THE FLOUR CASE

Evening Star, Issue 19004, 28 July 1925, Page 4

THE FLOUR CASE

APPEAL COURT RESERVES DECISION [Per United Press Association.] WELLINGTON, July 27. This was the seventh day of the hearing of the flour-millers* case, in which the Crown appeals from Mr Justice Sim’s judgment. Mr Mvcrs (for the llour-mdlcrs and Distributors, Ltd.) said that if the haliers experienced difficulty in Southhind in getting the brand they required it was their own fault. He read correspondence showing this. ; The Chief Justice: What has all this to do with the case? Dir Skerrett: The hulk of the Crown evidence was directed to this point. Mr Justice MacGregor: The result of such a scheme as this was to remove common sense and substitute a hard-and-fast arrangement. It was to this that the bakers objected., , Mr Justice Hcraman: Plow long did the difficulty last? Mr Myers: In Southland practically all the time, but it was acute between August and September, 1923. At this time the embargo was in existence, and the Government had-power to remedy the position. It was merely a temporary and accidental circumstance, and the department was no more blameworthy than Distributors, Ltd. Up to the time of the accident in the mill Fleming’s was, and still is, a popular brand, and was oversold. Mr Fair, replying to respondents, said that on certain undisputed matters the court should allow the appeal. It should decide against combine irrespective of results, and base its decision on (a) the nature of the flour-milling operations; (b) the fact that Hour was a staple product of food; (c) the nature of the agreement with flourmiJlers; and (d) the monopolistic operations of the combine. The doctrine of economists was that if 75 per cent, of an industry were in the hands of one individual, then that exercised an effective control. Mr Justice Alpers: Surely apolitical economy is an exploded science. Mr Fair: Then, again, there is an arbitrary and autocratic power conferred by the agreement. The compart must sell each mill’s proportionate pa J whether good or bad. 3'lie court conid not assume that under unrestricted competition the flourmilling industry would fall into chans. The court reserved its decision.