THE ORDER SYSTEM

Manawatu Standard, Volume LII, Issue 143, 19 May 1932, Page 6

THE ORDER SYSTEM

DAIRY COMPANIES’ CONCERN.

REMITS FOR CONFERENCE. Concern at the extent to which they are being called upon to provide a free debt-collecting service under the prevailing order system for the convenience of suppliers is expressed by dairy companies in a number of remits which will come before the annual conference of the National Dairy Association at Palmerston North in June. Remits framed for submission on the subject are as follow: — That the conference views with concern the growth of the order system, and that by abuse of this system the dairy ‘ companies are being placed in the position of debt collectors for outside organisations; that the conference considers that dairy companies, if possible, should refuse to accept orders made by suppliers, and that an attempt should bo made to obtain some remuneration for the labour and expense involved in honouring orders.— Norsewood Dairy Company. That it be a recommendation from this conference that the executive approach the Government to bring down such legislation as may be necessary so that dairy companies shall not be compelled to accept orders on cream cheques unless the dairy company concerned first gives a written consent that it will accept such orders.—Heretauuga Dairy Company. That as the growing practice of business firms and others of obtaining orders on suppliers’ cheques as a means of securing payment for goods supplied is very costly to dairy companies, this conference request the Government to amend the Dairy Industry Act in the direction of empowering dairy, companies to reimburse themselves by retaining 2i per cent., if necessary, from the moneys paid out on‘account of such orders. —New Zealand Co-operative Dairy Company. “That in view of the extra costs and work entailed by reason of orders for payment of funcls, given in favour of a third party by a section of the suppliers, it is desirable that dairy companies be empowered, by legislation if necessary, to make a small percentage charge for payment of such orders, to reimburse the companies; and that the executive be requested to take the requisite action to give effect to this proposal.—Bay of Islands Dairy Company. That in view of the increasing numr ber of assignments on suppliers’ cheques, with the consequent expense and liability to dairy companies generally, this conference views with alarm the position now encountered, and recommends that the industry requests that legislation be passed whereby dairy companies may charge a commission of 2J per cent, to assignees on monies disbursed. The Maungatapere Dairy Company has submitted a similar remit to tho foregoing ones.