EXCESS PROFITS.

Taihape Daily Times, 1 May 1918, Page 6

EXCESS PROFITS.

' To tie Editor. 5 Sir,—Will you please allow mo «pace In your paper to publish this letter dealing with the late rise In Hour and the excess profits made out «f that rise. There are 550 41b loaves leaked from one ton of flour, or about €OO loaves with the potatoes used. The later rise of Id.' per 41b. loaf Is £2 5s lOd on the amount of loaves jjaked from one ton of flour; the rise per ton on flour is 10s; this leaves the TSakers £1 15s 10d excess profit. There are about 700,000 out of our population of one million who are eating baker’s bread, and they consume 50,000,000 41b loaves per annum. The total rise on these 50,000,000 loaves at Id per loaf is £225,000 per annum. The total rise in the price of flour on the same quantity comes to £45,000, leaving an excess profit of £IBO,OOO per annum —250 per cent. Mr. Massey stated in a speech a few days ago, on the Board of Trade’s report, that there was little or no profiteering going on. For Mr. Massey’s information I can truthfully say that just before the last rise in flour bread was bought at 2d per lb and sold at 7d —here is 5d per lb. profit. The butcher uses 51bs. of bread with every 221bs of meat for sausages. He sells this bread at 7d per lb. There are five million pounds of bread, used per annum for sausages alone. This costs the butcher £45,000, which he sells for £157,000. 'After deducting the former amount this leaves our butch, crs £157,000 excess profits per annum. Mr. Massey stated that ther® Was no Labour man fit to sit as a member of the Board of Trade, yet it Is a fact that it was a labouring man who cornered the chairman of that intelligent Board, and also tied its .members in a knot. The following is an extract from a letter written to the chairman of that intelligent Board: — “You are incorrect, and for yours, information we have sent on~to “you prices ruling in Auckland from May, 1916, to November, 1916.” My letter to the Board of Trade was dated November, 1917, and the Taihape prices were quoted as ruling in Taihape at that time. You will notice the chair-

man quoted prices one year and six months too late, and in adidtion Auckland prices in answer to Taihape 'pi-

ces. We all know the prices for foodstuffs were a lot lower in 1916. Yet at was 1916 prices that were supplied In answer to the 1917 prices ruling in Taihape. There is intelligence for you! I think I know that Taihape is not Auckland, and I am sure that I know that 1916 is not 1917; and I also know that the prices are different. The only intelligence I can see in Mr. Massey’s most intelligent Board is that they were intelligent enough'-to retreat to the harbour of Auckland and answer me through the porthoi of the Auckland prices ruling in May, 1916 —one year and six months previous'to the prices quoted by. me .as ruling in Taihape one year and six months later. —I am, etc., J. T. DAVEY.