THE HEAT TRUST

Dominion, Volume 14, Issue 24, 23 October 1920, Page 10

THE HEAT TRUST

FURTHER DEBATE IN HOUSE COUNTRY MEMBERS DO NOT AGREE SUPPORT FOR ARMOUR AND COMPANY The rocommendatioii of the Stock ComI'tiitlco that a meat export licenso should not 'be gran tod to Armour and Company of Australasia was further discussed by tho House of Representatives yesterday. Tin committeo had stated that Armour an;! Company of Australasia was a subsijliary company of Armour and Company of Chicago, which, in common with other companies, had carried out practices inimical to both producers and consumers.

Mr. D. Jones (Kaiapoi) said that the real ;ssue had been clouded by many references to what the Meat Trust in oast years had done in the United States. New Zealand, as a matter of. fact, had been doing business with the Americans for twenty years, and it wished to continue that business. Yet the meat coulo not' got into tho .American market without the aid of the biir companies ■ controlling the cold stornee. All the freezing firms in New Zealand had been selling to Armour and .Company for tin last tin or fifteen years, and the refusal of a license meant merelv that tho American linn must work through an neent .her; ss in London;-' The men who were fighting the license were the middle* mon, who wanted commissions. Mr. Jones stated thnt New Zealand was ui against a British trust finite as dangerous as any American trust. Lamb lia never brought its fair market price ir. London and every New Zealander who had gone to Britain to make inquiricu: on the point had found himself uagainst a brick wall. Tim Government had put obstacles in the way of Armom and Company, but it had allowed Vestev Brothers to establish control from Whangare.i to Gieborne. Ho considered it bad business, and an net of injustice '> differentiate against the Americap firm. Mr: G. "Witty (Riccartonl, speaking a* one who had had experience in stock dealing, said that he had done business with Armours and, had been fairly treated by tlifijii He complained that impolicy of dentins with these woplc wiv paltry and mean. If they proved a menm at any time they'/ould bo stoppp<. flrom oporating. If meat was to be sold to America, why - not allow the Americans to'operate in the country aiuso eliminate the middleman? He quote;, messages received from farmer constituents urging that Armours be allowed to operate on the. grounds that it would

improve competition in the markets, l'o. tliis to happen, he desiired, would he a benefit to tli? fnrracM. The Government Congratulated. Mr. W."D. Lysiiar (Gisborne) congratulated the Government on its afctituJq. The ll'l'usal of a license to Armour and Co. was in tho interests of thei formers, and that fact would be realised in lie years to come. Ho regretted that the branch of the American Trust had found so many supporters in the House. A vory great deal of propaganda kid been proceeding," and the ' representatives of Armour and Co. before the committee

had been compelled to admit that some of the statements published on thair b«hnlf were not correct. They had mado that admission when confronted with Hie sworn evidence of their principal, Mr. J. Ogden Armour, of Chicago. Tiro firm under discussion had drawn its capital from J. Ogden Armour, and it was operating in : his interests. There could I.e "0 argument on that point, since tJ.n facts wSre admitted. This principal had [iilmitted in the United Stales 'that ne lias spending a year on propaganda. This money was not subject to, audit, and smno ot it might lie coming to New Zealand to-day. It had bt|jn shown that Mr. Amour paid .£160(1 a 'year to tli« editor of an American trifle journal. Mr. Tyson added that he regarded Veslny .brothers as n similarly dangerous firm. Vestey Brothers l.ad a capital of i'2MM in New Zealand, and owned works to the vahiA of ,£500,e00. It was escaping its- just share of taxation. Evidence before tho Slock Committee had shown that Armour and Co. had never paid any income tax in flew Zealand. ,' . * Mr. O. J. Hawkon (Eginont) said h» was generally iigainst aggregations of capital such as the trusts representeel. .Hi a democratic country snow a tiling should be made impossible. The Meat Trust was one of the most domimui'ig I rusts in the world. In the United Stales they handled 8G per cent, of th* meat products, in the Argentine three-qunrfeirs, and in other countries an equal amount. And now the Government, knowing tho methods of tho trust, was being asked to "rant a license. If once a license were "ranted the firm would lie hero to stay. TlU'v did not come to buy a little meat but'to dominate the market. To prevent them from owning freezing works would 'be no safeguard, because they could domirato the stock market, and cut off supplies from any works. The fanner would naturally sell to tho highest bidder, ard the trust's grip would be assured. Another potential danger was from .lie trust and tho shipping working together. \. rebate of sixpence on sheep $n t!ie freight to London would enable any one .shipV to drive out all competitors, lor tho Meat Trust to work with shippng companies would enable it to dominate the markets of -the wholo Empire. • Mr if. T. Jennings (Waitomo) thought that if the farmer was entitled to the hi'.'host price for his butter he was also entitled! to the highest price for us meat. What had happened in the Uniled States had nothing to do with New /enland. The- American Government had dealt with tho "Big Five" and had suppressed objeotionable methods just ns the Government hero had suppressed the tied Mr. S MaS6ey: Do you think we MM Air Jennings assured the House that, the evidence given before the commute* on behalf of Armour and Company hn been very strong, and that m any case there we're other trusts at work in *.«* Zealand. Armour and Company was not altogether an American company. It was bianch or an Australasuu compnnv. Mr Massey: No. I have tho document here It is ft subsidiary company of Ar-, mmir and Company of Chicaen. Dr Thacker Christchurch Enst) nam the Government wee to be complimented on tho stand it hud taken on the ma tor. It had been declared by earlier speake* 'hat .the United States Government had St' effectually with tie Meat IrusU but that was one of tho Teasons why tho trust was seeking to operate in .mw

51? Isitt (Christchurch North) said the whole thing seemed to to «i wml> >« between two sets of oimtalß s. 1 Io M ..of; know n groat deal about the ones lion but. he nvust give mmt , weigh > the testimony .of a man like Mr Aciami. «-ho bad so much to do wit.) sheep. Tlr Thaclcer; He was a supporter of yours at tho Inst election. He was your Why did not Mr. Acb.nd irji'- evidence? ~ Mr. IsUt: Ho was away in Australia. Mr. Lj-tmiiT-. Ob no, be was not. '■« lias been buck for some week*. Mr. Tfilt said he had not. yet made up his mind how to vote on tho question No Need to Fear Competition. Mr. ,1. If. Hamilton (Awnyin) said tills was a case of a trust being thrcati-ne'l hv a trust, and they as fanners wanted a'littlo healthy competition nt this stitgn. It would bo in the interests, of them all. So long as tho markets of the world wer« open there would bo any amount of capital ready and willing to buy nail hcnd it there, so why should they be frightened of competition Tho farmers were desirous of Belling to Armour and Company mid tho Government wo-ro objecting. Mr. W. D. Tow-droll (Patcal said he had not had any idea that there were so many rascals running freezing works in the South Island . (Laughter.) The North Island freezing works wore run on co-operative lines and their motto usually was: "No dealer entew here.'' But the, South Island works, built with fanners' money, were used to mako money for dealers at the farmers' expense. The men who wauled Almoin and Company to receive a license were too mean to build works of their own. and lioy wanted Amoriean capital to-be,

used on their behalf. They were shortsighted enough to ask an American "trust to come along and make a profit out of them. The farmers could not prevent Armour and Company Inlying New Zealand moat, but they need not invite them to do it In the paddocks. Let the Americans buy tho meat after it was shipped.

Mr. H. Atmore (Nelson) quoted evidence of the Meat Trust's unfair methods in the United Stales and reminded tho House that American law, while suppressing trusts at 'home, permitted the formation of trusts that were to operate in other countries.

The Loader of the Opposition (Mr. YY'ilford) said'that tho discussion was resolving itself into a controversy between the North Island and the South Island. He hoped tho vote, would not bo taken on this basis." Ho would naver vote to admit a trust to New Zealand. The trusts had operated against public interost in tho United States. Mi'. "Wilted proceeded to point out that Iho Jones Bill, which had been pas«d by both Congress- and Senate in tho United Slates, would enable Armour and Company to secure special transport facilities in t'* United States. Tliis Bill had been held up bv President Wilson's veto, but there would be a new President after next month. . ~ „. Mr. M'Leod (Wnirarapa) said this country must depend for many years foi its vovenue -upon the primary woducts, and co-operation was the principle that should be encouraged in this connection. Ho referred to tho menace of tho shiplying trusts that had grown during the war and said that we had growing concerns in New Zealand that were hkel to become trust-,. The trusts knew thin thoy were being dealt with in America and' would bo dealt with in Kng and. so now they were trying to establish themselves at the buying end. He was convinced that" the groat majority of tht producers in this country would stain, behind those who were opposing tho )ie-

Mr ' S. G. Smith (Taranaln) supported tho recommendation of the committeetie was convinced that the Meat lrust was already operating in ?>»«' /Sealaiiu. and that tlio interests of producers anu consumers would suffer if its operations were extended. n Mr A. Hamilton (Wallace) .thought that the Government was condemning Armour and Company upon mere suspicion. There had boon a diversity of opinion upon tho question in the coinmiv tee. Ho had spoken to many genuine farmers about the matter, and none or thein had said tho fort of thing that he had heard in tho House. i member: They want the gold. Mr. Hamilton rejoined that it was no l ' a question of "wanting gold," but 0110 o? honest conviction. Everything! that tincompany had done it 'had done openly and honestly, it would have been quite easy for tho company to come in under a false name. He did not believe that the. people of this country should do anything to otl'end their American neighbours. Ho bolieved that vhut t.!,„ y o v eminent should .do was to deal with New Zealand combines. The Labour Party was opposed not only to Armour and Company coining in, but also to local combines operating, said Mr. H. E. Holliind 5 (Bulier). Ho considered that the Government should take over tho industry,. The dinner adjournment arrived before Mr. Holland hfid time to speak more than u few sentences. "WRONGFUUONSCRIPTION" COMMITTEE'S ADVERSE VERDICT. A Christchurch musician who wanted compensation for "wrongful conscription'' was the subject of a division in the House of Representatives yesterday. Tim man, it was sUtted, was drawn in tho ballot and passed by tho military doctors as fit for tho CI canty. lie was a ; neurotic, and was alleged to be suffer iiig from St. Vituß's danco. sciatica, lumbago, heart disease, sunstroke, and other complaints. He did not go into camp. He went to hospital instead, and durum his stay in hospital he lost a number of pupils. His ill-health had continued, and he now asked for assistance from Parliament. The chairman of the Defence Committee (Mr. Glenn) said flic committee had no recommendation to make. The pc-ti--tioner had not- been in camp, and hail performed no military service. .110 lina gone into hospital when the CI camp was suggested to him. His sacrifice, remarked Mr. Glenn, was a very small thing compared to tho sacrifices of 1 lie Inen who had actually* served in 4 the forces.

Mr. Isitt (Chrislchureh North) divided the House on a proposal that the report

should be referred buck lo tlift committee for further caasicleration. His amendment was rejected liy 38 votes to 20. Opposition and labour members voted with Mr. Isitt. a- mastertonTpetition Upon the .recommendation of the linitwaya Committeo the House yesterday referred to the Government for consideration the petition of Mrs. E. .T. L. Welsh, of Mastcrton, who sought an increase ol' an allowance granted in respect of the death of 'her hiisbnnd. The deceased was .an engine-driver. He mot his dentil in 1910 at Matnron, while on duty' with his engine. DISCUSSION OP PUBLIC WORKS ESTIMATES When the Public Works Estimates were presented to the House last night, the Leader of the Opposition (Mr. T. M. Wilford) inquired when the discussion upon them would take place. The Prime Minister replied that he could not say definitely. He thought that the discussion might be held on Thursday or Friday next.'