WHEAT TO “FREE” MILLS

Otago Daily Times, Issue 21988, 24 June 1933, Page 12

WHEAT TO “FREE” MILLS

ro IIIE EDITOR Sin, —We are indebted to Mr D. S. M'Kenzie, flourmiller, of Gore, for his letter on the above subject, and to you, Sir, for its publication in this morning’s paper, as it will help to clear the situation, as it were, and permit us to enlighten the public further on the position as we find it to-day. Our object in the first place in appealing to you was to get your ruling as to the justness of the treatment we arc receiving from the Wheat Purchase Board, and with due respect, Sir, to your footnote, nothing has been put- forward that shows that we are not suffering an absolute injustice. Mr M’Kenzie's very welcome and ably-written letter, however, will help us in our search for truth. We do not desire to stoop to personalities, and, therefore, take in good part Mr MTvenzie’s reference to the former activities of the manager and part owner of our mill. It is no disgrace that he has worked for his living and has been a successful poultry farmer. But he has, in addition, had very great experience in the flourmill trade in many mills. In Dunedin he was trained under a man whose ability as a miller was renowned throughout this Dominion, while his career in flourmills includes service in mills in Southland and Central Otago and further afield—in Oamaru, Tmiaru, Christchurch, and Auckland. The demand for the present product ot the mill, unhappily limited, so far as we are concerned, by the amount of raw material available, is sufficient proof of hie recognised place among flourmillers. We should like to admit many points ma4e by Mr M'Kenzie. It is true that flourmilling is controlled at present wholly by Distributors, Ltd., a body which, as we have already stated, has failed to cater successfully and adequately for New Zealand requirements, and whose monopoly, therefore, ought to be withdrawn. It ia true that all the wheat of this year’s harvest i s controlled by the Wheat Purchase Board, upon which Distributors, Ltd., is largely represented We claim that the arrangement to ration wheat was an unnecessary condition to any agreement by milling interests to buy wheat early in the season. It Is true that our manager put it to himself that in a country importing 12.000 tons of foreign flour per annum, some of which comes even from the United States, there was room for him, and he is' anxious to do what he can to secure the business which is thus going outside New Zealand.

It is true that this company wishes to remain Outside Distributors, Ltd., so that, it may secure adequate supplies of wheat. If the statement of the miller recently interviewed by your reporter be true, that the price of flour is regulated by the Board of Trade, it is obvious that what is necessary for Distributors, Ltd., is, at least in the meantime, necessary for us. The Wheat Board, placing restrictions on the buying of our wheat, has compelled us to buy outside the local market, and thus to incur additional aud unnecessary expense. Mr M'Kenzie makes light, of the importation of flour to which we have drawn attention. But it amounts to approximately 7 per cent, of the estimated New Zealand requirements, and is equal to 180,000 sacks of wheat. The reason for opening this mill was certainly that a living might be made by its owner, There is surely no lack of patriotism in taking such a step. He has provided employment for others as well as for himself, and is engaged in this controversy not only that, he may benefit himself, but ■ that he may be able to employ still more men. Incidentally he has proved his patriotism in another way. He is a returned soldier who was wounded like many others. It is unnecessary for us to take up the case for Mr James Begg. His soundness of judgment is admitted by all, and we have no doubt that he reasoned out things well before he moved the resolution at the meetings of the Farmers’ Union and the Chamber of Commerce. We again question strongly the soundness of the argument that, but for the agreement between the Wheat Board and Distributors, Ltd., the millers would not have bought up the bulk of their supplies early in the season. The sliding scale, with its monthly increase in prices, would have sufficiently guaranteed that, as Mr M'Kenzie well knows. Millers have always bought early since they prefer that wheat of different varieties should mellow in their mills as long as possible, and therefore they regard the early purchase as a good investment. The sliding scale, however, sufficiently secured this, aud the price demanded of the board, in our opinion, again reflects the power of Distributors’ interests on the board. The mills in Southland, in some of which Mr McKenzie’s interests lie, have acted in this like the other mills and would have bought, in any case, 18,000 sacks by this time. We are, moreover, well aware that these mills are picking and choosing among the Southland lines of wheat now offering and that those farmers who are so unfortunate as not to have their wheat accepted will be compelled, in the long *llO, to sell it in the fowl wheat market for what it'will bring. In Invercargill stores alone there are 7000 to 8000 sacks which,' in ordinary seasons, would be acceptable as milling wheat, but will this year be sold as fowl wheat. We ourselves have seen excellent samples of milling wheat which we would gladly have. accepted had we been permitted to do so and which have been declined. ■ We cannot follow Mr MKenzie’s argument that the only way to stop the importation of flour is to reduce the price of wheat to world parity. We have repeatedly shown that our own experience proves that New Zealand flour requires no admixture of foreign flour to make it acceptable to bakers and the general public. ’ , , We decline to publish the figures asked for by Mr M'Kenzie. We consider these to be our private concern. But we are prepared, if permitted, to buy and mil! before next harvest 10,000 additional sacks of wheat, selling the produce at prices equal to those of Distributors, and facing all opposition, including that of the imported article. We submit our case to the judgment of the public, repeating that we are still anxious to secure more wheat that we may be able to meet our engagements satisfactorily and keep our men and machinery employed full time. —We are, etc., Star Milling Company, Ltd, A. L. Steven. Dunedin, June 23.