FLOUR COMBINE APPEAL

Evening Star, Issue 19003, 27 July 1925, Page 6

FLOUR COMBINE APPEAL

SEVENTH DAY OF HEARING [Pee United Press Association.] WELLINGTON, July 23. This is the seventh day of the hearing of the Hour-millers’ case, in which the Crown appeals from Mr Justice Sim’s judgment. Mr Myers, for respondents, stated that flour was fixed in price by Distiibntors, Ltd., at a figure no greater than that permitted by tbe Board ot Trade, and so as to allow not more than a reasonable rate of profit. The formation of Distributors, Ltd., had added nothing to the price of flour. It was necessary, not onli T in the interests or the flour-milling industry, but also in those of poultry , farming and dairy farming. The court must take the position as it found it prior to this combination. If respondents showed that,the combination was necessary ta preserve the flour-millers from disaster, that would alone justify it. The wheat agreement of 1923 was about largely by Distributors, Ltd., and could not have been brought about but for this corporation. Distributors, Ltd,, was the machinery, in fact, which brought about the agreement. _ This wheat agreement fixed tlio price of wheat at a price about the world’s then parity. Just as it was necessary for the Government to fix the price ot wheat, so it was necessary for some combination of flour-millers to fix the price of (lour. Just prior to November, 1920, a statement appeared in the Australian Press to the effect that New Zealand was two million bushels of wheat short. Naturally, when the Government cabled the Australian Wheat Board it was ready, and it asked Ills 101,d 1'.0.b. per bushel, more than os per bushel higher than the greatest price obtainable in Now Zealand. Mr Justice Heed: A nice friendly action of the Commonwealth. Mr Myers: In addition, conditions were imposed that we should take hall # in the form of flour, leaving bran and pollard in Australia. The Government had every reason to beliovo that it was part of that which had been rejected from South Africa.