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term " monopoly " usually carries with, it a definite suggestion of blame, whether deserved or not For many purposes the small retailing unit has obvious advantages which no doubt will preserve for it a permanent place in our commercial organization, but it is very doubtful whether the public interest would not be better served by the amalgamation of some at least of the existing units under a common management and the disappearance of others. Compulsory adoption of a uniform pricelist would seem to give a definite check to any movement there may be in this direction. A standard rate of wages is intended to, and does in fact, give an advantage to the more efficient employer, but a standard retail price-list would tend to give an advantage to the less efficient retailer, or at least make it easier for him to maintain his position. It is, of course, impossible to say at this stage what price policy the association is likely to adopt in the future. Such bodies generally, and no doubt sincerely, disclaim any intention of raising prices unduly, but it is not uncommon for differences of opinion to arise over the meaning of " unduly." It is by no means certain that it will be to the interest of retailers to raise prices, as any apparent advantage so gained might be more than offset by a diminished volume of sales. The apparent advantage, however, has obvious attractions, and might blind the association to other equally important considerations. In either case —i.e., whether the association continues to function, or retailing is more and more concentrated in the hands of large business units —the problem of price-control from the point of view of the public interest remains. Experience generally raises some doubts as to the efficiency of legislative measures intended to abolish such organizations as the one under investigation, and there is a great deal to be said for admitting this, and then taking further steps to regulate their activity and keep them under control. This, of course, raises wider problems than are immediately suggested by the association's programme, but it seems desirable that they should be faced. Much more accurate and systematic knowledge would undoubtedly be an essential prerequisite of any action. In any case, I would suggest that the case is clear in favour of a much wider measure of publicity being given to the details of such operations as the association proposes. Whether its work is regarded as being in the public interest or not, insistence on publicity would from the outset tend to be a moderately effective check on abuses of its powers. This also is a principle which could with advantage be extended much further. One minor point may be added. So far, co-operative retailing has not been practised in New Zealand on any considerable scale. If, as I believe to be the case, it is desirable that it should be encouraged, both from an economic and from a broader social point of view, it would be unfortunate if it were checked by the operations of an association which would prevent co-operative societies from paying to its members the dividend on purchases which is a characteristic feature of their constitution. APPENDIX C. Opinions given by A. H. Tocker, Professor op Economics, Canterbury College, Christchurch. I beg to report as follows upon the material concerning the Proprietary Articles Trade Association submitted to me. 1. This material consists of — (a) A copy of the published constitution and the provincial committees of the association ; (b) Interim report of the Registrar, Department of Labour, Ottawa, Canada, on the P.A.T.A. in Canada ; (c) The Commercial Trusts Act, 1910, and the Board of Trade Act, 1919. 2. Aims of the Association. —The association appears to me to consist of representatives of manufacturers, wholesalers, and retailers, whose objects may be reduced, as far as this report is concerned, to — (a) Concerted action to secure the common interests of the trades (and traders ?) represented ; (b) The prevention of price-cutting, the maintenance of " fair " prices, and the prevention of substitution of other articles for those included in the association's lists. It is difficult to judge precisely how far these objects might be applied in New Zealand, but it appears probable that the association's aims involve in practice — (а) The fixing of standard prices to wholesalers, to retailers, and to the public, which involves the maintenance of standard rates of profit for both wholesalers and retailers, and the prevention of price competition in the articles listed ; (б) The imposition of effective penalties, including the boycott, as far as articles listed by the association are concerned, upon traders who fail to adhere to the conditions imposed by the association. While it is unfair to assume offhand that the detailed practical application of the association's programme would be the same in New Zealand as appears to be proposed in Canada, it seems probable that the above is a fair summary of how that programme would be applied. 3. Advantages of Operations of Association. —It appears that the advantage to accrue from the operations of the association would be secured very largely by the wholesale and retail traders, perhaps to some extent by the manufacturers, and to a very small (if any) extent by the consuming public. The main advantages may be summed up as stability of marketing conditions ; stable prices to the manufacturers, wholesalers, and retailers ; a fixed margin of profit; and the elimination of competitive prices. It can scarcely be held that much benefit can accrue to manufacturers, for most articles

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