Canada. Royal Commission on Price Spreads : The Royal Commission on Price Spreads was established under Order in Council P.C. 1461, 7 July 1934, as amended by Order in Council P.C. 2743, 29 October 1934 and Order in Council P.C. 2946, 19 November 1934 under Part I of the Inquiries Act (R.S.C., 1927, c.99) and on the recommendation of the Prime Minister. The Commission was mandated to continue the investigation into those matters referred to the Select Special Committee of the House of Commons on Price Spreads and Mass Buying, in respect to: chain stores, agricultural implements, fish, flour mills and bakeries, canning of fruit and vegetables, and to hear evidence of any person who may be affected by these matters and who may desire to be heard. The commissioners were Henry Herbert Stevens, Chairman, William Walker Kennedy, Jean-Louis Baribeau, Thomas Bell, Joseph-Oscar Lefebre Boulanger, Alexander McKay Edwards, Samuel Factor, Mark Senn, James Lorimer Ilsley, Edward James Young and Donald MacBeth Kennedy. H.H. Stevens resigned as Chairman in October 1934 and was replaced by W.W. Kennedy (see Order in Council P.C. 2743, 29 October 1934). Stevens, however, remained a commissioner. The secretary was Lester Bowles Pearson.
On 15 January 1934 the Minister of Trade and Commerce, H.H. Stevens, made a speech to the National Convention of the Canadian Boot and Shoe Manufacturers in Toronto. In his speech Stevens accused the large retailers, especially the department and chain stores, of misusing their buying power by forcing manufacturers to give them major price concessions or lose their business. This in turn, he charged, resulted in sweatshop conditions among the workers. The attack by Stevens on big business did not go unnoticed and instant denials were made against his allegations by larger companies such as the T. Eaton Company and the Robert Simpson Company. The Toronto speech, and the reaction to it, led to the resignation of Stevens from the Cabinet. The Prime Minister, R.B. Bennett, thought that the charges raised in the speech should be investigated. Consequently, on 2 February 1934, the House of Commons passed the following resolution: "That a Select Special Committee of 11 members of the House be appointed to inquire into, and investigate the causes of the large spread between the prices received for commodities by the producer thereof, and the price paid by the consumers therefor; and the system of distribution in Canada of farm and other natural products, as well as manufactured products, and, without restricting the generality of the foregoing, more particularly to inquire into and investigate, (a) the effect of mass buying by department and chain store organizations upon the regular retail trade of the country, as well as upon the business of manufacturers and producers; (b) the labour conditions prevailing in industries supplying the requirements of such department and chain store organizations, and the extent, if any, to which existing conditions have been brought about by the purchasing practices of such organizations, and the effect thereof upon the standard of living amongst those employed in such industries and organizations; (c) the relation between the flour milling industry and the bakeries of the country, and the effect of such relations upon the baking industry of Canada; (d) and the methods and system prevailing in the marketing of livestock and animal products for domestic consumption and export, and the extent to which the present system affords or restricts opportunity for fair returns to producers."
On 13 February, the Select Special Committee on Price Spreads and Mass Buying was appointed. This Committee held several hearings, but on 29 June it reported to the House of Commons that it was not possible to complete its investigation before the prorogation of Parliament on 5 July. At that time the power of the committee would cease to exist. The committee recommended to the House that its investigation be continued by appointing its members to a royal commission established for that purpose. This proposal was adopted by the House on 30 June and on 7 July the members of the Committee were appointed royal commissioners with Stevens, the driving force behind the inquiry, as chairman (see J.R.H. Wilbur, "H.H. Stevens and R.B. Bennett, 1930-1934", Canadian Historical Review, Vol. XLIII, March 1962, pp. 7-9).
Hearings of the Select Special Committee on the Price Spreads and Mass Buying were held in Ottawa from 22 February to 22 June 1934. Hearings of the Royal Commission on Price Spreads were held in Ottawa from 30 October 1934 to 1 February 1935. RG33-18 General Inventory
