162 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
the commissions reported that illegal combinations existed, an act
was passed providing for the cancellation of inland revenue licenses
where manufacturers holding the same sold goods under a monopolistic
 form of contract designed to prevent purchasers buying from
any other manufacturer or dealer.
n 1905 sensational disclosures were made in Toronto and elsewhere
 in regard to the existence of combines among manufacturers,
dealers, and workmen for the purpose of restricting trade and enhancing
 prices. These disclosures came as the result of prosecutions
onder the Criminal Code in the courts at Toronto and Hamilton
and as the result of evidence taken before the Dominion tariff commission.
 Following these prosecutions a number of convictions were
obtained and heavy penalties were inflicted.
In 1906, probably as the result of these disclosures and prosecutions,
 the customs tariff was amended so as to provide for the
reduction or removal of duties whenever the existence of a combine
facilitated by customs duties had been established by proceedings
before any court under the Criminal Code. The law had previously
provided for this reduction or removal only after special judicial
inquiry.
tn 10 the combines investigation act was passed. This act provides
 that where there is reasonable ground for believing that a
combination exists, unduly enhancing prices or unfairly restricting
trade, the consumers, represented by a group of their number, may
make out a case before a judge, and if a prima facie case is thus made,
the judge may order an investigation, which investigation is conducted
 at the expense of the Government. A board is established,
both parties being represented thereon, and these representatives
to choose the chairman, who is appointed by the Government in the
event of the other members failing to agree on his selection. Ag
the time of introducing the measure the Hon. Mackenzie King,
then minister of labor, made a lengthy explanation of the legislation
and went fully into the reasons prompting its enactment. The only
case under the act up to the present time was that of the United
Shoe Machinery Co., full particulars in regard to which are given
in the reports of the department of labor.
The foregoing will illustrate the relations of the Government with
industrial amalgamations or trade combinations so far as legislation
is concerned; there remain to be considered any relations which
might be in the nature of benefit or assistance. So far as I am able
to ascertain, no action has been taken by the Government lookin
to assistance of industrial combinations, outside, of course, of tarif
arrangements, in regard to which large industrial combinations are
no doubt consulted. The present po icy of the Government is to
encourage home industries and the “Made-in-Canada ” idea. In the
case of a number of manufacturing concerns, raw material is admitted
 free or a drawback allowed. There is nothing to indicate,
however, that industrial combinations are singled out for any
special treatment or receive any governmental assistance which would
not be equally forthcoming to individuals or independent establishments.

While, however, no direct Government aid can be said to-have
been furnished trade combinations, these amalgamations have used,