THE PRICE OF BREAD.

Manawatu Herald, Volume XLII, Issue 2101, 11 March 1920, Page 3

THE PRICE OF BREAD.

MASTER BAKERS’ POSIT JON * PLACED BEFORE PRIME MINISTER. DELIVERY CHARGES COMPLAINED OP. A deputation representing llur master bakers of the Dominion met the Prime. Minister (Right Hon. \V. P. Massey), tit Wellington yesterday, in reference to (lie’proposed new bread prices. The members of the Board of Trade were present at I lie meeting. Air W. J. Logan, secretary of the failed Master Bakers’ Association, said that the position, so far as the united body was concerned, was that after an exhaustive discussion with the Board of Trade they had arrived al a definite arrangement, which was, of course, subject to confirmation by-Cabinet. The position arose that Cabinet might not be called together in time to permit the inerease, as from the lime when the increased charges for Hour operated on Ist March. They were, therefore, given provisional authority to raise the price from Ist March. Dealing with Cabinet’s proposal of. halving the rise in flour and halving the increased cost of bread, Mr Logan said that 'apparently the cost of manufacture had been overlooked. Prom a ton of Hour they got 1,200 211). loaves, and a Ad inerease meant £2 Tls 2d. ’With £1 10s added to the cost of flour, that left £1 3s 2d to meet oilier charges. Since the price was gazetted, in March. 11)18, carters’ wages had been raised 12s a week, and, as a carter delivered a ton in a week; that meant 12s extra for a (on of manufactured (lour. Operatives wages had been raised by IPs a week", representing an increase of 12s Sd a ton. Thus, I herb was 24s 8d additional wages costs to meet out of £1 4s 2d allowed. There was nothing lo meet oilier increases, which were about 30 per cent, in two years. Mr Massey: "Will you explain I had 30 per cent .?" Mr.. Logan said the Board ol Trade had the figures. Saddlery, for instance, had increased quite 30 per cent, Mr Mas'ey: “Do you mean 30 per. cent, on certain hems?” Mr Logan said the inevea-se had been general. Coal was one item. Mr Massey; “Well, mind. 1 want the items.’’, Mr Logan: "I think you »an have them all." Mr Massey: "Do you expect a higher price tor coal than tor the past two years?” Mr Logan: ‘‘Well, we don’t know what to expect.” Air Massey: “If the price falls, will Vi at reduce the price ol the loaf?” Mr Logan said they were faced with a new award in Auckland in June next, and the men were looking' for more wages and shorter hours. The price of dour was not the only factor lo be taken into account. DELIVERY CHARGES. Li the North, Air Logan continued, they also felt that the margin between counter and delivered- and booked prices was not snlfieienl. They did not want to make a drastic increase —-jd a loaf they suggested. !l cost ltd for each loaf delivered. Mr Massey: “'That is extraordinary, surely.” Air Logan: “Not considering (lie low price of the article delivered, th.e many calls, and ' the cost of keeping a carl on (he road.” The Board of Trade, when it had fixed a fair counter-sale pri.ee, had done sufficient. People who wanted the bread delivered and booked should be prepared to pay for the service. In the South the extra jd was allowed. The baking trade. Ah' Logan contended, had been “ridden on Hie curb,” and only increased efficiency had enabled it to carry on. During the past year there had been a certain amount of: cutting in flour . prices by millers, some bakers receiving ;is much as 10s and Ips, hu* they did not expect that in future. Mr Massey: “They had an advantage to that etxent.” Mr Logan: “That enabled them

to carry on, Air Aiassey; “Don’t you think the millers will have a margin to make a. reduction?” Air Logan: “I would not like to express an opinion.” Air Massey: “But you are expressing one.” Air Logan: “I was talking about the past.” Air Aiassey: “No, you were referring to the future.” Mr Logan said they felt somewhat .aggrieved at, the prominence given to the faet-Hiat the rise was not authorised. They knew it was provisional, but they thought it would have been a fair thing to have consulted the master bakers. Air Massey: “The master bakers should have consulted me before the -price was put up." Air Logan said they consulted the Board of Trade. They intended no slight io the Prime Minister. Air Aiassey said he did not look at it that way. He had to represent the people, and see- that they got commodities at fair prices as far as possible. COMPETITION TOO KEEN. Air Logan said that from that point of yiew he thought all restrictions might be removed from Hie baking trade and trust to competition. They had increases authorised by the Board of Trade, which they had been unable to get in some instances owing to the “insane cutting” that went on. Air Logan also complained Hint the Labour Department had been making itself very at Wan-,

gnnui in the matter of the increased prices. UNABLE TO CARRY ON. Air A. F. Clegg, speaking on behalf of (he Wellington master bakers, said that- last year the Board of Trade had recommended an inerease of Ml a loaf, but Cabinet had not agreed to this. There was talk then of having to elose down, hut they decided fo keep on. On this occasion (hey had either to obtain the increased prices or close down. When at the Christchurch conference they asked for Id on Hie 211). loaf all round it was on the understanding that.flour would bo raised £1 10s. The Board provisionally agreed to Id, but promised to consider whether anything more should be allowed for the extra 30s on (lour. A half-penny a loaf was barely sufficient to meet the general charges which had been made since the last increase was made in the price of bread. Mr Tonks said the inerease meant •Id-a week to the average household, oi> 8d if Hie bread was delivered. This increase did not compare unfavourably with the advances obtained by other businesses. The bakers’ operatives, he was informed, intended to hold a meeting to demand a farther inerease, lie asked that when gazetting a price a. minimum as well as a maximum price should lie stated lo slop the “insane cutting” that weal on. In (he poorer localities oven if a price was gazetted the linkers would probably get id less. Air Massey said (hat the price of flour had been referred to as £.lO 10s. Figures supplied to him by an accountant showed that it would be £ls ISs. It had been, said Unit Hie farmers demanded their price, and got it. They did not. Their prices wen* ruled by those fixed for the sale of supplies lo the Imperial Government. The wholesale price of meat, for example, had never been increased, for any sale-man could obtain a permit to gel supplies at the Imperial purchase price-. A- io wheal, lie did not know where- lbey wore going to get. They had had to increase the price, and he did not know now whether they would get enough wheal, hut the price was uot anything like what tin* farmer asked, not even for next year,- for which they laid practically made a bargain. Next year lie would very much like to see everything coming-back lo Hie law of supply and demand. He though! that would lie better for the people. He belieyed even now prices would rise fur some commodities not prodimed in i his country. Mr Massey asked how many loaves they obtained from a ton of flonv. Air Clegg ami Air Hollow said :m average of 1300. Air Massey said his information was 1320. Air Tonks said that both Mr Hollow and Mr Clegg were speaking of machine baking. AN ill: hand baking i L.e.v could get more, from 1300 to 132(1. Air Raven said they bad had to increase the loaf by loz. to avoid I he risk of proseeul ion. Air Aiassey: “Well, you must give lull weight.” , Mr Aiassey said that 1320 loaves at (id gave them £33 for a ton of flour. .That seemed a good margin. A bilker: “If we go! all the money.” • Air Massey: “Well, we are dealing with cash over the counter for a star! ." Air Dustin, speaking for Wanganui, said Hie small bakers in the country would have to close up it (hey had to get Hie figures, ’two Wanganui bakers had to pay £lO 5s per lon for flour. The seven days discount basis would, also operate to deprive many ol: the linkers of 24

per cent. In answer to an enquiry, Air Aiassey was informed that previously the millers had allowed thirty days. Air Aiassey said, of course, in remote places where there were extra freight charges these had to he. added to the cost of the loaf, and it did not follow that Hie prices paid tor the cent res would be adhered to. Air Dustin said that on the small round there was ajug loss on the half-penny increase. He could give actual figures. They had to consider the number of loaves unsold or spoilt. EXCESSIVE CHARGES. Air Aiassey said that the man who paid- £lO 5s per ton for flour was foolish. The Government had fixed a. price, and it was a fair one, as was shown by the cut that was made. . A baker: “They would have to elose up if they didn’t pay. 1 ' Mr Aiassey: “Well, there is a proper wav to deal with these, .things. I instruct the Board of Trade here and now to investigate this matter and find out who is charging more than should be charged.” Air Clegg said he had had to cover his requirements at the Government prices, and could not get a cut. The millers told him that if (hey gave a cut. the Government would interfere and they would not get more wheat. Air Aiassey: “It is absolute nonsense to say Hie Government would interfere. The’ Government wants the lowest price possible for the public consistent with a fair margin to bakers and such people.” Air Clegg said millers stated they were quite willing to complete their contracts, and he asked that they should be allowed to do so. Mr Aiassey: “Then would you want to stick io the higher price of bread?” Air Clegg said it would be difficult to give a different price for a man who had contracts and one who had to buy al Hie new prices. He asked also that bakers should be al-

lowed to charge the same counterprices as were charged at stores. Eventually' .if was decided that the deputation should consider Air Massey’s proposal further with the Board of Trade. During the afternoon the master bakers’ delegates discussed the Prime Minister’s suggestion at considerable length with the Board of Trade, and they then asked to see. Air Massey again, when Air Logan submitted to him the following resolution': “That we accept a trial of •-Id advance on the 21b. loaf over the -Id already offered by the Government on the £IG 10s Hour basis, and undertake to fill in a monthly return as required by the Board, the return to be made compulsory on every linker.” It would, he pointed out, be two months before the Board of Trade could get the first monthly returns, and be in a position to deal with them, and that would bring' them to May, ' Mr Clegg said that the resolution actually meant that, they were prepared to serve the stores and wholesale at Jd less than they had agreed upon; Iml they were asking Jd more over their own counters and Jd more for bread delivered. They thought (hat by that suggestion they were mealing (he Prime Minister on the matter. Air Massey said that he was not inclined to he obstinate so far as (he additional Jd for delivery was concerned; so there was only the other farthing between them. He was prepared to let the Jd for delivery go for the time being. Th.e master linkers retired lo discuss Ibis concession with the Board of Trade; but, no decision being arrived at within half an hour, the further consideration of the matter was adjourned till 9.30 (his morning. A LABOUR PROTEST. Air U. Gornwell, secretary of the Building Trades Federal ion, has forwarded the following letter lo the Prime Minister relative, lo Hie price, of bread: “1 am directed by the <■;?- uiK'il of the Wellington Building Trades Federation to [dace he fore yon a resolution of strong protest; against the action of the Wellington Master Bakers in increasing the price of bread to (he public, before the Board of Trade has issued its instructions that an increase was (a be allowed. The action of these business men is particularly condemned through (hem increasing the price of bread twice Hie -amount which Hie Board of Trade authorised, and one week in advance of the dale when any increase should take place; also in charging the increase on slocks of flour on hand, on which mi extra charge had been made to them. It is the opinion of the council of (he above federal ion that yon should issue inst met ions to Hie Board of Trade lo take action a-gain.-l these business men, that they should lie compelled to disgorge Hu: money they have wrongfully taken from the public, and that the full penalties of the Regulations be imposed.”