DAIRY CONTROL

Hokitika Guardian, 5 April 1927, Page 4

DAIRY CONTROL

MX EMPTED CONTRACT. APPEAL COURT DECISION. WELLINGTON, April 3. The Court of Appeal gave judgment on Saturday in the case on the result of which depends, to a very great extent, the effect of the Dairy Produce Export Control Act, and the powers of the Board under if. in July, 1021, a contract was entered into between tin* Southland Dairy Company, Ltd. and 4. ]!. MncEwau and Co., by which MacEwnn and Company were to have the right to handle the output of the Southland Company. 'Phis contract was considered to be an exempted contact under the Dairy Export Control Act. and the produce it covered to he free of control bv the Board.

Til order to extend the exemption, the Southland Dairy Company entered into contracts with three proprietary companies owning factories in the North Island, by which those companies should cease to operate on their own behalf, but should operate of, or as agents for. the Southland company. In. the proceedings before the Court of Apjieal the companies sought to have the exception from control of the produce of these three factories sustained by the Court. The Control Board opposed this claim,, and also attacked the original contract of agreement of 1021, as between the Southland Company and J. B. AfacEwnn and Co. The Court of Appeal declared the contract for 1921 to lie valid, and the produce it covered to he exempt, hut ruled against the claim by the companies that this exemption could be extended to cover not only the output from the Invercargill factory, hut also the produce of the three North Island factories alleged to be operating as agents for the Southland Company.