PROFITEERING ALLEGED.

Taranaki Daily News, 17 June 1920, Page 5

PROFITEERING ALLEGED.

' THE CHRISTCHURCH CHARGES. DECISION RESERVED. By Telegraph—Press Association. Christchurch, Last Night. The charges of alleged profiteering against several local hardware merchants, and Brown and Dureau, of Wellington, were continued to-day. In all charges against Brown and Dureau of counselling, etc., pleas of not guilty were entered. In addressing the Court, Mr. C. P. Skerrett, K.C., submitted that the cases were so trumpery as to east discredit on those responsible for the prosecution, and he suggested that the activity of the prosecution in respect of a negligible class of goods was intended to cover up a disinclination to take action in respect to basic lines. He submitted that no evidence had been adduced that any profit made by any of the defendants was an unreasonable rate of commercial profit.

Mr. Myers made an exhaustive analysis of the evidence in respect of what constitutes a fair rate of commercial profit, and submitted that it could only' be determined upon recognised commercial practices. The prosecution had not led any evidence on the point. If fixation of prices was objected to, there wag ample power to make regulations abolishing or controlling the system. He urged that the question of the depreciated value of money had a distinct bearing on the question of a reasonable commercial profit.

Mr. McGregor repudiated the opposing counsel's suggestions that the cases were trivial. The result of these cases would largely determine whether the Aet s would remain a dead letter, or whether traders were to be allowed to make what profits they liked under the guise of what was called commercial profits. Ho contended that section 32 was intendeet to refer to any individual transaction. The cases, he submitted, were typical case? of profiteering, which must'be stopped in order to avert something approaching an 'industrial revolution in this country. The Magistrate reserved his decision. To-morrow a ease against the D.I.C. will be taken.