-96-


It is not the function of a -iroducer to vell goods to thle ultirm te
consumer himself, he is seldom geor-ed u- for it. Such goods need
selling and all that that word im-lies. This the manufacturer
cannot do. If a distributor has his own money invested in merchan-
dise he h.s an urge to get behind it to get it into his customers
hands as quickly as possible, whereas 71here all the risk remains
with the producer the retailer is not so greatly concerned. Con-
signment goods selling, nlaces almost the entire financing of the
merchandise unon the manufacturers shoulde-s, why then the retailer?
Manufacturers of hand bajas have given in to this modern prr ctice
never graciously, ho-ever, -nd welcomed this clause and what is more
used it.

Section 11 provided for cash discounts of 3/10 e.c.m. and anticipa-
tion at the rate of 6" per annum.

This provision was working very well at the close. Industry claimed
it was a return to former terms used (see Fyhibit G, po. 226 nars.
1 -nd 2, and nage 116 this history). rougnt bitterly, at the begin-
ning it was accepted. at the end.

Section 13 forbade the acceptance of returned goods after a period
of not more than seven (7) days.

Another growing evil treated on page 67 this history. Accented much
more readily at. the close than beginninF. A sound provision and
found to be gener-lly workable.

The second amendment to the code v'hich unfortunately was not aPnnrov-
ed until a few days before the Sunreme Court decision is treated on
rmge 69 this history.

 7:. OT}TF" PROVISIONS

Compliance 'Records indicate an almost clerin bill of health with res-
nect to both Class A and 3 Tr-de Pr'ctice Provisions. It is to be
honed that a reader of this history will not conclude the industry
were saints for they were far from that. A Directorate however,
imbued with a belief in the value of sound trade 7orrctice in general
and their own Trade Practice provisions in particular, corrective
in their attitude, was largely res-oonsible for the pretty clean
charge sheets. All of the clauses contained had a value, some as
pointed out negative only, but even so, worth while. Other valuable
provisions would have been added, in fact were well on their way to
anproval at the end, and these would have materially strengthened
the industry's position.

 1. Hedge Clause

:lone such in this code.

V. R-CO E-DATIO:IS

General Conclusions


9811