FLOURMILL FAILURE.

New Zealand Herald, Volume XLIV, Issue 13502, 29 July 1907, Page 5

FLOURMILL FAILURE.

Till- EFFECT OF DEAR WHEAT. J [BY TELEGEAPH.— OWN CORRESPONDENT.] Dcnedin, Sunday. The- popular idea, that flourmilling, .as carried on in New; Zealand, under the shadow of the Flourmillers' Association, is an "exceedingly profitable industry, ap- : pears to be discounted in the report cur- ; "rent. in commercial circles of a private asl signment by a, local flourmiHer 'of his ; estate to his creditors. It is rumoured ; that the liabilities run into five figures, ■ ami .several of the leading houses in the ;i grain trade .are \ said to' be creditors to ; .the tune of four' figures. ' It is reported ; that this state of affairs ■ ha* been precipitated owing to the high : : price at •which wheat is offering in comparison with the present price of flour. Indeed, it is stated that . millers purchasing wheat at ruling rates and turning it into flour stand to lose anything from £1 \ to £1 10s per ton on the transaction. ;- Already two or three of the smaller :- mills in the North have signified their intention .of closing down rather than con- '.; tinuing '; : ;to deliver flour at the present' ; : price,:. and ■ it is currently.; alleged ''~ that ; several of The Southern mills will be com- ; pelled, to follow suit shortly. On the other ha pel, the larger milts,, i who: had stocks of 'wheat bought ;on more favourable terms some time back, decline ■' to increase their output except, at a subi stantial premium. . ' ;, '■'■'-■ The present position of the ilounnilling 1 • trade is probably quite .unique, and sub- - ' sequent developments will be watched ; ; with interest. : - ; ; ;':" ■: : ' :! : : r/: : \