WHEAT AND FLOUR.

Press, Volume LIV, Issue 16156, 9 March 1918, Page 9

WHEAT AND FLOUR.

D7<~"!ON AS TO NEXT SEASON'S WHEAT PRICES. FLOIt. QUESTION NOT YET SETTLED. f (special to ,; tu- tress. , WELLINGTON. March S. Cabinet, has come to a decision ib to the price to be offered for next season's wheat. It. is not now considered that a conference with grower.-, will !»e nieev-ary. Greater difficulties are being encountered in the uiu-mpt to legislate the price oi flour, and in regard to this question a conierrnce may be nec-tssaiJ". An announcement of the Government's plan-- r.:ay be expected early in the week. POSITION IN LOCAL FLOUR TRADE. PRC NO I.YCLMf.'NT AY A NTED. Speaking to a "Press" reporter yesterday the representatives of one of the liest-known and largest dour mills in Canterbury stated that tho delay by the responsible authorities in making a detinito statement as to the official pricc of flour, bran, and pollard, had now led to tho situation becoming intolerable, and tho management of the mill had taken tho drastic action of giving all the mill hand's notice, as it was the firm's intention *to close down the mill until the urgently needed adjustment of the prico or flour was made. . The reason for this decided step is that the mill iinds tiiat it cannot tany on under the present anomalous conditions. "Last year, 1 ' said ono oi ttie company's representatives to our reporter, "the Government fixed tno price of flour at £15 per ton, and Uic priccs of bran and pollard at £3 10s and £6 15a per ton respectively. Our wheat was tnen costing us 5s «'d f.o.b. It now costs us 5s Hid f.0.b., and 1 estimate that additional expenses over and above those of last yoar work out at approximately 2s (3u per ton for sacks, 18s per ton for tho wheat; and . an indeterminate amount on account of the 10 per cent, wgr bonus paid to employees. T1 ere is also the greatly increased cost of coal to be considered, and other material, including twine. Last year, for instance, we could sew 100 sacks at a cost of (id, now it costs us 3s to do tho samo work. Altogether 1 estimate that the flour costs tis 30s per ton more to. turn out to-day than it.did iast j'eav, and yet in spite of all our appeals to the Wheat Controller — who has had all tho facts before him, and has, I belie vo, made recommendations to Cabinet—it seems impossible to get tho Government to come out with a plain statement of what the pricc of flour, etc., is to be. This simply means that we cannot do business on the- old basis, and, though we are absolutely inundated with orders for flour, bran, and pollard, from all over tho country, we have had to order our agents to ceaso selling completely. Until recently they were allowed to sell at a price Ho be fixed, and we were promised that tho new prices should be mado known on March Ist. "Wo nro now a week past that date, and nothing apparently has been done—at any rate there are l'so visible re-suits, and tlio consequence is wo have been forced to close down, and I am off ,to give all. the mill hanus notice. It is obvious that we cannot go on, for we should be merely working at a Joss. On prosent-day priccs of wnent we have got to get a return of £16 10s per ton for flour, with its proportion of bran and pollard. It does not necessarily mean" that flour will liavo to bo ad.vonced to that price, as an advance will havo to be mado on the bran and pollard as well, but probably flour will need to be advanced £1, and tho balance adjusted' on the by-products. It " must be obvious to the Government and to the public generally that we cannot pay 4}d per bushel more for wheat and have increased working expenses as well, and soil the flour at the same price. If £15 a ton was a fair thing on the old prices, then we must be losers now, or if £15 a ton is right now, the Government must havo let us mftko enormous profits last year—which is not at all likely, and did not happen!" From further enquiries made it was not apparent that other mills were, as yet, giving the hands notice, and it was hoped that the Wheat, Controller, 3lr Mac Donald, who is at present in Wellington, and who is fully aware of tho position, wil l be able to extract a definite pronouncement from the au- , thorities on this important question without delay.