The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1910-06-10
PLANTATION
STORE PRICES
Continued from Page One

Continued from Page One,)
tations had different policies. Some
made money ia their stores and other
did not. lie thought that majority OF
the plantations were interested n their
stores mainly for the purpose OF seeing
that their Iaborers were able to pur-
chase necessarleo Of life as cAeapIy as
possible As 4 matter OF fact, he
thought, the majority Of the Iaborers
appeared to wish to buy at independent
stores anyhow.
McInernv asked the direct question
as to whether the planters association
had adopted as a policy for the pIanta-
tions, the proposition of selling goods
at cost to employees.
THE trustees resolved 10 agree Il
the Governor 5 suggestion that the plan
tation stores do not make a profit,
said Mr. Davies. He added that his eX-
perIence was that the cost price at
plantation stores, allowing for losses
TOR bad debts, etc, was price at which
the independent stores would be :" only
too pleased to sell goods.
l.
that the situation was that IN adopting
the so-cajled selling at cost policy, the
plantations were simply trying to ac-
cede to a request Of the Governor Of the
| Territory.
The committee report. which was filed
without further discussion, was as fol
lows:
HQu01uIu ,iune 9 1910
To the Officers and Members of the
Merchants Association Of Homo
lulu.
Your committee on trade and finance,
| having interviewed d 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-
tunlty of expressing their views upon
the subject before such a decision was
made, for the reason that, in our opin-
] ION, SucH Il - stem Will Iltl OulF " VI IL
/ to the immediate disadvantage of the
I 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 a whole that in the majority
! Of cases a 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 certain plan
tatlon 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-
stiles, 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 il they were the sell
| ing prices for such staples as flour 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 Injuries. Do away
with the independent stores and the
| plantation storekeeper. whose instruc
lions are to sell goods at cost, viii
in the majority of eases lose the am
bition necessary to make proper anC
keen purchases. so that without com
petition the consumer, or, in this par
ticuiar case, the laborer, Will eventually
be at a much greater disadvantage than
if they had the opportunity and sa<is
faction Of comparing prices as made
at different sources OF supply. Fur
thermore, AT this particular time TIT
consumers, or laborers, are liable L
gain wrong impression concerning tn,
immediate effect of the recent order
for the reason that there has stimuli
taneously occurred a marked declin,
in several staple articles. such as flour
rice and all grain products; flour par
ticularIy having declined at least ,;
cents per sack during the past month
or 50.
In no way do We presume to infe
that the plantations have not the RICH
to. have their own stores, but we d
take exception to the unfair adyel
Using which, if continued, can onl
result in a monopoly for certain plan
tations
Considering the subject in a yer
broad light We endorse the general lin
Of thought expressed in the foliowin
article which appeared in the Paradis
Of Pacific last month:
The plantation interests Of tn
Islands would DO well TO listen to tn
voice of the merchant who advises theI
to drop not only the plantation stor
7 system. but al the paternaIism tina
i goes with it, 1t is often said tina
. the lowest rate Of wages paid here
. about So per month. we believe
f amounts to $40 per month when it
o considered that the laborers are give