RELIEF SUPPLIES

New Zealand Herald, Volume LXXIII, Issue 22400, 22 April 1936, Page 16

RELIEF SUPPLIES

HOSPITAL CONTRACT DISPUTE WITH FIRM REFUNDS TO BE MADE AWARD OF ARBITRATOR The report of the arbitrator appointed in the dispute between the Auckland Hospital Board and Hutchinson Brothers, Limited, who were the successful tenderers for the supply of food and groceries to recipients of relief, came bef:>re the board at its meeting yesterday. The board had originally claimed £336 8s from the firm, and of this the arbitrator, Mr. J. B. Johnston, awarded it all except about £2O. Members of the board expressed concern at the position disclosed by the report, and it was decided to discuss it at a speci il meeting. * The arbitra tor decided that as the decrease in tlie market price of sugar should have been taken into account, the firm had overcharged the board to the extent oi £7B 15s, which must be repaid. On the true construction of tht> contract the firm was bound to supply eggs at 3d a dozen below the market price, and it must therefore repay £220 12s 6d, the amount of overcharge. The firm was not entitled to charge a higher rate for broken quantities of candles and matches, and must therefore repay £lO, in addition to any amounts admitted by the firm. "Reasonable Misconception" The arbitrator further awarded costs amounting to £54 7s to the board. He added that ;it was only fair to the firm to say that the contract was by no means free from difficulty in the matter of interpretation and that the overcharges were the result of a reasonable misconception on the part of the firm a:; to its rights and obligations under I,ho contract. Mr. W. G. Mulholland said it seemed that at last they had satisfied themselves that their claims had been right from the outset. He regretted _ there had been so much delay in coming to a decision. He felt the whole issue was to a certain extent satisfactorily finished as far as the hoard was concerned. Mr. G. T. Parvin said Mr. Mulholland deserved the thanks of the board for his persistence in bringing the matter forward. Mrs. M. M. Dreaver also congratulated Mr. Mulholland. She said it was a startling thing to think that this was just one year's trading. One wondered what 'would have happened if this matter 'had been investigated before. Report to be Discussed

Dr. E. B. Gunson said there wero other aspects of the matter which tho board should take in hand and consider. There were certain other findings about the matter which were yery important. Was it proposed to have no further inquiry or discussion. The chairman, Mr. W. Wallace, said it would come before the board at its next meeting. Mr. Mulholland said tho matter was of sufficient interest to require that members should be supplied W1 j copies of the arbitrator's report, and it was agreed hy the board that this should be done. The Rev. W. C. Wood expressed the opinion that the whole report should be dealt with by the board at a special meeting, and th& matter settled in some form. ~ • , It was decided to hold a special meeting to deal with the matter.