AMERICAN TRADE INVASION

Dominion, Volume 12, Issue 261, 31 July 1919, Page 5

AMERICAN TRADE INVASION

BRITISH RETAILERS ALARMED ■ A SUPER-COMBINE A serious view is taken by traders of the report from New York that a huge United States combine, with an initial capital of JC2fI,OOD,OOO, is proposing to embark.on a scheme for controlling chains of multiple shops in all parts of the globe. This huge super-combine, it is stated (says tho "Daily News"), contemplates a beginning in the British Isles, and in some parts of South America, and in the East, and it proposes to take over existing multiple siiops either by purchase or absorption in exchange for stock. Its chief lines will be dry good-, groceries, febdstuffs, confectionery, and tobacco. "The threaten:d American-invasion on such a huge scale," said Mr. J. W. M'Kay, secretary of the United Kingdom Business Men's federation, "is what some of IB have anticipated, in view of the insufriciently organised state of tho private traders hi this country. In my opinion, the news should bo treated very seriously, for the invasion will mean ruin to hundreds, possibly thousands, of private retailers. It should also be a lesson to our merchant princes, who have been creating pools and monopolies in raw materials since the armistice, and have [been sending up prices to an exorbitant limit. ' "The news from New York helps to solvo a problem that has been puzzling me considerably of late, Unless I am mistaken, (his huge American trust is already secretly at work through its agents over here. Forsbmo time past complaints have reached us from private, retailers in various parts of the British, Isles that their premises have been secretly purchased over their heads, and that they have received notices to quit. The purchases, in some cases, extend to whole block; of property, and island sites in the chief shopping centres of provincial towns. We know that in many instances co-operative societies and multiple firms have secured the premises,, but in other eases the purchasers cannot be identified by the shopkeepers. iMy belief is that this huge super-monopoly is at work in the background. ''I a.m receiving daily' requests from private traders and traders' organisations all over the country that tho federation should petition Parliament for legislation to protect them against dispossession of their-premises. It is a vital matter to traders, nnd on July 1 our president, Sir Watson Eutherford, M.P., will preside at a meeitng of the Parliamentary Committee of this movement, to be held in the House of Commons. "By purchasing its goods en an enormous scale the American trust will, no doubt, be able to effect great economies. It may also cut prioes to the consumer for a "time, but once it' becomes established it will 'be able, by its stranglehold, to squeeze the consumer to almost, any extent. "Behind the American scheme, apparently, are many producing interests in the States, -who, though not allowed to ccmbine against the home consumer, may do so for export trade., "To provide a link between home producers and private traders the Business Men's Federation is pushing ahead with a scheme for purchasing and distributing in bulk, in which private traders will hold the canital and secure the benefits of economies in purchasing nnd distribution, as well as interest on their investments.'