LOSS OF TRADE

Evening Star, Issue 19918, 14 July 1928, Page 11

LOSS OF TRADE

MILLERS AEiD POOLING SCHEME REVERSAL TO FLAT BATE CHARGES Distributors, Ltd., have reverted to their original policy of basing the price of flour on a flat rate, f.0.b., Lyttelton, Timaru, and Oamaru. About a year ago the organisation introduced a pooling scheme in an elfort to obtain a better price for flour and for wheat to the fanners. The scheme lias proved a failure, the New Zealand millers losing trade through the operation of the pool and the largo importations of Australian flour. By the reversion to tho flat rate the local price of flour has been reduced by los per ton, the flat rate now being £l6 5s per ton. The agreement between the Isew Zealand millers, with the exception of tho Auckland millers, undsr the Distributors. Ltd., scheme will terminate in September, and the prospects of the agreement being renewed are very oToomv. During’ its first year of existence Distributors. Ltd., survived litigation, the Crown contending that the' company acted in the restraint of trade and against the interests of the general public. The case was beard at Dunedin, and following on a prolonged hearing His Honour Mr Justice Sim gave judgment for Distributors. The decision was reversed by the Court of Appeal, but on tho case going to the Privy Council His Honour’s original judgment was upheld.