THE BEEF TRUST.

Dominion, Volume 6, Issue 1835, 22 August 1913, Page 4

THE BEEF TRUST.

DESIGNS ON SMITHFIELD,

BY AMERICAN FIRM.

According to the "Age's" London correspondent, the efforts of American meat linns (0 establish meat export works in the Commonwealth are part of the American Beef Trust's plan to capture tho imported meat market of Great Britain. Judging by the experienco- of the Argentine, which- exports nearly live times as much meat to Great Britain as Australia, tho first effect of tho entrance of tho American companies into tho meat export trade of Australia will bo to increase the-price of stock. This will be a good thing for tho pastoralists, but a bad thing for the Australian companies engaged in tho meat export trade, for they will be powerless to pass on the increaso in prico to the English consumer. The Australian companies will either have to carry on at a loss until their financial resources aro exhausted or surrender at onco to tho competition of the American companies, unless legislation is passed by tho Federal Parliament to check tho bludgeoning methods of the American Beef Trust in disposing of trado rivals. Tlio Australian consumer will have to pay moro for meat while the American trust is forcing up tho price of stock in order to wipe out trado rivals, but when tho rivals aro wiped out tho trust will be able to devote its attention to tho pastoralists in order to bring down, tlio price of stock. This can be done by restricting its purchases of stock in Australia for export purposes, and increasing its export from the Argentine. Whether the Australian consumer will derive much benefit from tlio operations of tlio trust in lowering the prico of stock in Australia may be doubted, for although the primary object of tho trust 1 is to capture tho meat import trade of Great Britain, it is not likely to neglect the opportunity of capturing tho Australian local market, if tho law permits it to do so. The operations of the American. Beef Trust' in its dealings with, tlho Smitlifield market aire being watched wdtli considerable anxiety in England just at presont. There is a fear that if something is not done at an early dato both by the British and Argentine Governments to check tlio trust, tho Argentine and British, companies engaged ill tho exportation of meat from the Argentine to Smitihfiold irlll be quiokly wiped 'out, and tho Britisli consumer will soon liavo to pay exorbitant prices for meat. Tho Beef Trust 110 louver exports moat from tho United .States, wit it has securod u firm footing in tlio Argentine, which is the laTgest exporter of moat in tho world. Formerly tlio Chicago moat companies exported to Great Britain 1,500,000 quarters of chilled beef eatih year, in addition to thousands of head of live cattle, but this trado has entirely ceased. Tho rapid increase in the ppulation of tlio United States has added to tho local consumption of meat and reduced the number of cattle raised there. Tho cattilo have been ousted from the great plains of t'lio West by tlio arrival of the dry fanner, and,tho United States 110 longer exports meat or cattle. As a matter of fact,, meat has. recently been imported into -tho United States from tlio Argentine, and also from Australia.

Tho British consumer is obtaining no advantage from tho war which tlio Beef Trust has declared on its rivals. The wholesale price of chilled meat from tho Argentine lias, declined ,1(1., to 2d. per lb. at Smithfield, but tho retail price to tlio consumer has not gone down. Tiro profits from tlio reduction are ffoinff into tlio pockets of the English butchers. But according to articles which are appearing in tho English, press, it is timo for tho Government to take action for tJlio protection of the consumer from tlio increase in the ririco of meat which will follow when tho Beef Trust wipes out its rivals, and gets control of tho market. It is falcon for granted t.hnt when tlite butchers have to pay more for their supplies at Smithfield fiiey will at once pass on tin* increase to lilie consumer, although they have not allowed him to participate in the present fall in prices. The English newspapers ore also anxious regarding the fate of the English companies en,°a°-«l in the Argentine meat export t.ra<te. There Is about .£3,000,000 of British capital looked up in these companies.

The newspapers are urging that -the British Government should co-operate with, the Argentine Government, so that joint notion inav he taken to cheek the American Beef Trust, and to protect tWa rival companies, some of which are British [Mid others Argentine.