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COMMERCIAL TRUST ACT.

FURTHER EVIDENCE, By Telegraph—Frew Association. Wellington, Wednesday. Proceedings against the Merchant** Association, Colonial Sugar Company, and individual merchants in conneetio* with transactions in sugar were *ontinued to-day. The Chief Justice gay. his decision as to the admissibility of the minutes of the association as evidence.

Objection was taken to the admission on two grounds, first that the acts recorded were done before the Commercial Trusts Act came into force. His Honor considered this to be no objection, in pew of certain cases which 'have been decided in other courts. The second objection was that the corporation could not be held liable for acts of, its promoters. The judge also overruled this objection.

Andrew Fairbairn, member of the firm of Fair-bairn, Wright &00., stated in evidence that his firm had been in business for about twelve years. For eleven years they had been doing business with the Sugar Refining Company. For the six months ended September 30, 1911 "' T Purchases amounted to £66,537. for the next six months to March-31, 1012. to £01.3*7. from April to September. 1012, to £36.867. Sir John Findlay: To what do von ascribe the drop* Witness: Entirely to the fact that wo £>t only -2'/, per cent, discount, whereas the McrchanU' Association got 5 per cent., and a number of firms who were drawing from us when the terms were even transferred their business. Mr. Fairbairn, continuing his evidence, said that up to the time the Commercial Trusts Act was passed, the Sugar Company made it a condition that sugar was to be sold only at a fixed price. The bulk of the trade was done on a system that amounted to indent trade. Only a very small portion of the sugar needed to be handled at all. A merchant who bought on a falling market and sold when the prices were high, had a good margin of profit to work on. Recent rises amounted to about £4 per ton. There was no need for the middleman in the sugar trade. One pet cent, would amply cover the cost of dealing in sugar on a cash basis, when sugar beanie a free commodity on the market. Witness's firm obtained 4 per cent, discount, and gave 3>/ 3 to their customers. When the sum was raised from £2500 to £IO,OOO per month, it was necessary to earn the maximum discounts. Witness first protested to the Sugar Company. He saw no legitimate reason for the subsequent increase to a £25,000 limit, seeing that the retailers in the ring were buying at ' the same price as merchants. His firm had only fourteen days' notice of the change. When his firm applied to Levin & Co. for supplies of sugar they were refused, Mowbray giving as Iris reason witness's action in calling attention to the alleged breach of the Commercial Trusts Act.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19121128.2.45

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, Volume LV, Issue 164, 28 November 1912, Page 5

Word count
Tapeke kupu
474

COMMERCIAL TRUST ACT. Taranaki Daily News, Volume LV, Issue 164, 28 November 1912, Page 5

COMMERCIAL TRUST ACT. Taranaki Daily News, Volume LV, Issue 164, 28 November 1912, Page 5

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