FLOUR SUPPLY.

Press, Volume LX, Issue 18217, 30 October 1924, Page 14

FLOUR SUPPLY.

MONOPOLY ALLEGED. BAKERS GIVE EVIDENCE. (PKISS ASSOCUTCOX TXLIQBiM.} DUNEDIN. Octcber 2£>. In the Supremo Court, the hearing nas resumed of the flour-milling case, eridenee being called by the Crown. Peter Waldernar Eiby, manager of the Timaru Milling Company, said his i.iimpany was a party to an agreement with Distrioutors. Limited. Trior to tiovernment control, the mill's output was 8000 or 9000 tons annually. The capacity allotted the mill under the agreement was 6500 tons, .very much less than the actual capacity. The distribution cost increased as a result ol connexion with Distributors Limited. Before thk the Association's corumis-t-ion was per cent.; discount 2J per cent. T'ndor the arrangement, the figures were oV and 'J-} per cent. A free market gave better flour and advantage m price. If Distributors Limited were "abolished., the southern mills would liavo soma difficulty 4n selling their fiour at the same price as northern mills. Archibald Lindsay, baker, feaid that after Distributors Limited came into existence, ho could not get the Oamaru flour ho previously used. He wus_ always reminded by'Distribntors Limited that "Snowball" flour was ivery good jmd was advised to jrivo it a trial. Some of it came to him, but was no good, and he sent it back. Before the existence ci Distributors Limited, he had no trouble in getting the Oamaru Hour he wanted, Donald McDonald, head miller ai Glenpark, about fiive miles from Palmerston, said the mill was owned by Mr Jameson and was not associated with Distributors, Limited. The capacity of the mili was about five sacks an hour. Die had been associated with milling for sixteen years. "When there was too high a percentage of extraction, the flour tended to get dark and so did the bread. Until November last j ho was head miller in the Crown Milling Co., Duncdin. New machinery was installed there abcut September of last year. It was purchased from the lirm of (Robinson. Mr Cawley, of that firm, was the expert in charge of that machinery for some time. The object of the new machinery was to increase the percentage of extraction and thus increase the output. Cawley thonght the mill wouid extract 731b of flour from 1001b of wheat. Some of the wheat became flour and some bran and pollard. If you increased the percentage yon got more flour out of the same quantity of wheat. Cawley was there about three weeks. When witness was there before the new machinery was put in, the mills were putting out about 3000 tens a year. Alter the new machinery was put in, the capacity- was increased from 12 to lo sae*s per hour. Tlie quality of the flour produced by the new machinery was not gcod at the time. The wheat was soft just then. Some of the poor he left WaS £CZIt ° Ut J ' USt before -W""? Irvine, baker, Edendale. said he had had 22 years , f • as a baker Before distributors, Limi>d started ho had had no difficulty m getting the flour he wanted He used meetly park's flour from Oamaru. He had no difficulty for about three months after Distributors, Limited started, but aftw that he had to order Clark s floor through Distributors, lf m, *f d V m<?n i'ffitnesu asked for Olarks ho was offered instead Flemings, and Milljgan and Bond's He then asked for all Milligan and Bond's, but Distributors, Limited's agent reL j wt 0 glve him more than lial f- He bad Flemings flour and did not like it He wanted to make a standing order for 10 tons of dark's flour, but Mr Wish, Distributors, Limited's manager m Invercargill, eoid he could not manage it. it was arranged he was to get 6b sacks of Clark's and 34 of ireJand s, and he received flour under that order month by month. He got a bad lot of Ireland's flour about six months ago, and sent it back. He asked for Fleming's instead. John McOallock, baker and general merchant at Orepuki, said the formation of Distributors, Limited he had no difficulty in getting stmplSs of flour. He got bad flour at tine? If he ordered five or six ton s of Oamaru take two or three ton, of Fleming's

Bernard Kushton, baker, Ni-htcans «id ho had been in business for uSyfive years He had had no trouble in regard to flour for somo time, perhaps tion of Distnbutors, Ltd Wh Pn bo £EV^ Ptoß *** «™ t: tried to -get northern flour, but Dis- £ bu £™i t<L ' Would supply it f CB^ 3h in , omcd Limthat «»p«£ « .v, s f ndin ff northern flour into Southland had been stopped. For about two months witness got nothing but flour, although Z lad vFC w^ g f ° r . tho northcrn «oi. At last Wish promised to supply him with equal proportions of northern and southern flour. He had been nsi!J llemmg 3 flour practically all the W during the last seven years, but not bv Zf> «£P* during a'period of So* two months referred to. During thwe months witness found it impossible to make good bread, and his business was affected to some extent. Wm. Barr Andrew, baker Ohni 3aid ho had had fifteen' years'^S 't WLile ie P at Clinton ho had no trouble in regard to the brands of flour he wanted or the quality of the.flour he got. When he -went to Ohai ho ordered Million and Bond's and Clark's flour in equal prpportions. That order was supplied, but with one exception since then he had been unable to get the brands he required. Gordon Willie Pope, manager at Tnvereargill of the Southland Bread Co said he had been a practical baker in the Southland district for from twelve to fourteen years. Ho found that Fleming's flour varied considerabh- i u quality. Prior to the coming of "Distributors, Ltd., he did not use Fleming's flour alone. He mostly used Milbgan and Bond's, of Oamaru, and Stevens, of Dunedin. He did not use much of Fleming's. He found Milligan and Bond's and Steven's easier to work, and it gave the best results. At times Fleming's flour made bread of as good quality as wa 3 made by the mixture, but it was not so steady in quality as the northern flour. Hugh Donald, baker, Inverc.argill, said ho had had 24 years' experience in Southland and elsewhere. Beforo ' Distributors, Ltd, was set up it was " easy to get any flour he wanted. He used Fleming'B and a mixture of northern flours. About last October ho began to want a change of flour, and could not get it. At that time some- ' thing went wrong with Fleming's mill, *a,d the flour was past description. It "WW very musty, and customers could aot eat the bread. This took about 600 flb loave3 P er week off his JSft*"? 1 * and he had n °t yet ret gated that trade. He borrowed flour 38L*% v bakOTS to carry him tgwgh iill he got some other flour. :SdsSFft« 2i . a for a 41b loaf deliv - SSr'^-S d^ OT Caßh OVCT thc <™»- ed^ twn of abou * 308 a ton torfloat would be required to induce

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bakers to knock 2d off the 41b loaf,

George Dawson, baker, Balelutha, said he had been a baker for 20 years, and had been in business on his own account since January, 1923. Thc first Hour he ordered, was from Clark Bros., Maheno, and he got that. When Clark's went slightly off, ho asked for Ireland's flour, and kept asking for it till he was sick of writing the name. Ho did not get it till about November; before that he- was sent Clark's and Christie's Hour. The Dxsnedin manager for Distributers, Limited, told him that he need not ask for Ireland's as it was not available, and witness suggested Clark's as the next best. Ireland's, flour came to two other bakers in Balclutha, as much as eight tons at a time, and he was asking for it without avail. The Dunedin manager told him lie could 'net get Ireland's because his predecessor, from whom he bought the business, did not use it. , Joseph Edward Kirby, baker, Owaka, said he had 20 years' experience, in business. Before Distributors, Ltd. started ho had no difficulty in getting the flours he wanted. He used Ireland's and Milligan and Bond's. Now ho ociild not get the brand he wanted. Ho could order it, but it was very seldom delivered.

Arthur C. Miles, baker, Romahapa, said he had had 21) yeare' experience in the trade. Before- the formation or' Distributors, Ltd. ho used Ireland's flour chiefly, and had no difficulty in getting supplies. Ke Bad got Ireland's flour thrcugh Distributors, Ltd., but not always. He had communicated with Ireland's firm direct, but had been referred back to Distributors, Ltd. When ho got Ireland's flour the quantity .was curtailed. Ho had found that delay occurred as a result of ordering through Distributors, Ltd. *" Alfred Agnew, a director of Armours Ltd., general merchants, Invereargill, said that before Distributors Ltd. started they had been agents for Meek's mills. They handled about 30 tons per month- Just before Distributors Ltd. came into operation they were notified by letter that the woubl be cancelled. Customers ° still came to them for flour, and for their convenience his firm handed orders on to Distributors Ltd. to deal with direci. Sineo Distributors Ltd. started he had had only very small quantities of flour from Oaniaru—only in a very small proportion of cases wero the orders he sent- on from customers filled by Distributors Ltd. They were usually told the flour was not available. His firm received no trade discount or commission, with the result that tluiy had had to raise the retail price to small shopkeepers. He used to sell flour for Meek's at a commission of 2£ por cent., and thcro was a discount of iJJ per cent, which the customer received. He did not now gat that commission. His firm was quite easy about losing the agency. At 5.30 pm. the Court adjourned uniil 10.30 aaa. to-morrow.