TRUSTS.

Dominion, Volume 7, Issue 1906, 14 November 1913, Page 5

TRUSTS.

".'/, HOW THEY WORK. \ WARNING BY SIR GEORGE REID. 'J-'' lo , High Commissioner for Australia, sir George Reid; is" under no illusions as to tho effect of operations of tho Beef .trust, whether in America, the Argentine, London; or Australia: He views tho possibility of the- trust obtaining control in Australia with alarm, and he warns pastoralists of tho need for the utmost caution in entertaining trust offers. ..,.'.-. ■ > In the course of an interview in Melbourne a few days ago, Sir George Reid said: "The effect or all that I have learnt of the operations of the' Beef Trust, which for tho purpose of this question may Le called tin. American Beef Trust, is that- the dauger from it is increasing. The trust companies aro quietly and steadily eudea/ouring to undermine all their competitors. To do this they often'sell-their meat below current quotations, incuring temporary losses cheerfully as long as they can beat the rival off tho held. They aro prepared to give any amount of money in order to sccuro tenancies of any of the stalls at the Smithlield' Meat Market in' London. 1 cannot say of my personal knowledge, but'l was told on good authority that one of the American companies oered to pay £8000 fo rthe weekly tenancy of astall which would he considered a very small shop This action obviously had a. motive beyond ordinary business. The men most interestd in tho Australian trade, as buyors from the pastoralists aud exporters t> Great Great Britain, aro very nervous concerning the outlook in Australia, and in made upon them. They are particular* ly nervous over tho recent development of the Swifts in Australia. I can quit© understand their 'anxiety, from all I could learn in tho United States. Speaking generally, tho Beef Trust control of trado began with tho offer to, cattleraisers of higher than ordinary prices. Tho probability is that the same trado principles will bo applied by the trust to Australia. Tho trust will bo more than liberal to pastoralists, some of whom may have come to think that the Australian buyers have not given them all that they desired in tho way of price. Tho pastoralists may be disposed to accept the opportunity of making moro' money. But if. the trust manages' to knock out Australian buyers the pastoralists will find, they will have to pay back in future lower prices every penny of the enhanced price obtained when tho trust first came on tho scone. . These trusts are not out to benefit anp but themselves. They aro out to crush anyone who competes with them, and once in command to get as much as they can. AVheu a trust gives a favour you may be sure that you or someono else will havo to pay for it —and a good deal added, too. People must not imagine that tho agents of theso trusts confine their energies to getting power at the market end. If the pastoralist who broke with tho trust got his meat to London, he would find that his battle was only beginning. Ho would find tho trust ready to drop liunci reds of thousands of pounds in order to hold tho position. If tho trust would spend a lot of money to secure cutrcil it stands to reason it would spend great sums in maintaining it. Anything like trust control'of tho food of the poorest of the people is repulsive to one."