TWEED SUITINGS.

Taranaki Daily News, 30 October 1920, Page 5

TWEED SUITINGS.

CHARGES OF PROFITEERING. -- WELLINGTON FIRMS IN COURT. By Telegraph.—Press Association. Wellington, Oct. 29. This morning, in the Magistrate's Court, (Mr. Evans, S.M., commenced the hearing of nine charges of proliteering on tweed suitings, laid by the Board of Trade agaiwst four well-known Wellington warehouse firms—Bing, Harris & Co., Ltd., K. Janiicson & Co., Robert Wilson & Co., and Miller & Aliearn. JVlr. Macassey appeared for the Crown, and Mr. Skerrett, K.C., for the defence. The charge against Bing, Harris & Co. was taken first. '

It was alleged that the firm sold to Kitto & Sons at 22s Od a yard material purchased from the Mosgiel Mills for 13g 2d a yard, less 33 per cent. The estimated cost to Bing, Harris & Co., after allowing for discount and landing charges, was 12s SJd, and the price to retailers, after allowing for discount, was 21s 8d a yard, leaving a profit of 8s 10y 2 d, or 69.38 per cent, on the cost, or 40.90 on the selling price. Counsel said that the undiscounted selling price would leave the defendants a profif of 70.3-i per cen*> on the cost, while the overhead expenses for the whole business for the year were 10.73 per cent. on the turnover. However, New Zealand tweeds were a particularly quick selling line, and the overhead expenses on their sale were probably lower than those taken over the whole business.

After referring to other sales by the defendants, counsel said that in one case the charge made allowed a profit of 97.41 per cent. He doubted whether the defendants had actually considered the replacement values. They were an afterthought, for the whole output of the New Zealand mills for the year had been bought up and the material was difficult to obtain from England.

EVIDENCE ON PRICES. THE SLUMP IN ENGLAND. Wellington, Last Night. A. C. Kitto, tailor, said he regarded the suitings bought from Ring, Harriß as good value. There were ten to fifteen firms in Wellington dealing in suitings in free competition. Joseph Lewis, another tailor, regarded the cloth sold to him as worth the "price at which he had , offered to buy the whole piece. John Allan, representative of the Mosgiel Woollen Manufacturing Company, Dunedin, gave evidence of the sale of the piece (No. 7766) ft> Ring, Harris & Co., on March 4, 1920, at 13s 2d a yard. The company's output was sold beforehand. There was a greater demand than before the war, for last year the prices of English tweeds were 100 per cent, over the same lines of New Zealand tweeda. Before the war English tweed could be landed cheaper. No price had been fixed for the sale, but the rise had been anticipated. Witness mentioned rises in prices from January of 13s Cd to !4s 2d and from 5s lid to 9s aB indicating the rise in the replacement value in three months.

Charles Baker Bowie, general warehouse manager of the Kaiapol Woollen Company, said that a profit of 25 to 33 1-3 per cent, was put on colonial tweeds on the turnover, or 33 1-3 to 50 per cent, on the cost. This was the total amount put on before it reached the tailor. Charles William Rushbrook, sales manager for' the Wellington Woollen Co., which manufactures clothing as well as cloth, said that his company added 33 1-3 per cent, to the manufactured cost to cover warehouse charges and profits, but the mills made no profit. Frank Clarke, for four years supervising wool valuer for the Imperial Government, said that medium suid coarse wool represented about 60 per cent, of the entire New Zealand clip, and the prices ruling in London now were lower than the commandeer prices. The English market was at present overloaded with wool, and the trend of the market, as shown by the auction sales, was downwards. > Witness admitted that ct slump had come somewhat suddenly. Mr. Macassey stated that ho had intended calling a witness to «ive evidence as to the practice of other wholesale merchants selling tweeda, but Mr. Skcrrctt had objected to this, and desired that the merchants themselves should be called. In view of this he' would have to ask for a long adjournment, because of the criminal sessions of the Supreme Court beginning next week.'

He obtained an adjournment until Monday, November 15.