POOLING INTERESTS

Dominion, Volume 11, Issue 211, 25 May 1918, Page 8

POOLING INTERESTS

TO PROTECT SOLDIERS' BUSINESSES

A SECOND DIVISION PROPOSAL

At yesterday's meeting of the delegates of the Federated Second Division Leagues the following report was presented by a. committee (hat had considered the problem of protecting the businesses of reservists called to the colours-.—

1. That the Government recognise the principle of equality of sacrifice by pro-' viding that a proprietor of a business when called up for •active service should not have to sacrifice his business—goodwill, plant, and stock—in addition to the ordinary hardships of military service 2. (a) To effect this, when the oVner of a financially sound business is called up for active service, and is not able to satisfactorily arrange either for the continuance or sale of same, the Government shall immediately proclaim that business and every business of a like nature in that town or district a protected industry, (b) That a Government controller of soldiers' businesses he appointed for each province, (c) Thnt if the business of applicant is, on examination bj- the controller, found not to be of a payable nature, the proprietor and the Government each appoint a valuator, and the stocks be sold to the best advantage, any difference between the valuators'" average, and the amount realised to be made good by the Government. 3. Prohibit any similar business from ■ being established in the proclaimed district without a permit from the Government controller. 4. Form from the heads of all the businesses in that industry a Board of Trustees to manage the business of the man called up. . ' 5. That the Government controller examine the books, affairs, or balancesheets of these businesses for the previous three years, find out the average proportionate net profit made by each for filnt period, and instruct tho Board of Trustee? that the, average net profit made by the business of the departing man during that time must be maintained in proportion to the total profits ot the combined businesses during his ab . sence.

6. That the trustees control the business for twelve months after the termination of the war, or up to such'lesser time at which the returned soldier may elect to resume control. 7. That in the event of the death ti' the soldier while on,.active service, the control by the trustees be determined by the executors of deceased, 8. That the value of the goodwill of the businesses of tile departing 6oldier be assessed, and the valuation of the stock taken at the date of the trustees taking over the business. In case of the death of the owner, tile stock be again taken, the goodwill assessed in proportion to the advance or decline of the total net income of all sucli businesses, and that the business then, it' desired by the executors, be realised, the ,goud\viil paid pro rata by the remaining businesses, and the stock realised—the Government to make up the dilFerenco, if any, between its actual value autl, its realisation of stock.

9. That tho trustees may, with the pefc mission of the Government controller, close down such business, arid me owner on his return, after taking over his realised capital, may recommence his business and claim Ijie maintenance oi iiib previously-determined average profits for a term of two years alter uis re-

Alr. M. J. Doyle (Tjinnru) said that a small business man should not be required, to sacrifice his business and his connection when he went into camp. The present position was that a soldier's business would be swallowed up during his absence by competitors who-had not been required to undertake .military service. The pooling of businesses on. the lines suggested seemed to be the only practical nieaiis oi' meeting the needs of the conscripted business man.

Air. A. J. Mtallworthy (Wairoa) said that in some parts of.Now Zealand the principle ot pooling interests during the absence of the soldiers had been adopted voluntarily. When one lawyer went away, the ottter two Sawyers carried on his business. But the eysteui should'be, given , legislative form.

Delegates pointwl out difficulties in the way of defining districts and ascertaining ijrotits. ■ Air. C. Danahay (Feathereton) objected to any inquisitorial investigation of businesses. It would Uβ an enormous task to ascertain the real status and profit of thousands of small businesses. Mr. J. L. Campbell (Christehurch) pointed out tliafc many small business mqii did hot keep books except of a most sketchy character. The-Business Controller would nave a most difficult task to perform. Mr. T. C. List (Inglewooo) said that the sacrifices forced upon sniiill business men was » real grievance, which hud fallen heavily on very many reservists. The difficulties of arranging a fair distribution of sacrifice ought not to deter tho leagub from proceeding with the echemo. After considerable discussion the conference amended the scheme to provide that no new business in n controlled industry should be started without theconsent of the controller within six months of the close of the war. The scheme as a whole ( was adopted.