"A NEW PRINCIPLE"

Dominion, Volume 13, Issue 271, 10 August 1920, Page 5

"A NEW PRINCIPLE"

COMMISSION FOR COLLECTING . MILK BILLS. Householders in tho area served by the No. 1 Municipal Milk Distributing Comuany (Mr. Henry Bodley, lnanagfng uiroclor) were considerably surprised yesterday morning on finding tho following note, printed in red ink, on their milk bills: "The present form of invoice introduces a new principle, viz., the customer will, in future, be called on to pay commission when using the agencies. According to< common law, the seller is not under tho> obligation to collect 'if he can.' The buyer is under obligation to pay, and find the method as well.as the means of paying. Tho commission to agencies has, therefor always been an uncalled for imposition upon the seller, and is hereby finall,v_dispensed with. Please note the reguiar notifications." The "regular notifications" appeared with the addition: ''The buyers must seek out the seller and pay; not the seller seek the buyer. —Common law." '

When the'matter was brought by a DOMINION reporter under the notice of Councillor C. J. B. Norwood, chairman of the Milk Committee, he stated that he had reported the company's action to tho meeting of the committoe yesterday afternoon. Until a formal complaint was received, however, the committee could not take any definite steps to ideal with the situation, but, in the rjjeantime, the position w;puld be watclieif"v«Ty carefully'ln order that tho interests of the public should be protected. "We are going to give the closest possible attention to what is going on," 1 remarked v 3lr. Norwood, "and, so tar as I am concerned, the company will not ho perniifted to put the public to any more inconvenience than the nature of the business warrants."

In conversation with a Dominion reporter, Mr. Bodley said his company had decided to cut out the milk agencies, for it had been found that some customers had been abusing their institution by allowing accounts to become overdue. In order to savo people the trouble of going to the agencies the company had employed men to collect accounts,, but even : then considerable oaky had been experienced in obtaining tho money because customers had not facilitated the duties of the collectors. Mr. Bodley quoted' an instance where a cheque in payment of an overdue account had been posted to an agency, instead of to the head office of the company direct. "It cost ns 3s. 6d. in commission on that overdue account," he added, "and that 3s. Cd. amounted to 1\ per cent, on the total collection. Actually, the 2$ per cent, worked out at 10 per cent, on our .share, out of which, had to come all working expenses, which at tho time were showing a lo's of <£G0 per week. The price of the milk per quart was 7d.. but it was costing us ScV. to get that 7d„ and a further 10 per cent, had to go to an agency in the way of commission. We have had .legal advice to guide us in what wo have done, and we have quoted the law in the billhead."