THE COMMERCIAL TRUST ACT

Dominion, Volume 8, Issue 2506, 6 July 1915, Page 7

THE COMMERCIAL TRUST ACT

PROTECTING THE PEOPLE. SUGGESTIONS FOR MEMBERS OF ' PARLIAMENT. Mr. A. Fairbairn, of Christchurch', forwards us an open letter to members of Parliament, being a plea to enlarge the operations of the Commercial Trusts Act, 1910, "in order to protect tho people from the operation of commercial conspiracies ..in,.restraint ,of trade." We have not space for the communication in full, but the amendments suggested by Mr. Fairbairn are as follow "The Commercial Trusts Act, 1910, to bo really effective, should be amended to cover all commodities and l include the following provisions. "(1) That it is illegal for any combination of-traders'to arrange selling prices to the retail trado or the publio, with a direct or; indirect penalty to any trader refusing to do , so. (Note.—This would not prevent traders in any business mutually arranging to sell at uniform prices, without obligation or penalty to anyone refusing to do so.) ■ (2) That' every' person commits an offence who makes it a condition of sale that the goods are to be resold at price# fixed by the. vendor. (Note.—This would; not prevent a vendor from arranging a scale of prices for large and small quantities, hut it would establish the principle that the purchaser has an unrestricted right to his own property. It would encourage a. number of retail distributors to co-operate in buying maximum parcels, and thus! be in a position to sell cheaper to the public.) "(3) The term 'agent' requires stricter definition, as it is now used to defeat the spirit of. the Act. Individual members of the Merchants' Association of New Zealand aro called 'agents,' to secure them special' discounts, which would otherwise' be illegal under, tho Commercial Trusts Act. "(4) The Act should contain a provision giving power to the Goveraor-in-Council to gazette : prohibitions, to any.'selling conditions cunningly devised to- defeat tho spirit of .the Act where the/public interests' ■ "(5) A breach of the Act proved to he detrimental to tho public interests shoujd be punished with: a hea.vy fine and imprisonment, i'- • ■ , -' "(6) Any person injured by the wrong-, ful act of a combination, trust, or monopoly should have civil grounds for action. ' ' . ■ 'Itj.is; the function_of..Parliament," concludes Mr. Fairbairn, "to protect the community from fraud, and , 'fix standards of ' equality,. weights, and audi it is similarly ii duty to prevent the people being exploited . The evidence given before the Cost of Living Commission, 1912, and the , oral and: •produced; evidence! .in the recent sugar case prosecutions, proved that', the .Merchants' • Association restrained ttade in their own interests, and that their operations increased prices to , the public,' These anti-social, practices are still going, on: at tho expense, of every breadwinner" m tho Dominion.. The honourable gentlemen,.the .representatives of. the people, to' whom this.; letter is addressed, constitute'the i only-tribira has the power to redress these evils." ,■