PROFIT ON TWEED.

Wanganui Herald, Volume LIII, Issue 160813, 22 November 1920, Page 9

PROFIT ON TWEED.

ALLEGED PROFITEERING

WELLINGTON FIRMS CHARGED

(Per United Freda Association.)

WELLINGTON, November 22. . The adjourned hearing of charges of alleged juofiteering on a, sale df tweeds laid by the Board of Trade against Bing Harris and Company was continued at Hi© Magistrate’s Court before Mr J. G. Evans, 5.M.,. to-day. The charges were for selling seven and three-quarter yards of suiting to Gothard and Krebs at 16s 6d a yard, to J. T. Lewis of twelve yards at 11s 6d per yard, to Kitto and Sons of seven and three-quarter yard's at 22s 6d per yard, which prices were considered to have returned unreasonable rates ■of profit. Six other informations have been laid by the Board of Trade against three ether warehouse firms. 'These will.be investigated by the Magistrate at the conclusion of 'the hearing of the Bing Harris case.

Mr F. J. Miller, of Miller and Aheam, gave evidence that his firm aimed at a gross profit of 33 1-3 per cent, on cost- price on N.Z. tweed, but in some cases 33 1-3 per cent was exceeded. Asked whether he considered the defendant firm was aiming too high in endeavouring to make a- gross profit of from 20 to 22) per cent, on the whole woollen deaprtment, witness said: ‘T consider that very fair.” He believed that some firms would' be obliged to use up some of their reserves during the next S nr 9 months. Arthur L. Jones, manager of the woollen department of Macky, Logan and Caldwell, of Auckland, under examination, said’ that his firm now sought to make a profit of 36 per cent, to 45 per cent, on the cost of various N.Z. tweeds, and, prior to the, war, arrived at something less, perhaps 5 per cent. lower. He agreed with Mr Skerrett that if a firm was able to make, a greater percentage of profit by the virtue of better business methods, it was entitled to that advantage. The profit aimed at on New Zealand tweeds was so fixed to counteract profits on sale of English goods. *