A TARANAKI STEAMSHIP CO.

Taranaki Daily News, 14 May 1920, Page 2

A TARANAKI STEAMSHIP CO.

(To the Editor.) Sir, —In yoOT Issue of even date your leading article deals with the need for a service of steamships to render Taranakl Independent of tho existing steamship companies. Pew people, I think, will not agree with the views you have expressed. It is, however, necessary to bear iin mind human nature. It is no uncommon thing for a retail house In a small town to charge very high prices, with the result that a rival business is started, and started with tho promise of the support of the customers of the other shop who had suffered from tho conduct of the business. The old-established trader, having for years been able from his high prices to put l>y money, Immediately that the rival starts, cute the prices, and from his accumulated reserve Ls enabled to starve out his opponent, who, when coming before tho D.0.A., truthfully states that his appearance in Insolvency proceedings is caused by the want of honor of the people, who having induced him to start by promises of support at once went back to tho old shop as soon as prices had been reduced below those at which the newcomer could carry on. Needless to say, the moment that the second shop Is closed the prices in the other ahop gradually rise to the old or even higher levels. To ensure the success of Taranakl steamship companies it might be we'll to see if it be not possible to bind wholesale and retail traders to support the new venture by the giving of a bond in substantial penal amounts based on the amount of freight promised. Unless this be done the existing steaimship companies are so wealthy that In a rate war the new company would certainly be crushed out.—lam. etc., „ „ CECIL WRIGHT. Stratford, May 13.