E. W. OE FENQ.]

H.— 44A.

of the lobster to the Self-help Co., for which I have the order on my file. That was at the end of 1925, and the price was 755. per case of eight dozen, c.i.f.e., Wellington. That lands into the store at a cost of 9s. 10|d. per dozen, including duty. Some little time after the lobster arrived I noticed it in the Courtenay Place shop window, marked at Is. 9d. a tin. A little time later I met Mr. , and a week later the price of the lobster was reduced to Is. 3d. in the various windows and is still being sold at Is. 3d. I purchased this tin at Is. 3d. a few days ago. 8. The Chairman ;] Its actual cost would be about lOd. ? —Yes, something less than lOd. 9. Mr. Walker:] They still have some in stock ? —Yes. The order was booked in 1925, but it would probably be the middle of 1926 before the goods were delivered. 10. Mr. Myers :] 1 think you have also something to say about packed teas ? —I purchased 1 lb. of tea at the -— Vivian Street shop, and at the same time I purchased I lb. I submitted the I lb. to two experts, and they are prepared to swear that the tea is not worth more than Is. Bd. When 1 say ,Is. Bd. a pound 1. am referring to the cost. I paid 2s. 6d. a pound retail. It is their own tea, packed by the . That would leave a profit of lOd. on a outlay of Is. Bd. at the most, or equal to 33J per cent, on turnover. 11. Do you know anything about the way in which the same firm treats Amber Tips and Bell tea ? —They sell Amber Tips and Bell at 2s. lid. 12. The Chairman.'] What is the fixed price of those brands ?—On the packet the price is shown as 3s. 4d. That is the price expressed by the manufacturer. 13. Mr. Myers.] Do you know what it costs ? —I believe it cannot be bought at less than 2s. 10d., less 5 per cent. 14. And they sell it at 2s. lid. ? —Yes. 15. And sell their own packed teas at a profit of lOd. per pound ?—Yes. 16. Do you know of any statement made by Mr. — of stores regarding his refusal to stock aspro ? —Yes, there has been such a statement made by him in a public advertisement. 17. What was the reason he gave ?—Owing to the abnormal profit that he is required to make ? 18. I think you know what the profit is ? —I know the figures that the quote, but I do not think they are correct. 19. What is the figure they quote ?—55 per cent. 20. Is that on cost or turnover ? —lt does not say. 21. But he would not stock aspros because of the abnormal profit ? —That is so. 22. Do you know whether he stocks any particular line of asprin ? —At the time of the issue of the price-list in April of last year, he was stocking a brand of " Arrow " asprin packed by the Nonpariel Packing Co., of Wellington, which cost him not more than 3s. 9d. per dozen—perhaps less. 23. And he was selling those for 6d. per bottle ? —Yes, which showed a profit on outlay of over 60 per cent. 24. You produce a piece of cheese [produced] ? —Yes ; it weighs 1 lb. 2| oz. I bought it from the < — Lambton Quay shop this morning. I inquired the price of cheese, and was told Is. per pound. I asked for 1 lb., and was supplied with that piece, which they said weighed 1 lb. 2i oz., for which they charged me Is. 2d. That cheese should not have cost more than 7£d. or, if badly bought, Bd. per pound. 25. You have given some idea, by your evidence and production of documents, of the operations of the P.A.T.A. Since I opened yesterday I understand from you that in the event of a trader selling an article which is on the P.A.T.A. list at less than the price fixed by the manufacturer the association refers the matter to the manufacturer ? —Yes. 26. And to no one else ?—No, not at first. If the manufacturer is agreeable to his price being cut he is asked to remove his line from the list, and the P.A.T.A. is no longer concerned with him. 27. If he takes a different attitude ? —The manufacturer then notifies the wholesalers not to supply his goods to the particular retailer concerned, and the association secretary also notified the wholesalers that this particular retailer has cut a registered line, and is not to be supplied with any association registered article. 28. That is to say, unless and until the recalcitrant trader observes the registered price of the article in respect of which he was offending ? —That is so. 29. I want you for a moment to look at this advertisement in the Waikato Times. It is dated Monday, 7th February, 1927 ?—Yes, I see it. 30. It is an advertisement, is it not, of an establishment calling itself the — Stores ?— Yes. 31. It is an advertisement setting out some dozens of lines which will be sold at ll|d. between the hours of 9 o'clock in the morning and 4 o'clock in the afternoon on a specific day ? —Yes. 32. Do you know whether this institution makes a habit of this kind of business, with, different articles for each day %—I believe it does. 33. Do you notice in this advertisement certain articles featured at the bottom of the page Yes. 34. Do you see, Kolynos tooth-paste, Johnson's baby powder, Cuticura soap '( —Yes. 35. Each advertised at lljd. ?—Yes. 36. Do you know whether in each of the cases I have mentioned the prices quoted are above or below the cost price from the wholesaler to the retailer ?—Yes, they are below cost. 37. I think you gave us the cost of Cuticura soap yesterday ? —Yes, I think it was 13s. 6d. or 14s. a dozen. 38. And you also see in the advertisement Baxter's lung-preserver is advertised at ll|d. ?—Yes.

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