FIXATION OF PRICES

Sun (Auckland), Volume IV, Issue 1018, 8 July 1930, Page 11

FIXATION OF PRICES

GROCERS WANT POWER TO STOP PRICE-CUTTING MOVE TOWARD UNITY Statutory authority for manufacturers and wholesale and retail distributors to lix fair maximum and minimum prices and rates for proprietary articles with power to control and regulate those prices and rates, is to be sought by Auckland Master Grocers, in conjunction with wholesale merchants and manufacturers. This was the decision of a largelyattended meeting of representatives of all three sections of the trade held In the Unity Mall last evening, the objective being the formation of a trade organisation embracing manufacturers and wholesale and retail distributors to combat price-cutting. The largo assemblage was regarded by Mr. W. J. Evans, who presided, us an expression of confidence in the executive. The retailers, he said, were anxious to co-operate with the manufacturers and merchants, so they could make a fair living by fair and honest methods of trading. He suggested that if certain manufacturers wanted to allow five per cent, to price-cutting firms, the 700 firms who were not engaged in cutting, should refuse to stock that firm’s goods. The retailers did not want to bludgeon the manufacturers or to force their hands, but merely to co-operate with them. Mr. R. IT. A. Potter proposed the following resolution: —“That the Government be approached to amend the existing legislation to power and authority as provided under the Board of Trade Act to enable manufacturers, and wholesale and retail distributors, to establish the fixation of fair maximum and minimum prices or rates of proprietary articles and with power to control and regulate such prices and rates.’* He considered that the attendance at the meeting augured well for the success of their united efforts.- The greatest problem eonfront'ng the trade was price-cutting, he said, but that was but one. Unfortunately, someone had to be blamed for local conditions, but in this connection he thought the manufacturers and merchants came in for much unfair criticism. He did not think It

fair to prick the other fellow with the competitive pin, he asserted. He believed that the present situation culminated from lack of commercial eommonsense and co-operation. STRONG ORGANISATION Mr. Potter stressed the interdependency of all sections of the trade, and said that if they combined into a strong organisation they could accomplish much, but not so in sections or individually. He made a plea for the formation of a strong organisation of all retail grocers, merchants, merchants’ agents and manufacturers on the lines of the Trade Welfare Association established in Christchurch. The Board of Trade Act opened the way lor united action by manufacturers, wholesalers and retailers in definite concrete proposals. He believed that such a movement could rely upon the support of the Minister of Industries and Commerce in approaching the Government.

The motion was seconded by Mr. F. M. Hills, who. after emphasising the need for co-operation between all sections of the trade, proceeded to condemn price-cutting. He declared that when retailers found manufacturers cutting prices they lost interest in their goods. The system was no good to the wholesaler or to the public, on whom the reduced prices indirectly reflected.

The successful formation of an organisation representing three sections of the grocery trade in Christchurch was related by Mr. Richards, of the Timaru Milling Company. He added that a similar movement was afoot in Wellington. Mr. Richards urged that the apparent feeling of hostility between the manufacturers and the retailers should be submerged for the benefit of the new organisation, and he held the belief that if a body representing 85 to 90 per cent, of the trade approached the Government it would have no difficulty in securing its demands.

The resolution was carried unanimously. and a committee representing the retailers, wholesalers and manufacturers was appointed to draft proposals for submission to a later meeting. and if approved to take steps to submit them to the Government.

During the course of an address on the problems associated with the trade, Mr. A. J. Untrican suggested that there was no need to approach the Government when the power to do something immediately lay in the hands of all represented at the meeting. In his opinion the principal cause of the present unsatisfactory trade conditions was that the ebb-tide of the land boom that succeeded the war was being experienced. Another root cause was the buying of all classes of goods on the deferred payment system.