PROFITEERING CHARGES.

Feilding Star, Volume XVI, Issue 4130, 30 October 1920, Page 6

PROFITEERING CHARGES.

WAREHOUSE FIRMS BEFORE"" THE COURT. (Per Press Association). N Wellington, October 29. ■This morning at the Magistrate's Court, Mr Evans, S.M., commenced the hearing of nine charges of alleged profiteering on tweeds and suitings laid by the ' Board of Trade against four well known Wellington warehouse firms, namely Bing Harris and Co., Ltd., R. Jamieson and Co., Robert Wilson and. Co., and Miller and Ahearn. Mr Macassey appeared for the Grown and Mr Skerrett for the defence. The charge against Bing Hams and Co. was taken first.' It was alleged that the firm sold to Kitto and Sons at 22s 6d per yard material purchased from the Mosgiel mills for 13s 6cl per yard, less 3f per cent., and that the estimated cost to Bing Harris and Co. after allowing for discount and landing charges was 12s 9id per yard, and the price to the retailers after allowing "for discount 21s 8d per yard, leaving a profit of 8s 10£ d, or 69.38 per cent, on the cost., or 40.96 on the selling price. Council said that the xmdiscounted selling price would leave the defendants a profit of 70.34 per cent, on the cost, while the overhead expenses for the whole business for the vpar were 10173 per cent, on the turnover. However, New Zealand tweeds were ix particularly quick selling line, and j •thrk overhead expenses on their sale were probably lower than those taken over the whole business. After referring to other sales by defendants, counsel said that in one case the | charge made allowed for a profit of 974.1 per cent., an almost equivalent amount/ Hβ doubted 'whether the defendants had actually considered the replacement values, and that they were an afterthought, for the whole output from the New Zealand, mills for the year had been bought up and the- material was difficult to obtain from England. . A. 0. Kitto, Joseph Lewis and Gothard Krebs gave evidence of the purchase. They had said the cloth