ALLEGED PROFITEERING.

Manawatu Herald, Volume XLII, Issue 2108, 27 March 1920, Page 3

ALLEGED PROFITEERING.

Tlio first charge of profiteering brought under the new Ael 'was ■heard at Wellington on Thursday. Bertie Smith, grocer, was charged with selling to Mrs Carrol! two bottles of Mellin’s food at an unreasonable price, namely, 3s (Id a bottle. Evidence that defendant .bought the food at 25s Gd a dozen wholesale, and that the current price charged in Wellington at the time was 2s fid retail. The defence was that the food was a slow-selling line. Defendant put the price of 3s 6d on Meilhds Food when he revised his prices in December last. Up to that lime the [»rice was 2s fid. He had made a mistake in the cost ; he thought they cost 3s, but he considered his price of 3s Gd was a fair one for such a slow-selling line. As a further defence it was contended that a tradesman was entitled to average up his losses on one line by bis profits oji others, dames Mclntosh, accountant, said his examinaiion of defedani's hooks showed I ha I (he profit; on the whole of Ins business was low, 100 low to cover the contingent risks of a grocery business. The records for a period of G-i months, up to (illi dune last, showed that the nelf profit on a turnover of £12,817 at the Courtney Place shop amounted only to about 2s per £IOO. The nett profit on the BeiTinmpore and Courtenay Place businesses combined was 2.0-1 per cent on .121,000 odd, 'l’llat was :i!so 100 low a rale of profit. The average usually aimed at in similar businesses was 25 per cent, gross, and 5 per cent. noil. Defendant's profit mi (ho sale of the fniid worked out at 32.11 per cent., which was not an unreasonable profit for a special line. The gross and ncll profits on the Berliampore business were 18 and .10 per cent. Defendant, recalled, said Mint Air McInfosl) had advised him lo increase his prices, but he had increased the prices only where the prices to him were increased. This had no elfccl on Ids profit Mis V. oi'ship reserved ids decision. INVESTIGATING COMEPAINTS. Christchurch, March 25. Several minor cases were dealt with liy (he Prices Investigation Tribunal in Christchurch tins week. A romplaint regarding (ho once ot joiner's tools upon investigation was considered to be unfounded. .'. case of alleged over-charging by a custom-,’ agent was also lieid to be disproved, ! lie charge made being a isuid one by cusiohh agent'' lor -.crviccs rendered. Evidence was : a.ken on an alleged over-charge on coal, and a pnstrycook s siiiab goods. The Tribunal received a ompla'ml with reference to (he price asked for on account of proper!;,, ■which had been referred to Wellington ,f< r instructions. Tim North Canterbury Coal Mer•hanl.A and Dealers’ Association have anaiiged to meet the tribunal ■(•-morrow to give evidence regard'll:’ liie cost of handling and I lie delivery of con! (o the consumer, in justification of their request lo m••icase the margin a,iiov.vd !•>.' workeg expenses by the Board id Irauc. AUher complaints before (lie tribunal are of a more serious nature, '•ml nothing at present is available par publication, as further investigations are pending.