PRICE OF FLOUR

Evening Post, Volume CVI, Issue 11, 14 July 1928, Page 11

PRICE OF FLOUR

REDUCTION ANNOUNCED POSITION OF DISTRIBUTORS, LIMITED , (By Telegraph.—Press Association) DUNEDIN, 13th July. The local prico of flour has been reduced by 15s per ton within the past few days, and the export price to the North Island by 25s per ton. Reductions have been brought about through some of the mills, which aro not working under the control of Distributors, Ltd., cutting prices, and thus forcing Distributors, Ltd., to incet the position. Thcro, is also, of course,' competition from Australia. As regards Distributors, Ltd., it is rumoured that it may go out of business in September next, us in that month the question of the renewal of tho life of the company for a further tiirm -will bo considered. Distributors, Ltd., is a company, under which tho greater number of the .mills in tho South Island work, and it will be remembered that' somo years ago tho Government took action against it on tho ground that it,was acting in restraint of trado and not in tho interests of the gonoral public. Tho hearing of the case, which took placo in Duuedin, was rather protracted, and Mr. Justice Sim found for the company, holding that its activities were not opposed to the general public interest. The Court of Appeal rovcrsod Mr. Justice Sim's judgment, but on ;i further appeal being made to tho Privy Council, Mr. Justieo Sim's judgment was upheld. If Distributors, L,tcl., -does eeaao to function, there is no doubt that somo of tho smaller mills will have a hard time to keep going, as the competition for the flour trade will certainly become very pronounced.