ALLEGED FLOUR MONOPOLY.

New Zealand Herald, Volume LXIII, Issue 19377, 12 July 1926, Page 10

ALLEGED FLOUR MONOPOLY.

THE TARANAKI COMPLAINT. FURTHER REPLY BY MINISTER. [BY TELEGRAPH. —OWN CORRESPONDENT.] .. -I NEW PLYMOUTH. Saturday. A further reply has been received by the Taranaki Chamber of Commerce from the Hon. A. D. McLeod, Minister of Industries and Commerce, respecting flour and the termination by Distributors, Ltd., of a local agency, one of whose members, as president of the chamber, voiced a protest against the flour duties. Mr. McLeod writes:—■ "It is recognised that Distributors, Ltd., controlling, as the company does, a very large proportion of the flour produced in New Zealand, is in a position to exercise certain control which may in various directions be undesirable. I would point out, however, that the monopolistic position of the company is not dependant 'on or due to the duty on ifldur. This cluty'is in effect for the benefit and for the encouragement of wheatgrowing in New' Zealand, ah'd" is 'necessarily involved in the imposition of a duty on 'the raw material wheat. You are no doubt fiware - that action has been taken by the Government, 'against Distributors, Ltd., and certain associated milling companies on the ground that the combination is detrimental, to the public interest. The case in. this connection will shortly go 'before the Privy Council on appeal, and pending the'hearing of that it does not seem possible or reasonable that any , action should be taken by the Government in this matter." u