PRICE OF FLOUR

Nelson Evening Mail, Volume LXI, 16 July 1928, Page 7

PRICE OF FLOUR

REDUCTION ANNOUNCED (By TeleßrapU.—Press Association) DUNEDIN, 14th July. Tho local price of flour has been reduced by 15s per lon within the past few day':., and the export price to tho North 'island by 25s per ton. Reductions have been brought about through some of the mills, which are not working under the control of Distributors, Ltd., cutting prices, and thus forcing Distributors, Ltd.. to meet the position. There is also, of course, competition from Australia. As regards Distributors, Ltd., it i;: rumoured that it may <»o. nut of business iu September next, as iu that month (lie question of tlie renewal of tho life of the company for a further term will be considered.

Distributors, Ltd.. in » company, under which the greater number of tho mills in the South Island work, and it will be remembered that some years ago the Government took action against it. on the ground that it was acting in restraint, of trade and not in the interests of the general public. The hearing of the case, which took place in Dunedin, was rather protracted, and Mr Justice Sim found for the company, holding that its activities were not opposed to the general public, interest. The Court of Appeal reversed Mr Justice Sim's judgment, but on a further appeal being made to the PrivyCouncil. Mr Justice. Sim's judgment was upheld. If Distributors, Ltd.. does cease to function, there is no doubt that some of the smaller mills will have a hard time to keep going, as the competition for the flour trade will certainly become very pronounced, ,