PAYMENT FOR MILK.

Taranaki Daily News, 14 July 1922, Page 4

PAYMENT FOR MILK.

COMPANY WITHHOLDS PORTION. ACTION AGAINST DAIRY COMPANY. IMPORTANT POINT INVOLVED. By Telegraph.—Press Association. Wellington, Last Night. The Full Court this afternoon commenced the hearing of the case of Stuart Ewan MacDonald, of Normanby, against the Normanby Co-operative Dairy Factory Co., Ltd., an appeal from the decision of the Magistrate’s Court «t Hawera in favor of respondent. Mr. Spratt, of Hawera, appeared for appellant, and Mr. O’Dea, of Hawera, was for respondent. Mr. Spratt, in opening his ease, said that although the sum in dispute was only about £6, yet the case was one of great general importance to members of co-operative dairy companies. The appellant claimed from the respondent company £6 15s 7d for milk supplied and the company refused to pay, alleging that by reason of the provisions of the articles of association of the company the company had the right to hold back this sum in part payment for shares of which the appellant was registered as proprietor. The appellant on October 14, 1920, had taken up shares in the company on the basis of 3 shares for every 250 lb. of butter-fat supplied during the year. After the appellant had taken up shares the company, by special resolution, altered its articles so as to increase the number of shares which it was necessary for appellant to hold. Mr. Spratt contended that the special resolution a 1 ove referred to was invalid as against appellant. He had purchased his shares on a certain basis and it was, he contended, not competent for the company to compel him to take up more shares. Argument is proceeding.