ENGLISH COMBINE.

Dominion, Volume 7, Issue 1945, 31 December 1913, Page 7

ENGLISH COMBINE.

IN THE SHEET IRON TJUDE. (Br Telceraph.-Pr«ss AseociaAiofi.) Auckland, December 30. A statement, cablcd recently from London, that a huge combino was being formed in Great Britain among manufacturers of galvanised corrugated sheet iron, was discussed yesterday by a number of men engaged in the building and hitrdwnre trades iii Auckland. It appears that a similar combine existed a fo\v years ago. but since it burst competition has been so keen and prices havo boon cut to such aiv extent that ftt present there is little. ■ rirolit in the trade. This statement lias been que.v tioiied, however, by a reader of commercial journals. Past experience goes to show that other combines in tho trade, while they lasted, havo been highly successful from their point of view. For instance, a combine among manufacturers operating a few years ago forced prices tip several pounds per ton. In 1904 tho cost of iron was on a par with present values, but in 1007, when the combino flourished embracing, all the largest Baldwin, Safivers, and others —the price had men no loss than £3 10s. Tho formation of a combine will not have an immediate effect locally, although' A rise of os. to 7s. Gd< per ton has already been announced by cable. The merchants, who j hold stocks bought at late prices, who havo still contracts to be filled, and who are now speculating against the futsire, will be prevented from "bumping" prices straight away on account of competition, and tho impossibility of tho formation of any "ring" amongst them. In fact, it is this strong competition and cutting of priccs in resent years that has made handling iron a rather profitless business. Doubtless New Zealand merchants, who arc strong filiaiicinlly, will purchase large stocks now, for a continuance of tho combine at Home is bound to mean a : steady rise in prices, and thus they will profit in the future. The opinion has been advanced that- the combine cannot last for tho reason that tJjo_ "small" men, who remain outside, will bo « continual source or keen competition, and that when tte manufacturers concerned, fijid that their output is restricted to sue!; an extent tha! their profits will be curtailed) they will sreMe.