ABSTRACT
the new price and quota scheme came into operation in December 1934. The price lists were largely based on those which were already in operation and about which there were already loose agreements. They were drawn up on the basing point principle, each basing point being surrounded by a number of circles each with a radius five miles greater than the last. In each circle moving out from the basing point, which was either a works or a port, the price was 1s. higher. As there was a merchant rebate scheme all merchants were to be registered. Further, in order to detect any price cutting, all forward contracts at low prices were to be registered. Guarantee Funds were also created and any penalties for breaches were to be paid out of those funds; it was hoped that the fact that the funds were already in the hands of the Federation would create confidence that the price lists and terms of sale would be observed. The quota scheme was based upon the percentage of the industry’s total deliveries made by each firm; but the council could award additional percentages by reason of special circumstances. A penalty of 7s. 6d. was levied on all deliveries in excess of the quota, and the same amount was paid to a firm in respect of the quantities by which deliveries fell short of the quota. In the first instance the quota was to operate for one year, 1935, only; it appears that more long-term agreement could not be obtained; it was hoped, however, that experience would lead to its renewal. Further, it was not at this stage considered practicable to try to draw up any definite declaration concerning provisions for changing the quotas.
