HARVESTER TRUST.

Gisborne Times, Volume XIX, Issue 1559, 15 September 1905, Page 3

HARVESTER TRUST.

VIEWS OP CHRISTCHURCH MERCHANTS. Christohurcb, Monday. In view o( the great importance to the farming community of the question raised in the interview with tho Premier on the subject cf the American Harvester Truss the representatives of both sides were seen by members of the staff of the Press.. Mr Bywater, local representative of tho American Harvester Trust, stated that in an interview with tho Premier on employer had stated as follows:—“ The Harvester Trust had already put a prioe on binder twine, which had made bis firm to stand down on twine this yea". This twine was actually made from fibres sent from New Zealand, and made up in Amerioa. He did not, of coarse, suggest that.ttiey were making a profit." Now, the Harvester Trust had never imported a pound of twine into New Zealand. Last saason they had purchased and paid for New Zealand fibre to the value of £52,000. This was sent to Amerioa and to Australia, made up and sold there. This season they had entered into en* gagemente to purchase and export from here fibre valued at about £75,000. This would go to Amerioa aud Australia, and be made up, sold, and used there. This was New Zealand fibre, dealt with by our own millers, and purchased by the trust from them. The trust were not here for the benefit of their health. They were here to make money, but they did not want 500 per cent profit. Mr Bywater added that the real reason cf the amalgamation was a desire to reduce the cost of management, and thus enable them to sell the machines cheaper to the farmer than wbb the ease before- Instead of wishing to squeeze out the local men, the trust had shown a desire to do what they could to enoourage them by giving orders for the manufacture of oertain machines locally, but they were'unable to get them turned out expeditiously, aud, further than this,' several were sent back by farmers as being faulty in construction, so that in future, though willing to give every encouragement to looai makers, the trust would have to get their Bowers, for example, made in Australia or Amerioa. “Supposing the Harvester Trust oaptured this market, what would be the effect, so far asVthe farmers are concerned ?” was the question put to Mr G. M. Hall, of Messrs Booth aud Macdonald. “ The effect," Mr Hall replied, “ would be simply this. If the Harvester Trust is to be allowed to operate here, and do as it has done in other countries, we shall not be in a position to compete, and our workshops will beoome purely repairing Bhops. A number of men would as a consequence be thrown out of work, aud the farmer would find his market deteriorating. On the other hand, if we were able to manu* facture all the implements in use, we should be in a position to increase the number of mechanics employed by from 160 to 200 per cent.” “Take-the oase of the Argentine,” said Mr Halt. “ There the International Harveater Trust and Victor McKay practically control the sale of harvesters, arid what is the oonsequence ? A harvester there costs £l4O, Whereas in Australia,'where there are 24 firms in competition with one another, the same article only oosts the farmer £BS. Local competition can never possibly do the farmer any harm. But once destroy it, once let him be at the meroy of one large corporation, and be will find out how it will treat him. To cope with the situation here a protective tariff is necessary, probably of from 30 to 40 per cent.” “ Some fear has been expressed regard* ing the effect of this on prices." “It would not affect them," said Mr Hall. “Infact, the manufacturers ere] prepared to give the Government an absolute guarantee that there will be no rise in prices,"eoi long ’as the price of raw material does not go up, This so-called natural protection whioh wo have against manufacturers in America, owing to freights, is a pure myth. With the facilities they possess for freighting in Amerioa, a drill can be sent from New York at present quotations to any one of the four centres of tho colony for £2, whereas it costs us £4 to send a drill from Lyttelton to New Plymouth. So much for natural protection.” i Mr T. J. Meßride, of Papanui, who, | before settling in New Zealand three years ago, was vice-president • and general manager of.the Company, of Canada, made a very clear and emphatic statement as to what would happen in New Zealand if the trust was allowed to have its ffing. “The American Harvester Trust," he stated, “ will adopt euoh measures as it finds necessary to secure the New Zealand trade,. It will strangle this trade for a surety. It now eel's binders hero at from £4O to £45, and the same machines aro sold at from £2O to £25 in the States, so that it has got something to work on." Mr Moßride has a remedy to propose. “ The Government Monopolies Prevention Bill," be said, “ wou'd have a tendency to do good, and it would exempt 00-oparative combination, whioh is an absolutely legitimate form of trust, which would enable our local manufacturers to combine their resources the same as their rivals have done. In that oase the Government should go a step farther, and should protect the industry by out foreign competition from the oolony, The sobeme would not be safe to adopt, unless the manufacturers themselves agreed to cooperate as regards the surplus earnings by returning to the producers—that is, tho workers and the consumers—all over a \ specified guaranteed percentage upon their capital. Ii this plan was adopted," added Mr Moßride, “ it would shut out foreign competition, remove local competition, and prevent the possibility of maunfaotnrers takiog advantage of either looai combination or protection."