CREAM SUPPLY CASE

New Zealand Herald, Volume LXXI, Issue 21934, 18 October 1934, Page 14

CREAM SUPPLY CASE

CHANGE OF FACTORIES { COMPANY REFUSES CONSENT FARMERS APPEAL TO COURT [from ouk own correspondent] PUKEKOHE. Wednesday The first appeal against the decision of a dairy company not to allow a supplier to supply another company after August 1 was heard to-day in the Ptikekohe Magistrate's Court Marshall Brothers, farmers and cartage contractors.- Maramarua (Mr. Wheaton), asked the Court to grant them permission to send their cream to the Taupiri Dairy Company instead of the Te ArohaThames Valley Co-operative Company (Mr. F. E. Burns). Mr. Wheaton said the case arose from regulations gazetted in February last under section 5 of the Dairy Industry Amendment Act, 1933. These regulations prohibited a supplier from changing his supply from one company to another during the season —which was held to commence on August 1 and to continue for ten months—unless he had the written consent of the first company. Purpose of Regulations Counsel submitted that the purpose of the regulations was to prevent a supplier changing because he was aggrieved with the grading being given his cream by the company with which he had started the season. The present application, however, had nothing to do with grading. Marshall Brothers had lost a cream cartage contract they had had with the Te Aroha company, but could carry on one with the Taupiri company, provided they transferred their supply of cream to the latter. The Te Aroha company had refused its consent. Evidence was given by Andrew William Marshall, who said he and his brother last season supplied 18,2821b. of butter-fat, for which were paid £652. The cartage contract was a substantial part of their living. Ho had explained the position to the board jf directors of the Te Aroha company, but the directors would not consent to their changing their supply to the Taupiri company's Tuakau factory. Purchase of Cartage Contract Cross-examined, witness admitted that there was nothing written in the contract with the To Aroha coiripany to prevent ihem supplying their cream to another company. He said it was only natural to supply the company one was carting for. The contract to cart to the Taupiri company's factory was being purchased from Mr. McCardle, together with the whole of the latter's cartage business. Evidence was given by Lewis Charles Carter, secretary of the Taupiri company, that Sir. McCardle's contract was for two years from July last. One of the conditions was that if the carter was a cream supplier, he must supply the company. Marshall Brothers had been temporarily approved as contractors in McCardle's stead, pending the Court's decision. Mr. Burns opposed the appeal, and asked for an order compelling applicants not to change. The applicants could have changed in the period from June 1 to August 1, he said. Thoy tendered for the cartage work, and when unsuccessful turned round and saw where they could better themselves. The dominant intention of the regulations was that dairy companies should be able to baise their contracts on an assured supply . If permission were given the Marshalls to change, it would make a difference of 18,0001b. of butter-fat, and would givo the present cartage contractor definite cause for complaint. The magistrate, Mr. F. H. Levien, reserved his decision.