COST OF A COAT.

Manawatu Times, Volume XLIII, Issue 1562, 18 June 1920, Page 5

COST OF A COAT.

D.I.C. BEFORE THE COURT. (Per Press Association.) CHRISTCHURCH, Last Night. In the Magistrate's Court, the D.I.C. was charged before Mr S. E. McCarthy, S.M., with having committed the offence of profiteering by offering for sale on April 27th, 1920, to George Hart Christie, a girl's rainproof coat at the price of 4 5/, which price was unreasonably high.. A plea of not guilty was enter(■ '- In outlining the case for Fn<- '"-own, Mr McGregor, K.C., said tha; the coat cost the D.I.C. 17/11, plus 20 nt-.r cent., or 21/6, and had been offered for sale at 45/, a profit of 109.3 per cent, on the cc--t. Three other coats of the same purchase had been bough* «nd offered for sale at the following prices: 32/5, cost, sale price 52/6; 45/3 cost, sale 75/; 38/5 cost, sale 75/. Counsel submitted that that showed a clean breach of the Act. The average profit on the cost asked for the four coats was 79 per cent. Evidence for the prosecution was given by Christie, and for the defence bv Oscar Clarence Cox, manager of the D.I.C, and Helen Mary Wraight, head of the underclothing and children's outfitting department. It was contended that to pay its way the department should return 50 to 60 per cent. The coats had been purchased and priced fairly as job lots, in accordance with recognised trade custom, and the value of the coat was not based on what it cost, but on what it would have cost had it been landed in the ordinary way. In his address to the Court, Mr Skerrett pointed out that in fixing the selling price, regard must be had to the market value and the risk of nonsaleability of the remaining articles in the line must also be considered. Unless the trader did that, he would ultimately be in bankruptcy. The gross profit on the cost originally fixed for the whole line was 78.5 per cent., as it cost about 60 per cent, to pay the department's way, and only 18 per cent, was left to cover the certitude of sale. Decision was reserved.