EXCESS PROFIT CASE

Manawatu Standard, Volume LXVI, Issue 15, 15 December 1945, Page 6

EXCESS PROFIT CASE

DIRECTOR FINED. (Press Assn.) AUCKLAND, Dec.' 14. ‘‘l think the proper penalty in these cases should be approximately double the excess profit made,” said Mr J. H. Luxford, S.M., when convicting Matthew Smith Henderson, manag-ing-director, on a charge of selling 1291 yards of Delhi repp to Macky Logan, Caldwell, Ltd,, for £3BO 16s lid, a price that was considered to be unreasonably high. Prosecuting for the Department of Industries and Commerce, Mr deal said defendant was the managing-direc-tor of W. R. Kirker, Ltd., a firm of importers. As the result of a complaint received this year, arising out of the sale of furnishing materials, it was ascertained that defendant had made a profit of 42 per cent, on goods which he had sold for £317 7s 5d (excluding sales tax) to Macky Logan, Caldwell, Ltd., on behalf of his company in October, 1943. At that time there was no approved price for the material, but the Price Tribunal had since authorised a profit of 22£ per cent. A fair and reasonable profit at the time of the sale had been estimated at 25 per cent. Defendant was fined £125,