LETTERS TO THE EDITOR

Dominion, Volume 10, Issue 2919, 3 November 1916, Page 5

LETTERS TO THE EDITOR

THE MEAT TRUST MENACE NEED FOR-ACTION. Sir,—That tho abovo is daily becoming more formidable is now widely recognised, and tho time has arrived when it becomes necessary, to do more than merely acknowledge the existence of the evil. With tho object of stirring up more interest 011 a matter of vital concern to the producers, I will place a feiv facts before your readers.

Tho first lot of chilled beef that came to tho United Kingdom was a small consignment from Now York in 1875. For years the American meat did not affect prices at Smithfield, as only small quantities were imported, but in tho decade 1888-98 chilled beef took up a commanding position in tho Smithfield market. From then onwards l the "Americans gradually obtained a firmer grip of the London' market, and combined tvitli their capture and exploitation of tho Argentina supplies they now hold a commanding position.

When frozen meat was first handled at Smithfield, and for many years afterwards, it was sold by agents on commission, but when tho American firms came on tho scene they decided to sell for themselves; so they acquired various stalls in tho Grand Avenue, paying heavy sums for goodwill. It is recorded that ono company paid £16,000 for the goodwill of tho lease of one of their three shops. Another has two stalls, another holds four, yet another have six. It is known that this latter firm paid £12,000 for the lease of one only of these six stalls; and it.is believed that a considerable number of 6hops that are run'in other names aro controlled by the Americans. The capture of the Argentine was effected by the usual Beef Trust methods, i.e., a steady forcing up of prices until all competitors are eliminated, and then wlien the market is cornered prices are .dropped and tho producer is forced, to takd whatever the trust will give him; or have his stock remain on his hand without a market.

I An example of this was given in an article that appeared in The Dominion of October 16 last. A farmer from New Zealand bought land • in. the State of Connecticut, U.S.A., at what appeared to be a cheap price, according to New Zealand standards, with the intention of raising cattle. Ho said: "I found it was impossible for me to' raise cattle for- profit because the local markets were closed against me; the meat trusts had full control, and they would only buy stock at their own price. No butcher could buy direct from us, for if he did he would be denied supplies by the trust. A neighbour wanted to sell two bullocks to a local butcher, but this butcher replied that ho could not buy without permission of the representative of the packers. The community was completely under the thumb of the' Meat Trust. The prico paid by the consumers was high, while the price, paid to the producers was low. The farmer had to sell to tho trust if he sold at all, and accept the price paid to him, the retailer had to get his supplies from the trust, at'.their price, and under their conditions regarding tho conduct of his business."

How the producers in the Argentine are exploited is shown by the profits made by the various companies (designated by numerals) who combined m the Meat Trust there. '

Paid up for capital • ' 1915. 1915. Dollars. Dollars. No. 1 ... 3,288,539 7,321,739 No. 2 ... 715,957 1,638,000 No. 3 ... 1,438,241 , 1,500,000 No. 4 ... 1,151,910 4,500,000 No. 5 ... 770,776 300,000 - No. 6 2,124,497 7,500,000 9,489,920 22,759,739 Ifc tvill be seen that, the v net. average profits equalled about 40 per cent, of the capital; one of the firms: (with a German name) making over ' 250 1 per cent., and another v concern, nearly 100 per cent. . , - '. Another example of ; the ;. despotic methods employed;by the trust is supplied by the following article that appeared in the Monte Video "Times," copied from the' South American journal:— • '

Closing Down of Uruguayan Works,

; "It is definitely announced that the Frigorifico Uruguayo, or Uruguayan Meat Freezing- Works, at the Cerro, will suspend work on July 15, probably remaining closed.for some fivo months. The reasons for the closing down, according to the 'Monte Video Times,' is that 'tho Beef Trust which controls the supply of meat for the. Allied Armies, and is practically a joint State institution, in rearranging the pro rata quantity of meat purchased, in the River Plate has reduced tliat obtained from the Frigorifico Uruguayo to 1256 tons per month, according to contracts signed on the Ist inst. The.* plant of

the Frigorifico, recently enlarged, is capable' of producing up to 7500 tons per month. There is a stock of meat in hand of somo 6500 tons, or sufficient to fulfil, the contract for. five months, and it is useless to prepare more, for there is absolutely no outlet, all the steamers with freezing chambers having been requisitioned by the Allied Governments, *so that there are no means of transport available while the war lasts. And thus,. as it it- is useless preparing meat that cannot be sent to any market, the Frigorifico finds itself compelled - to. close for a time. It may be added that representations have been made to tho British and French Governments on the matter, but without avail."

In Australia the. Beef Trust have acquired enormous tracts of! country in the Northern Territory 'for raising cattle and are erecting several new freezing works, as well as purchasing some of the older oties, and are evidently bont on securing control of all supplies. AVe now como to' New' Zealand. It is known that at least four of the freezing works in this country belong to, or are controlled by tho Meat Trust aiid persistent efforts arc being made to secure others. A statement has been published (see The Dominion', October 16), which, if correct, is an example of how the Trust manipulated tho exploitation of New Zealand lamb on tho London market during the past season. When tlie Imperial Government .commandeered all supplies of Now Zealand frozen meat at fixed prices, one of the conditions were that any meat not required for Army purposes would be put back on tho London market, to be resold by certain ager.ts who the shipper had tho right to nominate. This worked admirably lor a time, but as soon as the Trust discovered that no lamb was being used for tho Army, then tho New Zealand market was open for exploitation, large operators began to do business in lamb at prices well above those paid bv the Government ; these buyers would of course only receive in the first place PM'ment from the Government at schedule rates, but in view of the certainty that thoir people would handlo that lamb at Homo they could afford to loso money at this end, well knowing that enormous profits would be made at the London end.' They also made arrangements witli somo of the freezing companies that they wero ablo to get most of the spaco in tho works, and {lie farmera were thus unablo to get their stock' through. • The American firms aro foreign concerns and outside tho control of the Imperial Government, neither aro thoy members of the Incorporated Society of Moat Traders, and wore able to put up tho prico of River Plate lambs at one time to as much as Is.-per lb. Further than this, tho New Zealand

Government would not move to prevent the American firms obtaining supplies of Now Zealand lambs enabled tihem te dictate the price and tho quantities that the buyers had to .take of lliver l'late lambs before .they could obtain any Now Zealand.

So tho agents of the Meat Trust are moving to capture the Now Zealand as thoy have captured the control of the meat at Home, in U.S.A. and the Argentine. How to rescue tho New Zealand meat trade from the tentacles of tho octopus is one of tho tasks to which the New Zealand Legislature must apply itself.

In two or tlireo of the years immediately preceding the war, several of the freezing companies gave a conces-' sion in freezing charges to reputed representatives of the Meat Trust provided they killed a certain quantity of stock in the company's works. Another company entered into an arrangement by which thoy handed over 'to the reputed representatives of the Meat Trust a large portion of its frozen meat, provided the buyers of tho Trust did not operate in this company's district.

Shortsighted measures of this kind whi?h endeavour to buy off tlio enemy 'are only, inducements for him to enter further and further into tho field, and unless tho remaining freezing works are to he completely under the thumb of tho Trust tho companies will have to agree 1 on a _ scheme of mutual support and combined defenco against tho common enemy. Many. of tho leading producers of this country are fully alive to tho position, hut so far there is no organisation, and without this, individuals can do little; while the majority of tho farmers bury their heads in tho sand, like tho ostrich, and refuse to recognise tlie urgcncy for action.

All the,time while the farmers and the freezing companies are waiting to lot someone else make a move, or delaying until they see what their neighbours aro going to do, the Meat Trust is steadily and insidiously throwing out is tentacles.

There is evidence that tho usual methods employed by the Meat Trust, i.e., .the forcing up of prices above a payable limit and thereby gradually squeezing out of existence tho smaller exporters and freezing companies is already in operation in New Zealand. If this is allowed to continuo it is only a question of time before the Trust wiU have what it aims at, and what it is prepared to spend enormous sums to obtain—that is, the monopoly of New Zealand's sapply_ of ,meat. Onco let this stato of affairs/ como about and the New Zealand farmer will find himself in the samo position as his friends in tho U.S. and the Argentine, and with tho greatly reduced prices he will obtaiu for his stock tha values of land must necessarily decline.

Tho danger is a real and urgent one; the enemy is at our. door, and the only, way to successfully fight him is by wholehearted co-operation. Tho farmer must combine and refuso to sell their stack to agents of _ the Meat Trust; the freezing companies will have to agree not to kill on Mhalf of tho Trust, and the Government will have to pass drastio anti-trust legislation. And it will be only by co-operation between the farmer and the frcozing company assisted by tho Government, that the community will free itself of the net that is slowly but suroly enclosing it. ■ -

Therefore, led tho farmer beware of the buyer who now offers moro-than legitimate prices for his stock, the farmer may thinlc it is his turn to-day, but assuredly it will lie that buyer's turn by 100 per cent, more to-morrow. —I am,, etc., •■■ ■■■■ ; : ,// ' • M. A. \ELIOTT. Palmerston North.