RESTRAINT OF TRADE.

Taranaki Daily News, 1 October 1921, Page 4

RESTRAINT OF TRADE.

The statements made in the House on Thursday by the member for Stratford (Mr. R. Masters) as to the manner in which the three cement companies operating in New Zealand are alleged to be controlling the output and price of cement, form matter for immediate inquiry, and, if found to be substantially correct, effective action should be taken to prevent a continuance of the companies’ operations. The high price and scarcity of cement had n very adverse effect on the provision of housing accommodation from, which the country has been suffering, besides being a factor in unemployment. In addition, it is most desirable, in view of the urgent need for conserving as much as possible the rapidly vanishing timber supplies available for building purposes in this country, that the utmost use should be made of cement, and that can onlj’’ be done when the supply is adequate and the price moderate, thereby lessening the risk of fire and securing permanent structures requiring a minimum outlay for upkeep. The advantages of building in cement, especially for bridges and culverts, are so manifest that every effort should be made to enlarge the output and lower the price. Apparently Mr. Masters has made out a good cose for an inquiry. The question raised by Mr. Mitehell as to whethei the statements made by the member for Stratford might not shake the confidence of the public in the Board of Trade, which is said to be cognisant; of what the cement companies are doing, need not be taken seriously, the important point being whether the charges made are true, and what action should be taken. The Golden Bay Company—or any other trading concern—is quite at liberty to sell its business to any purchasers, irrespective •of whether they are speculators, bona fide operators, or even philanthropists; but when it comes to all the proprietors of any particular industry entering into an agreement to control output and thereby penalise other industries, as well as the public, the object being to force up prices for the sake of obtaining larger gains, then the matter is one for the State to-inquire into. The fact that the same pernicious tactics may be pursued in relation to other commodities aggravates the injustice wherever and whenever it exists. Trusts and combines can be beneficial, but they can also be inimical to the best interests of the country. It is the duty of the Government to exercise constant vigilance in connection with their operations. The member for Stratford has made , certain definite statements concerning the cement industry, and has asked for a special committee of the House to be set. up to inquire into the same. Considering the importance of the industry, it is hardly to be expected that such a request will be ignored. Any operation in restraint of trade is harmful, even when economic conditions are all that can be desired; but at a time like the present, when industrial operations are affected by a financial depression, and unemployment has become a problem, there should be no hesitation about instituting an inquiry into the matter.