OVERPAID

Hokitika Guardian, 9 December 1931, Page 6

OVERPAID

CLAIM FOR REFUND. BY DAIRY FACTORY. - [By Telegraph, Per Press Association, j AUCKLAND, December^. An action has begun in the Supreme Court by Chum Fairburn Co-operative Dairy Coy. of the North Auckland, to necover from John William Dawson, formeny a -supplier, the sum of £24 3s -8d representing 0.8471 per pound on all butter fat ; H-e produced in 1929-30 season. It was stated that defendant had ceased to supply to the Company after May 1930 for the 1929-30 season. He had been paid in monthly advances a total of £4OB.

At the end of the season the Company found it had advanced £2,492 more than it obtained by sales, after payment of working -expenses. Dawson in April, .1931, refused to refund the amount of the over advance and the action was brought in the Magistrate’s Court, but because of other -suppliers in the same position and the Company desired an authoritative judgment, it was removed to the Supreme Court.

The Secretary of the Company said the suppliers were not notified till lastApril, of It he necessity for a refund, but many had expected it. The Chairman- of Directors said when the market slumped, 40 per cent, ol the output was withheld from sale.. The Company had acted similarly in two previous years, with -the result thiiit suppliers gained £3,000. Suppliers had met and decided to leave the marketing policy in the hands ol the Directors.