COMMERCIAL TRUSTS ACT.

Stratford Evening Post, Volume XXXIV, Issue 79, 26 November 1912, Page 7

COMMERCIAL TRUSTS ACT.

THE FIRST PROSECUTION. (Per Press Association.) Wellington, November 25. The first prosecution under the Commercial Trusts Act was commenced in the Supreme Court to-day, before the Chief Justice (Sir Robert Stout). The King is plaintiff and defendants are the. Merchants’ Association, the Colonial Sugar Refining Co., Levin and Co., Win, Bannatyne and Co., and Joseph Nathan and Co. Generally speaking, the offences alleged against the defendants are that in or aoont October, 1911, the Sugar Company, in breach of the,Trust Act, oifered or agreed to give to Levin and Co. a discount of 5 per cent, in respect of purchases made by Levin and Co. from the Sugar Co., for the reason that Levin and Co. was a member of a commercial trust—namely, the Merchants’ Association.

Similar olFenccs arc alleged with respect to discount allowed to Banna tyne and Co., and Nathan and Co. ft is also alleged that the Sugar Co. in October, 1911, in breach of the Act, refused to supply sugar to Fairbairne, Wright and Co., of Christchurch, except on conditions relatively disadvantageous as compared with the conditions on which sugar was supplied to the alleged trust, for reason that Fairbairn, Wright and Co. were not members of, and would not act in conformity with the wishes of the alleged trust. A similar offence is alleged in the refusal to supply sugar to Dollacar Bros., of Hamilton. The Merchants’ Association and the other defendants' are alleged to have aided, abetted, and counselled or procured the Sugar Company to commit the offences alleged. The final allegations are that all defendants unlawfully and in breach of the Act, conspired together to monopolise the supply of sugar in New Zealand, and to control, being of a nature contrary to public interests. Quite a formidable array of counsel is engaged. The statement of defence filed by the Merchants’ Association is a general denial of the allegations, it is stated that it is, and always has been, open td'any jltfhi lil' tfH&tefAld 'inn* chases for the purpose of obtaimng the maximum wholesale discount, and that it is lawful, proper, and customary to do so. Similar statements ni'o filed by the other defendants. The Attorney-General (Mr. Herdman) ,in opening the case, mentioned that the case'of refusing to supply Dellacar Bros, had been abandoned, as the Crown had insufficient evidence, i