THE SUGAR TRUST.

Taranaki Daily News, Volume LV, Issue 291, 1 May 1913, Page 5

THE SUGAR TRUST.

. CASE BEFORE THE COURT. Per Press Association. Wellington, Last Night; At the conclusion of his review of correspondence and evidence, Dr. Findlay dealt with the meaning of "'control of markets contrary to public interest," as used in section 5. He cited authority to show that control of 00 per cent, of the whole consumption was sufficient to give monopolistic control of the commodity. He said that the merchants' ring had control of 80 per cent of the sugar consumed in New Zealand. He said there were three recognised methods of preventing trusts—first, legislation against taritl's; second, State competition; third. State acquisition. The Commercial Trusts Avt was an example of the first. He contended that apart from the raising of prices there were inherent in the com-j bine evils of potentiality on, teh des-l traction of competition and the combine was therefore inimical to public interests. He cited Adam Smith's Wealth of Na tions an dother authorities as to the value of free competition in fixing natural prices of commodities. He stated the following propositions deducible from authorities:-—(1) That free com petition was essential to a fair price; (2) that all monopolies sooner or later interfere with free competition; (3) tha the monopoly of sugar or other necesarics of life gives special facility for monopolistic prices; (4) that monopoly tends to drive, out of useful callings a large number of men, and that is against public interest: (5) that monopolies are a species of taxation without direct representation. In conclusion, Sir John Findlay submitted that there was in this scheme between the Sugar Company and the Merchants' Association (first) machinery of complete monopoly: (second) the nature opposed to public interest, and (third) the actual operations were prtjudical to the public. Mr. Hosking. K.C., replied for the Sugar Companv. He said the object of the Sugar Companv was to retain the hold it had upon the sugar, trade of the Dominion. The aim of the ring or combine was to place all its members vpoil an equal basis, and to gain the highest discount. The Sugar Company had no voice in the fixing of the price of sugar to retailers. Its anxiety from Ihe beginning was not to infringe the provisions of the Commercial Trusts Act. Mr. Hosking had not concluded his reply when the Court rose. Argument will be continued to morrow.