1.—13 a.

Mr Wilkinson : The gentleman referred to trade organizations—that is, the Merchants' Association, is it not . I was wondering if you could ask the Merchants' Association to give evidence. We would like to question them on some of these matters. The Chairman : It would be valuable. Mr. Wilkinson : The Merchants' Association is a distinct body of merchants. Statements have een made that the wholesale Merchants' Association have-been instrumental in preventing a certain hrm obtaining the best price for goods. We should have their reply to that. The Chairman : They made no application to be heard apparently, although I take it that association will be m existence in Wellington. Mr. Wilkinson : 1 think the Committee should advise them of the situation. The Chairman : We should have a witness called. Mr. Wilkinson : Certain statements have been made and they call for an answer. Mr. Smith : You could pass this evidence over to the Merchants' Association and the president could give information on it. Mr Wilkinson : Ido not think it is a matter of support. We have questions to ask the Merchants' Association outside of the evidence given here. The Chairman (to Committee Clerk) : You will find out who the association is. The Committee desires to have points raised during the investigation it is making. (The Committee adjourned at 4.20 p.m.)

Notes op Evidence given before the Industries and Commerce Committee at the Parliamentary Buildings on the 16th October, 1935, in connection with the Amendment to the Commercial Trusts Act, 1910. Meeting opened at 3 p.m. Chairman : The Hon. A. D. McLeod. Witness : Gordon Mclntosh Fraser. I am managing director of the Burgess, Fraser, and Co., Ltd., Merchants, of New Plymouth Hamilton and Hawera. That firm is a member of the Auckland Merchants' Association and also of the Wellington Merchants Association. I personally am a member of the executive of the New Zealand Merchants' Federation, which body consists of the four Merchants' Associations of New Zealand—Auckland Wellington, Dunedm, and Canterbury. Each of these bodies is represented on the executive by one member selected by themselves, and one other member is appointed at the meeting of members each year The representative of the Wellington district is president of the association—Mr. Paterson—for whom as you know, I have to apologize. He is absent in the South Island, and he has asked me to take his place • he was requested by the Committee to be present. —Yef ßarUett (S ° licitor) ' (t ° Mr ' Fraser )'] Mr - Eraser, d <>es the federation support the amendment ? Do the associations of New Zealand fully support the amendment ? Yes. Would you tell the Committee why the federation and the associations support the amendment ? -—Ihe present legislation, in our opinion, prevents effectively manufacturers and agents maintaining efficient control and discipline over persons and merchants generally who are guilty of dishonourable practices Gentlemen, may I trespass for a moment, and explain our intolerable position. Ido not want to bore you with a lot of trade details but could you for a moment imagine yourselves invited for a friendly game of cards and when you get there what do you find but a number of people who owe you money—people who if they lost could not possibly pay ; people who would cheat. Gentlemen you can realize that such a position would be intolerable. Well, that is the position that is going on in the trade m New Zealand to-day, and at present we have no redress. Would you tell the Committee shortly how this lack of discipline reacts in the association in relation to discounts «—Discounts for foodstuffs are small; they are based on a regular overhead for an average turnover or an estimated turnover. Hence when trade decreases you expect discounts to rise, but that is not the position, and the amount allowed is no longer adequate to cover overhead. How do you expect to improve the position if the amendment is passed ?—The members of our association control neither the wholesale nor the retail price ; they consider that is a matter for the manufacturer, but we are prepared to take any legal steps in carrying out any agreement a manufacturer may impose on our members. If such a position arises it is carried out in an honourable manner. It is suggested that any measure of price-fixation will react in an upward tendency in the cost of living ; what is your reply to that ?-Well, gentlemen, lam not an economic expert; you know it is a very wide question. As to whether it would have no effect on the retail price lam not prepared to say, but I think any such increase would be compensated fully by a decrease in unemployment. e are living on the people getting from £5 to £7 a week —better prices mean better times Anything that increases such a class is of benefit to us. If there is a possibility of the present position being improved, it should be thoroughly investigated. Mr. Harris.] Can you give the Committee one illustration of these dishonourable practices to which you refer?—l could give you several illustrations, but it would be dangerous to do tha tat a Committee. I have an invoice mmy pocket with which I could demonstrate to you that the position

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