PRICE OF FLOUR.

North Otago Times, 22 May 1909, Page 4

PRICE OF FLOUR.

-—♦ THE RECENT REDUCTION. REASONS FOR IT. i(Christchurch Press.) Tho statement that the Flour Millers' Association, at their meeting in Christcliurch on Wednesday, decided to reduce the price of Hour from £ll 10s to £lO 10s per ton, has caused a good deal o( surprise in certain quarters. The question is why the Association should have done this in view ot the fact that with wheat at its present price millers cannot profitably sell Hour at the reduced price of £l6 10s per ton. By some it was said that the millers had reduced the price of flour'in order to buy wheat at r. cheaper rate; but enquiries made by our Timaru representative go to show that this was not the object in view. Others said that the decision had been arrived at as a result of dissension in the ranks of millers, and that it was practically the work of the chairman. Tliis explanation, however, would not hold water in viqiv of the fact that there are nine members on tiie Hoard of Directors, and eight of these wero present at the meeting in Christcliurch on Wednesday.

Tho first miller seen by our representative frankly confessed that he knew absolutely nothing about the matter, and said he could not conceive why the reduction had boon decided upon.

With a view to getting at the truth of the matter, Mr J, Jackson, proprietor of the Belford Mills, Timaru, and on B of tho directors of tho Millers' Association, was wailed upon last night, and from him the reporter obtained some valuable information. Mr Jackson said that the motion to reduce the price of flour to £lO 10s poi; ton had been carried unanimously by tho eight members present, who were Messrs Evans (chairman), W. G. Aspinall, R, Allan, D. Wood, Allan ?teven, R. Hudson, T. Fleming, and J. Jackson. It would be seen, therefore, that it was not a one-man resolution, and so far as he iiersonally was concerned, lie could also say that it was not tho result of any dissension among the directors. 'The position was that some southern mills had /bf-en sending flour up to Auckland at 30s per ton cheaper than local rales, and Auckland, being a free port, had been sending this (lour straight back to Wellington, and re-selling it at a cheaper rate than it could Uo profitably shipped to Wellington: for from Timaru. Thus South Island millers who cut to prices which left a margin for profit were made to compete on the Wellington market against South Island flour which should never have keen sold to Auckland at cutting rates, It was with a view to putting a stop to this kind of thing that he had voted • for tho reduction. Mr Jackson added (hat the Auckland business 'to which ho referred had become wors3 since the opening of tho Main Trunk line, as it was now easier to send the cheap wheat back from Auckland to Wellington for sale. In some cases the wheat was simply trucked immediately on arrival at Auckland, nnd sent straight down the line to Wellington, and he did not think it fair that those millers who did not ship to Auckland at cheap rates.should be placed at a disadvant. ?J?e, as they had been in the past. As things now stood, Timaru millers get their share of the Wellington busi-

ness instead, of allowing it to gQ through Auckland, and:.with an in-, creasea output they would bo able to work two shifts instead;of'one, mm thus-malic the Hour cheaper, Asked concerning-the reported break-, up of the Millers' ./Association, Mr Jackson said ho did not think this at all likely to eventuate. , The present .agreement would:e.vpiro.,.nt the end of. (his month,, and ho-felt confident thai at tho expiry of the tinio it would bo renowned. He did not 'think that mor« than three manbors of the Association, would voto'against this renewal, Tlier 0 was to bo a 'special meeting of nil tho associated millers botwoen Auckland aud the Bluff, in Christciuirch, at 8 o'clock on the evening of'the 28th inst. and the question .would then bo settled? if they lost their present clmrten there .was a possibility that another might not be granted, and ho did not llnnk the millers would take flic risk of losing it.

Last night's Timurtt Post says:. " The statement-which was published in the Timaru Post on March 2nd that it was extremely unlikely that tho agreement under which tho fiourmiller* of the Dominion have been working for 'the past five years, would be renewed, is apparently to bo confirmed within tho next few days, A reporter was llicn. informed that the agreement had not been productive of an entirely satisfactory state of affairs, and that thero had been internal strife and dissension that made it impossible for tho millers to cany on under a continuance of tho present arrangements. Matters have now l reached a crisis, and, (lie reduction of £1 per ton in the price, of flour, which has been announced by the Association, will, a reporter was informed yesterday prove tho last;straw. Tho decision to make the reduction.'was arrived at by a meeting of the Board of Directors ol the Association in Ohristchureh on Wednesday; but all the directors were not present. A miller told tho rc.portot' yesterday 'that there Is nothing to justify the reduction in price, and that it is simply another result of the dissension which is agitating tiro Association. Ho stated frankly that it ins attributable to the opposition of the chairman of tho Board to-certain members, and to his desire to punish, them because they will not. fall in with his'proposals. lie added that it was" impossible for tho millers to buy supplies of wheat nt tho prices ruling and manufaetute flour for sale nt £lO 10s per ton. Furthermore, tho reports from Australia showed that the market was firming, so that the reduction could not have been made on a busi. ness footing!. The millers'agreement' would terminate on June Ist, and it would not bo renewed.