SERIOUS FOR MILLERS.

Northern Advocate, 11 December 1916, Page 1

SERIOUS FOR MILLERS.

How the millers gauge the situation may he gathered from the text of the following telegram which has been despatched to the Board of Trade by Mr P. Virtue, manager of the Northern Milling Company: — "If it is true, your action in remov'ng the duty on imported flour will dace the North Island trade in the hands of the Commonwealth. It is customary to remove duties off raw materials to keep industries alive which were built up by protection, as on raw materials there are always two labour handlings, but not so on r.he imported articles manufactured. If the Government wheat statistics are unreliable, as past events have proved, and it" the milling industry is not required, what encouragement is there for farmers to grow wheat? Evidently the strategy, if it is prolonged, will have dire results. The Commonwealth duty on flour-wheat is 50s per ton, against the Dominion 20s. No doubt to Free Traders—the Empire's present curse—it is of little moment. Evidently the Commonwealth is more alert to its industrial and farming interests. Last season a bill was passed to prevent 'clumping' from tho Commonwealth, which was an assurance co encourage wheat-growing— consequently milling. How are fanners to view this spasmodic legislation, which will always tend to create shortages through want of confidence? With the Government's assurance they purchased wheat at market rates —to. make flour, and, as no notice was given that the flour duty would be withdrawn from a certain date, bat the bail-up policy after promisingprotection, we think we have a lega" right to refuse delivery of wheat innchases. Why not remove duties o:T boots, clothing, etc., also the poll tax on our allies, instead of singling out

one industry, which will also ruin wheat-growers with its numerous adjuncts. Doubtless you are aware if there should be any excess profits the Government takes 45 per cent. Is it your desire to ruin the wheat and flour industries to benefit the Commonwealth, and in the event of shortage there what remedy would you suggest?" The managers of the City Roller Mills have also wired to the Board of Trade to the effect that, owing to shortage of -offers of Southern wheat, and to keep their mill running, they have just landed a shipment of Australian wheat, and paid duty on same, and have asked to he put on an equal footing with Australian millers by having the duty on wheat removed. They pointed out that by its action in admitting flour free, while allowing duty to remain -on wheat, the Government was deliberately destroying the flour industry of this Dominion while fostering that of the Commonwealth. This matter, they claim, is of vital urgency to all flour millers, and if allowed to continue they must import flour instead of manufacturing it, incidentally discharging all their employees." MINISTERIAL STATEMENTS. In the course of a statement made to an press interviewer the Hon. G. W. Russell said: "The Hon. Mr Mac Donald is keeping in very close touch with all matters connected with producing industries, particularly as they affect the cost of living. 1 feel satisfied that any action he takes will be accepted by tho people of the country as a whole as conclusive. The Government is doing everything possible in the direction of keeping down the cost of living, and in that connection, the price of bread is a very important matter." According to a Wellington message, Mr W. D. S. Mac Donald (Minister of Agriculture) stated that he had asked members of the Board of (Agriculture and leading farmers to confer with him this week in Christchurch on the whole subject of flour and wheat. He also said that the Board of Trade was keeping a close watch on the situation in regard to bread prices. A half-penny increase on the price of the 41b loaf was justified by every 30s rise per ton for flour. "It is no use," said Mr Mac Donald, "for New Zealand people to compare prewar prices with those now ruling, because production is getting limited owing to the number of men being drawn from agriculture for military service. We recognise this is the right thing to do. This is war time, and the people will have to come to the conclusion that we cannot sacrifice one section of the people as against another. We must deal out equity and justice to every class. You cannot pile up the cost of living against the working man, yet you must consider the consequences of scarcity of output due to decreased labour."