BONUS RECLAMATIONS.

Waipa Post, Volume XX, Issue 1244, 18 May 1922, Page 5

BONUS RECLAMATIONS.

REFUND OF OVER PAYMENTS.

STATEMENT BY MR SINCLAIR

Speaking at Rototuna on Monday evening, Mr A. J. Sinclair (assistantgeneral manager of the NSw Zealand Co-operative Dairy Co.) explained the principle upon which the Company was reclaiming; from suppliers the amounts overpaid to them by way of advance during the earlier months of the season. Same Big Overpayments. Mr Sinclair stated that for butter shipped by the Pakeha in August the London merchants had made a progress payment to the company of Is 9d, and ithe Company's advance payment to suppliers had been based on this. Owing to delays through various causes, this butter had not been unloaded until late in December, and eventually realised 10d, which meant that the Company had overpaid £34,000 on that shipment. That butter had been made in April and May, and really belonged to the previous financial year, and could not be brought into the present season, when the Company had 1200 more suppliers and others who had not supplied during April and May. Consequently the amount was reclaimed from those who had supplied during those months, and nothing had been taken from those who had not supplied during that period. That was the most just method that could have been adopted, ed.

Reclamations and Winter Bonus.

I For butter made in June, July, and August, Mr Sinclair continued, the Company had paid out 2s, and received lid, which meant that it was overdrawn' another £70,000 with the London merchants, which had to be repaid to them. This had now been done., and the overpayment would eventually have to be reclaimed from suppliers, but not just yet. In this connection it was considered by the directors that very early suppliers were entitled to some consideration, as the more fully the plant was employed at an early date, the less the ratio of overhead expenses was, as many charges went on whether the plant was working or not. Consequently it was proposed to pay suppliers from June Ist to August 31st, a premium of 2d, but this matter was to be further discussed by the directorate. By now the butter made to the end of December had been sold, leaving the January, February, and March make yet to be disposed of. If this could be sold at somewhere around the present price of 180 s, it was estimated that the pay-out for the season would be about Is 3d to Is 4d. There were no considerable surpluses to come forward from London, and from these would have to be reclaimed the overpayments made to suppliers for June, July and August, after allowing the 2d bonus for early supply. Settlement in August. With regard to the final payment for this season Mr Sinclair said it could not be made until a final settlement with London had Tbeen effected. The directors, however, intended to make as large a payment as possible in August.