PRICE OF BREAD AND FLOUR.

Dominion, Volume 4, Issue 1062, 27 February 1911, Page 5

PRICE OF BREAD AND FLOUR.

». THE POSITION AT DUNEDIN. Many housewives will regret to learn (states the "Otago Daily Times") that, in spito of tho present low price of wheat— the lowest "for years past—and the lato reduction in tho price of flour, the price of bread is not to be reduced. The reason given by tho Master Bakers' Association lor its action is that if tho price were reduced from Gld. per 41b. loaf to Gd. the advantage would be too greatly on tho sido of the public. Referring to this and tho general position, a, gentleman well versed in the "trado expressed the opinion that tho action of tho bakers in declining to reduce was not fair to the public. Ho Siinted out that tho scale framed by tho akers' Association was' formed on a "cuto" basis in that it could bo read ambiguously. The scalo provided that with flour at .£lO 10s. per ton bread should bo 7d.; at JN ss„ Gld.; and at £8, Gd. per loaf. This could be read strictly at what it said, or it might be read llint with flour between X'B and JCO ss. bread should be Gd., between i; 9 ss. < and XlO 10s. GUI, and at X\o 10s. 7d. per loaf. v There should be somo latitude, nut tho bakers always seemed to contrive to secure it all for themselves. He proceeded to establish his point in this manner: When flour was at .£lO 15s. per ton broad was 7d.. but when it was reduced ta JE9 10s. it became Gld. per loaf. This was on June tG last, and only a couplo of weeks later the price of flour was reduced to £3 ss. per ton. This was not enough to justify n reduction in bread, and nc-' cordihgly tho bakers had had tho whole benefit of that 10s. for- the past eight months, and now when a further drop of 10s. came to be added to that they still refused to givo tho public any relict from the Gld. rate. 'He thought the bakers wcro naving a good time, and it would be very interesting if a baker would havo the eourngo to givo tho actual'figures of liis business. Flour from tho association cost t!icm .C 8 155., less 2J per cent, ordinary trade dlscdunt. In addition, the hags were sold at 4d. each, which yielded 3s. 4d. fof tho 10 bags comprised in a ton. Thus tho actual cost of a ton of flour worked out at .£8 7s. 2d. Each sack yielded from G8 to 70 loaves, but, taking the lower figure,' this would givo G3 loaves at Gld. each. On the face of it this would give a gross return of .£lB Bs. for each ton used[or n profit of .Clfl per ton. minus, of course, "nil working expenses. lie did not know, of course, what thews wcro exactly, but it appeared to him that, wil.'i flour as it-was, tho bakers were getting a return which would allow them' to give the public that reduction in the prico of hrond to which in his opinion thev were justly entitled. An ordinary baker should get through about 20 tons"of flour per month, so that (he gross profit would be soineiliing considerable.