THE PRICE OF BREAD

Wanganui Chronicle, Volume 77, Issue 148, 26 June 1934, Page 4

THE PRICE OF BREAD

A PETITION OPPOSED VIEWS OF BOTH FABTIES WELLINGTON, June 25. The price of bread is in dispute be* tween master bakers and grocers operating chain sto.es. Master bakers seek legislation fixing the price at an economical level. They say the prices now charged by Wellington bakers are at a minimum rate consistent with ordinary and learnable trading profit. Those pikes ure: Over the counter, s|d; delivered, Gid for each 21b. loaf. The price of 5d per 21b. ioaf yields a gross piofit of 13.95 per cent., says Mr. B. Sutherland, managing directoi of the Self Self Chain Stores. Opposition was expressed to the master bakers’ petition to have prices fixed above that amount. That is where the paities disagree. The matter will be debated during the coming Parli xm< ntary session. The views r.f Gio opposing interest! were expressed to an Evening Post reporter follow big the publication of the fact that the master bakers proposed tO petU. 19 } PajJ'eilLtLt.

Chain Stoi« V-pws “In N'jvu.uGer, a large advertisement, appeared R. the Evening Post anmuuuing that. Deubard Bakeries would, the following week, make a drastic reduction in the price of oread,” said Mr. B. Sutherland. “A few days later, on November 17, the Self Help Co-op. inserted an advertisement imploring the master hakers not to make the fatal error of selling bread below cost. Denbard’s action forced us to reduce our reasonable price vf 4*d per loaf to 4d—and in some shops bread was soil as low as 3;d. “In August, i‘J33, after being repeatedly I'jip ored by the master bakers to raise onr price, we agreed to revert to '.iit hid price of 4Jd. on -Maich 19, 1934, alter having again an.l again turned down requests from the master bakers to once more increase the price, we agreed to raise our price to sd. We were exceedingly loath to do it and only agreed so that the master bakers could pay an increased wage to their assistants. We were perfectly happy soiling at 4jd and only agreed at the earnest solicitation of the master bakers’ representative. The whole te.ms of the agreement. were the suggestion of the master bakers and did not emanate from us. “Judge of our chagrin when we were again approached in May of the present yen bv tne master bakers and the Alliance of Labour to ooce more increase the pit<e of the 21b. loaf in our shops to opi. which we flatly refused to do. “We buy our bre.io from bakers who pay their cnpioyeis award rates,” said Mr. Sulher.and “We arc perrectly satisfied w* h their arrangement with us, and the gross percentage profit wi. make on the .ale of bread is more than the gross percentage we make on the whole of our business. “The price at which we set! Dread in Chiislchurch and Auckland is 4jd per 21b. loaf, and the baker supplying us in Christchurch, who employs labour and pays award rates, has requested us to reduce our retail price. The price in Invercargill and Dunedin is tower even than Auckland and Christchurch. ’ ’

Master Bakers’ Reply Mr. W. A. KeUow, president of the Wellington Master Bakers’ Union and the manager and directors of the Denhard Bakery were shown Mr. Suther'and’s statement Lakers had been selling Derow cost in many instances and the petition, signed by every master baker rn New Zealand, was necessary to save the bus ; ness of the bakers, said Air. Kellow. Dunedin barters particularly were • n a very bad way. “During the :ast three months th® Adiance of L.ibotn approached us, and as p result of conferences better conGitions and better wages have been agreed upon in Wellington district,” said Afr. Kcllow. “To be able to maintain the increased wages and conditions it is necessary for bread to be sold at the present price. The price of bread in Wellington is not likely to be increased. ,So long as bread remains at the level of s|d and 6Jd (over the counter and delivered), the business is ou a payable basis. All that is asked is for grocers to sell over the counter at s|d. It is only since tho war that grocers have sto. hod bread to such an exteit. “Bakers throughout the Dominion are in a very bnd wav owing to the competition of price cutters. “Then are indications of strong support in Parliament for our petition next Fcssion Bakers arc on a united front. “At the present moment price-cut-ting is worse in other centres than it is in Wellington, and if nil the other centres could bring their prices up to the Wellington standard all would be well. This is a determined effort to save our business.” Asked what increase had been given to employees in hfareh. Air. Keilow said the wages ha<l been advanced from £4 and £4 Ws per week to £4 10s and £5 per week. Gn top of that fid an hour extra was being paid to bakers who commence work before 4 a,Tn> _ ——