The report of the Monopoliss Commission on the supply of olect~ vical equipment for mechnically propelled land vehicles was published on December 19. It covered the supply of 8 soparate classes of electr~ ical equipment for motor vehicles: batteries, coils, dynamos motors, fans, gauges, lamps and sparking plugs.
It found that there were monopoly suppliers in cach class, Josoph Lucas (Industries) Ltd, for coils, dynamos, motors and lamps3 Chloride Blectrical Storage Co. Ltd. for batteries; S, Smith & Sons (8ngland) Ltd. for fans and gauges s and Champion Sparking Plug Co, Ltd. for sparking plugs. Furthormore, nearly all the goods in each class were supplied by manufacturers whe restricted eémpetition by practising resale price maintenance (and, so far as the goods were resold, by distributors who participated in that practice)
The Commission found thet Champion's price policy for sparking plugs, having regard to the high rate of profit resulting, has been . against the public interest; they also found that the Lucas price policy for batteries also to be against the public interest. The Commission said that the distribution margins on goods sold af replacoments are high compared with margins on other consumer goods. It also said that the failure by Lucas to disclose its ownership of certain subsidaries was contrary to public interest. The report, which was unanimious, recommended the ending of the practise of resale price maintenance.
, Lf