TRADE METHODS.

Taranaki Daily News, Volume LIV, Issue 313, 1 July 1912, Page 6

TRADE METHODS.

AN INTERESTING STATEMENT.

Auckland, June 27. I A few days ago a witness before the Cost of Living Commission stated .that his firm had been unable to secure goods manufactured by a certain firm because the name of his (witness') finn was not in a list supplied to the latter.firm. The matter was again under the notice of t the commission this morning, when Mr. ' Thomas Bell, manager of the Union Soap, Oil and Candle Company, was examined, and replied to the allegations made. The chairman: Has there been any discrimination to customers?—" There has, and there has not, been. It is a wide' question. The larger portion of common soaps are open 'to anybody. The retail-1 ers can buy half a ton of soap and pay in six months with ten per cent, and 2% per cent. There is no advantage t.o the merchants in other lines. We have worked up a trade, and now labor and timber are higher we try to get a fair profit and .lot retailers get a fair profit too." ' ' Do you issue instructions to sell at certain prices?—" Yes there is an agreement that they should not go below certain prices." Mr. W. A. Veitcli, M.P.: Is there a retailers' association?—"l don't know." Are you associated with a merchants' association?—" Yes. The Wholesale Association gets certain discounts that a retail man does not. We don't keep travellers on the road at all. We trust the wholesalers, to get orders, and they get a special discount on that account. We supply retailers as well," Do you fix the selling price in order that retailers shall not under-sell?—"The retailers can sell at any price they wish J provided they don't go below a certain price." Do you insist oil retailers selling at 6uch a price as will guarantee wholesalers a profit?—" With certain lines we expect retailers to sell at certain prices. i This applies to some lines only. About 90 per cent, are sold as retailers wish, and about ten per cent, on fixed prices. That is to prevent soaps from being sold j at less than cost price. There are always people in business who cut on particular lines, and we want to prevent that. Candles have been sold at %d'per lb below cost." Why should you prevent some of the retailers making some of the lines cut- ! lines?—"We have for years been | trying to get good trade in certain lines, and why should we allow one of these I lines of soap to be sold at %d per bar below cost? We can't fix prices on all : lines because there is so much competition." j With free and open competition, would ) not soap find its way cheaper to the consumer? —"No. It is as cheap now as it can be made, and' the price is brought down by competition." i Mr. Fairbairn: Is there any common . understanding between your firm and the (• merchants re certain discounts?—" No." We have letters here saying that you refused to supply a certain firm with J candles.—"They are getting them now at J the same prices as elsewhere. We were j' asked to supply at the same price for I two years, but if the price wept down the firm in question was to get the benefit." Mr. G. W. Leadley: If the retailer were jto sell your soaps at y 2 d per bar below j cost, that would ruin your trade?—" Yes, > the grocers would not sell our goods on ) those terms. One man would undercut I and others would drop that line out. j Unless the public absolutely demanded J the goods, grocers would not keep them, j Under-e\itting Would drive other grocers j out, and they would not want the line ] from us, and our trade would suffer." I