THE SALE OF COAL.

Taranaki Daily News, 12 September 1922, Page 5

THE SALE OF COAL.

ALLEGATIONS OF A "RING.” ASSOCIATION OF MERCHANTS. COMPANIES PROSECUTED. By Telegraph.—Press Association. Dunedin, Last Night. Mr. Justice Hosking is hearing an action in which the King is suing the Westport Coal Co., the Shagpoint Coal Co., the New Zealand Coal and Oil Co., the New Zealand Express Co., Christie Bros, and other coal merchants, of Oamaru, for a penalty of £5OO each for alleged breaches of the Commercial Trusts Act, 1910. The statement of claim sets forth that “John Vernon, of Orr and Co., Oamaru, agents for the Westport Coal Co., with certain others, combined to establish in Oamaru a coal merchants’ association, and all the defendants, except the Shagpoint Co., the New Zealand Coal and Oil Co., and Christie Bros., were Among the objects was the restriction of competition among members and the creating of a monopoly.” It was alleg ed that the members were enabled to purchase coal from the Shagpoint Co., the New Zealand Coal and Oil Co. and Christie Bros, at lower prices than outsiders could, and that the association fixed the retail prices for coal. The other defendants were alleged to have abetted these companies in committing the alleged offences. Finally, it was alleged that all the defendants conspired to partially monopolise the control and supply of coal in Oamaru. Mr. Adams, for the prosecution, said there was no case against Christie Bros, on the dates alleged and no relief would be asked for against them. Counsel proceeded to enlarge upon the <?USe, stating it on somewhat similar lines to the famous sugar case. He mentioned that the Oamaru Coal Merchants’ Association was formed some years before the Act of 1910. Mr. Adams said the Shagpoint Co. refused, to supply W. W. Brown with coal unless he cancelled his supply to members of the Oamaru Cash Purchase Association. The Kaitangata Co. also refused to supply him, and the writs in the present case arrived barely in time to prevent Brown throwing in his lot with the Coal Merchants’ Association. The case is proceeding.