THE MILLING TRADE.

New Zealand Herald, Volume XLI, Issue 12602, 17 June 1904, Page 6

THE MILLING TRADE.

POSITION OF THE ASSOCIATION. fBT TELEGRAPH.—-OWN CORBESEONDENT.] - DunemNj Thursday. The condition of the milling combine furnishes the text for an able article in to-day's Times, recounting the circumstances which led up to the present state of affairs. The writer says: —' - '" ..V : ' ; ,

, Some few weeks back it was definitely announced that • with the exception of the Auckland flour mills the whole of the milling firms in/the colony, to the number of 50 and' over, had subscribed to a five years' agreement, which was to come into force on the first of the present month, but like a bolt from the blue the appointed date found the millers at sixes and sevens and the flour market in a chaotic condition, which, despite desperate efforts at ■ patching, up the difficulty, is even more accentuated to-day. From tho facts which have been allowed to transpire, it is clear that at least two of the leading fiourmillers in Canterbury and Otago were averse to signing the agreement, •on the ground that under its provisions their outnut would be cut down by at least onethird, and that they much preferred to be allowed to run their business in their own way.. Strong representations were made to them that their refusal to join in the association would induce such keen competition as would render the trade unprofitable, and probably bring about the ruin of a number of their fellow millers. At the same time, it was pointed out that the loss of output would tf some extent bo compensated for by the certainty of a fair price far their flour, and the guarantee of all aetounts by the association. Upon the strength of those representations a reluctant consent was wrung from the firms in question, conditionally upon every mill in the colony, with the exception of those in Auckland, being included in the scope of the agreement. Unfortunately for the hopes of the promoters of the association, their neglect to secure the allegiance of one small mill prior to Juno 1 gavo one of the signatories a loophole of escape, which was promptly availed of, and all subsequent endeavours to entice the bird back into the cage have totally failed. The present tactics amount to the curtailment of ail profits, ' and tho _ experience of similar fights in other directions goes to show that these are almost invariably shortlived, and end in the survival of the fittest. We are but speaking plain truth when we declare that there will bo no mourning over the decease of the New Zealand Flourmillers' Association, but at the same time it is only fair to add that, neither do wo regard with any degree of satisfaction tho present condition of the flour trade. Should some genius arise who can propound a scheme which on the one hand will protect the public from the risk of exploitation, and at the same time guard tho milling trade from the evils of reckless competition, he will earn not only the gratitude of all concerned, but probably & handsome commission into the bargain.