RISE IN TOBACCO.

Taranaki Daily News, 15 January 1920, Page 3

RISE IN TOBACCO.

ACTION AT WELLINGTON I BOARD OP TRADE TO BE APPROACHED. Smokers will view with mild alarm the fact that another fairly substantial increase is about to take place in the price rof all tobaccos. The position was considered at a representative meeting of Wellington tobacconists on Tuesday evening, held in consequence of their having re ceived notification from wholesale houses of new increases in prices. The meeting very reluctantly decided, in order to recoup the extra charges imposed on them, to increase the prices on all plug and cut tobaccos, aud on cigarettes. Consequently, a. 2oz. plug of dark tobacco will in future cost the consumer Is 4d, and ;t 2oz packet or tin Is 7d. A 4oz plug of dark tobacco will involve an outlay of 2s Bd, while aromatic plugs will cost even more —Is 5d and 2s fld for the respective sizes. For cigarettes the consumer will have to pay 9d per packet of 10, in place of Sd, aud cigarette tobacco per oz. will cost lOd. It was explained at the meeting that the hands of the tobacconists had been forced on account of all wholesale firms imposing a rise plug and cut tobaccos, and 7s lOd per 1000 on cigarettes. Incidentally, cotnvplaint was made that the wholesale firms had profited out of the rise to the extent of 2d per lb on plug and cut tobaccos, and lOd per thousand on cigarettes, the actual increases payable by them being only Is 4d per lb for tobaccos and 7s per 1000 for cigarettes. The reason given for the increases in the first instance to the wholesalers is the increased price of the leaf. Even at the increased prices to he charged the consumers, the tobacconists contend that they have not suflicient margin for a fair working profit. Actually they will now make considerably less than 33 l-3rd per cent, profit, which margin they contend is universally accepted in all business undertakings as being not by any means excessive. So strongly did the meeting feel on the point, that a deputation was set up to wait upon the Board of Trade with a view of a more satisfactory adjustment in the retail prices being made. There was a unanimity of opinion that they would fare better at the hands of the Board of Trade than if they continued to fix the retail prices themselves.