DAIRY CONTROL.

Grey River Argus, 9 April 1927, Page 5

DAIRY CONTROL.

BONUS TEST CASE. CHRISTCHURCH, April 8. An important test case involving in the aggregate thousands of pounds, came before Mr Justice Alpers in the Supreme Court to-day. The question interests all dairy farmers in Canterbury, and all dairy factories. It dealt with the payment of bonuses for butter fat, and raised the point whether suppliers are entitled to bonuses as a matter of right or whether bonuses are gratuities, even by dairy companies. Walter Frederick Kerr, of Oxford, farmer, originally sued the Avon Dairy Coy. for £l4 9.s 7d, the balance he claimed was due to him for butter fat he had supplied to the company. The sum by arrangement was increased to £25 6s lOd, to enable the case to come before the Supreme Court. The hearing is proceeding. FURTHER DETAILS.

CHRISTCHURCH, April 9. la the final payment or so-called bonus, paid by a dairy factory to the suppliers at the end of the season, part of the price which the dairy factory is expected to pay for butter fat, or is it an ex-gratia payment—a true bonus? This is the question involved in the test case being brought by Walter Frederick Kerr, of Oxford, against the Avon (Proprietary) Dairy Coy, in liquidation. The claim is for only £l4, but it is claimed that on the issue of the case depend many others involving thousands of pounds. Plaintiff was paid during 1924-25 season 1/3$ for butter fat supplied to the factory. He received no bonus at the end of the season, as in previous years. Other factories, he alleged, paid at the rate of 1/74 during that season. He claimed, therefore, that he should have received 3d per lb bonus at the end of the season, either as a bonus or as the balance of the purchase price due. Mr Justice Alpers reserved judgment.