W. TUCK.]

H.—44A.

34. But as a rule ? —No, not as a rule. 35. I suppose you can submit invoices for all these different goods ? —Yes. 36. Any when you say " the wholesalers' prices," where are you quoting the prices from ?— From Messrs. Rattray and Co. 37. That is a Dunedin house ?—Yes, and a Christchurch one. 38. Do you deal with Rattray's ? —Yes. 39. But I suppose you do not buy goods from Rattray's under their list prices ?-—lt depends on the quantity. As you will notice, they have prices for case lots and for dozen lots. As a rule, I buy at the lowest prices. I am using that price-list to indicate what the ordinary storekeeper would have to pay. In my own case, by importing, and buying direct from the importer and paying cash, I can in a great number of cases buy cheaper. That is the point. 40. But you do not import very much stuff ? —The greater part are my own importations. 41. In grocery goods ? —Yes. 42. You mean to say that you import from abroad most of the goods you sell ? —Yes. * 43-77. 78. Take an item like Lane's emulsion ; what do you sell that at ? —2s. 3d. and 4s. 3d. 79. What do you buy it at ? —From Fairbairn, Wright's at 225. sd. and 425. sd. 80. Do you sell Kolynos ?—Yes, we sell it at Is. sd. 81. That is not cut badly there ? —We never cut a thing badly unless we are driven to it. The so-called cash man is frequently driven into charging a lower price than he would otherwise charge. Take Amber Tips : a man sells that at 3s. 2d. ; that is 2d. below his neighbour. The credit trader comes down to his price, and that man immediately reduces still further ; and so it goes on We make it a point never to sell except at a margin satisfactory to ourselves. We will accompany a man to the edge of the precipice, but we will not go over with him. 82. You seem to have been doing a much bigger business in 1921 ?—That was an exceptional year. 83. Have you any of the preceding balance-sheets ? —No. In that year I took in a partner, he brought a certain amount of business with him and he went out and took a lot of business away with him. That created a temporary state of affairs and we lost very heavily that year. 84. So you cannot take that year as a fair sample of your trading compared with your cash business ? —No ; I could not stand another year like that. 85. Mr. Greeson.] In 1921, which is put in your report as a average year, is it right to say that your overhead charges would not be a fair indication of what they would be on the credit business ? —That is a fair sample of what the overhead charges would be, but it would include whatever were the drawings of the partner I have referred to. The Committee adjourned at 12.30 p.m. till 2.30 p.m. On resuming at 2.30 p.m. Mr. Gresson : I have here a very long report prepared by Professor Murphy, of the Victoria College, but as it is a very long one and as I am desirous of saving the time of the Committee I do not propose to ask him to read it. Mr. Myers: That Professor Murphy has prepared a long report is true, and I submit that it contains a great deal of informative matter and also a great deal of expressions of opinion, and I say, with all due respect to Professor Murphy, that it is besides what this Committee has been set up to decide. Mr. Gresson : No more than the evidence given by other witnesses. Mr. Myers : May be. Other witnesses may have been asked questions which bear upon the course of business which this Committee is inquiring into as contrary to public interest or not, but I do not know whether they have been asked to express an opinion on the very question which the Committee has now been asked to decide. Mr. Gresson : I will now call Professor Murphy. Bernard Edward Murphy sworn and examined. (No. 25.) 1. Mr. Gresson.] What are you ? —1 am Professor of Economics at the Victoria University. 2. You have been good enough to examine into the workings of the P.A.T.A. and report on the subject ?—Yes, I was asked to report on that matter. 3. Did you have available to you the Canadian report ? —Yes. 4. And the New South Wales report ? —I had Judge Beeby's summary report. 5. And the English report of a Commission that we are not clear as to what it was set up under ? —I have seen no English report. 6. You are, as an economist, familiar with the report of the Cost of Living Commission in New Zealand in 1912 ? —Yes. 7. Without going into your reasons, I want to know this : do you consider that the P.A.T.A.Jis a monopoly ? —lt is admittedly a monopoly on its own papers. 8. What do you consider would be its effect so far as boycotting is concerned : do you consider that its operations might lead to boycotting ? —That appears to be one of their principles as is stated in their documents.

* Questions 43 to 77 deleted as confidential.

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