THE FLOURMILLERS'ASSOCIATION.

Otago Daily Times, Issue 13268, 27 April 1905, Page 10

THE FLOURMILLERS'ASSOCIATION.

i TO '.THE .EDITOR.

' ,SlB,-^lnyour columns considerable .attend tion*has been;paid during tho-last.week'to the cxisteriee >of tho '. aboyo association: ■■'■'; ln his. parliamenUry speech Mi; Bedford inauV reference to tho subject, and from the tenor, of .Jiis. criticism he, is decidedly adverse to tha combine. The' subject ivas also touched upon by:;« . corespondent r to your paper;' who grieved greatly'at what ho evidently; considers the, excessive charge for'flouras sold by the association. Attention wasalso drawn.-to the subject by the paragraph" in connection: with a visit of a deputation from, the ass»'iation to northern millers'who refused; to have-anything 'to "'do with' the soUmg of .flour, at an "artificial» price.' All these, instances,point to the fact that many aro existing under" a false idea, both -of .the ■ fundamental objects: of the Flourmillers and-of the'basis upon which _it is. worked. It is with a' view to dispelling .'this, erroneous idea that the=e lines are written. ■ ■ ' .; i vit ™, r ?& a " l io >' our correspondent bceptic. This correspondent makes -the"' assertion ,that the abovo association vends t Ur i, at , - 1 !"•"» far in excess of what it should be, and comes to this conclusion bv a comparison,with tho wheat quotations of the Commonwealth" market. ■• To Demonstrate that ' Sceptic" is arguingon an unsound basis, tho, following facts may be ilm i-A" lamination of the figures published' in" tho Agricultural Statistics (issued annually by the English Board of irado) shows that tho Average prices throughout tlie year differ.very considerably m different markets in England and Walca. For example, in 1903 tho average price of wheat in English markets nnd'Welsh markets varied between 24s 2d "to 28s 7d-a diffcrenco of 18 per cent; on tho' lower' price. And this discrepancy is not represented from the cost of buying.wheat from an ideally and centrally situated district to tho markets. where fheso resnectivo prices ruled, for in the County of 'Devonshire (for example) tho average prices ranged from ! 21s llil at Plymouth, to 28s 2d at. New-, niabbot. Tho difference in prico is due chiefly to.-tluj difference in quality, and to what an extent the difference in quality accounts for tho difference in price may be gauged from a comparison of theurioes at the same timo of British and Manitoban wheat. The average price of English wheat was at that timo 30s 6d per imperial quarter, and No. 1 Manitoban was quoted at 37s 9d; at the same time the French price exceeded the English by Is 5Jd more than the difference o*f duty. Yet there were no large importations of wheat into Franco. Quality is not the only cause of difference in price. When an import duty is levied |-on goods imported into any country the averago price will be raised by some part of the duty. The extent of the rise will be determined by tho amount of competition and the available supply. A miller situated in a district where wheat supplies aro limited, and what there is available is of inferior quality, has to buy elsowhero at additional cost, plus railage. Can it ho expected, then, that he can sell his flour at the same prico as a miller in a more suitably situated district? The Millers' Assocation, recognising tho injustice which would.aecruo from such an action, has made provision for this; and whensoever a miller is situated, conditions affecting his position are taken into account, and according to those conditions so is the price he has to charge regulated. Mr Bedford proposes to get ovciv tho difficulty by aking tho duty off imported flour. Apart from the fact that Mr Bedford displays.very unsatisfactory principle iu suggesting tho flooding of tho New Zealand market with outside produce, and the consequent stoppage of one of the few manufacturing industries of Now Zealand, he makes a very serious mistake in thinking that his proposal would affect tho Flourmillcrs' Association. Were such an importation of outside, flour decided upon the wheat market here would fall to such a ridiculous figure that farmers would, cease to grow it. Arid, apart, from tho fact that that in itself would be depriving one of tho mainstays of New Zealand of certain means of livelihood, flour would also ccaso to bc ; made in this colony; and outsidors having the monopoly, with no chance of competition in our own colony, would do as they like, both as to price and quality. Mr Bedford should make himself acquainted with the facts of the case before expressing such opinions in public. Tho importation of wheat into Now Zealand is practically nil; therefore,' outside markets liavo littio .(if anv) effect in reducing tho prico here. If, however, through war or bad crops on the other side, tho supplies of wheat should bo scarco in tho Commonwealth, for example, ivheat will (ro up. for.considerable exportation from Now Zealand invariably results :n that case; and l if tho price of wheat ?oos. so must the price of the product of t, Having regarded the prico of wheat, anil tho resulting effects on the price of flour, thn next point to consider is What is the object of the Flourniillers' Associa- . Therb is no more unsatisfactory business throughout the whole of New Zealand than the* flourmilling trade. . This is due, in the first placo, to the changeable weather wo expericneo here, and tho effect thai has on tho quantity and qua!"y of the wheat. In climates more suitable tho wheat has morn substance -in it, and is stronger; hence, it takes less bushels' to make so many pounds pf flour than would bo the case in soft wheat, This difference applies to New Zealand and Australia; hence, not only. have the millers, in Now Zealand to contend with a less suitable and effective when t, hut they also have to pay more for this wheat than their Australian brethren have to for a wheat of a much superior quality. Can they, then.-be expected to produce flour as cheap as their more favoured iu Australia? Recognising this fact, and the uiisatisfaclorv condition of the Now Zealand flourrnillintr trade'for the. past years, it was determined, (if possible),—by combination, to place the business on a more satisfactory footing; and even if millers could not manage to make a profit Micy might at anyrato prevent a continu'Wi of loss nnd endeavour to retain one ol tho few industries of New Zealand, and one* which supplies means of.money-making to.tho back-bone-of New Zealand—viz.. tho farming community. The association recognised that somei'millers were more suitably situated than others. 'But under the association no distinctions arc made—each miller gets his rightful share of sales in proportion to his capacity. Many hare entered the. association, and by so doing have had their previous output considerably restricted, but to tho benefit of less fortunate millers; and by so entering I ho association these millers have displayed an unselfishness which might well bo followed by manv other trades. Before a miller can join the association his Sour has to be of a certain standard of excellence, ■ and from this rule the public can no assured of being offered flour of superior quality. Again, the millers under tho association have their mills tested by a person fitted to do so, and consequently these mills have to be also of a-certain standard, of excellence. Again; the formation of the association prevents tho most obnoxious evil to all'trades—the "cutting" evil, which harms, everyone .and docs no good. When a miller or baker is "cutting" lie must be placing' an inferior article on the market, for he cannot sell at-a'losing price . an article made •■ from : wheat .which would cost him more than he gets from hi; takings at the cutting price,. This maintains a universal price for flour and bread, -and checks those"rapid ehantres. and fluctuations, which are undesirod by. 'he miller, the baker, and tho .housekeeper alike. 'What would passengors think if tho : tram and train fare; were augmented or reduced every now- ant then ? Tho .results of such. ah action- would be most confusing and- inconvenient, and tho Flourmillers' Association a state of thiuos in connection with- the commonest article of 'consumption. ■ Th< Flourmillers' Association is an institutjor for facilitating tho commerce of ; milliw throughout New Zealand. It is not neccs sary that the expenso should be defraye< from the publio revenue., It can be easilj managed (and in the case of the associatioi is so managed) as to afford a' particulai revenue for defraying these expenses with j nut beini? a burden on the community, whicl benefits by it. The-miller under the associa [lion must bo prepared to supply the; re quired demand in his district.. If ho.wen by.himself ho might assert that his stock.wai limited..and that therefore he. was justifiei ill raising his price. Under the associatioi such is impossible, and the publio' canno bo charged at an excessive price. Witl regard to the northern millers, of whon mention has been made recently, when i is known that in their own communit; they are selling their, article at £1- per toi more 1 -than that- at which flour is sokl^lv 'millers in the association; it will "bojeadil; understood why they prefer to remain out j. side tho association. | It wilt "be remembered that. Mr T. V> Taylor figured in an. inquiry in connectioi with the PlourmilleTs' Association. ; .M Taylor .has a.liking for making allegationshe likes-to see his name ..before, the public but.they always i'end tlioisame 'way—in . way unsatisfactory to Mr Taylor ;,',and th inquiry into'; the - Flbiixmillers' t Associatio: was no exception to the rule.'.As for M Bedford.; arid those of; his way of thinking I would respectfully advise, tliem. not t display .such /ignorance "of v'their.jsubjcc before expressing anopiniou on it.'; Wlioi a.;6ombination is formed-for thopurposo 6 reguhitujg' ip .important- industry .thrpwuh

out", a-; colony >,for ensuring ■ in-.tho, case ?of th6;'corainoncst '0f- tho used • commodities, that'an article shall bo placed "on tho public : market ofva certain standard of ■ excellence, .• (or./seeihg that, one vmiller possesses no nhaiio advantago over the" other, for regulat-ing-thoprico of tho article according to tho' .'exact? p'ric*).',of ,\yhoat as it affects' different ' districts,:' for v :ehcclring '' cuttirig (whichis tho : most harmful.weapon to all trades), ■ ■Mr. making ccrtauuof -the fact that -tho demands qfi tho pubHo!'will! l>o met! both" as to quality and to quantity,. for providing against .'the unnecessary! importation" of an article' from.: ov.tsido "sources'(as far! as 1 is practicable),;; to-avoid/detrim&ntation- to a ■ :Nowv"Zoklaacl'.ihdißtry. ;which. in time of . war ! might proyo tho salvation of New Zealand, for affording to of Now Zealand by .creating a demand for it an opportunityof growing a necessary article, and ono.of tho'mbst' profitable to cultivate, by keeping tho " balance of power.'! to avoid tho publio being charged; oxoossively in any individual district. When a combination is formed . for" these purposes the only support it merits InJ • ' ullan ' m . ou s Sup|K)rt of the community those; who opposo it do so ' through ig! noriuiee rather than disbelief.—l am, etc •■_ APn1,"20., ,• ' . cereal! j