Minimum 
prices 
already 
operating. 
Rational- 
isation of 
the indus- 
fry, 
For some time the rubber industry in the United Kingdom has 
endeavoured to reach agreement on the minimum price for the 
lowest quality of any article manufactured, and a certain amount 
of success in certain lines has been achieved. Price maintenance 
is only possible however, if a fair price is fixed. If the price is 
fixed too high the door is opened for price cutting and secret 
agreements. On the other hand a minimum price for a stated 
minimum quality would concentrate competition on the quality of 
the article made rather than chiefly on the price. Without an 
agreed minimum price it is difficult to maintain a minimum 
standard of quality. The manufacturers of Canadas and the 
United States, who compete keenly in the United Kingdom market. 
have come into the arrangements which have already been made. 
Agreement with European manufacturers has been more difficult 
and in many lines impossible. Incidentally, the competition from 
the Furopean manufacturers prevents the minimum prices from 
being fixed too high. Always bearing in mind that the rubber 
industry covers a very large number of different trades, the United 
Kingdom manufacturer does not suffer unduly from the competi- 
tion of the manufacturers of Canada or the United States who 
make and maintain good quality products. The chief difficulty 
is - with certain continental manufacturers exporting cheap and 
often inferior goods. There is no dumping in the strict sense, 
but in some instances, continental wages are low and the quality 
is often poor with the result that the goods sell at cheap prices. 
132. Minimum prices for lowest quality already operate in 
respect of :— 
(1) Hose and other mechanicals. 
(2) Hot Water Bottles. 
(3) Certain varieties of Sports goods, such as football 
bladders. 
An international price convention is in operation in regard to 
playing balls, boots and shoes, ebonite and hard rubber goods. 
These price conventions have already benefited the industry and 
checked the lowering of quality resulting from excessive competi- 
tion. They have operated as a factor in reducing distribution 
costs, as purchasers buy in larger quantities when there is stability 
of price. The discussions necessary have led to a very valuable 
interchange of information in regard to general costs and methods 
of manufacture. 
133. The report made by a leading firm of Accountants to the 
India Rubber Manufacturers’ Association on the possibility of 
standard costing throughout the industry contains the following 
paragraph :— 
“It appears to us that the majority of concerns in the in- 
dustry continue to exist to-day in varying degrees of profit-