MELLIN'S FOOD.

Taranaki Daily News, 30 September 1920, Page 5

MELLIN'S FOOD.

WHAT SHOULD IT SOST! APPEAL ON RECENT CONVICTION. By Telegraph.—Press Association. Wellington, Last Night. The Full Court heard the Mellin's Food case, in which Bertie Smith, grocer, appealed on the general ground of law and fact against a fine of £IOO for selling two bottles of Mellin's Food at 3s Ad per bottle. The Solicitor-General, for the respondent (Mr. Collins, secretary of the Board of Trade), submitted that the charge of 3a 3tt for an article which cost 2s Id shewed more than a reasonable rate of profit. The facts disclosed that grocers usually sold Mellin's Food for 2s 9d per bottlej and appellant had formerly made the same charge. The evidence showed that appellant's overhead charges were 11 per cent., as against -10 per cent, in the case of other grocers, and that, all the circumstances considered, the conviction shbuld, stand. Mr. Gray, for appellant, submitted that in view of all tho circumstances of the case the price was not unreasonably high, in that it did not yield more than a fair and reasonable rate of commercial profit. The price was reasonable, as the line was a slow seller. If grocers did not charge more in respect of such lines they would have to increase the price of "bread and butter" lines, to the detriment of tho public. The court must have regard to all the circumstances of the business, and these showed that the appellant's profit was, on the whole business, only .37 per cent, on his turnover, and that this was recognised by accountants as a proper mode of estimating profits. Judgment was reserved.