PROFITEERING PROBLEMS.

Taihape Daily Times, Volume XI, Issue 3522, 8 July 1920, Page 2

PROFITEERING PROBLEMS.

D li.l-M‘l*‘,[C.“l' I .’l‘,[l:lS 01*‘ R l'l'|‘.~\] I .1535

".J."h‘()l,'.Bl..l*J "IN I-"l:‘\V_lL\'(V'r I’RlCl‘}S.

()I~lßlS’l_‘(.‘Hl' ROll, .1 my 1;

In View of the nlugisll'uto’_~: decision in the recent proseutltions und(=r the prolitm2l'ing chlusvs of the Bu:11'<l mi" ’.l‘l':l-nlc Act", are tl'a(lms likcly to incline I'o :1. system of zxdvalncing‘ the price of low pmfifi lines in m'del.' to cblll'[.}(‘llsat(> for the clll‘l‘ing; down of ‘profits in the case of others? Merchants from whom 21. reporter nmde inquiries, e:\’pl‘v.<.~:o(l the Opinion rhaf {fie “averaging up" of pmlits is not‘ like}-_y 'to bvcmno general. As one man put" it: “'The whole I'hing is ruled by" conlpetitiov. Tin--1)1'i11cip:11 Iczlson that tllCl‘9 Hll.‘ .~‘.'-null profits in the case of a p:11'1i<:u1u1'I+l:1s.~'

of goo{l.s is connected \\.'itTi."’c.mnpetition. If I‘ilc_\' :m_.‘ of {hc (lescl'ipt'io.u known as ‘mead and lmtter’ lines the element of competition is the greatmbecause the public, is the 11101‘t_* concerned in .<N~king nut and uhtxiiniiig thosc said at thv <:im2ll»e>"r 1-'.'i(<(~. There is 1711:: special iil({llvmimiil' in zuiciitiun fm‘ u i?1':l(_i(‘I' ft) :Itrl':icl ])LlX'(,'ilLl>‘.(}l's for those good.<, bo<:-.xus«~-. he t.1u1.~: often .S€‘L'Hl'(.‘.~3 customers in connection with his other ;_;oods.” Ho :I<'ld;7<l that’ for‘ (:i'arfloi'.s to (Icc.jdc- on u ccrtziiu price was‘ ill(3,‘__{{li. _Tl'l.le, nl:mnfar3.tlll'ers app-.ll‘-centiy would fi.\'. pl'i<‘os. but the-rv w:i.~. little ciiancu that 111mm'f"act11r(‘.1'.< wmild Li(‘l.ib('l'iii(}])' fix «HlO r(,'1:1il }>l'i.(‘«* in or(ii3)' 14» bent-‘:lit '7:-':l«ior.~'. Au(.\t}ler point raised cuilc.ei'm}d an actual iust:.u:cc \\’hel'c :1 line of s__;~<mr].is :L!‘l’iV;illg‘ this. \\'Cck at 1:. <:«.-rtuin lu'ic.v. \Vithin 2,1 \\'()el< or so thv >7:lIlJ(% class 01'‘ goods is 1:0 come to h:ui(| at :1 much higher‘ landed cost. Sl'\l'ictl}' spe:lliizl-g this i.'l':.l(].L‘l' 511011111 put. the Kiwi line on Hm !li:li'knf sh'zligill: zuvay. as it is ji‘w_g':.ll to \\'ili:-h:>'.<i ;ood.< from s:l.!v. This Dl(?l'L‘iiZllli :;'i'{lli":-' thzli. he mmim‘. 01701" tiww iim-5 :1! <Jif’i’<}l'mit‘ ’pl'ic(,-5.. ..-\.pp-.l'i'eiit'l_\' he is mit'illed to sell the first line on the 1)-axis uf the cost. of replacciiiont, if the prolit ihon ll).‘dd(‘ is not Lllll'€{lS()Y]{lbi(?, but on the Izl’H<-.>.l* point he secs :1 risk. The only miiitioii of the difficulty 3001115 to be limit he must’ ‘average the cost of both lim:-S and thus arrive at one prim‘.

This I'epmsellts only 0110 of the «lif’n'cultics to which the recent. decision of the Imlgistr2l?‘e has given rise. On rhe question of "(be writ of I'9-plzlculxlclxt several men consi(lol'Gd that it was the original intention of the Government ’th.:l’c this should not be irxkrm. into considerzltiou. ' They fllel_'oful'e fol‘<‘<::ls‘r an amendment this Sc-ssion to the Board of 'l‘l'ade Act. It is also (:()nSi(lOl'crl by them that. there will be a. rcuew(:«l no.fivity on the part. of the Board of Trade. in the direction of probable prosecutions on ‘the question of profits where the prices of lines collcern<\d are not fixed by the mmlufacl:urel‘.