PROFITEERING ALLEGED.

Taranaki Daily News, 2 June 1920, Page 5

PROFITEERING ALLEGED.

HAWERA CHEMIST CHARGED. SALE OP VASELINE. By Telfirapli.—Press Association. Hawera, Lai;t- Night. A charge of having sold ti pot of vaseline at a price that was unreasonably high within the meaning attached to the word by the Board of Trade Act, was brought against George C. Tait, chemist, before Mr. T. A. B. Bailey, S.M-, to-dav. The alleged offence consisted in selling a pot of ChecHeborough vaseline at 1b 3d. A plea of not guilty was made, Mr. Billing, who prosecuted, contended that .the price of an article must not only not produce a profit that was unreasonably high, but must not be calculated to produce more than a reasonable rate of commercial profit. He asked that the article should be considered alone, and not with what the merchant or vendor was making on other articles. Counsel contended it was not a (juestion under the Act of what profit was made in the business as a whole, but what the seller was making on a particular article. That position was supported by the purposes ofthe Act, which were to regulate and control the cost of living. If the price was calculated to yield a big profit it was unreasonably highs and each particular line should be considered by selfThe Magistrate stated that in trade prices cannot be definitely fixed. Some articles turned over rapidly, and in other cases an article in a line was not sold once in six months'. Five per cent, may be fair profit on a line turned over every day, and twenty per cent, may not bo a big profit on other lines rarely demanded. Mr. Billing agreed that a uniform profit could not be fixed. Referring to this case he said the wholesale cost of vaseline differed with various merchants apparently at the time of purchase. Some purchased the lmc ait 8d wholesale, while others perhaps purchased at a little more- He suggested eighty-seven per cent, was an unreasonably high profit. He could show that other chemistß were selling the line at a shilling, a grocer at a shilling, and another grocer at tenpenee. Charles Chappie, cheese factory manager, Whareraa, said he purchased a pot containing four ounce/ of vaseline at Tait's shop for Js 3d, and later found he could have bought the same at a grocer's for lOd, and at another chemist's for Is. Richardson, a chemist in charge of the Friendly Societies' shop, said he had charged ft shilling for a similar pot. For the past six months the cost had been 7s 2d to 8s a dozen, in Wellington. He had to pay freight. He was satisfied with the profit made by selling at a shilling-Cross-examined, witness said his dispensary claimed to be a non-profit-making concern, run for the benefit of the United Briendly Societies. He would not necessarily be satisfied if in business on his own account with the same profits as the Society was satisfled with. After further evidence the Court adjourned.