THE WAR ON PROFITEERING.

Taranaki Daily News, 15 March 1920, Page 7

THE WAR ON PROFITEERING.

DEPUTATION WAITS ON PREMIER,

By Telegraph.—Press Association. Wellington, March 13. Representatives of the retail clothing and drapery business interviewed the Premier this morning to place various ; aspects of their business before him, in | view of the statement nf alleged profit- , eering, and sought definite information as to the working of tho Board of Trade- Members of the deputation, who were representative of the Dominion, urged that in deciding whether prices charged were reasonable regard should be paid to all the circumstances of the ease, including initial cost and' current market prices. It also suggested that the Board of Trade should have associated with them representatives of the trades being investigated, because the former could not be expected to be experts in all trades. To trace profiteering goods should be followed right from the raw material to the retail shop. It was denied that there was profiteering in the retail drapery. The large profits: made by some big firms were due to increased turnover.

The deputation stated that in Knglanil net, not gross, profits were considered by investigating committees. During the past two years flannelettes, calicoes, sheetings, etc., were sold In Wellington at less than Manchester mill prices.

The deputation asked for a, pronouncement on: _ (a) The fairness of basing selling prices upon replacement values; .(b) the net average profit on return or sales to be taken as a basis when assessing H reasonable profit. The Premier, in reply, said that so far as ho could see there were no prospects of prices falling for another six months, but after that he expectfid a decline. He believed personally that profiteering occupied a comparatively small place in the causes forcing up prices. However, profiteering existed, and it was the purpose of the Act to stop it, and unreasonable profits would be stopped. Though there were no retailers on the tribunals there were business men possessing the confidence of the people- If in cases investigated fair and reasonable profits were exceeded, it was for the court to define "unreasonable." It was intended to circulate a synopsis of the Act in plain language for general information. It would have no terror for the honest trader.