PRICE CONTROL

Dominion, Volume 12, Issue 302, 17 September 1919, Page 8

PRICE CONTROL

THE ORGANISATION

BOARD OP TRADE POLICY

The Board of Trade Bill now before tho House of Representatives is the work of the present board. Tho recommendations of the board in tho annual report aro exactly tho provisions of the Bill. Tho board makes tho following recommendations:—

The power should also be given to the Board of Trade to call to its assistance, with the consent of the Minister, such experts as in particular investigations it deems advisable.

The questions to be dealt'with involve exceedingly complex business situations which require the advice and assistance of tho best mind 6 procurable,, and tho problems presented for solution are fundamentally questions of practical business affairs, and the decisions given may be, very •far-reaching in their effect. Tower should also bo given to tho board—

(a) To investigate the organisation and business conduct of indus'rjr, especially protected industries already in existence. (b) To require annual and special reports from businesses and industries.

(c) To investigate and make recommendations, and in suitable cases to enforce recommendations where infringements of the Commercial Trusts Act tiro alleged. i

(d)'i'o investigate trade conditions in and with other, countries, particularly in regard to the operation! of niohopoliee and trusts.

(el To determine and prevent unfair methods of competition. (f) To bring about improvements in the methods of accounting used by businesses, particularly with respect to accurate and uniform methods of cost accounting, (This feature is stressed, as many of the investigations already conducted show that a largo percentage of the business community, particularly tho small businesses, have a very inadequate knowledge either of costs of production or of selling costs. Many businesses keep their books in such a way that they are not able to supply the board with evdli the sunniest of fncts' concerning their operations.- Proper development of costaccounting methods is essential to tile obtaining of information of any real value. Statistics based on estimates are /apt' to be misleading, and are therefore dangerous, yet with the methods' in use in business at the present time these must bo used. Proper accounting even for tho small manufacturer or business is of vital imDortanoe. It is necessary for his success that he knows on wlin-t particular article he is making a fair profit,'or a narrow margin, or losing money. Uniform methods of cost accounting,' however, do not mean uniform costs, ''nor tho standardisation of costs.by the adopwjn of arbitrary charges. To assist the board in improving accountancy, methods the board should have ppwor to utilise the services of an advisory committed of accountants.) ./•

(r) To investigate and report upon trade associations and control their activities. (The activities of theso trade associations are of a varied character, and inanv of thorn are of great benefit not only to the trade concerned, bntto the-general public; nevertheless their activities have sometimes involved them in practices' that would be condemned as unfair competition.)

The board should report to the Minister in charfte from time to time, and, with his consent, publish etioh reports. At the. beginning of, the session its reports, should bo laid on tho table of tho House.-but decisions in any matters relating to unfair competition 6hould .bo niado public during tho recess, and as wily as possiblo after being arrived at. Tho Board of Trade in its administration of the powers herein sought to.bo conferred upon it should endeavour w socuro the co-operation of tho business community, ojk! should secure this cooperation W constant insistence upon the observance of appropriate standards, of commercial morality. It should.,' constantly keep before the minds of the business community the ideal tlitM; tho reward the business community receives from the miblic sho.ild bo appropriate lo the service it venders to tho publicIn. its enforcement of these standards the board should seek to understand and make allowance for the difficulties of particular problems; <to seo both sides of every case; to protect men in the furtherance of legitimate self-interest by reasonable and fair inethods,. and at the same time to keep the channels of competition -free and open' to all, so that the man with small capital may engage in business in' competition with powerful rivals, assured that ho may operate his business in competition with his rivals free from harassment and intimidation, and be gi veu a fair opportunity to work out his business problems with such efficiency, industry, and intelligence as he may possess. ' • Part of the work of tho Deportment of Industries and Commerco should be particularly the development of new industries: and for these purposes and under, proper safeguards the Department should bo empowered to make advances to proposed undertakings by way of loan, or to take shares, or beoome partners, or afford such other encouragement as it may deem expedient. In tho exercise of this power it might bo made a condition precedent to financial assistance being given to an industry that it should ho conducted on particular linos—that labour should bo given a voice in its manajeraent; that tho conditions relating to employment should be such os to oonduoo to the social uplifting and to tho moral wolfore of the workers. \