WHEAT AND FLOUR.

New Zealand Herald, Volume LI, Issue 15730, 3 October 1914, Page 8

WHEAT AND FLOUR.

OBJECTION TO PRICES. FLOURMILLEBS" COMPLAINTS. THREATENED WITH A LOSS. [BY TELEGRAPH. ASSOCIATION.] Wellington, Friday.. A deputation of Canterbury flourmillers, outside the Flourmillers' Association waited on tho Prime Minister to-day, and made a protest against the prices fixed for wheat and flour by tie commission. Mr. Gardner, who fcpoke first, assured the Prime Minister of the seriousness of the situation, as it affected flourmillers. He regretted that he, as an expert flourmiller, had not been called to give evidence before the commission. The essence of the situation was that most millers were holding stocks of wheat bought quite recently at from 5s to 5s 3d a bushel, being practically compelled to take what was offered them to keep orders supplied. This was in consequence largely of the great demand for flour which followed the outbreak of the war.

Mr. P. W. Eiby said that the pripes fixed by the commission could only result in an average lose of 12s lOd per ton It would hit his company hard, and the loss would fall on farmers, who held shares.

Mr. W. Evans submitted that the recommendation of the commission would cause great trouble and inconvenience over the contracts already made. Wheat had been bought at as high as 5s 9d a bushel when flour was topping £13 per ton. On September 8 the price was ss, on September 19 5s 9d, and on the prices fixed by the commission there would be a repudiation of contracts. Most of the millers at those prices would welcome the Government taking over their mills at a nominal rent and running them. Either the original suggestions of the commission should be carried out, with prices at 5s 3d a bushel for wheat and £13 a ton for flour,. or the Government should take over the mills and run them in the public interest. Australian millers had refused to accept the prices fixed by the commission there, and were shipping to the United Kingdom. .

Profits on Plourmilling. Mr. W. S. Tutton said that during the last six years the profits of flourmilling had been no better than the earnings of mechanics. He could not see how wheat at 4s 9d could be milled into flour at £11 15s per ton. He had calculated there would be a loss of Is 5d a ton, without any wages to workers. His own personal opinion was that the commission had made a blunder, the first recommendation was fair. The second decision, he thought, had been arrived at by perusing misleading evidence in the replies given on the printed forms sent out by the commission to millers. Stocks of low-price wheat had been exhausted long before the war broke out. It was on the average price of wheat bought between March 1 and September 1 that the commission fixed its basis of prices. What the commission should have asked for was the average price of wheat held at the present time. He suggested to the Prime Minister that before the present recommendations of the commission were made absolute, they should be referred back for the further examination personally of millers and farmers.

No Attempt at Exploitation. Mr. P. Milligan said that the present prices of wheat were equivalent to from 5s 2d to 5s 6d, delivered at the mills. In Oamaru, over 60,000 bushels had been purchased at such prices, and it would be a very grave injustice to purchasers if they were obliged to sell flour at the prices fixed by the commission. There was no attempt to exploit farmers, or the community. It was well known that some 1500 tons of Australian flour had been contracted for in Wellington before the embargo was laid on export. That flour would be in competition with - their own product, and -in view of that fact, the proclamation should be withdrawn.

The Prime Minister If the prices had been fixed at 4s 9d a bushel for wheat, at what price could you sell flour to make a reasonable profit?

Several members: At £12 10a. Mr. Milligan said it would cost £12 7a lOd without any profit and £-13 would have been a fair price.

The Prime Minister: Could wheat be bought at 5a 3d and flour sold at £13?

Mr. Milligan: No, I don't think it could be done. If prices bad been fixed sis weeks before, it would have been a different matter.

Mr. Milligan asked if it were not true that wheat and flour could be sold in Dunedin and Invercargill outside the commission's prices. He had received legal advice that it could.

The Prime Minister said he had advice, on the highest legal authority in the land —the Solicitor-Generalthat it could not

be done, but that the price of railway freight could be added to the Canterbury prices.

No Pressure on Commission.

The Prime Minister replied briefly. ll© said the general opinion was that the acreage under wheat was not so great this year as last and would have been less but for the area sown under appeal from the Government. It also appeared that the deputation would have been satisfied with the original recommendation of the commission—ss to 5s 3d for wheat, and £13 to £13 10s for flour. The Government had no intention of interfering with legitimate trade, but it was anxious to prevent any exploitation. (Hear, hear.) The Government had not interfered in any way with the commission and it was not, and could not be, at the suggestion of the Governnent that the original recommendation had been altered. The commission was being kept alive, and it never expected that, it would fix prices for any 1 length of time. Prices must be adjusted, higher or lower, as time went on or circumstances altered. Personally he was quite willing for the matter to be referred back to the commission for reconsideration, but he wanted them to understand that the Government would not, and. I could not. bring any pressure to bear on the commission. In answer to a question by Mr. Evans, l the Prime Minister said the Government ; could not sell the wheat it had bought under ss. Mr. Massey said he intended to sell it to the mills if stocks ran low. He did not intend to make any profit on it. Mr. Evans pointed out that this was rather unfair to \he fanners, who looked to this time of the year to make their profits. He knew of a farmer who was holding between 3000 and 4000 sacks. Sir. Milliean : There is practically no flour in Wellington to-day. Are wo to continue to sell at this price, which involves a loss to us? Mr. Evans: Are we bound to execute contracts into which we have entered? . The Prime Minister suggested that they might put their case in evidence before tho commission.

THE AUSTRALIAN EMBARGO. GOVERNMENT'S PURCHASES. [BY TELEGRAPH—SPECIAL CQimESFOXRENT.] Wellington, Friday. A message received by the Prime Minister from the Commonwealth Government states that the prohibition placed on the export of flour from Australia will not apply to contracts made with New Zealand importers before the proclamation was issued. It is presumed tiTat this removal of the embargo will also be extended to the case of the wheat purchased by the New Zealand Government in Australia, a portion of which has not yet been delivered.