[ADVERTISEMENT] INIQUITOUS PRICE-FIXING ASSN.

NZ Truth, Issue 1290, 28 August 1930, Page 7

[ADVERTISEMENT] INIQUITOUS PRICE -FIXING ASSN.

Traders' Welfare Body Is Siamese Twin of Illegal Organisation Banned by The Government PRINCIPLE OF EXHORBITANT PROFITS _ The blind, unreasoning obstinacy of those who cannot subscribe to the principle of free trading on an open market within the Dominion is wondrously exemplified m the misdirected energies of what is known as the Traders' Welfare Association. Bather significant is it, though, that this association is but a re-incarnated duplicate of that übiquitous body known as the Proprietary Articles Traders' Association. ;.<».' ' • .- The activities of this organisation raised a storm of protest when the objects of its formation became known m 1926. Those objects, m short, were to raise the prices of certain proprietary lines to a given level and make it compulsory to maintain, them there. However, as the result of a Government Commission, which deliberated for a fortnight, and finally recommended that the* P.A.T.A. be not allowed to function, the Government acted. on that recommendation and issued instructions accordingly.

', THE P.A.T.A. still exists m Welling- [ ton, and no doubt still carries on , certain phases of its old-time activii ties. Its number can be found m the Wellington telephone directory. 1 Drastically checked m its growth by ! the Commission, there now comes to \ light its Siamese Twin — the Traders' Welfare Association, which is building up its personnel from the same class of trader. These are certain manufacturers, wholesale merchants and disgruntled retailers who are not satisfied with a reasonable modicum of profit, but i who, m their frantic endeavors to reach the Elysian fields of fabulous ; opulence, look for an enormous profit from every article they sell to a longsuffering public. A FAIR PROFIT No one cavils at, or objects to, anyone selling at a reasonable profit margin (it would be. folly to do other- , wise), but when that profit soars into something like 30, 40 or 50 per cent, profit on individual articles, then it is high time a lethargic public took a hand m the matter themselves. Notoriously, or supposedly, a coun-t2-y of fair dealings, who would tolerate the man who would dare to get; up and- have the effrontery to say that his neighbour must sell his goods at' such and such a price? The pernicious and deadly sin of price fixation has been the ruin of many a country, and yet, here ' m the Dominion, from one end of the country to the other, is this new Traders's Welfare Association attempting, to sow the seeds of its misdirected policy. The fixation of prices for foodstuffs and other necessities of <ftife, have but one result and that is, willy nilly, the man m the streets gets the 'backhander.' Were such organisations as the T.W..A. allowed to have their way such commodities as butter, flour, etc., would remain at one fixed price, irrespective of the law of supply and demand. INIQUITOUS PRINCIPLES Retailers, and there are , thousands of them who are linking up with this new organisation, raise no objection to the principle that ■ they themselves should be able to buy on the 'best pos-= sible market, but with the compulsory shield of "price fixation" they would reap an unholy margin of profit at the expense of the struggling consumer. They have no objection to accepting the advantages that may accrue from possibly reduction^ m award rates of wages or abundant supplies as a result of a bountiful season. Oh, dear no. These advantages .are for them, and it would be folly to jpass on the . benefit to the wage-earner,. Too long have these iniquitous principles been applied to the benefit of, the few and the detrivnent of the majority. Fair trade is bondy trade, but this axiom does not put any ice with some mer- . chants and retailers. Theirs has been tlie opportunity too long to reap the benefits of monopoly and when they see a possible diminution of profits because of the advent m the field of competition of such organisations as the Self-iHelp Stores, I they hold up their hands m horror > and wrath at what they consider an. i unseemly lowering of prices. There is nothing of the monopoly or^ i ring about the Seif-Help Stores, nor must it be forgotten that only because • of the scrupulously fair trading of one : man was it made possible for the general public to-day to buy 'stores at : anything like a reasonable price. ; This organisation has been Ibuilt up on fair and honest trading principles —principles which were -unknown to a ; majority of retailers before its existence. PROTECTS INEFFICIENCY Inefficient and inept, these former would-be traders raised or lowered prices to suit their own convenience, and profit, but now, when they see the advent of a firm which is giving the public some of that service to which they are entitled a howl ,is raised. Price fixation is not merely another way of saying "big "profits," but it also signifies extortion. Hobson, the great English economist, states that price fixation has done more to extract money from the public than all the spectacular trusts and combines m the world. This method of extracting money from the public has been roundly condemned m other parts df, the world. In fact, it is realised by all leading economists and politicians that the whole principle of the thing is wrong. The "Canadian Grocer," the highest authority of the trade m the whole American continent, m its issue of September 27, 1929, has some interesting remarks to pass on this very subject, and also gives the finding of the Federal Trade Commission. . The "Grocer" says: The contrast ' between the legality of price maintenance m Canada - and the United States is seen m another case across the line where a firm — Johnson and Johnson — is orderered to 'stop certain practices alleged to be contrary to the law there. . • , This, firm makes toilet products, and the Federal Trade Commission asks them to cease and deaist ; , from the following practices: (1) Entering into contracts, agreements or understandings with dealers to the effect that the product will not be sold by dealers for less than the minimum resale price specified by Johnson and Johnson. , (2) Procuring, either directly or indirectly, from dealers their promises or assurance to observe and maintain this resale price. (3) Acting upon reports or communications from dealers concerning sales by. other dealers at prices below this fixed level. (4) In any manner seeking the co-operation of dealers m the maintenance of resale prices specified by. respondent. From this it can be gathered that the American Federal Trade Commission does riot agree with "price fixation." > Anyone who agrees with or accepts the principle of price fixation m so

many words adm£ts his inefficiency and ineptitude to run the business with which he is connected. Behind its wall he} can rest assured of a good profit, irrespective of muddle and mismanagement. The Traders'- Welfare Association, having- started its activities, formed branches m all the main centres and some of the smaller towns. Its membership at the present, time is something like 3000, and an endeavor 'is being made to bring m all the tobacconists and small traders. Quite recently m Auckland /at a meeting of wholesale and retail grocers a resolution was passed calling upon the Government to repeal previous legislation and" allow distributors to fix prices for all commodities at a certain level. It goes without saying that no Government, m its sane senses •would pass such a measure, when its very, object would mean that the-consumer .would be the one to I suffer. A number of the larger retailers m Christchurch have linked up with the T/W.A. They grasp at the opportunity as a last straw that may help to save for them, or bring 'back, the piratical days gone by when they could charge whatever price they liked for their goods. As a war-time measure Parliament .fixed the prices on certain lines, but this measure the T.W.A. wants removed — because it doesn't happen to suit their purpose. AMEND THE LAW Applied variously, it has often been said that the "Law's an Ass." Anomalies do exist, the chief among which at the present' time is one that allows any retailer to be refused supplies. Although a number of manufacturers or wholesalers cannot combine ■or act m a concerted arrangement m the refusal of supplies, r.etailers or merchants can and do dombine and bring pressure to bear on manufacturers or agents, so that other retailers or merchants will hot Ibe able to handle any particular article unless they raise the price to the consumer. Permissible or not, this blockade is being carried on extensively ..; at the present time. The T.W.A., if it . had its own way, would remove the necessity for, doing this, because it would force all retailers, merchants and whole- ' salers into line and fix the selling price to the public at a certain - level. . * The manufacturer can, and does, refuse supplies to ,the retailer who is selling at a low rate of 'profit.' If

the retailer who prefers to fix his own prices does get supplies and sells at a price below what the manufacturer considers should be the figure, then he will withhold discount. ' Unking up as they are with the Traders' Welfare Association, these manufacturers hope to either crush all price-cutters out of existence or either make them "toe the line" of exhorbitant profits! At the present time* they are endeavoring to force them to raise their prices ty (a) withholding supplies; (b) withholding discounts; (c) or by giving discounts to competitors who get extra profits both ways: (1) from the public, and (2) from the manufacturer. Such a thing as a small profit > and a quick, return has never entered their heads, nor was it apparently an item m their business curriculum. . No party or political creed would adopt the principles of the T.W.A. as one of \ the principles of its platform, and yet, toy amalgamating all the smaller branches of the association throughout the country into one body, the T.W.A. hopes to toe able to bring its voting strength to bear upon the political aspirants m various districts. This is the only means by which it can hope to obtain any modicum of success for its movement. The Association ■will not come out into the open and declare its hand, nor does it want the general public to know what work it is doing at %he present time. That would be fatal to its success. Once rouse a long-suf-fering public to the possibility of further "Fleecing" and steps would • be taken to counteract the movement at once. Witness the fate of the P.A.T.A. The suggestion given by the T. W.A. supporters is that instructions should b~e given by the manufacturer that his goods should be f sold at a certain price only, thus allowing bigger profits to the grocer. Very nice for the grocer, but what of the consumer? Must he always stand the racket and be fleeced continuously? i If a man so governs his business that he can buy m bulk and thus secure for himself a good discount, surely, if he doesn't wish to emulate the exploits of his thieving ancestors he can, if he so desires, pass on some of the benefit he gains to the consumer. Because the Self-Help refuse to "pirate" the public to the extent of 53 per cent, profit on certain medicinal lines, it is black-listed and supplies stopped. The Self-Help (and other retailers could, do. the same) us-

ed to sell these lines* at a small margin of profit, but it hurt -the man who wasn't prepared to accept a like return, so pressure was brought to bear to have supplies to .the Self -Help stopped. ■'" ; WITHHOLDING SUPPLIES The same thing: applies to a New Zealand . tobacco. One .would wonder at this attitude from a New. Zealand company when overseas competition is so keen, tout presumably they can afford to lose the trade of the big chain - of stores which refuse to make 23%. per cent, profit. . - - ;.. . They want to ; let the "retailer have his "pound of flesh" too, also at the expense of the public. No wonder '^price fixation" experts are working m the dark. . "" v ' Butter manufacturers m the South refused to supply the Self -Help because of this same principle— the SelfHelp refused to make- more than a fair profit out of the buying public The amalgamation of the "Wellington bakers has brought about the present high price of bread m the Capital, and still the public stand it In the [South, the price of the 41b. loaf is 9%d, while m Wellington it is 1/-. The freight on the flour from the South means an extra %di on a loaf but it ,does not account for the vast difference m prices. Who, then, is to blame? - Is the Board of Trade impotent to act, or does it just sit by m dreamy indolence and watch, these things go on? There is only one-way to properly safeguard the rights of the people m this matter and that is by the Government making, it illegal for anyone to even attempt to fix the retail selling price of goods. In this direction- the law / should be. amended. ';, It should be made illegal to give extra discounts to those who sell at a certain price, and also it should ' be. made illegal to withhold discounts If prices are cut. It should, moreover, be made a criminal offence for anyone to refuse* supplies to a retailer or to (boycott hinr* m any way; There is only one way to remedy this state of affairs and tfott remedy lies m the people's hands. Your signature to the petition belcjw will be one more nail m the coffin !of iniquitous profiteers. With everyoiie responding to the call Parliament vrill be forced to act and to remedy tihis growing cvii. Make it your task to fill the petition with names and post it m to The Self-Help Co-op. Ltd., 292A, Tarana^i Street, Wellington, or leave it at any Self -Help Co-op. Ltd. Store: