DISCOUNT SYSTEM.

Patea Mail, Volume III, Issue 304, 16 March 1878, Page 3

DISCOUNT SYSTEM.

Coksideuable interest has been attracted in England towards the case Williamson v Barbour, Brothers, the former being Calcutta rtiereh'ahts, the Matter commission merchants at ’Manchester. The ‘ Economist , of December Ist, commenting on the trial and its 'results, says “ It'was asserted, however, .and virtually not'denied, that the 'defendant’s had habitually received ' discounts for wHich'they did not account I to their principals'; and that, moreover, they liad in a variety of ways over-: ; charged Messrs Williamson';'and the latter, estimating at £IOO,OOO the ’ amount of which they had been defrauded 'during the twenty-four years through 'which the ‘connection subsisted, asked that the accounts should be reopened and ‘reviewed.” The defendants claimed that they had only carried out the usages 'of the trade in ’Manchester and Glasgow, ’ and proved this by inch supposed to be ‘above tlic'suspicion of doing anything 'dishonourable'; but’Sir George Jcssol, ‘Master of the Rolls, Stopped that line of ‘defence by 'informing them ’that “a 'custom to cheat'is not'in daw a custom ‘ of trade,” and ordered the accounts to'be ' reopened and reviewed. ‘He held, and 'rightly so, 'that an agent who ’appropriates discounts, or ' any ‘ other ‘profits arising’out of the business of'liis 'principal, .‘is guilty'of fraud, unless 'doing so with the sanction of the'latter.

Thu. N.Z. ’Times 'fn 'sVn article on 1 cbnfmercial morality, refers to the above ‘ case, and quotes as follows from the ' Saturday'llevietv, which says:—“ As we \go round the circle ‘of trades and proTessions,—it is the same story at every ‘step. Theatrical managers, stage man-' >gCrs,.land.'actors, wring commissions 1 from ill-paid actors and actresses. Merchants, shippers, shipping agents, ! produce brokers, silk manufacturers and ‘ dealers,, cotton manufacturers, and other ‘dealers, hare to bear similar burdens’; ‘town clerks, directors, managers, scc--1 refanes, superintendents, and other ’responsible officers ol railway, nteani- " shipping, insurance, gas, water, and ' other public companies, alid of blubs, ! in the' Same way insist on having their >palms phased, ’while the foremen 'in mills systematically receive commissions ■for recommending a particular kind of 'machinery, oil, strips, brushes, &c., and 'b'litlcrs, housekeepers, cooks, coachmen, ■gardeners and ladies’ maids equally try 'to supplement their wages by demanding 'black 'mail from their masters’ ‘trades‘men in the shape of a percentage on bills 1 passing* through ’ their hands. Whore is ‘ this insidious and spreading corruption ‘to stop? ' Outraged public opinion may 'have some effect; hut what is wanted ’ above all is an energetic public prosecutor ' and" a''revision'of'the ! laws which give ’ cover fo the swindling.” It \vill take . ti » O very ■stro'ng measures to repress 'Such > practices' as alluded to, but if trade' is to * be placed On "a’ healthy basis, something ‘must be done to'pnt a stop to the evil. i Penal servitude with‘hard'labour ; in a ‘few'instances would have "a beneficial 1 effect* .Tt is not 'uncommon to hoar ‘mcnof fair'deputation say that'they see Tittle Tmltii ‘in 'such “tipping.” That ‘moralblindness ‘would be best cured by’ : stern pifnislimeUf m;cl e r the criminal’ law 1 being inflicted on the'very dangerous ' and large class offswindlefs 'alluded' to.