THE DISPOSAL OF FLOUR.

Otago Witness, Issue 3610, 22 May 1923, Page 41

THE DISPOSAL OF FLOUR.

BAKERS DISSATISFIED. The operations of Distributors (Ltd.), a company formed by the millers to contr-'' the disposal of flour, are not viewed witu any great satisfaction by local merchants and bakers. Mr W. G. M'Donald, the ex-chairman of the Board of Trade, is the manager of Distributors (Ltd.). The company has been formed to enable the millers to obtain what t.hev consider a fair price for their flour. Under its operations each mill—according to its size—is permitted to supply so much flour per annum. Having supplied its allotment the mill has, apparently, to cease gristing in the meantime. A number of Otago bakers like to secure Oamaru flour for mixing with the locally manufactured flour, but they have now been informed that they cannot get any more of the Oamaru product. The position last month was that local bakers who desired to purchase Oamaru flour were informed that their orders had been reduced. Now, the Dunedin manager of Distributors (Ltd) has received instructions that he is not. to execute any more orders for Oamaru flour (hat it cannot be supplied. Our reporter asked one baker where the Oamaru flour was going, and the baker replied that he did not know. Another baker stated that one of the first acts of Distributors (Ltd.) was to send out a note stating that the accounts for flour wore due on the 10th of the month instead of the 20111 as previously. The bakers resented this, and Distributors (Ltd.) withdrew the condition for a while, but it still puts the memo, on its forms that accounts are to be paid by the 10th. Then, again, certain bakers were in the habit of using certain makes of flour, but. Distributors (Ltd.) informed them that it would not always guarantee to give them the particular brand they wanted. The result has been (hat although bakers have ordered one brand of flour they have hod a different brand sent to them by Distributors (Ltd.). One mill at least has been closed un altogether, and the allegation is that this was the result of an arrangement with Distributors (Ltd.). A grocer who was interviewed said that be thought the operations of Distributors (Ltd.) should be looked into by the Government, and that, if necessary, action should ho taken under the Commercial Trusts Act. He considered that it was a “rotten state of affairs.”