WHEAT AND FLOUR.

Auckland Star, Volume XL, Issue 122, 24 May 1909, Page 9

WHEAT AND FLOUR.

j JMJCTUATIOX IN PRICES. "j i(By; Telegrapn.—Own Correspondent.) CHBISTCHIIRCH, this day. The state of the wheat market, and jntire especially the recent action of the ijdiirmillers' Association, in reducing the price of flour, is the subject of considerable comment The explanation given by one of the directors of the Association far the reduction is looked at somewhat eskance by interested in wheat operations, who allege that the real leasoE is an attempt on the part of the dissociation to further reduce the price ff Meat. Considering the prices ruling ji Afls|ralia and London for wheat, it I a contended that locally wheat should be at least 5/, instead of 4/. Further, |t is stated that the present low price g based on an erroneous assumption regarding the exportable surplus, which, Jt is contended, is not so much as esti- . Bated. The position is a peculiar one, and developments during the nest week or so may be worth watching. Mr. J. Jackson, proprietor of the Belford Mills, Timaru, who is one of the toectors of the Millers' Association, said the motion to reduce the price of flour to , flO 10/ was carried unanimously by the eight members present, and, so far *3 he, personally, was concerned, he could say that it was not the result of any dissension among the directors. The position was that some Southern mills tad been sending flour up to Auckland at «0/ per ton cheaper than local rates, and Auckland, being a free port, had been Bending this flour straight back to Wei- = ™igton, and re-selling it at a cheaper »te than it could be profitably shipped — to Wellington from Timaru. Thus South wand millers who sold at prices which V left a margin for profit were made to ' compete on the Wellington market against Bouth Island flour which should mer have been sold to Auckland, at rattmg rates. It was with a view to Patting a stop to this kind of thing that fie iad voted for the reduction. Pj