PROFITEERING CHARGES.

Oamaru Mail, Volume XLIV, Issue 14703, 2 June 1920, Page 7

PROFITEERING CHARGES.

TOOTHPICKS NEXT? ' (Per Press AssociatitliAWEUA, June 1. A charge of having sold a pot of vaseline, at a price that was unreasonably high within the meaning attached to the word by the Board of Trade Act, was brought against George C. Tait, chemist, before the Magistrate : (Mr Bailey) to-dav... . ■ The alleged offence consisted ot selling a pot of Cheseborough vaseline for Is 3d, A plea of : not guilty was made. Mr Billings, who prosecuted, contended that the-price of an article must not only produce a profit life» l t is not unreasonably high, but mustfnot be calculated to produce more than a reasonable rate of commercial .-profit. He asked that the article be considered alone, not- with what the merchant or vendor was making on otljor articles. Counsel contended that it was not-_a question under the Act of what profit was made in the business as a whole, but what the. seller -was making on a particular, article. That position was supported by the purposes of the Act, which were to regulate and control the cost of living. If the price was calculated to yield a big profit, it was unreassonably high, and each particulai line should be considered by itself.* _ The Magistrate stated-. that trade prices cannot be definitely fixed. Some articles were turned over rapidlj, while in other cases an article in a line was not sold once in six months. Five per cent-, may be a-, fair profit on the line turned over every day, but twentj pel cent, may not be a big p/ofit on other lines rarely demanded. ■ Mr Billings agreed that a..un ito nil profit could not be fixed. Referring to this case, he said the wholesale cost of vaseline differed with various hi®*"* chants. Apparently at the time of the purchase some purchased a line at ocl wholesale, while others perhaps paid a little more. He suggested that 8( pei cent, was an unreasonably high profit He could'show another chemist selling the line at Is, a grocer at Is, and another grocer at 1(M. Charles Chappie, cheese factorv manager, Whareroa, gave evidence of purchasing a pot containing four ounces of vaseline at Tait's shop at Is 3d Later he found he could have bought the same at a grocers for lod, and at another chemist's for Is. He had enquired because lio thought Tart s price particularly high. . . Mr Richardson, chemist m charge ot the Friendly Societies' shop, said he had charged Is for a similar pot for the past six months. The cost had been 7s 2d to Ss per dozen m Wellington. He had to pay freight He was satisfied with the profit made at .Is. There was no recognised way ot ii.\ing prices among business people;- . Cross-examined, witness said his dis-i-pnsw claimed to be a non-proht-mak-iu'er concern, but was run for the benefit of the Friendly, Societies Ho sold to the general public, but did not uitei for them primarilv. He wouid not nccessarilv be satisfied if m business on his own" account, with the same profit as the Society was satisfied with, in the chemists' shops they did not .ph--3d This was the universal practice. Before the war 4oz pots sold in Aupland at Is, and 2oz pots at 6d. Since, 2oz pots have risen nearly 20 per cent., while 4oz pots have remained stationary, the only fair price of a 2oz pot now was 9d. 'He knew that Cliesetorough vaseline, before the war, could be bought for 5s 6d, and was then selling It Is. Generally the chemist did not- compete in the same lines-n nil t-h" grocer. ~ , "Witness gave evidence further on tilcomparative cost of running chemists and grocers' business the chem.st s assistant, owing to. professional qualifications, needing higher paj than the grocer's assistant He could not express an opinion as to whether ot.hei chemists were charging too muchloi vaseline at Is 3d. If it was costing them--9s 6d per doz, Is' 3d per pot would be fair; if costing 8d per pot, Is would -be a fair price. He could not sa\ whether the society made a profit, Ibe greatest profit was made in dispensing. Mr Billings said that there may be too many chemists in Hawera to. sell the line required. It was no justification for high prices that five men weie trying to make a profit bj handling what only required three men. At this /stage' the Court adjourned.