Price Agreements.

Hokitika Guardian, 12 January 1922, Page 3

Price Agreements.

AUSTRALIAN COURT WILL TAKE ACTION. SYDNEY, Dec. 31. [u the Profiteering Prevention Court yesterday His. Honour Judge Beeby issued a warning that if the complaints which had been received regarding practices said to be adopted by certain linns with a view to regulating the minimum prices at which their products can be sold, both wholesale and retail, were repeated, action would he taken bv the court.

It was alleged, His Honour said, that vendors were asked to sign certain "price maintenance agreements,” in which they contracted to observe the scales of prices, discounts, and rebates fixed by the proprietors or agents of certain articles, and to further contract not to supply directly or indirectly any goods to vendors who did not observe the conditions of the agreement. Tt was further alleged that vendors who refused to observe the conditions of the agreements were refused supplies. It was also stated that discrimination was exercised against co-operative undertakings, and that the effect of the practices complained of was to restrict competition and maintain an artificial regulation of prices. Section I‘2 of the Act, His Honour proceeded, provided: "If the president has reason to believe —(a) that any person is using any unfair method of competition or discrimination in trade in any necessary commodity, and lb) that a proceeding by him in respect thereof will be to the interest of the public, he may serve upon suc-h person a complaint stating his charges in that respect, and calling upon such person to show cause why he should not he ordered to cease from using such unfair method.”

“Earlier in the year, he continued, "inquiries were held under section 10 of the Act into the operations of the Proprietary Articles Trade Association, and the Distributors’ Co-operative Com:v;uv, to determine the extent to which the operations of those companies tended to the restraint of the trade or the abuse of a power to control trade. It was found that the operations of the Proprietary Articles’ Trade Association were such as to constitute the abuse of a power to e'ontrol trade, and it is understood that this association has ceased to operate since the inquiry was held.

"If the complaints made are repeated,” His Honour concluded, "action wiil be taken under section 12 of the Act after vacation.”