MEAT- PRICES

Dominion, Volume 10, Issue 2899, 11 October 1916, Page 7

MEAT- PRICES

AN UNSATISFACTORY ! POSITION 'fIPEBATIONS- OF AMEpCAN CONCERNS I. Now that-Mr. Masaey and Sir Joseph Ward have arrived in London, tlio negotiations that have-been proceeding for «oine months ooncerningvthe marketing of vHow Zealand meat in London are likely ,to be oooelerated. The Prime Minister iQentionod before he left" this country Hhat he had been.in communication with (the Imperial authorities," through the iHfch Commissionflr, 6ince.tbo beginning 'of July irith' the object of securing moro leatisfaotory..treatment, of .that portion of rtlio New Zealand meat not required for •j'Army purposes. , But no .settlement had [been roaoned, and he hoped to be ablo |to expedite matter? on. .iia„ aCTiyal. in 'London,' if la new arrangement; liad not .been introduoed in the meantime.

; Tlio dissatisfaction. felt in Now Zealand with respect to the present arrangeiments is being increased by tho operations of . tho Aiierican buyers in the Doiainion. Tho'.Government is paying for aaiu.tt.on and lamb. at the. ,'originil' f : o.b. 'irates, ijd. for mutton and 6jd. for prime ■".mnK, and tho Now Zealand companips i'must buy on that basis, ainoe all the imeat has io pass - through the Governimentfs hands. Tho companies have the Tight to nominato agents in the-Umted ■Kingdom to reoelvo any. part of tho meat Hhat jnay not be fcikeh.' for Army pur'(poses after arrivul-in British ports, but .these agents must sell to. the .wholesalers tat the Government price plus 2 per cent., and tho wholesalers in their turn .are allowed a margin of riot more than |d. .per lb. The retailers make a big profit, :f>ufc tie" New^'.'Zealand"companies, 'and ithe New Zealand fanner, selling through .'•them, cannot share it.' But'the American concerns'now ojiaratinj? in Now Zeahand appear to be l£ ,4 'isiiico me'af ' in fauantities at : prices' higher than -would ttvppenf to v be'' profitable, "ofc tho'. basis of itfie offlotal figures.' .' ' ;; Roferring 'to this .mattoi' yesterday,, a {centleinan cohneoted with the meat trade tm Wellington told a Dominion reporter Ftbat there, seemed to bo\tw'6 posnblo 'explanations 'of. .the' present operations iof,.tho .American buyers, representing iconcernfl identified, with '"trusf.' methods, pathor tho. Americana ; - had -: prior 'srformatioa*'..of' ...an '.'impending '_'ui.vreaso .in the' price paid by (the Imperial authorities, ,; or ; ebs fehey TKffe in a .position to secure a share 'of the huge retail profits that wcro being ijnado in the handling .of New Zealand. Imeat in tho United Kingdom. ' Regarding Jhe first point,; he oould. say little. •New . Zealand .Government' appeared _to liave . no present infonnaticin; regarding 'any'jmangenient.'.that, jriight be made iii ,the. near: future,' - but It nad to .bo, jwinittod that the: comp<sition'.'.<if i tne .robcommittee entruated by the British Board of Trade with . the placing of colonial frozen. meat . oil the London, market ■ was not etirely. eatisfactory to New Zealad : firms. -The committee did not appear, oa ;i the fafle.of'it, to.bo'iolely.iiepresgatetivo tof New Zealand' and Australian interests. . Referring'to the poEsibility. of Amerir tail', concerns operating in' New Zealand tonder the: Government purchase; Bcheme, knd .at' tho .saiho time ' making ''retail profits in London on' their meat, .'the igentleman said .there was reason tb believe, this was actually being done. An in the Dominion had tho right to ' nominate a firm in London to receive any ' surplus meat after Armj requirements ihad been satisfied. -This surplus was often'substantial in the oase of mutton, and amounted nearly to the whole of tie output in lamb, which was not required for the feeding of the troops. A cbmipany trading , in the ordinary way. got >no advantage from the surplus, since' the profits of the agent'in London and the .wholesaler were .limited by the Governjment scale.' But a concern ivith rami'fioationa extending into the'retail bixsioiess could beoome its own retaOer, and precisely the position of some 'of tjws; jMedvm. '"frusts."'' 'Hiey could Auy meat. in Now -Zoaland abovo; the Ijnarket i>rice,' 'folT"it "to? .at'an'appSiiffilt lo&i'*reo(Sive.the"siirpluameat .in London, and then get a retail ' price that .made the transaction an exceedingly profitable one.. .. ■ Eeferring to the meat prices befoTe his 'departure for London, Mr. Massey stated tha.t he agreed the' position was far from and .ho would do his .utmost to improve it. ..The New-Zealand farineis' were getting a good price for their meat, tod on a comparison with' pre-war prices jhey had no. oaiise. for' complaint. But the difference between the Government's f.o.b. prices in New Zealand and the retailers' prices in the United' Kingdom oertainly suggested that 6ome peoplo .were making illegitimate profits, and he Intended to direct , his attention to that aspect of -tho matter, .