THE PAY-OUT QUESTION.

Hawera Star, Volume XLVII, 4 August 1928, Page 4

THE PAY-OUT QUESTION.

(To the EditorV “ Sir,—Smith and Murphy form themselves into a co-operative dairy company for the manuracture of cheese, aim decide that the basis of pay-out shall! be on this butte:r-fat the milk contains. They each supply the same quantity of milk. At the end of a month’s operations the returns are divided, according to arrangement. Smith’s test is 3.6, Alurphy Vs 4.5. Accordingly, of £2OO returned for cheese sold, ’Alurphy has to receive 25 per cent, more than Smith, a® disclosed by the tests, viz., £22 4s 54d—Alurphy £lll 2s2jd, Smith £rtß lis 9id. Did Alurpliy’s milk produce 25 per cent, more cheese than Smith’s to entitle him to receive 25 per cent, more money? The writer has not worked it out, but if it can be shown that - Alurphy is entitled, apart from the arrangement, and on the basis of equity, to half the amount lie receives above Smith., ho will give a eubstantiial contribution to the hospital radio fund. Were the tests 3.4 (a fairly low test) and 5.1 (a fairly high test) respeetivev. Smith would be well advised to withdraw from the pool and make bis cheese in. his own vat and stall it-. The above figures demonstrate what an. awful fraud our so-called co-operation is.—l am. etc., PRO BONO PUBLICO.