OVERCHARGING ALLEGED

Dominion, Volume 37, Issue 228, 23 June 1944, Page 3

OVERCHARGING ALLEGED

Cases Against Furnishing Firm

Tlie bearing of charges by the Price Tribunal against tlie Wellington furnishing lirm of Kenners Ltd., alleging that unreasonably high prices for furniture had been charged to the lessee of the Mayo Private Hotel. Mrs. I. E. ityan, was concluded in the Magistrates’ Court. Wellington, yesterday, before Mr. Colliding, S.M. One charge was that an unreasonably high price had been charged for a quantity ot furniture, and seven others ri’ferred io the sale of items included in the quantity of furniture involved in Ihr hrst-named charge. A plea of not guilty was entered on all charges. The prosecution was conducted by Mr. W. 11. Cunningham and Dr. O. C. Mazengarb appeared fur d<‘l'endant. ••The whole thing is up in the air as to what is an unreasonably high price,” said Dr. Mazengarb. He asked for dismissal of the charges, contending that they called for complete proof. 'J’lie transaction, a hire purchase agreement, was not a sale by law except under ria use 8 of the emergency regulations. The whole Crown case, he said, was based on the cost pric<‘ of goods, disregarding whether it was a cheap or good market, and adding a figure allowed for profit. The transaction must be considered a*s a whole and not by individual items. Mr. Cunningham gave Individual items of profit gained by Kenner’s. With the 10 per cent, interest, provided for in the agreement. he said, the profit on the duchesses was 93.3 per cent., on the five-drawer duchesses, 94.8 per cent., and on the chairs, SO per cent. The highest rate of profit allowed by experts was 05 per cent., but the average he believed, was from 50 to 60 tier cent “If the transaction is to be regarded as one whole it would be impossible to estimate the profit.” said Mr. Cu nu Ingham. Dismissing the charge of selling a quan•itv of furniture at an unreasonably high price, the nvigNt r’lte said In* would adjourn the oilier bevuii counts of overcharging on Individual items to allow the. Crown an opportunity to appeal against the dismissal.