BARGAINS IN BUTTER.

Dominion, Volume 1, Issue 148, 17 March 1908, Page 2

BARGAINS IN BUTTER.

BROKEN CONTRACTS. .WILL THE. MERCHANTS SUE ? The inability of some factories this season' to fulfill their contracts to merchants raises interesting possibilities.. Will . the? merchants sue the 'defaulters ? :i . Some people in tho trade think that they, ought'.to,do> so/ and that they actually will. But others declare confidently. that they won't; Tho question ia worth discussing. • .;■ -;'■ : . .Let us-look'first of all at.ithe case for suing., Merchants early in tho season made oontract-s ■ with factory directors. Directors held out for what were then considered •to be full ■ prices,' and merchants in closing the bargains no; doubt nSjiod: on the conditions. One of 'the' conditions fixed tho. minimum /quantity of butter , to .be■ •. supplied; The -merchant, relying•• on "his'-. contract for,'- - say,.fifty;; r'.toiis "of butter,' . went Home and - entered into other; contracts disposing of the "whole quantity. A shortage occurs. Prices go up. • . i'lio fac- ; tory sends only thirty tons, 'and the-nief-ohanfc •is pressed; by his customers; They .demand'; their fifty; tons, and th 6' merchant is forced to go .into tho' open'market and buy twenty tons of butter' at an '.increased ' qost of £U0 a : ton.' ; ; 'He loses £400 - over l his oo'ntract, and' not through ' any. hazardous speculation on his part,, but solely because a factory' has. broken; its /contract; The merchant has.; a right," legally' and morally,; to. pass the £400 bill along to. the factory dircc',tors and, ask;,them -.to/pay; . What.,., must afactory do in such a case? .It _ lias.' niado a binding, contract ..without , having ./.taken, sufficient steps. to.' secure ' the '.supplj6s;/' ;It' has not bound 'its suppliers, 't-ha'.dairy - farm-, .'ore,. by documentary guarantees,'to' ! bring • eaCu a certain weight of butter, fat .along" during' .the seaso'n. .It has trusted,to chance — tho' clianco of being able to : fulfil tho' contract ori —well, .paying up. Tho jkisition/is'absolutely . simple;-' ' The factory- should' either; have 4 at-j taxied -to the • contract'■•'the saving 'clause,; " If wo can. l manage, it," ''or-words •, to - that effect,N'eir it' shftuld : bave. got/binding;contracts from its suppliers, or it should haveeoasigncd'i'rithout-; b<Mid,r«r./it- should gather ; kard-earned' i4OO. and hand it #for' without jsurßiir.-to the much-respected. Mtrckasif. 1 . - Tni.; *ejr»kittt, : ''', it;must" fie;' re* ' Metelyired,. ,d» aoUiing to /keep up. the 'supplies. ;T%.e factory/is powerless. ; The farmer , alone, who tends 'and feeds 'the' diiry' herd, p6siess6s : the power*, to keep the milk flow up to ; springtide level. /.- By/profit or loss ho can spend his nubhey m the pur-' of. food and water 'for' his which/ case, there is,', the-olretically, nothing; whioh; ; 'could justify a "'decline .in' the yield of butter; fat. ' /Has a' dairy/farmer or his iactoiy a<ny right .to tho'jluck/of/ponsigrimont' and bind' a merchant by/a' bondj that does nSt 'bihd hiinsolf ?,' Either ho. or.' his factory must pay. , At '.least/ that;/;, is; '\the case;;for, the pro'stoution'."' .-' '.; ': But we do uct for a,moment suppose that: , anything writte'u or said on the matter .will seriously disturb/tho' sereiio' peace; of--the dairy,.famier.. Nd ; factory nas ever : yet 4 , beifn piriehed for-having 'a .short supplyi /Such att/iecuiTenco'..wttu.ld/fbo 4, a"-uovelt3',,. not'enly; in" Ztiland, (Wut throughout 4 the butter w#rl(l.; . xk» breaek ,of / eextraet has been, < ok/ thb factory's. quite/ disastrous and u'*aviidahl»,jiai. »e aierthaitt has' yet t« ;f»U«iwill kite thi.'wurage _to step into th» miist of th» New Zealand dairy factories a»d i esact satisfae tion. ( - He.'', v/oiila lose the .love »f. that; factory,for-- ever —which would, perhaps,'.be. a./siuall-.matter. ..But ho would lose / tho/ goodwill'; of a every; .other i iac.tory ; ,in vicious horses: which,.'at;.'bunting:meets, 4 ;.' are la 1 tajlaj;''Heokioks.ya«;.,lfo merchant:jwill ever ;do It."r.>jlf-a r-breachf were.- . deliberate—if. / a/' fa'ctoiy,/ tempted /by / high, /priced were its', contract ,; .to ;, the' winds,/' and 4 ,consign—every reaso'nab'lej.nian. would/approve of pressure.; ■ Or : even' if J-a factory.-!, aftcr';;cori|ra'ctmg : 'for : promptly 'tb -make cheese;' insteadj thero; •w6ula still, be good-grounds, for energetic'a'c-' .'tion-'oh the part ; of/tho-deserted'merchant.} ■ But-.where, • as, ; in/ the pr.osent instance, the 'shortage is due/to the; slieer/disast-er whichlias .already; overwhelmed the; dairy farmers', it . will ;bo-'a peculiar individual who will stalk • into 4 tho- factories" midst and endeavour ■to heap up. still .higher the'clip /of bittorness./ On tho whole we think-tho dairy factories are; ;sa,fo. ; _ / , --..-A;-.?'/- :• T-! 4 :{"-.". 4 -' : ' - ■ - "-■ Factories aaid.farmers already-have enough inducement, in the; shape of the elated ..London prices, .to make 'them almost'u-nanim-tiusly next,year, without'any 4 further pricks frpmi-.thoso 4 ;,'wh'o .-buy/i.'-,- .*! £■■■■■