MELBOURNE “RACKET”

Gisborne Herald, Volume LXXIV, Issue 22339, 26 May 1947, Page 4

MELBOURNE “RACKET”

HARDSHIP CAUSED KEY MONEY FOR OFFICES MELBOURNE, May 12. Office accommodation is so scarce at present that several Melbourne men may be forced to give up their businesses. Some alleged today that racketeers were preventing offices from getting on to the market. They claimed demands for key money, and the buying of old stock and furniture were almost weekly occurrences. One man, who said he was unable to carry out his business without office space, alleged he had been offered premises on the condition that lie bought the stock for £SOO. He valued the stock as £SO. Ivey Money

The office was small and drab and needed many alterations and new furniture.

Small-time racketeers demanded key money for premises which were almost falling apart, he said.

A typical example of the hardship caused by the shortage of office accommodation and the rackets is the case of an. ex-serviceman in the importing business.

He has the Victorian and Tasmanian rights for certain lines which have an established market throughout Austratralia.

The lines are confined mainly to electrical and engineering goods and lie needs office space with showrooms to carry on iiis trade.

“With the rackets of key money and buying old stock and furniture a man who wants to do business in a straightforward manner and refuses to pay under the lap hasn’t a chance,” lie said.

“Premises are hard to get, but there would be more available if people refused to pay the money demanded by sellers and ‘quick money’ men.” While there were people willing to pay £SOO or so for the right to have the office space there would bo a shortage and many men would be forced out of business as a result, he added.