DISCOUNTS ON SUGAR.

Dominion, Volume 5, Issue 1367, 19 February 1912, Page 4

DISCOUNTS ON SUGAR.

IMPORTANT CASE PENDING. The Government has decided to tako legal action against the Colonial Sugar Company and certain Wellington firms under the Commercial Trusts Act, 1910. It is understood that the principal question for tho Court will be whether a series of discounts offered by Iho Colonial Sugar Company amounts to an illegal concession as defined in Section 3 of the Act. This section reads, in part: "Every person commits an ou'enco who, eithor as principal or agent, in rcspoct of dealings in any goods, gives, offers, or agrees to give to any other person any rebate, refund, discount, concession, allowance, reward, or other valuable consideration for the reason or upon tho express or implied condition that tho latller person—(a) Deals or has dealt, or will undertake to deal, exclusively or principally, or to such an extent as amounts to exclusivo or principal dealing, with any person or class of persons, either in relation to any particular goods or generally." The Colonial Sugar Company publish ed a price-list which provided for a series of discounts, as follow: "Extra discounts, payable half-yearly, on purchases mado to 31st March and Sflth September, will lie allowed on the following scale—When the amounts of the monthly accounts during tho six preceding months average more than JJSOO (but are not less than .£250 in any month), 1 per cent.; more than .£IOOO (but are not less than .£SOO in any one month),. 15 per cent.; moro than .C 2500 (but are not less than .£1250 in any one month), 2 per cent.; I'oOOO (but are not less than .£2500), 2i per cent.; mora than J!12,50fl (but are not less than in any one month), 3 per cent.; moro than A' 25,000 (but not less than ,£12,500 in any one month), 5 per cent." The case against the other parties is based upon an alleged arrangement by which Ihev jointlv undertook to take the largest quantity of sugar from tho companv in order to earn the •< per cent, discount, distributing it among, themselves through an incorporate association and through that agency onlyThe maximum penalty under Iho Act is ,£SOO, and if two or more persons are responsible for nil offence, each of them is severally liable to u fine up to that amount. 11 is understood that Hie Solicitor-Gen-wot iMr. •!• W, SoJinond) will conduct . tho OMO fox tho Crown.