_ MONDAY. JUNE 28; 1971 Spit and polish- an RCMP police musical lancers tradition, especially for = urged to compete _ f Photos by Murray Hamer Machinery producers OTTAWA — British and other western European producers of farm machinery might well be encouraged to expand their sales of tractors and combines in North America, and small domestic producers might similarly be enceuraged to compete more effectively with “the major North American producers, it is suggested in the conclusions of a -study, Oligopoly in the Machinery Industry, prepared for the Royal Commission on Farm Machinery. (Oligopoly is a condition of the market place being effectively dominated by a relatively small. number of large firms.) The study by Dr. -David Schwartzman, professor of economics al the New School for Social Research in New York, also concludes that the major producers have not made full use of the economies of scale in production and marketing available to the industry, but have maintained high prices, In turn the high prices by the major companies made it possible for a small firm to enter through price competition even though it had a much lower level of praduction, and therefore lower economies of [ scale than existing firms. Among that manufacturers might be prohibited irom financing the “governments - “encourage greater competition Farm. ‘other. « :policys ‘considerations raised by Dr. |. Schwartzman is a suggestion inventories of their dealers, a practice in the industry that now adds an important element - to costs. Federal and provincial might well by offering low-interest loans to dealers as part of a general plan for fostering-small business. The . study. does recommend breaking up . the larger’ producers, declaring: “The promotion of greater price competition through the fragmentation, of ‘the largest companies, would entail sacrifice of economies of scale, and.thus perhaps fail to achieve significantly lower prices.”’ “Public policy neverthless might result in greater competitive - pressure lead to lower prices, especially if the United States and Canadian governments co- operate’, the study says. As ‘with other studies for the Royal Commission on Farm Machinery, Dr, Schwartzman’s work was . not” on producers which ultimately will |* prepared independeatly, 2 ‘and is. “speing published ‘under. ‘its. auspices, _butthe views expressed therein are those of the author and not necessarily thdse of the Commissioner, Dr. Clarence L. Barber, Dr. Schwartzman finds that there is, in fact, a high degree of concentration in the industry. In 1987, the four leading firms sold 67 percent .of all wheeled “tractors in Canada, and four sold 69 percent of all combines. But over the years, smaller. producers have increased their share: of the market, and he says ‘‘coneentration. has declined .because the leading ‘manufacturers have maintained high prices, no Smaller companies rely more on price competition than the large companies; the large producers tend -to meet competition among themselves by model changes that cannol be quickly imitated. Dr. Schwarizman also finds evidence of international price discrimina tion. : | assiin ¢ CONSTRUCTION LTD. “Planners & Builders of Quality Homes" __PHONE MR, A. SCHWAIGER 695.5220 . NEW F.G. FOWLER & ASSOCIATES LTD. | Proudly introduce SUMMIT HOMES for” LOW in COST | ‘HIGH in QUALITY BEST by DESIGN ‘Summit homes cost less ... to buy... to build .. . to: maintain e F.G.. Fowler & Associates Lid., British-Columbia’ s leading home manufacturer, has: ” researched and designed into each Summit’ Home the maximum convenience, com. . Get the facts today - * Order our free Pion book | MAIL BascourON fort and economy. ‘ 5 ‘i 'NAME:, ADDRESS. Scarlet. coated lancers of the RCMP musical ride here as part of the BC Centennial Celebration, ride into the hearts of Terrace and district residents _ CHUCK STEAKS Tray Pack hia) simnllar Sook Word" “to. to. people. ©: Their:: hatred, rebellion had ‘-serit::- CHRIST. LUTHERAN CHURCH Newscasters have acquired al talent for taking the edge off the plummeting ‘into