PROFITEERING CHARGE.

Taranaki Daily News, 18 June 1920, Page 5

PROFITEERING CHARGE.

SALE OF A GIRL'S COAT. THE DECISION" RESERVED. By Telegraph.—Press Association. Christchurcb, Last Night, In the Magistrate's Court, the D.I.C. was charged before Mr. S. E. McCarthy, S.M., witli having committed an offence of profiteering by oaring for pale, qn April 27, 1820, to George Hart Christie, a gill's rainproof coat, at a price of 455, which price was unreasonably high. A plea of not guilty was entered. In outlining the case for the Crown, Mr. Macgregor, K.C., said the coat cost the D.I.C. 47s lid, plus 20 per cent., or 21s Bd, and had been offered for sale at 455, a profit of 109.3 per cent, on the cost. Three others coats of the same purchase had been bought (' and offered for sale at the following prices: 32s 5d cost, sale price 52s 6d; 45s 3d cost, 75s sale; 38s 5d cost, sale 755. Counsel submitted that that showed a clear breach of the Act f The average profit on the cost asked for the four coats was 79 per cent. Evidence for the prosecution was given by Christie, and for the defence by Oscar Clarence Cots, manager of the D.1.C., and Helen Mary Wright, head of the underclothing and childrens' outfitting department. It was contended that to pay its way the department should return 50 to 60 per cent. The coats had been purchased and priced fairly as job lots in accordance with the recognised trade custom, and value of a coat was not based on what it tost, but on what it would have cost jiad it been landed .in the ordinary way.

i In his address to the Court, Mr. C. P. Skerrett, K.C., pointed out that in fixing a selling price regard must be had to the market value, and risk of the i\onsaleability of the remaining articles in a, line must also be considered. Unless' a trader did that he would ultimately' end in bankruptcy. The gross profit on the cost originally fixed for the whole line was 78.5 per cent. As it cost about 60 per cent, to pay the department's way, only 18 per cent, was left to cover the certitude of sale. The decision was reserved.