HIGH-PRICED CLOCKS.

Auckland Star, Volume LI, Issue 142, 15 June 1920, Page 7

HIGH-PRICED CLOCKS.

PROFITEERING CHARGES. RISE IN THE LANDED COST. (By Telegraph.—Press Association.) OTIRISTCHUROH, Monday. Charges instigated by the prices in ventilation tribunal against several commercial firms came on for hearing before Mr. S. K. McCarthy, -.S.M., to-day. Hastie, Hull, and Pickering, of Christchurch, were charged with having sold George Hart Christie, the prices investigation tribunal's investigating oflieor, a flijr Hen alarm clock at a price of 2.V, which was unreasonably high. Similar charges were made against, the following Phristchuri'h firms: —c;. \V. Drayton nnd l-0., Ltd., Mason. Struthere and Co., Ltd., and E. Recce. Ltd. The offences were alleged to have uceurrc-d on April 20. A. J. White, Ltd., were charged with offering for sale on the date mentioned a Big Ben alarm clock at 2.5/. The Drapery Importing Co.. of Christchurch, -n-ere charged with having offered for sale on April -7 to ileorge Hart Christie a clock at 43/, "Which price was unreasonably high. Brown and Dureau, Ltd., of Wellington, were charged with having unlawfully counselled another person. Ha*tie, Bull, and Pickering, Ltd., on March 1 to commit an olTervee under Section 32 of the Board of Trade Act, I'.UO, by asking and advising Hastie. Bull, and Pickering. Ltd.. to oiler for sale alarm clocks at a price which is unreasonably high. Brown and Dureau were charged also with a i similar offence on the same date. il | 'being alleged they asked and advised A. 'Mineon, of 'Christchureh. to oiler alarm docks at unreasonably high prices. CASK TOP. THE PROSECUTION". The case against Hastie, Hull, and Pickering as taken first. In opening the case. Mr. Macgregor, who appeared for the Crown, said that in addition to the charges against local lirme there were two against Brown and Dureau. who controlled the trade in 'Xew Zealand, and brought clocks from America, of counselling and procuring pales at unreasonably high prices, which were fixed from time to time by circular. After defining the Act. counsel eaid that for the purpose of tile Act a price was unreasonable if it produced "more than a fair and reasonable rate of commercial profit." A Mig Ben alarm was cold Tor 23/. The purchasing and .selling prices and the profit in each case were as follow: —-llason Ntruthors. 12/— 25/— 108 per cent; Hastie. Hull, and Pickering. 12/—2.5/— 108 per cent; A. -I. White. 14/ —2.")/—7B per cent: Riwc, Ltd., 15/0 —25/—SB per cent; Draytom, 14/3-2.")/—75 per cent. Counsel pointed out that every trader was now forbidden, under heavy penalties, to fell any article at a price which was unreaeonably high, no matter" at what prices he may have sold or might be content to sell the rcmainer of his stock. An alarm clock was a household necessity, and if it was l>oiijjht at 12/ and sold at 2.3/, without any real reason for the. sueeeesive rise*;, surely it was a typical and flagrant case of profiteering. Evidence ac to the purchase of clocks at 25/ was given by George 11. Christie. OPEXIXG OF THE DEFENCE. Sir John Findlay, for the defence, contended that tlie effect of fixing prices had been to the price of Big Ben clocks at a lower price in the market, notwithstanding all the war conditions, than all other clocks competing against it. He detailed the causes of the rwe in price of the Big Ben clock, and said that, at 2.")/ the profit Avae less than before tho war. Xo increase had 'been made in the price till stocke bought r« a low figure had been depleted. Tho firm had bought under a moral and legal obligation to sell at the price fixed by the manufacturers, and the Courts had already laid down that euch contracte were legally unassailable, and that any departure from the conditions imposed could be made the basis of an action for damage. The net profits made by hardware merchants in the period 1014-19 averaged 7} per cent. Counsel went into the questions of replacement valuee and depreciated currency. John AVilmot Duncan, manager for Brown and Dureau. said that owing to the trade in alarm clocks generally being disorganised by price cutting a representative of the manufacturers of Big Ben flocks had vjsited the Dominion, as a result of which ft bettor system of selling the clock had been adopted. It provides for the fixing of the price for wholesaler and retailer based on a fair margin of profit and keeping the price as low ac possible to the customer. He detailed the various rises in the landed cost of the clocks. His evidence had not. concluded ivhen the Court adjourned until to-morrow.