ALLEGED PROFITEERING.

Auckland Star, Volume LI, Issue 74, 26 March 1920, Page 6

ALLEGED PROFITEERING.

THE WELLINGTON CASE. WELLINGTON, Thursday. Further evidence was heard this afternoon in the charge against Bertie Smith, grocer, that on January 20 he sold Mrs. Hazel Edith Carroll, of Auckland, two bottles of Mellin's food at a price unreasonably high, namely. 3/6 per bottle. James Mcintosh, accountant, said, an examination oi the defendant's books shitived that the profit on the whole of his business was low—too low- to cover the contingent risks of a grocery business. Records for a period of about six and ahalf months up to June li last showed that the net profit—on a turnover of £12.817 at the Courtenay Place shop— amounted only to about 2/ per £ 100. The net profit on the Berhampore and Courtenay Place businesses combined 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 businesses was 25 per cent gross and 5 per cent net. The defendant's profit on the sale of Mellin's 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 respectively. The defendant (recalled) said that Mcintosh advised him to increase his prices, but he had increased prices only where prices to him were increased. This had no effect on his profits. This closed the case, and aft«;r counsel had addressed the Court his Worship reserved his decision.