ALLEGED PROFITEERING.

Manawatu Herald, Volume XLI, Issue 2029, 16 September 1919, Page 3

ALLEGED PROFITEERING.

DECISION RESERVED, Wellington, Last Night. The hearing of the charge of profiteering brought by the Board of Trade against Messrs George and Kersley, Ltd., concluded in ’the Magistrate’s Court before Mr Ei Page, S.M., to-day. David James Constable, in '6 barge of the Manchester 'department of defendant• linn, said that. No. 5 Shetland flannel, was. purchased at Is 7ld, and four other flannels in stock were ])urehased at Is Old to 1 11 ;id per yard. Tlie Jlannel had to be sold on texture and weight, and No. 5 was much betlgr in that respect than the oilier four samples. He had endeavoured lo get 50 per cent, on another (launch but found that he could not get that, and therefore had to quit them at Is Id and 2s'3d, ■ which would leave no profit, and No. 5 Shetland at 3s 3d would not make up the profit. Alexander Pringle Smith, managing director of James Smith, Ltd., said that English flannel of No. 5 Shetland quality would cost 4s landed. Goods costing Is 10.UI were often sold at 5s (id per yard. That was done generally in (he trade, especially in the Manchester department. Francis Geary Mather, a director of Messrs George and Kersley, Ltd., said that the, Manchester was the poorest paying department of the business. 'The gross average profit of this department in the period .1014-18 was 34.41 per cent., and the ex (tenses 28. til per cent., showing a net profit of 5.S per' cent. It was generally agreed in the soft goods trade that,33 1-3 per cent, on (he turnover was the least that could safely be relied on to yield a profit.. Sir John Findlay said that the Crown was asking His Worship to place an interpretation on the Statute which would have the effect of destroying a business. He contended that the Court must look at the transaction on the basis of business as a wliole. Mr Maeassey submitted that even if defendants -were entitled to level up, they should have levelled up' withjri a'■ reasonable limit. Was it reasonable to charge for an article in demand by working classes a price that was 100 per cent, above the cos!? • His Worship has reserved his decision.