ALLEGED PROFITEERING

Wairarapa Age, 26 March 1920, Page 5

ALLEGED PROFITEERING

SALE, OF PATENT FOOD,

A WELLINGTON CASE.

(By Telegraph—Press Association.) . WELLINGTON, Last Night.' The first charge laid under the new Board of Trade Act was proceeded with at the Magistrate's Court to dajt, when Bertie Smith, grocer and "food specialist," of Courtenay Place, was called upon to answer an allegation that on January 30 he sold to Mrs. Hazel Edith Carroll, of Auckland, two bottles of Mellin's Food at a price unreasonably high, to wit, a price of 3s 6d per bottle. Mr. E. Page, S.M., presided. Mr. J. Prendeville, of the Crown Law Office, appeared for the prosecution, and Mr. A. Gray, K.C., and -with him Mr. A. M. Salofc, appeared l for the defence. Charles James Mcintosh, accountant, said that an examination of defendant's books showed that the profit on the whole of his business was low —too low to cover the contingent risks ©f the grocery business. The records for a period of about six and a half months up to June 6 last showed a net profit on the turnover of £l2Bl. At the Courtenay Place shop it amounted to only about' 2s per £IOO net profit. On the Berhampore and Courtenay Place businesses combined there was 2.04 per cent, on £21,000 odd. That was also too low a rate of profit... .The average usually aimed at in similar business was 25 per cent, gross and 5 per-cent. net. The defendant's profit on the sale of the food worked out at 32.11 per cent., which was not an unreasonable profit for a special line. The gross and net profits on the Berhampore business were 18 and 10 per cent, The defendant, recalled, said that Mcintosh advised him to increase his prices,, but he .had increased the prices only where the prices to. him were increased. This had no effect on his profits.' ■ This closed the case, a,nd after counsel had addfessed the Court, his Worship reserved his decision.