COST OF A COAT.

Manawatu Herald, Volume XLII, Issue 2141, 19 June 1920, Page 3

COST OF A COAT.

D.I.C. BDUOIDi TI4B COUWT. Chrisi church, Yesterday. In Ilk' Magislrate's Court, the .D.I.C. was charged before .Mr S. H. -McCarthy, G.M., with having I'ommilted the offence of profiteering by offering Tor sale on April 27th, 1920, to George Dari Chris tic, a girl's rainproof. coat at the price -of 455, wJiitdi price was unreasonably high. A plea of not guilty was entered, in outlining the case for I lie Cro\vn, Mr McGregor, K.C., said that the coat cost the D.I.C. 17s lid, plus 20 per cent., or 21s (Id, and had been offered for sale at 455, a protit of 109.3 per cent, on (lie cost. Three other' coats of the same purchase had been bought and offered for sale at the following prices : 32s sd, cost, sale price 52s (id; 45s 3d cost, sale 755; 38s od cost, sale 755. Counsel submitted that that showed a clear breach of the Act-, The average profit on the cost asked for the four coats was 79 per cent. - Dvidence for the prosecution was given by Christie, and for the defence by Oscar Clarence Cox, manager of the D.1.C., and Helen Mary Wraight, head of the underclothing and children’s out lil ting department. Ti was contended that to pay its way (he department should return 50 to 00 per cent. The coats had been purchased and priced fairly as job lots, in accordance with recognised trade custom, and the value of the coat was not based on what it cost, but on what it would have cost had it been landed in the ordinary way. In liis address 4o the Court, Mr Skerrett pointed out that in fixing (lie selling juice, regard must he bad to the market value and the risk of nonsaleahility of the remaining articles in the line must also be considered. Unless the trader did that, he would ultimately be in bankruptcy. The gross profit on the cost originally fixed for the whole line was 78.5 per cent., as it cost about 60 per cent, to pay the department’s way, and only 18 per cent, was left to cover the certitude of sale. Decision was reserved.