FLOURMILLING TRADE.

Evening Star, Issue 22382, 4 July 1936, Page 21

FLOURMILLING TRADE.

TO THE EDITOR. Sir, —The Auckland mills are _ the outstanding examples in the Dominion of unoconomically situated mills. During the years of free competition Dunedin used to send to Auckland more than the present trade of the Dunedin mills, which is now loss than 10,000 tons. The Auckland mills in those days had a strenuous time of it. Now, one of the two companies has the good fortune to have its manager on the Wheat Committee. Readers of Monday night’s financial column in your paper would notice a further rise in Auckland flour milling shares. As I am not a miller, I cannot understand the intricacies of f.0.b., but I am sure that no Otago farmer would pay the freight on his wheat to Auckland when he. could sell it readily, especially in a year of acute shortage like this, to Dunedin millers. Further, it was no question of a wheat scarcity in Auckland that caused the Australian shipment. The objection of the Auckland bakers was to quality of flour. In fact, it appears that these mills could ' not make flour of tho same quality as Dunedin does from similar wheat. No one in Dunedin has the least doubt that tho 4,000 tons of Australian wheat landed in Auckland was excellent. What will the next shipments he like ? Mr Clarke’s argument that Otago does not grow sufficient wheat to allow some Dunedin mills to run more than half time certainly does not apply to Auckland, with no wheat round their door. As Mr Clarke says, these two companies have one-third of the Dominion trade, i. 0., over 40,000 tons per annum. Also, his argument as to Auckland’s prior claim to a seat on the Wheat Committee is unsound. There are over 40 mills in New Zealand, much less than half of these running three shifts, leaving over 20 mills, including the Dunedin mills, unrepresented on the Wheat Committee. As to Mr Clarke’s statement that I asserted this and that, I merely wondered. Not even the three-shift millers combine, however powerful it may be, is going to stop a free-born Britisher from wondering—at least, not yet.—l am, etc. July 2. Curiosity.