COMMERCIAL TRUSTS.

Press, Volume LX, Issue 18127, 17 July 1924, Page 10

COMMERCIAL TRUSTS.

ACTION PENDING AGAINST MILLERS. A test action brought by the Crown against several flourmilling companies, claiming, from each £SOO for alleged breach of the Commercial Trusts Act, is to' be heard in the Supreme Court, Dunedin-, • next month. The firms against which proceedings are to be taken are the Crown Milling Company, Dunedin; Fleming and Co., Invercargill: Wood Bros., Christchurch ; Atlas Roller Mills, Timaru; and Distributors, Ltd. The latter company is alleged to be a commercial trust whose activities are against the public interest, and the other four; firms, which are connected with Distributors. Ltd., are charged with "aiding and abetting." The formation of a commercial trust is. not in itself an offenr e, and, broadly, the case hinges on the point as to whether or not such trust is against the public interest. In addition to seeking the imposition 'of the £SOO penalties,' the Crown will also apply for an injunction to restrain the companies from committing the alleged breach of the Statute.

Mr Adams, Crown Prosecutor, at Dunedin,' will conduct tIK- rnse fo? the Crown, and Messrs 51. Myers and C. P. Skerrctt and S. So'omnn will appear as counsel for defendants.

BUTTER AND CHEESE.

RAILWAY FREIGHTS TO STAND.

(special to "the PRISS.")

WELLINGTON, Julv 16,

In tho House of Representatives today, answering a question on the subject of dairy produce freights, the Hon. J. G. Coates said:—

The Railway Department cannot agree <1 with the suggestion that the railwav "freight charges on dairy produce are very high. The history of these rates shows that they were materially reduced in 1897 as a measure of assistance to tlie. dairy industry which was then in its infancy, and was represented as struggling for existence. The prices for the principal dairy products were then very low. These prices gradually increased very considerably, but up to 1915 no alteration was made in the classification of dairy produce notwithstanding that very great increases had taken place in railway working costs. In that year butter an<J cheese were restored to their original classification N prior to the reduction in 1897, and the present average freight on butter and cheese is only about l-9d per lb. Having in view the fact that the'working costs per train mile have increased since 1897- by over 200 per cent., it seems scarcely reasonable to contend that any injustice has been done to the dairv industry by restoring the original classifications.

As regards the skim milk powder, position is that this commodity is at present classed in the next lower class (i.e., Class E), which embraces principally such , commodities as grain, flour, and other cereals, .manures, etc., of which flour is probpblv one of the highest in value. The wholesale. price .of flour. js. at present in the vicinity of £l7 per ton, as apfoinst £6O per ton, the. value of skim irtilk ponder. The latter commodity is placed in the next higher class to flour, etc. (i.e., Class D). and is therefore as favourably classified in relation to. Class E goods as circumstances ■Dermit. having regard to the fact that the placing of the powder in the same class as the other ; Goods' mentioned would riot be warranted.

It is hoped that circumstances may permit some reduction Being effected in the increases that were made in the_ railway charges during the war period, and this matter is beine carefully <rone into in connexion with the genera} revision of the railway tariff. CALIFORNIAN ONIONS. EMBARGO* bN IMPORTATION. (SPBCIAL TO "THH PBISS.") , AUCKLAND, July. 16. The proposed - embargo an > the importation of onions from California aft a precaution against the introduction of foot-and-mouth disease into the Dominion was the subject of comment by Mr G. Hartnett,. Fruit Inspector for the Agricultural Department.

Mr JbLartnett stated that the United fiftatew Government was au 'aiteiisive cauipaigu against iooc-und-moutli disease, i'tie necessity tor bUppmaying tlie disease was vital, and Cauionuan supplies couid be pi-ohibit-eu trom linportution into the Dommion without. seriously aifectmg the market. ,N.o onions hud i»eea lnnwrfced itum California . ior . twelve months, but iieavy shipments had arrived from Atelbourqe. Australian and Canadian onions ahou'd be'available in adequate - supplies to tide over fa. period oi -embargo.' As soon as the disease was unuer complete control, the Californian 'market would be available.

General surprise at the proposed embargo. was expressed by local gram merchants arid importers of produce. Although the anitouncement has . come unexpectedly and tlie embargo" under contemplation is draatio, it does not justify supposition that an onion famine is imminent, and importers consider that large supplies can be d.awn from other sources without Serious delay. The prevalence of foot-and-mouth disease in California -is not disputed, but some merchants maintain that it does not warrant the embargo,, as there have been epidemics of disease in various parts or the world which nave been kept within bounds without tlie introduction of drastic measures.

The onion crop in New Zealand last year waa almost negligible, and imports were consequently heavy. p Experts anticipate that the yiela for the coming season will not be high, and it was expected that imports from California would again be heavy. Local merchants have booked shipments to arrive in September, October, and November, but some of these may have to be cancelled if the restrictions are to apply unreservedly to all Californian grown onions. The manager of an Auckland produce importing firm. stated that, the mei> chants.had ho official v information as to the scope .of the proposed embargo, but did not anticipate that the regulations would be so drastic as to ban all Californian onions, irrespective ot whether they were certified free from disease.-, -, At present quantities were being shipped at American ports bearing certificates that -tJiey were from crops guaranteed free from infection. Advice was received yesterday by one Auckland merchant to the effect that a quantity of ; Californian onions were ready for shipment to his order, as they had been certified free. from disease. Should the emoargo refer to all Californi&n crops, merobants will be compelled to draw supplies from British Cqlombia and Jaoan. and as the production of both these countries is substajitial, the supplies would at least prevent a eenons •bortaaa.