ANTI-PROFITEERING

Dominion, Volume 12, Issue 274, 15 August 1919, Page 8

ANTI-PROFITEERING

NEW SOUTH WALES PROPOSALS i PROFITS ON IMPORTS The anti-profiteering proposals of the Now South Wales State Government will be laid before Parliament early in the 6ession, in tho form of a B£l. The -vital principle undorAying thein is the control oi prices of importerl articles. It is accepted that the deflation of these prices will automatically affect tho local manufacturer and wholesaler of local articles, and obviate a more extended system of. regulation. There will be no price-fixing in the ordinary sense of the word, Prices will bo controlled by prescaibing the maximum percentage of profit that may 'be. charged by importers and indeutors upon any article, upon the basis of the landed cost. Although it is understood that only tho direct importer or indentor of the goods will bo dealt with in tho Bill, many large retail houses will be affected, as they import direct. But the principal aim of the measure will' bo against the wholesaler and distributorof imported articles. The Government has received information concerning inflation of the prices of imported articles which, if correct, dramatically illustrates the profiteering that is going on in this direction. To quote one instance—miles of a. particular textile material are said to have been obtained by 33d. a yard, and sold wholesale at Is. 2d. a yard—a profit to the wholesaler of over 2ifl per cent. It is said that there is a convention in the wholesale distributing houses, which is rigidly disciplined, and arranges prices. Whether the system of a maximum percentage of profit will bo extended to retail distributors is not yet certain. On tho one hand it is stated that the retailers are often tho greatest offenders; on tho other hand, it is held that there are so many retailers that competition woiid adjust the prices if they were freed from profiteers above. The Government's proposals will be placed befoi-a the party meetings shortly. They will bo supported by the claim that they represent the minimum interference with the business interests and the maximum effect that could lie obtained in an immediate deflation of prices. It is possible that the Federal Goveniment will lend its co-operation to tho State in ennblivg the latter's officers to check landed costs. INTER-STATE COMMISSION. PROPOSALS. .The report of the Inter-State Commission on tho subject of price regulation, made. last December, is particularly interesting, in view of the Slate Government's proposals. Tho commission then reported to the Federal Government:— "If it is desired by tho Government to take action for the regulation of the prices of clothing, then, in the opinion of the commission, the conditions now existing- in the various branches of the trade- justify tho following detailed suggestions :— 1. Locally Manufactured Goods.— Prices to be controlled by prescribing the following maximum percentages to be added to "prime cost," representing' actual cost of materials and wages. (a) Tweeds and serges, 30 per cent. (b) Blankets and flannels, 25 per cent. (c) Hosiery aud knitted goods, 20 per cent. (i) Pelt hats, 22} per cent. . "2. Wholesale Distributing Warehouses.—Prices fo be controlled by pr<v. scribing a maximum of 22} per cent, to ie added to cost landed in warehouse of all materials for clothing and of all articles of clothing. "3. Retail Distributors.—Prices to bo controlled by prescribing a maximum of 331 per cent, to be added to cost landed i" warehouse or shop of all material for clothing and of all articles of clothing. "L That in regard to wholesale and retail distributors isuch limitations of gross profit shall not apply to 'businesses in connection with which the total moneys actually employed in the business do not exceed .£SOOO. "5. That resales be restricted, with a view to the prevention of transactions which do not bring the goods nearer to tho consumer. "The following suggestion, which is not directly related to control of prices, is also submitted:— "That in 'the public interest, action be taken to bring about the compulsory keeping by all traders of prescribed trading accounts, profit, and loss statements, and balance-shoots."