ALLIGED PROFITEEFING.

Hokitika Guardian, 30 October 1920, Page 1

ALLIGED PROFITEEFING.

(Per Press Association.) WELLINGTON, Oct. 29 At the Magistrate’s Court, Mr Evans SAL, commenced the hearing of nine charges of profiteering on tweeds and; suitings laid by the Jioayd of Trade against four Wellington warehouse firms, Bing Harris and Co., Ltd., R. Jamieson and Co., Robert Wilson and,Coy., and Miller and Abeam. Mr S Iv. Macassey appeared for,the ,Crown; and ifr C. P. Skerrott for the defence. The charge against Bing Harris and Co. was taken first. It was alleged, that flic firm sold to lvitto npd Sons at 22s (id per yard, material purchased from the Mosgiel Mijls for 13s 2c} per yard, less 3] per cent, and the estimated cost to Ping Harris and Co. after allowing for discount and landing charges was 12s 9Jd and the price to retailers after' allowing for discount 51s 8d per yard, leaving a. profit-of 8s .U)kf or (5,9.38 per cent, on the cost or 49.96' on the selling price. Counsel said that the undisemmted selling price would leave defendants a profit of 70.31 per cent- on cost, while overhead expenses for the whole business for # ,tlie year were 10.73 per cent on the turnover. However, New Zealand tweeds, were a particularly quick selling line, and the overhead expenses on their sale were probably lower than those taken over the whole business. After referring to other sales by defendants, counsel said that in one ease the charge made allowed a profit.ol 97.40 per cent almost an equivalent amount. He doubted whether' the defendants had actually considered replacement valuesThey were an afterthought, for the whole output from 'lie New Zealand, mills for the year 'had been brought up and material was difficult to obtain fipm England, "A. C. Kitto, Joseph Lewis, and Gotland Krebs gave evidence of purchase. The doth was of good value. The market was very short of New Zonalnd tweeds at the time. Frank Clark, for four years supervising wool valuer for the Imperial Government, said that medium and course wool represented about 60 per cent of the entire New Zealand dip, and prices ruling in London now wore lower than the commandeered price. The 'English market was at present overloaded with wool, and the trend of the market, as shown by auction sales, was downwards. Witness admitted that the slump had come spin.ewjiat suddenly. . . . • Mr Mucassey said that be had in-, tended eallipg witness to give evidence: as to the iM-actlse of other wool sale , merchants selling Mvecds, bpt dr. Skerrett'had objected to tins and desired that the merchants themselves should be called. In view of tins, he. would have to ask for a longer adjournment, because of the criminal sessions of the Supreme Court beginning next week Tie obtained an adjournment until Monday, Nov 15th, and tt was agreed that evidence taken in the case applicable tt others could he permissr able at the subsequent' hearing.