PAYMENT FOR BUTTER-FAT

Taranaki Daily News, 5 December 1930, Page 9

PAYMENT FOR BUTTER-FAT

INTERPRETATION OF ARTICLES '‘A r ~"i' •' , ■; >. . JUDGMENT IN PAHIATUA CASE. •> . —l—l ” . -• ’ ■ By Telegraph.—Press Association, s Pahiatua, Last Night. Reserved judgment was given, to-day by the magistrate, Mr. J. Millar, in an important test case, a claim by Martin N. Olsen against the Mangatainoka Coop. Dairy Company for £4 Ils 10d, the point being the method of payment for butter-lat and the interpretation of the'articles of association. Clause 18 is- “After payment of working expenses and any payment tc the contingent fund as may be deemed necessary by the directors, interest shall be paid by the company on shares if the directors shall so decide and at such rate as the directors may decide.” Clause 19 reads: “Subject to .payments as provided in clause 18 the whole profits of 'the company be divided among and paid to contributors fpr milk supplied to the company in proportion to the butter-fat actually contributed or supplied by them individually to the company as appears in the company’s books.” Plaintiff’s counsel contended yearlysupply was meant in article 19 whereas the defenc' said the practice of the Mangatainoka Company was similar to that of many other factories in the district which, made monthly advances as complete pay-outs for each month subject to bonuses, if any, paid at the end of the year. Tn a lengthy judgment the magistrate held in favour of plaintiff. Judgment was then given lor the amount claimed with costs. Security for appeal was fixed at £lO IDs.