lighting Department In tho first 6ix months of tho present year it was found that there was a falhng-off in the nnmber of lighting connec uons, and the position was getting a very serious one People simply wouW not pay the high price asked for fittings The council had erected new machinery for the purpose of producing current cheaply, but the high price of lamps and fittings was strangling the electric light undertaking, and personally ho could see no way of coping with the difficulty except by supplying cheaper lamps Thev wore face tofaco with a grave difficulty Not very long ago a 50-candlo power lamp was sold at 12s. Cd The council could have sold the same lamn at 5s

"Throttled and Strangled" Mr Blakeley "You cannot say the present price of lamps ie lao high I" Dr. Newman "1», I can They are i good deal too high" Dr Newman wont on to state that no man. could make olectriciiy pay with the cost of fittings so high Mr Seaton asked if the cost of maintenance of the Department was not too high, o which the Mayor was undeistood to leply that such nae not the case The new machinery would mean that the cost of current would jrresently be even cheaper than now. Hfe iwiuld say ogam the trade was being throttl-d and strangled by the high price of fitting The council had not sold anything at cost price Mr Blakoley said the council sold at such a small profit 'that it did not protect the trader Traders w«e quite- willing to reduce Hie price as prices came down at Home, but they had their stosk in hand to consider The Mayor said tie feeung locally nas that no one had been pushing tho sale of lamps, fittings, etc Henoe tho action of the council. Other people were active and, if the oeuncil did not get cheap fittings, they could do nothing against opposition ' Mi 'TLt is easy to push any business if yon do jt at cost price " "This council is not going to coll nnythme that won't paj it" Sir "Blakeley aeked if the council would confine the selling ot lamps to new consumers or to coneumers that also have the gas on their premises.

:_ The 1! Mayor.';; said '. this. could ; ,hot' be ' 'don« Everyiratepayer muet;;be 'treated alike. :' . .Mr. /Blateley gaid' it simply meant' that tradenb could .not hold.stboks. Fittings came : do-ra r inpri6e. with' every shipment, and had fallen more than 50 per cent.'.m three''mbnths. He_held-that it.iwould .pay■ any' oonsomerrto boy the lampsi at 65., or even -75. : , if the best class of;lamp :was. obtained..- v-t;-. .- ' : .After - some''farther discussion, 'the -Mayor promised to bring the. views of the deputatton before the,.cbUnciL■■•■':The high cost of fittings was,.in his opinion, the keynote of the rhble 'situation.-. -.; ■■.■;'■• : ...,.., . ...■■■..--.'... ,: V .'. : Another Deputation. - .',■ A. strong dep'utatio'n waited "upon ■'tte Tramways and: Lighting Committee of the council in the saine connection yesterday afternoon. 'The S6n. C. M. Luke, AT.L.C., m introducing the deputatien, • remarked that the. deputation was of opuiioh that when the' corporation descended, to deal'with matters of subpVthey (the'doputafcioil). were doing the'.correct thing in questioning "the right of tho council to do deputation, held that the competition was Unfair, aid, with the city rated as high ■as it ■is,.,.it,twias-difficult for ,Bh6pkeep6rs to pay their; wiw'. and meet the high 'charges'.' Mr. HopkirJc," representing the Employers' Association, thonght: the; council should not enter - into competition in the manner indicated.- 'The' municipality had- no right to take general; funds and. apply them as- above. Tie Employers' Association leared:tho present step was thVthin end. of; thVwedger and they wished -to enter. a protait against what thiy considered, an.ineqtutabU; and nirjust' arrange,meat;;•■■,'■ i-'... 1 :---.;'/'.- "■> '!-.'• - ■ : ■":■-,:" '• ■, ■ llessrs. : ;M.:MantbeU, and; ToUey also, spoke protesting against the. money of (ie ratepayers being;nsea ro < -•:.-: The MayoT promised that the matfer would be considered by' the committee and the conn-. .cil. -., ,The-cqmmittcb • evmitually> postponed consideratkji. of the , question 1 until ■ ite ; neit ■■-,''•' '\\ '■■(' ■ ■ - ' : " ' ■■-..■;". v -- . ; ■ :•''•'''•.'.