The price of bread - is the recent rise justified?From Otago Witness 26th Feb 1901 |
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THE NORTHERN ROLLER MILLING COMPANY'S ATTITUDE. Hearing that the Master Bakers' Association had invited Mr L. W. M'Glashan, who is at present in Dunedin representing the Northern Roller Milling Company, to meet them with a view of discussing certain matters connected with the trade, a representative of the Otago Daily Times was on hand on Wednesday afternoon at the place of meeting in the hopes of gleaning a few facts which would throw light on the controversy now raging concerning the recent rise in dour and bread. The Master Bakers' Association were represented by Mr J. G. Laurenson (president), Mr T. S. Searle (vice-president), and Mr B. P. Ringer (secretary), to all of whom Mr M'Glashan was upon his arrival introduced. Mr Laurenson explained that the object the association had in inviting Mr M'Glashan to meet them was to ask him for an explanation of big criticism upon a statement which had appeared in the Otago Daily limes to the effect that it was ridiculous to suppose that a baker doing a four-ton trade with a turnover of £53 6s 4d per week only got £1 6s 4d profit. Mr Searle said that he would like Mr M'Glashan to understand that the Master Bakers' Association had nothing whatever to do with any millers' combination, and only so far as it proved of benefit to them would they continue to work in harmony with it. The millers had nothing whatever to do with fixing the price of bread, and there was no agreement in existence between the master bakers and the Flourmillers' Association. Mr M'Glashan said that he had not come to Dunedin to fight the bakers, but to work in harmony with them. He had not expected to find the press present at the interview, but if they wanted him to go into figures it might do the bakers more harm than good. He was hardly prepared to have his views dragged before the pubic, and he objected to the press being present. If the interview were a private one he was quite prepared to substantiate the statements he had made. Mr Laurenson said that Mr M`Glashan had stated that the figures drawn up by the Master Bakers' Association and published in the Daily Times, showing a baker's net weekly profit, were ridiculous. Mr M'Glashan said that supposing he could show that at the present time the master bakers were making an exorbitant profit, would the publication of these figures be likely to do them say good? But he was in Dunedin to fight the Millers' Union, and not to fight the bakers. Mr Searle said that Mr M'Glashan had stated that the 1/2d rise in the prices of the loaf represented an extra profit of 75s on every ton of flour used. That was calculated on the basis of 800 loaves to the ton, whereas the Master Bakers' Association calculated 660 loaves, and a Dunedin operative baker of over 50 years' standing only calculated 670 loaves to the ton. Mr M'Glashan here remarked that it appeared to him that the master bakers were trying to get him into a trap, and that unless the press were requested to retire he must refuse to go on. At this juncture the press retired, and after a lengthy interval were readmitted, when Mr Searle intimated that they had thoroughly thrashed the matter out, with the result that Mr M'Glashan would make a statement. Mr M'Glashan thereupon said that his original statement was to the effect that, "speaking roughly. the bakers got 35s per ton profit out of the 1/2d per loaf rise." He had now figured it out carefully and, reckoned at 800 loaves a ton, which the Auckland Roller Milling flour—Champion brand—would produce, it came to exactly £1 9s 2d. But he understood that the southern flour would not bake 800 loaves to the ton. The master bakers said 660 and an operative of 50 years' experience said 670. He had therefore decided to waive the Question, but he was still prepared, from an Auckland point of view, to combat the figures which had been published. |
Mr Searle then produced the operative's, statement referred to, which showed a weekly profit on a four-ton trade of £2 12s 6d. as against £1 6: 4d quoted by the master bakers. Mr Searle explained that the discrepancy arose owing to the wages of two journeymen and an improver being allowed for, as was the custom in some bakeries, instead of three journeymen, and the receipts being calculated at 670 loaves per ton instead of 660.
Statement as drawn up by Mr James Patrick, acknowledged by both Master Bakers and Operatives to be the most reliable authority on the Baking Industry in Dunedin.
Statement of 4-ton Bread Trade in Dunedin.
Receipts
Four tons flour, yielding 670 loaves per ton:
2680 at 5½d, less ¼d per loaf allowed
to stores, restaurants, etc £58 12 6
2% discount on cost of flour (£33) 0 16 6
40 empty sacks, at 3¾d 0 12 6
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£60 1 6
Expenditure 57 9 0
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Weekly profit £ 2 12 6
Expenditure.
Cost of flour £33 0 0
Wages—Foreman £3, second hand £2
10s, improver £1 10s, carters £2 10s,
£2, £2, £13 10 0
Rent, bakery and stable 1 10 0
Coal, wood 1 3 6
Potatoes 0 12 6
Salt, yeast, lard 0 16 0
fools and repairs to ovens 0 6 0
Gas 0 4 0
Four Horses. Feed and bedding 1 17 0
Shoeing 0 8 0
Wear and tear horseflesh 0 15 0
Wear and tea. carts and harness 1 0 0
stamps, stationery, books, and tele-
phone 0 10 0
Bad debts 1 6 0
Insurance 0 2 0
Interest on capital 0 10 0
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£57 9 0
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Mr Searl said that the following figures
would show that the Dunedin bakers were
working at a great disadvantage compared
with the bakers in other centres of the
colony:-PRICES OF BREAD AND FLOUR.
Bread, Flour,
Per 4lb Loaf. Per Ton.
Auckland 5d £6 10 0
Wellington 6d £7 10 0
f.o.b. Lyttelton.
Christchurch and
Oamaru 6d £7 10 0
Per ton delivered.
Dunedin 5½d £8 5 0
Mr Searle said that these figures showed
that, as compared with Christchurch, the
Dunedin bakers were getting ½d less for their
bread and paying 15s per ton more for their
flour, or £2 4s 2d per ton less profit.The meeting, which opened somewhat stormily, having ended amicably, and to the apparent satisfaction of all concerned, excepting the excluded pressmen, who lamented the loss of much good copy. the Daily Times representative had a few minutes' chat with Mr M'Glashan. Reference was made to the Northern Roller Milling Company's advertisement. which had appeared for some days past and in which the Trust is asked to explain "Why they can sell at £6 10s in Auckland and yet make the Dunedin bread-winners pay £3 5s at the millers' door?" and Mr M'Glashan was asked if he could throw any light on the subject. The Auckland millers' representative promptly replied that the declared object of the association selling at that price in Auckland was to force the Roller Milling Company to join the trust. He was then asked whether the price at which southern flour was quoted in Auckland was not £6 10s f.o.b. "No," said Mr M'Glashan. "I say definitely that southern flour is being sold in Auckland at £6 10s per ton delivered into the bakehouse. To show you how the association is bringing down the price, when I left home a fortnight ago Auckland flour was selling at £7 12s net per ton, and now, of course, we have to come down to their price." This question concluded the interview. |