AUCKLAND DRAPERS FINED

Dominion, Volume 14, Issue 75, 22 December 1920, Page 6

AUCKLAND DRAPERS FINED

SALE OF A LADY'S COSTUME. By Telegraph-Press Association. Auckland, December 21. Mr. Poynton, S.M., lined John Courti Ltd., Queen. Street, drapers, JfcllKl, as tho result of an action by the Prices Investigation Tribunal, for ottering for sale a lady's oOstumo at 12 guineas, the costume having been bought from tho Kaiapoi Wooiien Company, and costing tliem net JC7 Is. lid. In giving judgment, the Magistrate ftaid - that it iiad been verj ably argued that the prices at which the articles ot j tliis kill'J were told showc\l a;i actual loss \vhoii iu'crugid. There woro fcvoral cos- ' tunics of the 6ame kind ot rather oxciujsive colour and design, not readily sale- | able, and likely to be unsold at the end !of tho season. It was proved that the I'rate of profit oniendily saleable goods in the trade was 33} per cent., and on 'risky goodj, like these costumes, 50 to IGO per cent. At the price asked for Una costume the gross profit would be 78 pel" cent., or, without tho </iseonnt allowed by the Ivaiapoi Company, 71 per cent. "In my opinion," Mr. Poy'nton proceeded, "tho offence was committed when, the price was a'ked, and it does not matter What became of tho article afterwards. It might havo been sold at a higher price than asked, or at a loss, given away, or destroyed as worthless. A Teat dial of evidence was submitted as to the l profits oil the detcudants' business, ami particularly on tho mantle department,' which'deals with such goods as those in question. Although this has little relevancy, it' should be taken into consideration. The figures submitted, and admitted to lie correct by the prosecutm, prove that the profits of this branch have been for two years very small indeed; less than a fair return, on tho pnpital employed in it. In fairness to defendants this should be known, as it shows that this demand for unreasonable prices cannot lie general in the m»nt T'or these reasons the penalty will not be severe, but, as profiteering is sucji ft urave evil, a substantial fine "will be imposed." , , , Defendant was fined and ordered to pay costs. Security for appeal was fixed at .£2O, plus tho fine and costs.