METAL INDUSTRY

Dominion, Volume 8, Issue 2339, 22 December 1914, Page 6

METAL INDUSTRY

IMPORTANT DISCLOSURES A GERMAN MONOPOLY AUSTRALIAN CAPITAL AIDS THE ENEMY "AN INTOLERABLE POSITION.' PROPOSALS TO TERMINATE IT A highly important statement was made by the Federal Attorney-General iu the Commonwealth Parliament on December 10 regarding the investigation into tho position of tho Broken Hill and other companies engaged in the metal industry. ■ Mr. Hughes said that no offence against the law had been disclosed, but it was, on the other 'hand, quite clear that a position of affairs existed quite incompatible with tho Commonwealth's attitude towards the vital interests at stake during the present war, the commercial and industrial supremacy of the Empire, and the development of the resources of tho Commonwealth. "Shortly ■ stated," continued Mr. Hughes, "the facts show beyond all question that German capital and German influence exercise a monopoly of the base metal industry of the civilised world; that this monopolv is for all practical purposes so complete as to exclude effective competition; that it covers the whole sphere of tho industry—limiting output, controlling markets, determining the channels of distribution and fixing prices; that the war, by closing most channels through which the metallic products were distributed, aud the markets in which they were disposed of, has very seriously affected tho industry, throwing large numbers of working men. out of employment, causing great loss of wealth production, retarding the development of our great resources, and seriously menacing the welfare of the whole comtaunity; that peace holds out no prospects satisfactorw or even tolerable, to British and Australian interests, since it would but revive that complete domination of the industry by German influence, which ensures tho building up of German interests instead of British and Australian. No patriotic citizen can contemplate such a prospect without the most serious misgivings. "This war will have been waged in vain; the blood of our best and bravest citizens shed without purpose; the Empire will have endured, the dreadful horrors of modern warfare to no purpose if at its conclusion, when viotory tardily and at a dreadful cost has been won, we are again compelled to pour into the lap of Germany the lion's share of tho wealth created by Australian enterprise and Australian workmen.

"Before the war German capital and influcnco had created a splendidly organised system, by which it was enabled to lovy toll upon the world. The cream of the profits arising out of the metal industry of the world —profits upon a turnover which at a rough estimate cannot' fall short of £200,000,000 -—found its way through various channels to tho pockets of the great Gorman financiers, thus strengthening Germany's position commercially, industrially and nationally, enlarging the scope of her operations in other directions, and maintaining and perfecting that terrific instrument of de-; struction by which she now. seeks to batter all who dare withstand her into submission. It ie'a humiliating but irrefutable faot that Australian capital, enterprise, and labour havo materially aided the enemy in iliis dreadful conflict.

UICI>. "A few figures will clearly establish this position. The value of lead, zinc, 1 * copper, and tin produced annually in Australia, estimated >upon an average price for the year 1912, amouuts to nearly £13,000,000, or, including silver and gold recovered in the extraction of these commoner metals, £15,000,000. (Even upon a fair averages price for the past ten years the gross value is not less than £13,000,000). All this wealth was produced in Australia, but (with the exception of gold and silver) the industry was, and is, controlled by German influence, so that output, destination, and prico wero matters in which Australia had no say whatever. "The methods by ivhich the industry was controlled are characteristic of the modern German spirit and enterprise. Everywhere agencios wero established, 'which assumed the cloak of the nationality in whioh they found themselves. In America, for example, it was known as the American Metal Company. In Africa the African Metal Company. "A convention controlled by German influence fixed and fixes the price of lead. Lead can be sold only through a German controlled agency. The British Government is compelled to buy through this agency, which dictates tho price. Lead can' only be bought through this agency, or with its approval, and at the price fixed by the convention, which is under the same control as the agency. For all practical purposes the agent is tho convention. "Zinc is controlled as to price, output, destination, and manufacture (into spelter the zinc of commerce) by a German combine of three firms —Boer Sendlieimer, Metallgesellschaft, and Aaron Hirsch and Sohn. British firms cannot obtain supplies of concentrates for purposes of making spelter bccause the Germans have control of the supplies, and have contracts with tho mines in this country until 1920. Copper is controlled in much the same way, if not to the same extent. The same may be said of tin.

"Germany thus levies toll upon the whole industry; it holds its destinies in its hands. Wo produce the ores, but we do' so to tho extent the Germans determine, and must be content with tho price they fix. They determine, iu effect, the output of our mines and tho manufacturing processes of the products of those mines in which we may engage. -This is surely an intolerable position. Common sense, self-interest, and patriotism alike impel us to put an end to it. The inducements to do so aro very considerable. No obstacles that cannot bo removed stand in the way. The metallurgical treatment of lead, copper, and tin can bo successfully accomplished within the Commonwealth with an expenditure of an amount oti capital easily obtainable. Tho treatment of zinc involves a very large expenditure. It is hoped that British enterprise may be induced to take this latter in hand without delay:

"Tlie basis of any successful ■undertalcing of this nature here or in Great ljritain must rest upon a, market free from the control of that German influence by which it is now dominated. British capital can hardly bo expected to invest in an enterprise so gigantic without an assurance of an adequate supply of concrete, and these cannot be obtained while the existing contracts still hold good. Wo havo communicated with the British Government sotting forth the position, and strongly requesting their co-operation in those matters ill' which the interests of tho Empire and the Commonwealth aro so vitally concerned.

"The present position in which the .Australian and certain British companies arc tied up by contracts with agencies dominated by Cennan capital and inlluenco may call for legislative action in Great Britain and bore. Tho suofioss of nny propoiml to divert t.ho of tie iftdustis, from Gertga^

to British hands depeoids largely upon the co-operation of the Australian companies. If they prefer to bo tied up by contracts which provide for resumption of business after tho war, and if they prefer that the control of the industry shall Test with the alien enemy, tho task before us will be rendered very difficult.

"Wo hope, however, for their cordial co-operation, and we have every reason to believo they are very ready to co-operate—and with the aid of tho British Government and British enterprise that much wider avenues may be opened for British and Australian interests, and for tho employment of British and Australian workmen. We ought no longer to play the part of building up the power and influences of a nation whose avowed intention is to humiliate and impoverish us."

After Mr. Hughes had finished his statement,

Mr. Bruce Smith (N.S.W.) asked the Prime Minister whether he would not confer with the British Government to see whether the Commonwealth was not entitled to take possession of "the whole of German interests" in mining operations with a view to the establishment of an Australian national trust. (Loud Labour cheers, and cries of Socialism I)

Mr. Cook (N.S.W.) (smiling): Do I hear aright?

Tho Prime Minister said the Government had already taken steps to communicate with the British Government on "this important question," with a view to joint action to safeguard Australian and Imperial interosts. In tho meantime ho would suggest that the country should not plunge on this question before it had full and ample inducement to do so. Ho would be glad to communicate overseas if it was the general desire of the House to co-oper-ate in the matter. (Hear, hoar.)