FLOUR MONOPOLY.

Hokitika Guardian, 23 July 1925, Page 3

FLOUR MONOPOLY.

CROWN’S CASE CONTINUED. [BY TELEGRAPH —PER PRESS ASSOCIATION.] WELLINGTON. July 22. Continuing his argument in the Holt! ease in the- Apjx-al Court. Mr I'ail contended that, under free competition, tin; quality of bread could he improved. The monopoly was prepared to pay fifteen hundred pounds per annum to keep a mill closed at Mosgiel when the proprietors refused to join the combine unless given an output considerably above the average oi their trade during the previous three years. Mr Ireland gave evidence his firm lost, money on Hour shipped, hut tie subsequently admitted they had not suffered any trading losses. Mr Adams, continuing for (ho Crown, disputed the respondent'! argument that Distributors’ operation: were analogous to Government control They only fixed the prices and regulated th.e output, which was a very dilferent thing from the rationing ol wheat hv the Government. THE DEFENCE. Mi- c. P. Skerrctt, in opening for the respondents, said that he proposed to summarise the characteristics of the three industries —wheat growing, Hour milling and baking. Then he would discuss 1 lie inter-related industries, and their position from 191 < to 1922 with particular reference to Government intervention, lie would also touch on the question of whether a monopoly was (a) contrary to public policy : or (b) contrary to the public interest : because it might have o]»erated in breach of Section Three. Air Skerrctt said that it was the fixed poliey of New Zealand statesmen to eiirnuruge wheat growing, quite apart from war conditions, hut latterly there had been a strong tendency among the farmers to grow wool instead. WELLINGTON, duly 23. In the Appeal Court. Mr Skerrctt continuing for the respondents ill the tlourmilling case, said the millers were as much interested as the Government in providing raw material (wheat) for their industry. It was to their interest to have a stabilized price for flour .ind that New Zealand should be independent of foreign supplies. The Government. under its control system, had to fix the price of wheat agreeable to Lhe millers, but Government control was not practicable unless the embargo was maintained.