The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1910-06-10
PLANTATION
STORE PRICES
CONTINUED from Page ono.)


(Continued from Page OnO)
tations had different policies. some
made money in their stores and other
did not. He thought that majority Of
the plantations we're interested in their
stores mainly for the purpCye Of seeing
that their labOrers were able to puf.
chase neeessaries of life as eheaply as
possible. As a matter Of fact, he
thought, the smajority of the laborers
appeared to wish to buy at Independent
stores anyhow
Mclnerny asked the direct question
as to whether the planters association
had adopted, as policy for the planta-
tons, the proposition of selling goods
at cost to employees.
The trustees resolved to agree TO
the Governor Is suggestion that the plan
tation stores do not make a profit,
said Mr.. Davies. He added that his ex-
iperienee was that the cost price at
plantation stores, allowing for losses
for bad debts, etc, was price at which
the Independent stores would be "only
too pleased" to sell goods.
Mr.. Davies in conclusion remarked
| that the situation was that in adopting
the so-called selling at cost policy, the
plantations were simply trying to ac-
cede to request of the Governor of the
Territory.
The committee report, which was filed
without further discussion, was as fol-
lows:
Honolulu, June 9. 1910.
To the Officers and Members of the
Merchants Association of Homo
lulu.
Your committee on trade and finance,
having interviewed number of Ho.
nolulu merchants and those interested
in plantation companies, has, after
careful consideration, decided to make
a special report upon the recent action
of the Hawaiian Sugar Planters Asso-
citation in their resolve to recommend
that the stores owned by plantation
companies sell their supplies at cost.
We regret that the Independent mer-
chants were not allowed the oppor-
tunity of expressing their views upon
the subject before such decision was
made, for the reason that, in our opin-
| ion, such a system will not only work
to the immediate disadvantage of the
independent stores, but also to the
plantation proper by the ultimate dis
content of the plantation laborer, by
his having no other course than to buy
from the plantation stores. We sub
nit as whole that in the majority
of cases statement that goods will
be sold at cost would be misleading,
inasmuch as indirect profits, such as
commissions charged from San Fran
cisco and local branches of Gel tain plan
tation agencies, aggregate handsome
profit by the time the goods are charg-
ed to the actual plantation store,
against whose invoice the cost is fgur-
ed. The mere fact of any plantation
agency making the statement that their
stores sell goods at cost is considered
unfair advertising, and at the present
time would be very apt to drive out
independent stores.
We find that the instructions con,
veyed to plantation store managers
were in effect that they should add
ten per cent to the cost of the various
items enumerated on the list of neces
sites, which ten per cent is approx
mately the cost of operating the plan
tation stores. We believe that these
instructions have not been literally
carried out for if they were the sell
ing prices for such staples as -four and
rice would have been advanced instead
| of reduced, as we are informed that
these articles have always been sold
: at considerably less than the cost plus
operating expenses.
We consider the independent stores
the greatest possible safeguard against
exhorbitant prices being charged fol
: either necessaries or luxuries. Do away
with the independent stores and the
> plantation storekeeper, whose instruc
, tions are to sell goods at cost, will
: in the majority of cases lose the am
: bition necessary to make proper and
keen purchases, so that without com
petition the consumer, or, in this par
. ticular case, the laborer, will eventual,
be at much greater disadvantage THAI
l if they had the opportunity and salts
; faction of comparing prices as mad
!, at different sources of supply. Fur
1 thermore, at this particular time tn
4 consumers, or laborers, are liable t.
gain a wrong impression concerning tn
: immediate effect of the recent order
!. for the reason that there has stimuli
j taneously occurred marked declin
: in several staple articles, such as -four
5 rice and all grain products; flour par
e ticularly having declined at least 2
/ cents per sack during the past mont
e or so.
o In no way do We presume to infe
h that the plantations have not the RICH
to have their own stores, but we
{. take exception to the unfair advei
o Using which, if continued, can onl
e result in a monopoly for certain plar
e tations.
l. Considering the subject in yer
Il broad light we endorse the general lin
/ of thought expressed in the followin
c article which appeared in the Paradis
n of Pacific last month:
s "The plantation interests of I'll
q Islands would do well to listen to til
4 voice of the merchant who advises thei
v to drop not only the plantation stol
system, but all the paternahsm thu