A POT OF VASELINE

New Zealand Times, Volume XLVI, Issue 10605, 2 June 1920, Page 5

A POT OF VASELINE

SOLD FOR FIFTEEN PENCE. CHARGE AGAINST HAWERA CHEMIST. , FEB TEES 3 ASSOCIATION. HAWERA, June I. . A charge of having sold a pot oi vaseline at a price that was unreasonably high within the meaning attached to the word by the Hoard of Trade Act was brought againsti George C. 'i'aitj a chemist, belore Mr Lailoy, S.M. The offence consisted in selling a pot of Cheeseborough vaseline at fifteen .pence and a plea o*f not guilty was entered. :Mr Billings, who prosecuted, contended that the price of an article must not only nob produce a profit that was unreasonably high, but must not bo calculated to produce a more than reasonable rate of commercial profit. He asked that the qrticle bo considered alone, and not with what the merchant or vendor was making 1 on. other articles. Counsel contended that it wag not a question under *tho Act of what profit was made in the business as a whole, but what tho seller was making on a particular article That position was supported by tho purposes of tho Act which were to regulate and control tho cost of lrHng. If the price were calculated to yield a big proat. it was unreasonably liigh and each, particular lino should be considered by itself. The magistrate stated that in trade prices cannot be definitely fixed* Some articles turned over rapidly and in other .easso articles were in a, lino not sold once in six months. Five per cent, may bo a fair profit on a line turned over every day, while twenty per cent. may not bo a big profit on other lines rarely demanded. Mr Billings agreed that a uniform profit could not bo fixed. Referring to this caso. he said tho wholesale! cost the vaseline differed with .tho various merchants, but apparently at tho time of'the purchase others purchased the Hno at eightpence wholesale, while .others .perhaps, at.a. little more. Hi, suggested that 87 per. cent, was an unreasonably high profit, and he could show that other chemists were selling the lino at a shilling, a grocer at a shilling, and another grocer at tcnpenco. , , , J. Charles Chappie, cheese factory manager, of Whareroa, gave evidence of purchasing a pot containing foui ounces of vaseline at Tait's shop ior fifteenpence. Later he found that he could have bought the same at a grocor's for tenpence and at another chemist's for a shilling. He had inquired because ho thought Tait's price wua particularly high. . Richardson, a chemist in charge ot the Friendly Societies' shop, said ho had charged a shilling lor a similar pot for tho ipasb fiix months, lho cost had been 7 a 2d to 8s per dozen m Wellington, and ho had to pay freight. He was satisfied with the profit ho made in selling at a shilling. There was no reeognised way of fixing prices among business people. Cross-examined, witness said bis dispensary claimed to bo a non-profit, making concern, run for the benefit or the United Friendly Societies. They sold to the general public, but did not eater for itfliem primarily. Ho would not .necessarily be satisfied, if m business on his owii account, with the same profits as tho society was satisfied with. In chemists' shops they did not split threepence. This wns a universal practice. Before tho war four-ounce pots sold at Auckland for a shilling and twoounce pots tor. sixpence: but since twoounce po,ts had risen . nearly oO .per cent., while four-ounce pote remained stationary. Tho price of two-ounce pots now was nincponce Ho knew that Cheeseborough vaseline before the war could be bought at os Gd per dwelt. It was then selling at a shilling. . Generally chemists did not compete in the same lines with grocers. Witnosa gave evidence further as to the comparative cost of running chemists' and grocers' businesses, iinjl ns to a chemist's assistant, owing to ins professional qualifications needing higher pay than a grocers assistant. He could not express an opinion whether other chemists.were charging too much for the vaselmo at fifteenpence. It it were costing them 9s 6d per dozen, fiftconpenco a pot would ho lair, but if costing oightpence per pot a shilling would bo a fair price. Ho could not „ay whether the, society made » profit. Tho greatest profit was made in dispensing; , ~ , Mr Hillings said it may be, that there wore too many chemists in iiawcra to sell tho lines required. It was not a justification for high prices if fivo woro trying to make a_ profit by handling what required only three men. At this stage the court adjourned.