246 WHEAT PRODUCTION IN NEW ZEALAND 



obtain supplies of wheat. But this can best be studied 

 after we notice its operation in the early stages of its 

 existence. 



At the instance of the late Mr. T. E. Taylor, M.P., 

 Parliament authorised an enquiry, in 1903, into the 

 nature and methods of the Association. It was then 

 believed that the Association had become connected with 

 the Master Bakers' Union in an attempt to form a 

 complete monopoly in the baking industry. The Associ- 

 ation was also charged with restricting output, causing 

 a rise in prices, and other matters which are of general 

 application in combination problems. The report of this 

 Committee of Enquiry is important, but sufficient evi- 

 dence against the interests of the Association was not 

 taken. It was found, however, that several mills had 

 never joined the Association; and that the Association 

 had been formed "for the purpose of self -protection, " 

 but at the same time ' ' had endeavoured to secure control 

 of the sale of flour throughout the Colony. ' ' The price 

 of flour had not been raised, but there had been shown 

 a l ' tendency at times to raise the price of bread beyond 

 what might be regarded as a fair profit/' on the part of 

 the Bakers' Union, which was for a period acting in 

 conjunction with the Millers' Association. 



When, however, in 1912, the Commission on the Cost 

 of Living took evidence on this question, it was shown 

 clearly that the Association had endeavoured to force 

 free millers into the position of associated millers by 

 restricting the supply of wheat to them, and "dump- 

 ing" flour into the markets controlled previously by 

 these millers.* It was further shown that the Associ- 

 ation had endeavoured to cut away the supplies of flour 

 from bakers who refused to become members of the 



*See Report H-18. Evidence of Mr. Virtue, pages 243-6; 

 evidence of Mr. Gardiner, pages 102-6; evidence of Mr. Williams, 

 pages 177-180. 



