THE FIGHT AMONGST THE FLOURMILLERS.

Otago Witness, Issue 2623, 22 June 1904, Page 6

THE FIGHT AMONGST THE FLOURMILLERS.

; The flour-milling trade at the present j time presents anything but an edifying ; spectacle. At the best of times the j milling fraternity are. far from being a j happy family, and during the past few j days they have evidently allowed their ' angry passions to rise, for flour is now ] being quoted from one end of the colony i to the other at a price which, if it I does not entail an actual loss on maim- i facture, at least permits of no profit, i This condition of things is the direct j outcome of the failure of the efforts | put forth by the 1 promoters of the New j Zealand Flourmillers' Association to j induce all the milling firms in the colony to come into the fold and work under an agreement which would regu- ! late the output of each mill and fix | tuc price and terms upon which the 9-oar should be .^old. Some few weeks back it was definitely announced that, ; with the exception of the Auckland floumiilL, the whole of the milling firms in the colony, to the number of 50 and over, had subscribed to a five years' agreement, which was to come into force on the Ist of the present month. Bui, like a bolt from the blue, J the appointed date found the millers at | sixes and sevens, and the flour market | in a chaotic condition — a condition j which, despite desperate efforts at i patching up the difficulty, is even more j accentuated to-day. So far as can be J

ascertained, from the facts which have been allowed to transpire, at least two of the leading flourmillers in Canterbury and Oiago were averse to signing the agreement, on the ground that under its provisions their output would be cut down by at least one-third, and that they much preferred to be allowed to run their business in tneir own way and upon their own lines. Strong representations were, however, made to them that their refusal to join the Association would induce such keen competition as would render the trade unprofitable, and probably bring about the ruin oi a number of their fellowmillers ; at the same time, it was pointed out that the loss of output would to some extent lie compensated for by the certainty of a fair price for tlieir flour and the guarantee of all aceotmts by the Association. Upon the strength of these representations, a reluctant consent was wrung from the firms in question, conditionally upon every mill in the colony, with the exception of those in Auckland, being included in the scope of the agreement. Unfortunately for the hopes of the promoters of the Association, their neglect to secure the allegiance of one small mill prior to the Ist of June pr-'.vo onr of -tl o «,1 <• i:'xor' Tn s r> loophole of escape — a loophole which was promptly availed of, — and all subsequent endeavours to entice the bird back into the cage have totally failed. Such, in brief, is the story of the events which have led up to the present complications^ and which, from

the point of view of the public, suggest certain reflections. At first blush it may appear a matter for congratulation that, owing to the fight among the flourrailler 5 !, the price of flour should have dropped nearly £2 per ton ; but if, as appears probable, the drop in price ultimately brings about financial disaster to a number of the men in the trade, and causes machinery now employing labour to lie idle, the cheap flour may prove to Lave been dearly bought. Far he it from us to attempt to teach the flourmillers their business, but it seems incredible that there should be no halfway house between a close corporation, completely controlling the price and cmtput of flour, and a system of cutting which will allow no one in the trade to make a living. To the lay mind it appears little short of madness that, for the sake of preventing a couple of mills from making a living, 50 millers should voluntarily agree to forgo their profits for an indefinite period, for this is what the present situation in the flour trade practically amounts to. We have been told times without number that the milling power in the colony is three times too great for the colony's consumption, and, there being no outside outlet for Kew Zealand flour, the only remedy is to curtail the output of each mill, thus necessitating some form cf association. The present tactics amount to a curtailment of all profits, and experience of similar fights in other directions goes to show that these are almost invariably short-lived, and end in the survival of the fittest ; or, in the case of neither side showing signs of surrender, .in the inevitable compromise. We are but speaking the plain truth when we declare that there will be no mourning over the decease of the New Zealand Flourmillers' Association ; but, at the same time, it is only fair to add, neither do we regard with any degree cf satisfaction the present chaotic condition of the flour trade. And, should some genius arise who can propound a scheme which, en the one hand, will protect the public from the risk of exploitation, and, at the same time, guard the milling trade from the evils of reckless' competition, he will earn, not only the gratitude of all concerned, but probably a handsome commission into the bargain.