THE PEOPLE PAY.

Auckland Star, Volume XLIV, Issue 78, 2 April 1913, Page 4

THE PEOPLE PAY.

TO MARE UP DISCOUNTS. ■■ " ■ — i • •■•■: SUGAR PRICES RAISED. (By Telegraph.—Press Association.) jj CHRISTCHURCH, Tuesday. ? The increase in the price of sugar from 1 2Jd to 2*d per lb announced locally is, 5 it is understood, due to action taken by ; the Colonial Sugar Kenning Company as ' a result,.of the recent "cases- under tno Commercial Trusts Act. An appeal has been, lodged against the judgment .of tUe Supreme Court in the cases, and is-to be •■ heard on-April 14.' It appears that, the company has notified its.clients that the discount , of 5 per cent formerly allowed . to cover the cost of .distribution and i so forth, which was equivalent to about" £1 - per ton, is to be discontinued ii 3 . from April 1, and..that the price pi ■ sugar will be as listed. Although the company has not altered ..its price to merchants, sugar is now costing the latter, approximately £1 per ton more than it did when the company gave the discount. As to the reduction made about two months ago, it is claimed that it was not quite justified, as at 2id per", lb the margin, of profit to the grocer waa so small that sugar hardly paid for ; its handling, and was not bearing its f proper proportion of the/general ex-,:" penses of business. NO. CHANGE TO RETAILERS. DISCONTINUANCE OF DISCOUNT TO ; MERCHANTS. Upon being seen this morning on the: subject of the telegraphic announcement, from. Christchurch respecting the price of suga.r, Mr. W. J. Philson, manager of. the Colonial Sugar Refining Company, stated that there had been no rise in the Company's prices. " Under the old arrangement, the scheme under which •we have been working sinews we started provided a scale of discounts" to enable the # .merchant to get recoupment of hia expenses for distribution," explained Mr. Philson. ' " The discount we gave him was understood,-to cover such expenses, so as to leave;him a small margin of profit. By the' judgment of the Chief Justice we Wre fined for carrying on under'that arrangement, which was held to be t6 the provisions of the Commercial, Trust Act. Against this decision we hive appealed. JCJntil we know the result/of that appeal we have notified merchants that we 'have abandoned our scale of discounts. Otherwise our price list is unchanged. The Company, therefore," added Sir. Philson, "ha 3 not increased its prices, as inferred in the Southern telegram.. We have merely discontinued the scale of discounts. The Company's price list, which offers to sell to retailers a minimum of half-ton lota at the same price as ruled prior to the Chief Jiistice's decision, remains ,v * - changed."