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© Says Profit E i ays PFrot XCECeSSIvVe, I | % Lo FQ The Ontario Liquor Control Board | the board had profited to this extent makes as much as 48 per cent gross | on some $5,283,000 worth of spirits profit on whiskeys imported in bulk | on hand, though Mr. Gordon explain-- and "cut" with distilled water and |ed that the full amount was not out bottled by the board at its Simcoe | of bond. +. and Wellington Street plant, Hon. A. Mr. Gordon's explanation of the St. Clair Gordon, board chairman,|importation of whiskey in crude told the Public Accounts Committee | form and its subsequent strength re-- of the Legislature yesterday. The}duction by addition of distilled water committee made exhaustive inquiry | brought from Mr. Frost the com-- into the board's business, and L. M.}ment: "You make a profit on the Frost (Prog. Con., Victoria) declared | tap." Mr. Gordon explained that the rate of profit on the business | this was the same porcedure follow-- turnover was "exorbitant and grossly | ed by all distillers and bottlers. in excess of what the profit should | Average Profits. be. The board's import business was Mr. Frost also objected to the fact | only about 20 per cent, Mr. Gordon that. after the new Federal tax of $4 | saidq, and average profits were from a gallon on spirits was announced.lzo to 384 per cent. Yet Ontario prices were cheaper, he said, than in any other Province. Admitting profit was made on the new gallonage tax, * he maintained that it was part of | the cost. Mr. Gordon admitted Mr. Frost imight be justified in saving high | prices might encourage illicit lquor \ manufacture, and said it was open to question whether the board was 'justified in adding profit to the new lax. |__The board's $17,000,000 profit last year was criticized by Leopold Mac-- aulay (Prog. Con., South York), who thought it might better be satisfied with less profit on expanding busi-- ness and pass the benefit on to the consumer. Mr. Gordon. said he didn't think profits were out of proportion. If prices had been reduced on stock in hand when the new tax came into effect, he said, "you wouldn't have had any liquor here in 30 days." Price increase had served as a con-- trol. >