SUPPLY OF FLOUR.

Hawera Star, Volume XLVIII, 4 November 1924, Page 8

SUPPLY OF FLOUR.

EFFECT OF PRICE-CUTTING. “SAVING THE INDUSTRY.” (BY TELEGRAPH —PRESS ASSOCIATION. DUNEDIN, Nov. .3. Evidence ior the defence.in the" flourinating case..was given to-day. The case is one m which the Crown claims .1 penalty ol_ from the Crown Milling Co., Dunedin; Fleming and Co., Inverqargill; the Atlas Roller Flour and Oatmeal Mill, Timaru; Wood Bros., Christchurch; and Distributors, Ltd., as the sole selling agent for flour, bran arid poll aid, and from entering into a similar agreement in future. A further' injunction is being asked for against Distributors. Ltd., prohibiting them from continuing to act as sole selling . agents. Robert Kay Ireland, director of Ireland and Co./ Oamaru, producers of Lily white flour, stated that before the control scheme of 1917 millers speculated heavily in wheat, and the price of flour was often fictitious. After the Government control was abolished a certain number of millers over-bought and endeavoured to secure extra trade by “cutting,” which continued between April piid September, 1922. The company had either to follow the “cutting” method or carry: stocks into the following year. CONTRACTS RESCINDED. Knowing that the world’s parity was considerably below the price they paid the Government, they determined to seil at spread delivery up till February at prices ranging down to £l6 a ton, the gazetted price being £lB. During this period iftillers were entering into contracts with farmers for the next season’s wheat.* All these were rescinded when Distributors, Ltd., was formed. The price paid the farmer after the formation of Distributors, Ltd., was slightly higher than under the- wheat, control. In answer to the judge, the witness stated that the cost of distribution was not: increased- under Distributors, Ltd. Ireland stated, that last year the millers reduced the price of pollard from £8 to £7, giving a saving of £25 000 annually to New Zealand consumers. If the orice “eutiting” of 1922 had not been stopped the industry would have got into a bad state. He thought the bulk of the cut was retained bv the bakers. Counsel for the Crown examined the witness, who stated that his reference to losses during the acute cutting meant a loss of the difference between the selling price and the gazetted price, not the actual trading loss. UNIFORMITY IN PRICE. John Heaton Parker, of Auckland, secretary or the -New Zealand Master bakers’ Association for the past four' years, and editor of the Bakers” Review, saul it was his duty to keep in touch with the flou.rniiiung industry, tie went to Christchurch in 1922 in connection with the formation of Distributors, Ltd.' He was in Kaikoura in May of that year. U hen he learned of the cut in the price of flour he immediately proceeded to Christchurch and learned that a number of New Zealand bakers Fere on their way to Christchurch. lii his official capacity he interviewed the ; millers, pointing out that cutting in the price of flour would result in a dislocation in the industry through New Zealand. It was a matter of importance to bakers that they should oe charged a uniform price for flour to prevent cutting in the price of bread. Prior to 1922 bakers had a difficulty m getting the brands of flour they desired. He'had been enabled while in Christchurch, as a result of his negotiations with Distributors. Ltd., to secure a larger supply of northern manufactured flour for Southland bakers. THE WHEAT AGREEMENT. George Wv Leadley, a farmer, of Ashburton, said he liacl grown Wheat for some years. lie had been president of the New Zealand Farmers’ .Union, and in 1923’ was closely associated with the wheat-growers. He was chairman of the Wheat Board set *P by agreement between the millers and the wheat-growers. If the wheat agreement of 1923 had not been brought about the effect would have been a collapse of the wheat market, u,d i. great majority of farmers would have had to abandon wheat-growing and go in for some other farming activity. H,-s -executive empowered him to call a. conference of the Canterbury provincial executives with representatives of distributors. Ltd., and merchants and growers. Mr McDonald, representing Distributors, Ltd., was notified, and se attended. An agreement was arrived at and the wheat crop of .1923 •vas dealt with under it. But for the entral medium of Distributors, Ltd., the agreement could not have been brought about. William Walter Mulholland, farmer, at Darfield. Canterbury, vic4>-chairman t c tbe Wheat Board, substantially aiT’eed with what the previous witness tad said in regard to the wheat agree-, ment, ; The court adjourned at this stage until 10 a.m. to-morrow.