ALLEGED PROFITEERING.

Press, Volume LVI, Issue 16850, 2 June 1920, Page 6

ALLEGED PROFITEERING.

SALE OF VASELINE. (PBES3 ASSOCIATION TELEGRAM.) HA WEE A, Juno 1. A charge of having sold a pot of vaseline at a prico that was unreasonably high within the meaning attached to tho word by tho Board of Trade Act, was brought to-day against George C. Tait, chemist, before Mr T. A. B. Bailey, S.M. The alleged offence consisted of selling a pot of Cheeseborougli vaseline at 15d. A plea of not guilty was entered.

Mr Billings, who prosecuted, contended that tho price of an article must not only produce a profit that was not unreasonably high, but must not be calculated to produce more than a reasonable rate of commercial profit. He asked that tho article be considered alone, not with what the merchant or vendor was making on other articles. Counsel contended that it was not a question under the Act of what was the profit made in the business as a whole, but what the seller was making on the particular article. That position was supported by the purposes of tho Act, which were to regulate and control tho cost of living. If the price were calculated to yield a big profit. it was unreasonably high, and each particular line should be considered by itself.

The Magistrate stated that in trade prices could not be definitely fixed. Some articles were turned over rapidly, but in other' cases an article in a line might not be sold once in six months. Five per , rent, might be a fair profit on a line turned over each day, hut 20 por cent, might not be a big "profit on other lines rarely demanded.

Mr Billings agreed that a uniform profit could not be fixed. Referring to this case, he snid the wholesale cost of vaselino differed. Some merchants apparently purchased a line at eightpence wholesale, while others, perhaps, at a little more. Ho suggested that 87 per cent, was an unreasonably high profit. Ho could show that other chemists were -selling the line at Is, a grocer at Is, and another grocer at lOd.

Charles Chappie, cheese fnetory manager.' Whareroa, gave evidence as to purchasing a pot containing four ounces of vaseline at Tait's shop for lod. Later he found he could have bought tho same at a grocer's for lOd. and at another chemist for Is. He had enquired. bccrmso he thougnt Tait's pries Wii-s particularly high. T?iehardson, chemist in charge of the Friendlv Societies' shop, saict he charged Is for a similar pot. Fon.the past six months the cost had been 7s 2d to 8s per dozen in Wellington. He had to ,pay freight. He was satisfied with, the profit made in selling at Is. There Was no re~ognised way of fixing prices amoncr business people. Cross-examined, witness said his dispensary "laimed to bo non-profit making. The concern was run to benefit the United Friendlv Societies, but sold to the srenernl public, though it did not eater for tbom primarily. He would not bo satisfied if he was in business on his own account with the same profits as the societv was satisfied with. In chemists' shops _ they did not split threepence. This was a universal practice. Beforo the war four ounce pots were sold in Auckland for Is, and two ounce pots for 6dSince then the price of two ounce pots _ had ri?en, while four ounce remained stationary. The only fair Price for two ounco pots now wa3 9d. He knew Cheeseborouch vaseline. Prewar it could be bought for 5s 6d. and was then selling at Is. Generally a chemist could not compote in tho same lines with a grocer. Witness gave the comparative cost of running chemists' and »rrocers' businesses. A chomist's assistant, owing to his professional qualifications, needed hieher pay than grocers' assistants. He could not express an opinion whether other chemists were charging too much for vaseline. If it were costing them 9s 6d per dozen, lod per pot would be fair, hut if costing 8d per pot, Is would be a fair price. He could not say whether the society made a profit. The greatest -profit was made in dispensing.

Mr B'llmcs said thero might be too manv chemists in Hawera to sell the lines required. It was not a justification fnr high prices if five -were trying to mrke a bv handling what required only three men.

At this stage the Court adjourned