Page:The humanizing of commerce and industry, the Joseph Fisher lecture in commerce, delivered in Adelaide, 9th May, 1919.pdf/32

have to be sold across the sea in competition with producers of lead in other countries. Australian lead has no special merit above any other pig lead; the buyer does not bother regarding the -country of origin; he buys at the lowest price. Consequently the smelters in Australia have no say in deciding the selling price. It is therefore impossible to pass on an increase in the cost of production caused by increased wages. The problem facing the Company was that every increase in wages was followed by an increase in the cost of living, necessitating a further increase in wages, and this process gave every sign of being interminable. it can easily be seen that a succession of increases we aid lead to the cost of production going up so high that Australia would be unable to compete with other countries, and as its product would be unsaleable, the whole industry in Broken Hill and Port Pirie would die. It became of the utmost urgency, therefore, to see if something could be done to stop the irresistible march of the increase of cost of living. It was decided, after close consultation with the employees, to establish a co-operative store; the money required was found by the Company by way of a loan, on which it receives interest at the rate of five per cent. The Company laid it down that any goods handled must be sold at the estimated cost price, including wages in the store and general charges. In practice it has been found that fifteen per cent, on the landed cost at Port Pirie on any goods so far handled covers the cost of distribution; there is no profit, no advertising, and the business is concentrated under one roof and run in the least expensive way. Trading at the store is confined strictly to employees and their dependents. The co-operative store simply acts as agent for the employees. It buys for spot cash at the point of manufacture or production, brings the goods to Port Pirie in the most economical way, and distributes them from the store at the least possible cost. It may be remembered that evidence was given to the Interstate Commission in Melbourne by boot retailers that they could not carry on their businesses under an estimated cost of thirty-five to fifty per cent, on cost in the shop. These percentages, compared with fifteen per cent., indicate the savings which are being made in cost of living to employees at the smelters. So far only men's, women's, and children's boots, tobacco and men's clothing are dealt with, but the employees are