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1903. NEW ZEALAND.

EXTENSION OF COMMERCE COMMITTEE: MILLERS' INQUIRY, &c. (REPORT ON), TOGETHER WITH MINUTES OF EVIDENCE AND APPENDIX.

Report brought up on Friday, the 20th day of November, 1903, and ordered to be printed.

ORDERS OP REFERENCE.

Extracts from the Journals of the House of Representatives. Wednesday, the 9th Day op September, 1903. Ordered, "That Paper No. 219h (Millers' Association, Telegram relative to) be referred to the Extension of Commerce Committee with instructions to inquire into and report on the matter: the said Committee to have power to call for persons and papers."—(Hon. Sir W. J. Steward.) Tuesday, the 6th Day of October, 1903. Ordered, " That it is advisable, in the interests of obtaining a full inquiry into the matters submitted to the Extension of Commerce Commitiee under date 9th September, that an inquiry into the following charges of Mr. T. E. Taylor against the New Zealand Flour-millers' Association be added to the Order of Reference." (Charges attached hereto.) —(Mr. T. Mackenzie.)

[Telegram.] Ehodes, M.H.E., Wellington. Christchurch. Foe your own information : Millers' Association has no connection of any kind or nature with Christchurch or Lyttelton bakers, and has nothing whatever to do with price of bread directly or indirectly. All bakers are treated alike as far as we are concerned. Jameson.

ME. T. E. TAYLOE'S CHAEGBS AGAINST THE NEW ZEALAND FLOUE-MILLEES' ASSOCIATION. 1. That the constitution of the association, as set forth in the agreement signed by each miller joining the association, was designed to restrict the output of the flour-mills of the colony at the public expense. 2. That the number of flour-mills in New Zealand is greatly in excess of the requirements of the colony and of its export trade. 3. That the Millers' Association arranged to restrict the output of each mill and pool the product. 4. That the price of the pooled productions of the association mills was fixed to cover the cost of such reduced production, and to provide interest upon the capital invested in plant and buildings while such were lying idle. 5. That the Millers' Association has striven to establish a monopoly in the flourmilling business in New Zealand, and within certain areas has succeeded in doing so. 6. That unfair means have been used in Auckland and elsewhere to force free millers into tire New Zealand Flour-millers' Association, such means including the sale of flour at prices fixed to render profitable trade by the Auckland and other millers difficult, if not impossible. 7. That the association has refused to sell flour to bakers who refused to charge for their bread the price fixed by the Bakers' Association, with which latter association the New Zealand Flour-millers' Association had a working agreement. 8. That the Flour-millers' Association has taken unfair advantage of its power to attempt to force free bakers into union with its ally, the Master Bakers' Union, in exploiting the public. 9. That the association was officially connected with the Master Bakers' Union in arbitrarily fixing the price to be charged for bread. 10. That as a result of the methods named, and others, the New Zealand Flour-millers' Association has. deliberately " restrained trade," and endeavoured to force the public to pay i—l. 10.