TROPOSED MILLERS COMBINE IN SYDNEY.

Otago Witness, Issue 2785, 31 July 1907, Page 23

TROPOSED MILLERS COMBINE IN SYDNEY.

The prime movers in a scheme for the formation of what would practically be, if agreed to by the riwllers, a flour " combine" in New South Wales, are (saye the Sydney Mail) muoh annoyed at the premature disclosure or their plans. For many years past the home trade has suffered through excessive competition, one of the worst features being the system, or want of system, of forward selling to the bakers. The latter have been able to enter into contracts for deliveries of flour extending over six, nine," and even 12 months, although originally in forward booking i* was generally understood that the flour should be taken in within three months. _ In Victoria, where the condition of the domestic trade appeared to be worse, steps were taken last November by the millers to put their business on a more satisfactory basis, and the Victorian Mill-owners' Association was establitflied to promote that end. From latest accounts it 16 working successfully. 42 out of the 48 millowners in the State being members. The mills of the members show an aggregate

capacity of 494 sacks per hour, while the i output of those outside the association is only 33 sacks pec hour. The effect upon the "Victorian home trade is reported to be highly satisfactory ; hence a desire upon the part of some of the largest millers in . this State to form a similar association "on sound lines to improve the condition lof the trade." The committee of the ' eocistine New South Wales Flour Mill Owners Association recently discussed the subject, and the secretary was asked to' prepare a condensed draft of rules (largely based on the Victorian rules) which will be submitted to a general meeting of millers to be held shortly. Stiff entrance and annual subscription fees are proposed, also that the executive committee shall fix the minimum prices for flour, wheat, meal, sharps, bran, and pollard for the whole State, the rules, ' however, not to effect the export trade. The forward selling of flour is to be limited to three months from date of sale (equal quantities monthly), payable within 60 days of delivery. If paid for within 30 days 1 per cent, discouct may be allowed. A small allowance is proposed for single purchases of very large parcek. A proposal upon which considerable diversity of opinion will prevail is, that country flour may be sold at a concession of 2s 6d per ton on the price of city flour, within a radius of 20 miles of the General Post Office. Inland millers have very seldom been able to get from the metropolitan bakers within 5s per ton of the price of the leading city flours, and too often to. secure contracts have they sold at 10s loss. There is no gainsaying the fact that many of the best country brands are nowadays as good as much of that milled in the city, but for various reasons, notably a prejudice on the part of the baking trade, which is difficulty to eradicate, it has been practically impossible to obtain full rates. As far as the regulation of terms and kindred matters are concerned, good rather than harm should result from theee proposals; but, when it cornea to the question of fixing prices the benefits that are likely to accrue are not so certain.