1.—13 a.

Evidence of Lionel John Picot, Coal-merchant in business in Wellington. M.r. O'Leary.] That association through its secretary has made representations by a letter of the 2nd October to this Committee opposing this Act ? —That is so. And that letter has attached to it correspondence that has taken place between you —your association —and the Waikato colliery-owners. That memorandum sets out the facts vou want to state ?— Yes. I take it that your matter is already in ? —Yes. Your position is perhaps different from that of any one else who has preceeded you in that the Coal-owners' Association desires to impose on you a price-list which you say is too low to make a profit ? —That is so. What is your objection to the Act ? —As far as the Act is concerned we feel that they should not dictate to us what price we are to sell at. We think we ought to be allowed to frame our own prices. We do not like the idea of their dictating at what price we shall sell. And the prices they fixed, or attempted to®fix, are they in some cases to low for profitable trade 1 —Yes, we think they are too low. And what threat was made to bring you to heel over the matter ? —Well, we resented the prices and we were told that if we did not comply with them the association would not hear any more ; they would advertise in the local papers the set prices for their coal. You have two other representatives here. Who are they I—Mr.1 —Mr. Hansen and Mr. Clendon. Mr. O'Leary : That is all. The statement is in. Mr. Wilkinson.] Was the attempt to fix your prices carried into effect ? —No. You objected ?—We objected. What stopped the thing ?—Our objection probably did. We objected to the submitted prices and we heard no more. You carried on with your old prices ? —Yes. You have an organization here which is competent to take care of this ?—That is so. And how do you get along in regard to the Commercial Trusts Act which apparently prevents a combination ? Mr. O'Leary: You can gave a combination —a Commercial Trust is legal. Mr. Wilkinson.] If they combined with a view to fixing prices against the public, what then ? We fix our prices, but we cannot enforce them. There is no penalty for any one who does not enforce those prices. If this Act goes through, you apprehend that these things you object to will be in force ? —Yes. The Chairman : Are they being enforced any more than they are at present ? Mr. Ansell.] Just a question along the lines of this application and an offence under the original Act. Did your organization consider there was a possibility of the Waikato people having committed a breach of the Commercial Trusts Act by trying to force you to sell at a price which wo aid show a loss ? —We did not find out whether they had committed an offence, but we wondered whether they had. Did you consult legal opinion ? —No we did not consult legal opinion on the matter. Or the Industries and Commerce Department ? —No. Mr. O'Leary.] They did not stop supplies ? — They did not stop supplies or threaten to stop supplies. They submitted their prices and said they would advertise them on the first of the following month. Would'you have been injuriously affected if they had advertised the prices at which coal was to be sold ?—lt is hard to say what would have been done. I suppose we would have sold at their price. The Chairman : You are strong enough to fight it without the Act 1 Mr. Ansell.] Would it have injuriously affected your business had the Waikato Colliery people carried out their threat to advertise prices ? —Probably it would. The Chairman : Would it have injured the public ; that is what we are concerned with. Mr. Ansell.] This is a point I want to ask. In your letter to the owners you say,—" It was contended that your association has no legal right to definitely fix retail prices at which dealers must sell your association's coal." From whom did you get that opinion ? —I presume it was the opinion of our secretary. Mr. O'Leary : The Secretary is a Mr. Mountjoy, for some years an officer in the Labour Department. Will this be the end of the sitting ? The Chairman : No ; Mr. Mander and the Manufacturers' Association desire to give evidence to-morrow.

Statement by W. J. Mountjoy, Secretary, Wellington Coal Merchants' and Dealers' Association. The members of the Wellington Coal Merchants' and Dealers' Association are disturbed over the suggested amendment to the Commercial Trusts Act, 1910. It is believed that it will give power to coal-mines monopolies to dictate to merchants and dealers the terms and conditions under which they must sell their coal —i.e., terms and conditions that may be unsatisfactory to the merchants and dealers. If the amendment would bring about better conditions for merchants and retailers, then no objection would be raised by the members of this association. A recent happening between the Waikato Collieries Association and the retail coal-merchants of Wellington shows clearly what may happen to the retailers if the protection at present afforded by the Commercial Trusts Act, 1910, is in any way reduced.

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