I—lo.

74

[W. E. ASPINALL.

235. A number of mills did run the twenty-four hours before the association was formed, but they occasionally shut down ?—I do not know any mill that ran the regular twenty-four hours. The mills at Timaru have run twenty-four hours a day for a month or six weeks, and then, owing to the accumulation of stocks, they had to shut down. 236. What was your average annual production in your own mill for, say, three or four years before the association was formed ? —For the last five or six years we have never run beyond the one shift of eight hours. 237. Are you selling as much flour now as you did before joining the association?—-Exactly the same amount. 238. Then, the larger mills running fourteen or sixteen hours a day have to put up with a much smaller sale, in order to allow you to put out your full quantity ?—Quite so. 239. The association has restricted the output of all the mills put together?—lt has not restricted the output, but it has put the trade upon a proper footing, so that we can divide the trade rateably, and get a fair share each. 240. If Steven and Co. were producing 500 tons a month before joining the association, and their quota under the association was 180 tons, that has restricted their output, has it not ?—There is nothing to prevent them working their mills twenty-four hours a day, and if the day was long enough they could work thirty-six hours if they liked. 241. Then what would happen ? —They would have to export their flour from the colony. 242. They could not sell in the colony ? —No. 243. And if they oversold, according to the agreement with the association the matter would have to be adjusted ? —Yes. 244. You say you do not know of any coercion being used to force millers to join the association?— No. 245. Could any coercion be used without your knowing it?—l think not. I should have heard of it on the board if there had been any coercion used. 246. Supposing a member of the association threatened to send a traveller into the district of a miller who was not in the association and to sell flour under cost, what would you say to that ? —I do not know what the utterances of individual millers are. 247. Did you take any steps to cope with the competition of Steven and Co. and the other free millers in March of this year ?—Steven and Co. began cutting, and we started to do the same. 248. Are you sure that Steven and Co. began first ?—I am sure, it was reported to our board. 249. Who reported it ? —Our agent in Dunedin, and then we cut alongside of Steven and Co. 250. Did the association consider the advisability of freeing individual members of the association in the matter of selling fifties ? —Yes. 251. You say that the association decided that the millers should have a free hand in fighting Steven and Co. in the sale of 501b. bags?— Yes. 252. Why not, then, in the sale of 2001b. sacks? —I do not know. I see no reason why they should not. The Dunedin millers asked us for the concession, and we conceded it. 253. Do you think the only reason why they wanted a free hand was because they knew they were sure of their trade in 200 lb. bags with the bakers ? —I dare say that would have been a good reason. 254. You say that the price of wheat to the farmers has been increased under the operations of the association ?—I say it has that tendency, because we were getting a profit. 255. And voluntarily you have raised the price of wheat to farmers—you say you are giving them more ? —Well, we do not haggle so much over it. 256. You were making such a good profit that you could afford to be careless about the price of wheat ?—Not careless, but we could afford to be liberal—we did not haggle about the price so much as we did before. 257. Now, if a man has been producing 500 tons a year as a free miller, and is only allowed to produce 180 tons, in fixing the price of flour have you not to take into consideration the cost of the wheat, the cost of labour, and the cost of interest on capital ? Do not these factors determine the price of flour?—Of course they do. 258. And if the output of a mill is only one-third of what it was before the miller joined the association must he not charge an increased price for his flour ? —Not necessarily. 259. When Steven and Co. withdrew from the association in March of this year did you discuss their withdrawal with Mr. W. Evans, of Timaru?—l could not say. I expect I have. It is so long ago that I could not tell you. Mr. Evans withdrew too, and I suppose I spoke to him about it. 260. This telegram was sent to Steven and Co. [Telegram of 17th March, 1903, from Mr. W. Evans referred to]. Do you know anything about that ?—No. 261. If that telegram was sent I ask you whether you do not consider that Steven and Co. were forced to cut in view of that threat ?—Well, it is in the nature of a threat I suppose. 262. You personally know nothing about it ?—No. 263. Supposing you had been a free miller would you not have felt disposed to cut prices? — Knowing Mr. Evans, I would not have taken any notice of it. . 264. Supposing it had come from a man other than Mr. Evans, would you not have felt justified in cutting prices ?—No, I do not think so. Charles Albert Loughnan examined. (No. 18.) 265. The Chairman.] What is your occupation ?—Solicitor ; also partner in a flour-mill. 266. And you reside where ?—At Palmerston North. I am also a director of the Flourmillers' Association. 267. You want to make a statement ?—I wish to make a statement with regard to the depreciation in value of Eichter Nannestad's plant at Palmerston North. I understand that the