MR.. KENNEDY.]

H.—44a.

Kolynos : I venture to suggest that when one analyses the position all that we have got is a reduction in output within a narrow period. Of course, it must be remembered that dentifrices are subject to fashion, and that there is considerable competition among substitute lines. As a matter of fact, in the first instance Kolynos itself must have displaced some other line ; and surely, it is submitted, Kolynos is not exempt from the ordinary rule that applies to its competitors, and its sales are bound to fluctuate as the sales of competing dentifrices do. Now I pass on to the question of the manufacturer, and I would like to point out to the Committee that the term " manufacturer " is not the manufacturer as some of us understand it. I should like to restrict the term " manufacturer," so far as New Zealand is concerned, to the man engaged and taking an active part in the secondary industries, and I think that is the proper use of the term in this connection Mr. Myers : Who referred to those as agents ? Mr. KpMnedy : I do not think for a moment that a man engaged in our secondary industries is in the same position as a man who is the sole distributor for something manufactured outside of New Zealand, and I do not think he is entitled to the same consideration. There are certain considerations which apply to our secondary industries which do not, in my judgment, apply to industries carried on outside New Zealand. Ido not think for a moment that a representative of a manufacturer abroad is in the same position as a manufacturer in New Zealand engaged in a local manufacture. Mr. Myers : The English manufacturer also fixes prices. Mr. Kennedy : ■ I know he does ; but you will see that under the P.A.T.A. the manufacturer who has to be considered is the sole importer, because under the definition you will see a manufacturer under the constitution of the P.A.T.A. includes the sole distributor in New Zealand of a manufacturer abroad. Now, my friend Mi. Gresson mentioned, in the case of certain articles, that the law did permit at present a man to have an effective control upon his retail price if he himself cares to exercise it, and mention has been made before this Committee not only of Palmolive soap, but of Johnson's baby-powder, and from those two cases you can see that if a man acting by himself cares to adopt a system of price-control he can invoke the aid of the law to make it effective, and there is no need, it is submitted, that a man should bind himself and act in consort with others to impose upon the public, if he so wishes, a system of control. Mr. Collins : The representative of Palmolive said that his system was 90 per cent, effective, but he wanted 100 per cent, efficiency. Mr. Kennedy : It is submitted that a system of price-control is undesirable ; when a man can get 90 per cent., he is getting it as perfect as is reasonably possible. I submit that the P.A.T.A. is out to boycott the trader who is not prepared to submit to its dictates, and that it prevents any trader from" passing on to his consumer the economies which he may effect in his business, nor can he, in the form of lower prices, pass on to them the benefit of his better buying or of his more efficient management; it is designedly anti-social and contrary to the public interest. What I say is that if there should be a price-fixation scheme in force, then the power should be vested in some independent of the manufacturer, the wholesaler, and retailer —such as a Board or a body corresponding to the Board of Trade, and prices should then be fixed after investigation and after hearing all the interested parties. Before I pass from that I want to make this observation : that no definition was supplied of what is termed " proprietary articles,'' and, evidently impressed by the difficulties in the way, it was suggested that foodstuffs were not to be included ; but I point out, as indicating the design of those responsible for the P.A.T.A., that in the letter produced by Mr. de Fenq it was stated that foodstuffs might later be included. Now, I know what statements have been made in regard to the Commercial Trusts Act, but I venture to suggest that the Commercial Trusts Act is beneficial in purpose, but one, unfortunately, which can without great effort be avoided. My submission is, having regard to the position in this country, that it would not be so very difficult for any man to drive a carriage loaded with P.A.T.A. stuff through the Commercial Trusts Act. Mr. Collins : How ? It would be very interesting to know that. Mr. Kennedy : I think I could. There are certain examples. Mr. Myers : My friend can do something more than others have thought of. Mr. Kennedy : Ido not claim to do more than what my friend has done. Now, evidence has been given that, in the case of crockery, even, an attempt was made in the case of Doulton and Wilkinson to have a price-fixation scheme. Mr. Hayward : By the individual manufacturer only ? Mr. Kennedy Yes. If it can be done by a manufacturer, surely it may be done to proprietary articles through the association; so that in actual practice one must assume that this association would extend, if it were successful, its operations beyond the mere ambit of patent medicine and suchlike, and would include the great majority of articles which are sold by such a firm as Macduffs Ltd., and the Renown Stores in Wanganui, and would cover the great majority of articles of household requisites in common use in any ordinary home. Now, I would like to give you references, without reading from the Canadian report, pages 27 and 29, with respect to a summary of the disadvantage to the public which it is conceived would follow if this association should obtain any hold in New Zealand. If the Committee pleases, then, I end as I began, with the direct statement that a serious substantial contribution to lower the cost of living has been made by the cash grocers and cash fancy-goods men, and I say it would be a serious matter if this Committee made a recommendation which would have the effect of putting out of business or hampering those men who have so well served the public need during recent years. My submission is, then, that the Committee should recommend that, by Order in Council or otherwise, this association should be inhibited from functioning in New Zealand. I submit it is in the public interest that no trader, when selling, should be allowed to fix the selling-price of his article. Mr. Reardon: Supposing the P.A.T.A. functioned from outside New Zealand —say, in Sydney, for instance—would it be prevented from operating here ?

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