AN IMPORTANT CASE.

Greymouth Evening Star, Volume XXXI, 29 October 1901, Page 3

AN IMPORTANT CASE.

(per press association.)

Wellintton, Oct 28

The Appeal Court is engaged in hearing t ha New Zealand Flour Millers' Co-opera, tive Association v.Timaru Milling Cocase which involves the legality of trusts or tradercombinations in New Zealand, The directors of the company agreed to take 150 shares in the Assoeiotion, but being advised they had no power to do so repudiated the agreement and the Association now seeks to enforce payment of £l5O. There are two questions involved, whether the agreement between the Associated Millers regulating the prices and ouiput is void, and enforceable and contrary to public policy and in restraint of trade, and whether it is in the power of the Company to enter into such an agreement if valid.

Plaintiff's counsel contended the restraint imposed did not go further than was reasonably necessary for protecting the interests of the parties concerned, the object of the agreement being merely to put an end to ruinous competition, and the sources of supply were quite sufficient to prevent the public interest being prejudicically affected. English authorities quoted to show an agreement may be good even if partial restraint of trade and likely to enhance prices. The Trade 3 Union Act recognised the right of employers to combine, and tho Conciliation and Arbitration Act goes in the same direction.

As to the power of the Company to *ake up shares, this was plainly authorised by the articles of the Association.

The Counsel for defendant said the main reason for defending tha action was that the compaoy had been advised that the transaction was not within its power.

He submitted every decided oase was against such au agreement being enforced, The Trades Union Act contained express provision that no such agreement should be enforced by the Courts, and this position had not been repealed by the Conciliation and Arbitration Act. The case was not concluded.