COST OF LIVING

Taranaki Daily News, Volume LIV, Issue 297, 12 June 1912, Page 5

COST OF LIVING

MERCHANTS REFUSE EVIDENCE. ]iy T.-irgraph—Press Association. Christchurch, Tuesday. When (he Cost of Living Commission resumed its sitting this morning counsel for two wholesale firms stated that his principals declined to give evidence, acting on advice tendered from Dunedin. The chairman made no statement, beyond expressing regret at the attitude taken up.

THE MERCHANTS' RING. Christchurch, Last Night. Giving evidence before the Cost of Living Commission to-day, Mr. Harold B. Low, a genera] retail grocer, said that there was not a free open market for retail grocers to buy, certain lines being "tariffed" on scale. In the past twelve months the number of failures in business had shown that the retail trade was not profitable. This was due to the excessive charges of merchants, and the working of the Federated Merchants' Association. When he started on his own account and was buying in a small way he found prices higher because the quantities were not large enough. The two alternatives were to pay rates which he could not do, or amalgamate with another firm. He was forced to go in to the wholesale trade, to relieve himself of the surplus he had through purchasing in large quantities. Several grocers took advantage of this, and relieved him of his over-stock, helping him and helping themselves. The scale hardened and it became harder to purchase all lines. Some merchants told him that if he exercised the limit he would be prohibited from doing business. If he had not been relieved he would have had to carry £2OOO to £3OOO worth of stock, instead of £6OO worth, the amount he required. Flag matches in 1908 or 1909 were handled outside the Association, and used to be 3s si4d per gross, net ca=h. The Federated Merchants' Association applied to the firm to give" to it the entire output, so as to be able to control the selling price. He produced a letter from Phillips and Pike, Wellington agents of R. Bell and Co., writtten in reply to a letter dated December 30, 1907, stating that the company's entire output had been given over to the wholesale merchants, so that they could sell at reminerative rates, two years ago. Under their control the scale for a single gross rose to 4s, and in the case of a lot to 3s lid, while for fifty-case parcels (an opening for big merchants) the price was 3s 6d per gross. A case cost £10.5. In tinned fish they had to buy two gross parcels. He was fully satisfied as to the names of members of the ring. In Christchurch the Merchants' Association had power to scale charges, and in many casQS small grocers did not know when they were trading with federated merchants that there were lower prices. In his own business his 'gross profit was 15 per cent., from which expenses were to be taken.