COMMERCIAL TRUST ACT.

Taranaki Daily News, Volume LV, Issue 162, 26 November 1912, Page 3

COMMERCIAL TRUST ACT.

PROSECUTION.OF LEADING FIRMS.

By Telegraph—Press Association. Wellington, Monday. The fir.it prosecution under the Commercial Trust Act was commenced in the Supreme Court to-day before the. Chief Justice. The King i s plaintiff, and the defendants, are. the Merchants' Association, the Colonial Sugar Refining Company, Levin and Co., Wm. Bannatyne and Co., and Joseph Nathan and Co. ®e*erally speaking; the offences alleged against the defendants are that in or about October, 1911, the Sugar Co., in a. breach of the Trust Act, offered or agreed to give 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. were members of a commercial trust, namely, the Merchants' Association. Similar offences are alleged with respect to discount allowed to Bannatyne and Co., a*d Nathan and Co. It is also alleged that the Sugar Co., in- October, 1911, in breach of the Act, refused to supply sugar to Fairbairn 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 the reason that Fairburn, 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, viz., refusal to supply sugar to Dellacar Bros., of Hamilton. The Merchants' Association and 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 the defandanln unlawfully, and in breach.; of the Act, conspired together to monopolise the supply of sugar in New Zealand, and to control the price thereof, such monopoly and control being of a nature contrary to the public interest. 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 lias been, open to any persons to join in wholesale purchases for the purpose of obtaining the maximum wholesale discount, and that it is lawful, proper and customary to do so. Similar statements have been filed by other defendants. The Attorney-General, Mr. A. L. Herdman, in opening the case, mentioned that the charge of refusing to supply Deliacar Bros, had been abandoned, as the Grown had insufficient evidence.