THE FLOUR CASE

Gisborne Times, Volume LXI, Issue 9853, 4 November 1924, Page 5

THE FLOUR CASE

VAGARIES OF THE BUSINESS

DUNEDIN, Nov. 8. In the flourmilling case, in the evidence for the defence, Robert Kay Ireland, a director of the Oarnaru Co., recounted the vagaries of the business after 1922 when the Minister announced there would be no control next year. , The Government then practically gave the miller all the warrants asked for, and certain millers over-bought, endeavoring to secure extra trade by cutting. His company was selling at spread delivery'up till February, 1923, at prices down to £l6, and lost £BO3 on wheat sold to Otago and Southland, and £1557 on wheat shipped. The price paid the farmer after the formation of Distributors, Ltd., was slightly higher than when under control. During the existence of Distributors, Ltd., his company marketed and sold all flour gristed and the market was never deprived of flour. John Heaton Barker, Auckland, secretary of- tho -New Zealand Master Bakers’ Association for the past four years and editor of the Rakers’ Review, said that it was his duty to keep in touch with the flourmilling industry. He went to Christchurch in 1922 in connection with the formation of Distributors, Ltd.. He was in Kaikoura in May of that year. When he learned of the cut in the price of flour he immediately proceeded to Christchurch and learned that a. number of New Zealand bakers were on their way to Christchurch. In his official capacity lie interviewed the millers, pointing out that the cutting in the price of flour would result in the cutting in the price of bread and that -would result in dislocation in the industry throughout New- Zealand. It was a matter of importance to bakers that they bo charged a uniform price for flour to prevent cutting in the price of bread. Prior to 1922 bakers bad had difficulty,in getting brands of flour they desired. He had been enabled while in! Christchurch, as the result of his negotiations with Distributors, Ltd., to secure a larger supply of northern manufactured flour for the Southland bakers.

George W Leadley, farmer, Ashburton, said that he had grown wheat for some years. He had been president of the New Zealand Farmers’ Union and in 1923 was closely associated with the wheatgrowers. He was chairman of tho V heat Board set up by agreement between flie millers and 'the 'wheatgrowers. If tiie wheat agreement of -1923 had not been brought about the effect would have been a collapse of the wheat market and a great majority of the farmers would have had to abandon whentgrowing and go in for some other farming activity. His executive empowered him to call a conference of the Canterbury Provincial executives with representatives of Distributors, Ltd., and merchants and growers. Mr McDonald, representing Distributors, Ltd., was notified and he attended. An agreement was arrived at and the wheat crop of 1923 was dealt with under it. But for the central medium of Distributors. Ltd., the agreement could not have been brought about. William Walker Mulholland, farmer, at Darfield, Canterbury, vicechairman of the Wheat Board, substantially agreed with what tho picvious witness had said in regard to the wheat agreement. The Court adjourned till 10 a.m. to-morrow. —P.A.