CORRESPONDENCE. RETAIL TOBACCO PRICES.

Hawera Star, Volume L, 31 July 1930, Page 9

CORRESPONDENCE.

RETAIL TOBACCO PRICES.

CTo the Editor)

Sir, —I notice in the issue- cf your paper this evening that a wholesale eir-ju.ia-r issued at Wellington yesterday, July 29, announces the new rates tor tobacco- and cigarettes, the said rate to •operate to-day, 30tli iinst. IV ill the Hiiwd a retailers of tobacco and cigarettes explain their action in putting up the- price of tobacco 2d per 2-O'unee- tin, and cigarettes Id per packet, a week ago ? On Thursday of last week I purchased in a Hawera, store- a two-ounce tin of New Zealand tobacco, arid was charged 2d advance on the. former -price'. Asking the reason why, I was told the extra tax on tobaccoi came into- force on Tuesday July 22. Making further inquiries, I found that other retailers of this commodity, were doing the same. I'his seems to me a, glaring; case of profiteering —unless the retails can give- a good reason for their action-. —I am, 9tC ” FAIR. DEAL. Hawera, July 30, 1930. [The subject, of the- above letter was referred by" a “Hawera Star’’ reporter co a number of local retailers this m-orn--111-- In some instances certain prices were increased on Thursday of last week ;in others the new level was not asked until a-s late as Wednesday of this week; in others the- old rate is •jti.ll l>eing charged for stocks- bought, at the old. price. The inquiries showed that a measure of uncertainty existed for a few days is to when the- effect- of the- new tar,iff would be felt in the counter-trade, hollowing the -adoption on Tuesday, July 22, of the new tariff by the Government, ill*stocks in bond became subject to the, increase, our reporter was informed.] jn certain lines" of tobacco retailers j were advised that the increased prices), would operate on the following day, Wednesday. July 23. On others the wholesale price -remained on the forinea evel for a week, though advice hao oee-n. received that a'-d orders .placed ifter the adoption of the tariff would be charged at the increased rate. Heavy -etail - purchases- were made at local Establishments on the Wedensd'ay, and ,-to-rks held at the old price diminished '•apidly in some instances, one- retailer mentioning the case of a customer who ; ourchased labs of tobacco to evade the., nigher price. Consequently .as \\-holert sale orders were then being lodged, which would, according, to the advice,. be subject to the higher price, _it was | reasonable, as a business to, put the retail price on the higher level, -aid a retailer. Should duty be reduced it any time, an immediate reduction would "be demanded and, irrespective of the supplies held and purchased at the bid rate competio-n .would make immediate reduction necessary to retail buyers as the lower nrice would certainly become available bv traders who. were in the position of having, quitted pnacticallv ail old supplies. Increases and reductions worked both ways on the -rediil supplier, said the * Star s m- ° Other ret ail er s gave ..assurance- that •ill stocks procured prior to the adoption of the new dutv would .bq soid atl the cheaper rate until exhausted. Bus applied even to the most popular lines | though supplies, it was anticipated ) would not be available for long The, extra price would, of course, be demanded for all new supplies.—Eld > “Star.”! ______ i