Islanders Try Price-Fixation

Sun (Auckland), Volume 1, Issue 32, 30 April 1927, Page 9

Islanders Try Price-Fixation

FRUIT TRADE DEADLOCK COOK ISLANDERS’ MOVE New Zealand dairymen tried price-fixation—they failed. To-day, in the distant Pacific, producers are adopting the same tactics—whether their efforts are to meet with success should be known by the end of next week. At this time of the year New Zealand merchants have been accustomed to draw on the Cook Islands for their orange supplies. Consignments are drawn from America, but values in this quarter generally place the Islands for their orange supplies. The Cook Islands, with their low production and packing costs, have generally been able to market a reasonably priced orange, and regular shipments during the season have been made to New Zealand. Growers in the Islands have complained for some time now, however, that the prices paid by the New' Zealand merchants have not compensated them for their labour, and have been incessant in their demands for higher values. This year they are reported to have combined and refuse to sell under a price which works out In the vicinity of Is 2d a dozen landed in Auckland. When rejects are allowed for the Auckland merchants contend that this price is extortionate. At the present time matters are at a deadlock. Buyers cannot see their way to accede to the growers’ demands. The sailing of the regular boat due to leave for the Islands next week is reported to have been cancelled pending news of a settlement. ALL PARTIES RETICENT

Although negotiations have been carried on for the last three months all parties concerned are most reticent. A conference between the merchants’ representatives and the Prime Minister and Dr. Pomare, Minister in charge of the Islands, was held during the week, but what transpired is kept a close secret. Latest telegraphic advice from Wellington is to the effect, however, that the Government is leaving no stone unturned to effect a satisfactory settlement.

A factor giving the Auckland merchants concern is the possibility of the Wellington merchants giving into the Islanders’ demand, and the boat being diverted to that port.