ENEMY'S CONTROL OF METAL MARKET

Dominion, Volume 8, Issue 2525, 28 July 1915, Page 8

ENEMY'S CONTROL OF METAL MARKET

INTERESTING DISCLOSURES MERTON'S AND THE GERMAN •« METALL GESELLSCHAFT By Telegraph—Press Association—Oopyristl (Rec. July 2", 8.35 p.m.) Melbourne, July 27. The Federal Attorney-General ;(Mr. Win. Hughes), in a further, statement on the metals question, quotes extracts from a letter written by Merton's, dated London, May, 1910, to the Metallgesellschaft, Frankfort, Maine, suggesting a convention, or arrangement, whereby ''we will bo in a- position to regulato and control the market, and liide our operations from dealers ana Brokers, and gradually make them afraid to interfere." Mr. Hughes adds: "The method "suggested was approved, and from then the German control of tho. British market was complete. This gives the idea on which Mertons and the Lead Convention worked." i He quotes cablegrams from February '2 to March 11 last, covering offers by a British firm of excellent standing, in a big way of business, to the Broken Hill Proprietary Company, to purchase its lead. Tho firm's agent offered terms similar to Mert-ons, at tho same time, suggesting certain alternative proposals.. Tho firm's final cablegram to its Australian agent asked: "Do the directors suppose that the British consumers prefer dealing witli a nest of German Jews P The whole trade would, welcomo dealing with us. The suggestions are impossible." _ Adding, Wo guarantee to produce evidence .from the customers of fifty thousand tons, that they prefer us to Mertons'. ; Mr. Hughes adds: "No business resulted, yet tho Broken Hill Proprietary would have the public believe that the company is eager to deal with British buyers." ■

He goes on to say . that as the result of persistent pressure by the Federal Government the Broken'Hill'Proprietary was induced to give throe months' notice, expiring on June 30 last, of their withdrawal from tie Lead Convention, and terminating their contract with Morton's.

Coming to the Broken Hill Associated Smelters' Company's offer of Saturday last, to sell lead to the British Government, which tho Federal Government approved, Mr. Hughes says: This is riot enough. It is just as patriotic to supply genuino British manufacturers of, munitions, as to the War .Office."

Ho describes tho efforts'to show that Morton's is an English firm, and the agent of the War Olfice and the Admiralty, tactics by which they noped to confuse the mind of the public. Merton's unscrupulous methods had driven out all their rivals, • and the Government had only 'Hobson's choice' to buy through Morton's." ' . • .. . Mr. Hughes concludes : "It is essential that all metallic products in Aus--tralia and elsewhere should pass through British channels. While Merton's 'influence lasts,' German control is assured. We must destroy, it and those supporting it." .

Mr. Hughes, referring to the metals position, said that recently tho agent for the German Metall Gesellschaft and Morton's woro declared to be enemy, firms, and were forbidden to trade. Mr. Casey, chairman of tho; Electrolytic Smft'ting Company, replying'to Mr. Hughes's statements, said that Mertons, one of the firms mentioned by Mr. Hughes, were tho accredited agents of tho British Government. A cable message received from London by tho chairman of the Mount Morgan Company stated that Merton's arc contractors' for the War Office and Admiralty, tho India Office, and also the English, French, and Russian Governments, and were constantly supplying them with largo quantities of' copper. Mr. Casey pointed out that Mr. Hughes in November sanctioned the sale of 1000 tons of Mount Morgan copper to Merton's.