The Daily News. THURSDAY, JUNE 23, 1904. THE FLOUR-MILLING TRUST.

Taranaki Daily News, Volume XLVI, Issue 145, 23 June 1904, Page 2

The Daily News. THURSDAY, JUNE 23, 1904. THE FLOUR-MILLING TRUST.

The Hour-milling trade at the present lime presents anything hut an edifying spectacle. At the best of times the milling fraternity are far from being a happy family, and during the last few days they have evidently allowed their angry passions to rise, for flour is now being quoted from one end of the colony to the other at a price which, if it does not entail an actual loss on manufacture, at least permits of no profit. This condition of things, says the Otago Daily Times, is the direct outcome ol the failure of the efforts put forth hy the promoters of thu New Zealand Flourmillers Association to induce all the milling linns in the colony to come into the fold and work under an agreement which would regulate the output of each mill and fix the price and terms upon which the flour should he sold. Some few weeks ago it was delinitely announced that, with the exception of the Auckland flourinilis, the whole of the milling linns of the colony , to the number of fifty and over, hud subscribed to a live years' agreement, which was to come into force on the first of the present month. But, like a bolt from the blue, the appointed date found the millers ut sixes and sevens, and the flour market in ti chaotic condition—a condition which -despite desperate efforts at patching up the difficulty, is even more accentuated to-day. So far as can be ascertained, from the facts which have been allowed to transpire, at least two of the leading flourmillers in Canterbury and Otngo were averse to signing the agreement, on the ground that under its provisions their output would be cut down by at least one-third. and that they much preferred to be allowed to run their business In their own way and upon their own lines. Strong representations were, however, made to them that their refusal to join the association would induce such keen competition as would rtnderj the trade unprofitable, and probably bring about the ruin of n number of their fellow-millers : al the same time, it was pointed out that the loss of output would to some extent be compensated for hy the certainty of a fair price for their flour and the guarantee of ull accounts by the association. I'pon the strength of these npresentations

a reluctant consult was wrung I'ron. the firms in (mention, conditionally upon every mill in the colony, will, the exception of those in Auckland, lieing included in the scope of the agreement, ["nfortunately, for the hopes of the promoters of the association, their m-ITlift lo secure the allegiance of one Munll mill prior lo the, Ist hi .June gave one ol the hignatories a loophole of escape—a loophole which was promptly availed of—and all suhsdq'uent endeavours to entice the bird hack into the cage have totally failed. Such, in brief, is the story of the events which have led up to the present complications, uud which, from the point of view of the public, suggest certain reflections. At first blush it may appear a matter for congratulation that, owing to the light among the flourmillers, the price of flour should have dropped nearly £2 per ton ; Uut if, as appears probable, the drop in price ultimately brings about financial disaster to a number of men in the trade, and causes machinery now employing labour to lie idle, the cheap Hour may prove, lo have be. n dearly bought. Far lie it from us to attempt to luich the Hourmillers their business, but it seems incredible that there should be no half-way house betweui a close corporation, completely controlling the price and output of flour, and a system of cutting which will allow no one in the trade to make a living. To the lay mind it appears little short of madness that, for the sake of preventing a couple of mills from making a living, lifty millers should

voluntarily ugrtv to forgo their protits lor im indefinite period, lor tliis is what lh,' [iriM-iit situation in tho Hour trade practically amounts to lU' have been told times without number that tlie milling' [lower in the colony is three times too gjivut lor the colony's consumption, nnd, there being no outside outlet (or New Zealand Hour, the only remedy is to curtail tile output of each mill, thus necessitating some form of association. The present tactics amount to a curtailment of all prolits, and experience of similar lights in other directions (rocs to sliow that these are almost invariably short-lived, and end in the survival of the littest ; or, in the case of neither side showing signs of surrender, in the inevitable compromise. We are but speaking the plain truth when we declare that, there will Ue no mourning over the decease of the Xew Zealand Flourmillers' Association ; but, at the same time, it is only fair to add, neither do we regard with any degree, of satisfaction the present chaotic condition

of the Hour trade. And. should sonic genius arise who can propound a scheme which, on the one hand, will protect the public from llu" risk of exploitation, and, at Ihe same lime guard the milling trade from lite evils of reckless competition, lie will earn, not onl.y Ihe gratitude of all concerned, bul probably a liandsome commission into Hie li.irg'nin. ON Till.': FOURTH I'Ali I'.. Lil«rature. Changing (lovoniors. Ccner.il Methodist Conference.