H.—lB.

14

Mr. MacGregor : Mr. Wilkinson, manager of Rattray and Co.; the manager of Scoullar and Co., Mackerras and Hazlett (Limited), R. Wilson and Co. (Limited), Neill and Co. (Limited). The letter sent to the merchants was read by the Secretary, as follows : — " Gentlemen, — " Cost of Living Commission, Dunedin, 3rd June, 1912. " The Royal Commission appointed to inquire into the cost of living and other matters are possessed of information to the effect that certain wholesale merchants in New Zealand have entered into a combination for the purpose of controlling supplies, fixing prices for various commodities, and generally restraining trade. The Commission requires your evidence on these points, and you will be served with a subpoena in due course. " I have, &c, " J. W. Collins, " Secretary to Commission. " To Messrs. J. Rattray and Son, W. Scoullar and Co., R. Wilson and Co., Mackerras and Hazlett, Neill and Co (Limited)." The Chairman (to Mr. MacGregor) : Without pressing you unduly, have you any objection to stating the grounds upon which you advised them not to appear ? Mr. MacGregor : I think it would be rather unseemly for me to appear to argue with the Commission, or you, sir, on the subject. I have simply advised them as a matter of law they are not bound to appear, and accordingly it is not fitting they should appear. Mr. Veitch : And you state on their behalf they will not appear ? Mr. MacGregor : That is so. On the motion of Mr. Hall, seconded by Mr. Macdonald, the Commission went into committee. On resuming, The Chairman said : The Commission has reported to the proper authorities the refusal of certain witnesses to give evidence, in order that a proper legal course be adopted. In the meantime the Commission will proceed to take other evidence. John Edward MacManus, Secretary of the Labourers' Union, examined on oath. (No. 6.) 1. The Chairman.] What is your occupation, Mr. MacManus ? —Labourer, and I am at the present time secretary of the Labourers' Union. 2. What line of evidence do you propose to lay before us ? —I propose to cover as far as I possibly can the scope of the Commission's inquiry. The first question is, " Has the cost of living increased in New Zealand during the past twenty years ? If so, has that increase been more marked during the last ten years than during the previous ten years ? " I shall deal with one portion of this question when I come to question No. 4. I submit that the cost of living has increased, and in support of that statement I would refer the Commission to the Year-book of 1900. We will take rent. The unimproved value of land alone has increased by £175,000,000. It is obvious, if that is so, if you take 5 per cent., that means £8,875,000 which must be paid in rent on the unimproved value alone. I claim that it has increased to that extent: and, further than that, during the last nineteen years I think the increase has been approximately about £100,000,000 —that is, according to the Year-book. The unimproved value has increased during the last five years at the rate of £10,000,000 per annum. That value, combined with the rent, means £18 15s. for every man, woman, and child in the community. That has contributed greatly to the cost of everything. It has hampered industry, in fact. I have taken from 1891 to 1910, covering the whole period, and refer you to page 626 of the Y r ear-book for 1910. Then, take food : the prices in 1900 and 1910 were as follows : — 1900. 1910. s. d. s. d. s. d. ' s. d. Wheat, per bushel .. 26 to 30 33 to 66 Bread, per loaf .. .. 0 5 „ 0 6 0 6|-„ 0 8 Flour, per 50 lb. .. .. 3 9 „ 4 0 5 3 „ 7 6 Cattle, fat .. .. 160 0 ~ 180 0 160 0 „ 250 0 Sheep .. .. .. 16 0 „ 20 0 17 6 „ 23 0 Butter, fresh .. .. 0 7 „ 1 2 010 ~ 1 3 Butter, salt .. 0 6 „ 1 0 0 9 ~ 1 3 Eggs .. .. ..08„10 09„13 Potatoes, per ton .. . . 50 0 „ 90 0 180 0 „ 260 0 per cwt. .. 4 6 „ 6 0 1 0 „ 14 3 Now I will give the prices of some of the necessaries of life in June, 1910, and the present prices of the same articles. The prices are taken from my own household accounts. 1910 : Bacon, Bd. per pound ; chops, 3|d. to 4d. per pound ; loin pork, 6d. per pound ; steak, 4d. per pound ; sheep's head, ljd. Prices in May, 1912 : Bacon, lid. per pound ; chops, sd. per pound ; loin pork, Bd. per pound ; steak, 6d. per pound ; sheep's head, 3d. In November, 1909, I got married, and took a cottage, and furnished three rooms—two 12 ft. by 12 ft., and one 9 ft. by 8 ft. The cheapest I could furnish them at was £40 15s. That did not include a sewing-machine and other essentials, which have since been obtained. I have already had to replace some of the furniture which had become worn out. We had to get an additional mattress and kapoc set, so that it is obvious that the material was not of the best quality. 3. Without wishing to intrude in your private affairs, may I ask if the furniture was paid for on time payments ? —Yes. 4. The prices would be higher than for cash ?—Yes. 5. Mr. Fairbairn.] What would be the difference ?—I cannot say. My position is not singular: it is the position of the great bulk of the workers. 6. How long did it take to extinguish that debt ? —About eighteen months, in monthly payments. 7. Mr. Veitch.] Could you give us an approximate idea of the difference between cash payments and time payments ? —No, a business man could do that better.