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Master Bakers' Union. With such evidence the Com- 

 mission attacked the problem vigorously, and proved that 

 in many respects the charges brought against the Associ- 

 ation in 1903 were well founded. Thus, one miller on 

 withdrawing from the Association, found the prices of 

 flour cut down within a week of his withdrawal. The 

 object of this is obvious, but fortunately this miller and 

 several others are still in a position of stability. 



(c) Monopoly Aimed A t. Undoubtedly, then, this 

 combination has not adhered closely to its original 

 intention as embodied in the agreement. That monopoly 

 was aimed at is a practical certainty, for in the first 

 place those very men( or at least the majority of them), 

 who were in the best position to endure bad times and 

 ultimately capture the milling industry, were most 

 vigorous in their agitation for its establishment. They 

 evidently preferred the monopoly by the easier road than 

 by at first killing competition. Secondly, the practices 

 adopted by the Association are unquestionably those of 

 monopoly. At present there are some 30 "associated," 

 and about 10 free mills, but the latter class comprises 

 almost half the milling strength of the Dominion. There 

 has, therefore, never been a wholly successful monopoly ; 

 but "the ever present danger exists of a complete 

 monopoly being organised, and the usual methods of 

 monopolistic control being adopted." 



What dangers have we then to fear from such a 

 monopoly? There is no doubt that flour prices would 

 be fixed by the Association, as would output also. The 

 Association would also have a monopoly of the purchase 

 of wheat in the Dominion, with the exception of the 

 relatively small amount purchased for export purposes. 

 There would, therefore, be three lines of action open to 

 the monopolists. The price of wheat could be forced to 

 its lowest figure; flour could be raised in price to an 

 unreasonable figure; or by a combination of these two 

 lines of action the medium course would be possible. 



