The Dominion WEDNESDAY, DECEMBER 11, 1918. FAIR AND UNFAIR TRADING

Dominion, Volume 12, Issue 65, 11 December 1918, Page 4

The Dominion WEDNESDAY, DECEMBER 11, 1918. FAIR AND UNFAIR TRADING

A great deal has been heard during the war .period about the good fortune of primary producers in having an assured market and getting high prices for their produce, but now that the war is over the problem of re-establishing the conditions of trade that existed before the war becomes one of urgency and of no little difficulty. This applies in various directions, but nowhere with greater force than to the disposal of our staple exports. Before the war the export of these products was organised on lines which went far to ensure a good return to producers and prosperity in the- Dominion generally. This organisation and the trade connections which had an important place in it were not called into existence spontaneously, but were biiilt up in most cases by long-continued methodical offorl3. As a result of the emergency arrangements made early in the war and since continued, this all-important organisation has been, for the time at least, upset. It is of the utmost importance that it should be restored. So far as wool and dairy produce are concerned it has been agreed that the arrangements for Imperial purchase shall extend over this season and the next. Possibly the meat purchase may be extended similarly. These arrangements in any ease are temporary, and in the comparatively near future New Zealand, producers will be under much the same obligations in regard to finding markets as they were in 1914. it is, of course, vital, hot only to producers and allied interests, but to the whole population of the Dominion, that its export'produce should be marketed under satisfactory conditions and to the best advantage. A good sale for primary produce is the essential foundation of the prosperity of this country. ' With these elementary facts in mind it is easy to realise what is entailed in any attempt of the Meat Trust to capture and dominate the meat export trade of the Dominion. The of re-establishing our prewar trade connections in any case will present some difficulties, but unless the producers of the country are safeguarded against trust operations, instead of safe' channels of trade being reopened one great branch of our export trade will be • laid open to predatory exploitation, with results disastrous alike to producers and others in this country and to the consuming public in Great Britain. It is known that the Meat Trust has already gained a preliminary foothold in New Zealand, and that during the war period this foothold has been enlarged, exactly to what extent has yet to be seen. A special committee of the House of Representatives set up last year reported, amongst other things, that some buyers had given prices for stook. which could not' be justified in view of the rates at which meat was purchased by, the Imperial Government, and that the result of these undue prices had been to i cause some freezing companies heavy los-s. Trust methods usually are at first to inflate prices of stock in order to kill competition, and then to levy toll on the producers by forcing prices down below the fair market value and on the consumer by imposing excessive prices. The committee made certain recommendations in the interests of fair and unimpeded, trading which are in' part carried into effect in legislation passed this session. In the Slaughtering and Inspection Amendment Act the Government has taken power to license all firms engaged in the meat export trade and to compel such firme to conduct their business under conditions to be specified in regulations! The Act appears to be comprehensive so far as control over the operations of meat export firms in this country is concerned, but as the Ministee of Agriculture frankly admitted when it was before the House of Representatives, it is only one step towards defeating and excluding tho Meat Trust. It must, indeed, be added that these results will not be fully secured by any action it is in the power of this country to tako on its own account. Even if it were possiblo to absolutely eliminate unfair competition locally with tho meat companies whose interests are identified with those of the farmers, it would remain to find a remedy for the .control of its operations in our overseas markets. Shipping transport also is of commanding importance. _ Control of some kind over shipping is aa necessary as control over the aotual traffic in meat. Action on the lines of that now taken by tho Government is to bo commended, and may serve a useful purpose To an- extent, also, it is in the power of farmers to safeguard theirown interests. Ordinary foresight will tell them that if they pass by tho companies which lia-vo thc_ same •■interests as themselves in maintaining on equitable terms a profitable trade they are assisting to prepare a noose for their own necks. Butalthough there is muclv. to be done in New Zealand in preventing the Meat Trust getting an unfair grip on our produce, if it is to be defeated decisively international action is demanded. At tho least, Great Britain and her dominions must co-operate in maintaining fair conditions of trade and transport if the trust is to be kept at arm's length. At present the difficult aspects of the problem of fighting and dofeating tho trust are uppermost, but it is possible that tho noxt few months may, witness a

considerable change. Bold measures of reform are in general favour, and action in one country in the interests of reform may inspire similar action elsewhere. Conceivably organisations like the Meat Trust may presently, find themselves subjected to such a developing attack as would leave them without a secure base of operations in any country. But tho immediate question to be resolved is whether . Great Britain is prepared to take such action in conjunction with the dominions as would safeguard legitimate trade within the limits of the Empire. This is one of the matters which should again receive the attention of Mil. Massey and Sir Joseph Wakd on their coining visit to London.