FLOUR MILLING CASE.

Hawera Star, Volume XLVIII, 5 November 1924, Page 5

FLOUR MILLING CASE.

STABILISING THE PRICE. (BY TELEGRAPH—PRESS ASSOCIATION. DUNEDIN, Nov. 4. Further evidence for the defence in the flour-millmg ease was given to-day. The case is one in which the Crown claims as a penalty of £SOO from the Crown Milling Co., Dunedin; Fleming and Co.. Invercargill; the Atlas Roller Flouir -and Oatmeal Mill, Timaru; Wood Bros., Christchurch; and Distributors, Ltd., Christchurch. An injunction is also being asked against the first four companies prohibiting the continuation of the employment of Distributors, Ltd., as the sole selling agent for flour, bran and pollard, 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. William George McDonald, continuing his evidence, said that on June 20 he was at a meeting addressed by Mr Myers. Nothing was said at this meeting about his position in future. Subsequently lie saw a minute of a resolution passed at a meeting of the millers’ committee, offering him the position of managing director of Distributors, Ltd., at £2OOO a year. If he had known about this at .the time he would have refused to accept the position because of the terms ot the appointment, nor did he subsequently accept these terms. His attitude to his Ministerial heads on the matter had been quite candid, and the possibility of his joining the millers had been discussed openly. He had accepted the appointment on September 26, and took office, on November 1. He had absolutely refused to disclose to the millers the output of each individual mill under the control scheme, and lie had quarrelled with them because of this. There was no limitation of output under the scheme of Distributors, Ltd. They had sold all the flour it was possible to sell. The basis of the scheme was that if the millers were in open competition the nrices paid would kill the industry. and it was thought better for each miller to get a proportion of the trade at a stabilised price. There was no fixed quantity of trade in the agreement, which allowed for a low variation in the demand, which might be expected to arise for anv particular brand under Distributors, Ltd., scheme. The proportion of the manufactured article was fixed as nearly as possible on the proportion of wheat each mill received under the Government scheme. Distributors. Ltd., endeavoured to provide, as far as possible, that flour from each miller should go to its old customers. Many agents had arrangements for covering nurchases of certain brands before they became agents for Distributors. Ltd. In some eases there were binding contracts for seven years.