FRUIT SELLING METHODS

Taranaki Daily News, 17 October 1930, Page 7

FRUIT SELLING METHODS

CHARGE AGAINST AUCTIONEERS.

By Telsgraph.—Press Association. Wellington, Last Night. Further evidence was tendered, in the Magistrate’s Court to-day in the case against Laery and Co., auctioneers, of making false returns in connection with the sale of bananas.

Alfred William Allan, director of Radley and Co., Auckland, said his firm had a country order department. Goods were bought in for that department and re-sold later. The transaction of the re-sale was not shown on the account sales. The custom was general in Auckland and, was known to all suppliers. It was often necessary to withdraw goods from auction t/o fill an order. It ■was customary to charge the top auction price. A flat rate was charged for cartage.

Harvey Turner, director of Turner and Growers Co., Auckland, said it was his firm’s practice to “buy in.” Goods were taken out before the sale and charged the top auction rate. That was a general custom in Auckland. Cross-examined, he said that in a case of Government fruit it was not necessary to sell it at auction. Phelps, director of the defendant company, also gave evidence. To a question he said he did not think the account sales rendered by his company were likely to mislead the Government. The sale of Government fruit was conducted ■ the same lines as those of other suppliers.

Phelps said that when Mr. Smith, of the Department of External, Affaire, first interviewed witness in 1928 with regard to the auctioning of bananas witness told him the defendant company would have to charge an extra price for any fruit re-sold to country clients in order to cover out of pocket expenses and risks of bad debts. There was no mention of selling all the bananas at public auction. The fruit was to be subject to' the usual market custom. Witness explained to Mr. Smith the “buying in” custom.! Mr. Smith said he was satisfied to accept Wellington market prices as he could not accept the risk of bad debts. Mr. Smith did not suggest he had been misled by the accounts. If the auction price was higher than the price quoted to country clients a loss resulted. To Mr. Macassey witness said no documents were missing in connection with the present inquiry. The hearing was adjourned until Monday.