SUPPLIERS OVERPAID

Hawera Star, Volume LI, 9 December 1931, Page 9

SUPPLIERS OVERPAID

COMPANY CLAIMS REFUND SUPREME COURT ACTION .SLUMP IN PRODUCE VALUES, (By Telegraph—Press Association.) AUCKLAND, Dec. 9. An action was begun in the Supreme Court by Oruru (Fairburn) Co-op. Daily Company, of North Auckland, to recover from John William Dawson, formerly a supplier, the sum of £24 3s Sd representing 0.84 d per found on all butter-fat he produced in the 1929-30 season.

Jt was stated that defendant ceased to supply to the company after May, 1930. For the 192.9-30 season lie had been paid in monthly advances a total of £4OB. At the end of the season the company found it had advanced £2492 more than it had obtained by sales after the payment of working expenses. Dawson, in April, 1931, had refused to refund the amount of his share of the over advance.

•The action had been brought in the Magistrate’s Court, but because a number of other suppliers were in the same position, and the company desired an authorative judgment and it had been removed to the Supreme Court. The secretary of the company said that the suppliers were not notified till last April of the necessity for a refund, but rnaijy had expected it. The chairman of directors said that when the market had slumped 40 per cent, of the output was withheld from sale. The company had acted similarly in two previous years, with the result that the suppliers had gained £3OOO. The suppliers had met and had decided to leave the marketing policy in the hands of the directors.