“BEER PROFITS ARE AMAZING.”

Star (Christchurch), Issue 17890, 5 July 1926, Page 10

“ BEER PROFITS ARE AMAZING.”

600 PER CENT ON “ PONY,” SAY COUNSEL, (Special to the “ Star.”) MELBOURNE, June 25. Profits on beer sold at the King’s Arms Hotel, Queen Street, Melbourne, were investigated by the Chief Justice (Sir William Irvinl) in the Banco Court to-day. Mr A. C. Mor« ley (counsel for Harold Knight) suggested the gross profit on a “ pony ” sold in the saloon bar was 600 per cent. Claiming £2OOO damages for alleged misrepresentation in connection with the sale of this business, Miss Ro<c Waldron, the present licensee, brought an action against Harold Knight, hotelkeeper, Bleak House Hotel, Victoria Avenue, Albert Park. Plaintiff said she purchased the lease, fittings and goodwill of the King’s Arms Hotel from Knight for £4300. She alleged Knight and his agent had represented to her that for the ycat 1 prior to April 23, 1925, the takings from legitimate trade were about £IBO a week. She had since discovered those representations were false. Her average takings for a period after the business had been trans. ferred to her, she alleged, were less than £9O a week, MISREPRESENTATION DENIEDMisrepresentation was denied by Knight., who filed a counter-claim for £576 5s 9d, being the face value of a promissory note which he alleged had not been honoured. Knight also claimed interest on the promissory note from the date it became due. Cross-examined by Mr Morley, Miss Waldron admitted she had had only three months’ previous experience in the hotel trade. She charged 6d a mug for beer in the front bar. Mr Morley: How many mugs of beer go to the gallon ? Witness: Between fourteen and fifteen. How much docs a gallon of draught beer cost you?—About 3s 4d. Does that not return a gross profit of 100 per cent?—Without allowing for waste it does. What is the wastage, then?—About two or three gallons per hogsheadWITHOUT THE FROTH. How many long glasses are there in a gallon of beer?—l am not certain, but I fancy about twenty-three. On your own figures these return you a gross profit of 200 per cent in the front bar. How'much do you charge “ponies”?—Threepence. Mr Morley said he understood there were between thirty-six and forty ‘ ponies ’ in a gallon of beer. The Chief Justice: Without allowing for the froth. iXaughter ) Mr Morley: Yes. there should alwavs be a little froth. Profits in the saloon bar are, of course, greaterFurther cross-examined, plaintiff said she paid lOd lor a bottle of beer from the Carlton Brewery. She charged a, penny extra for bottled beer.