THE MEAT TRUST MENACE.

Taranaki Daily News, 6 November 1916, Page 6

THE MEAT TRUST MENACE.

NEED FOR ACTION (M. A. Eliott, in the Dominion). That the above is daily becoming more formidable is now widely recognised, and the time has arrived when k becomes necessary to do more than merely acknowledge the existence of the evil. With the object of stirring' up more interest on a matter of vital concern to the producers, I will place a few facts before your readers. The iirst lot of chilled beef that came to the United Kingdom was a small consignment from Xew York in 1875. For years the American meat did not affect prices at Smithfield, as.only small quantities were imported, but in the decade ISSS-'O'S chilled beef .took up a commanding position in the Smithfield market. From then onwards the Americans gradually obtained a firmc:-- grip of the London market, and combined with their capture and exploitation of the Argentine supplies they now hold a commanding position.

When frozen meat was first handled at'Smithlield, and for ni.inv years afterwards, it was sold by agents on commission, but when the, American firms came on the scene they decided to sell for theni=elves; so they acquired various stalls in the Grand Avenue, paying heavy sums for goodwill.

It is 'recorded that one conminv paid £IO,OOO for the goodwill of {the" lease of one of their three shops. Another has two stall's, another .holds four, yet another have six. It is known that, this latter firm paid £12,000 for the lease of one only or these si:c stalls; and it is believed that a considerable number of shops that are run in other ;.ames are 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 when the market is cornered prices are dropped and the producer is forced to take whatever the trust will give bim, or. have his stock remain or. his hand without a market.

An interesting example of this was given in. an article that appeared in the Dominion or October ltf last. A farmer from X'ew 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. He Said': "I found it was impossible for me to raise cattle for profit because the local markets 'were closed against mo; 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 bo denied supplies by the . trust. A neighbqr wanted to sell two bullocks to a local' butcier, but this butcher replied that he ccu'.d not buy without permission of the representative of the packers. • The community was completely under the thumb of the Meat Trust. The price paid by the consumers was 'high, while the price ].a : .d to the producers was low. The faimer had to soli to the tfust 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 the conduct of his business.' .. " How the producers in th<3 Argentine are exploited is shown by the profits made by the various companies (designated liv numerals) .who combined in the Meat Trust there.' Profits for Paid-up 1915. ' capital 1015 Dollars. Dollars. No! 1 3,288.539 7,321,739 No. 2 715,057 1,038,000 No. 3 1,438,241 1,500,000 No 4 ~ 1,151.910 4.5(10.000 No. 5 770,770 300,000 No. li ......'. 2,124;*07 7,500,000 0,450,020 22,759,739 It will no seen that the net average profits equalled about 40 per cent, of the capital; one of the firms (with a German name) making over 250 per cent., and another concern nearly'loo 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 Frigorifieo Urugayo, or Uruguayan Meat Freezing Works,' at the Cerro. will suspend work on July 15, probably remaining closed, for some five months. The reasons for the closing down, according to the Monte Video Times, is that 'the 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 that obtained from the Frigorifieo Uiiugayo to 1250 tons per month, according to contracts signed on the Ist inst. The plant of th.- Frigorifieo, recently enlarged, is capable of producing up to 7500 tons per month. There is a stock of meat in hand of sonie CSOO 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 is useless preparing meat that cannot be. sent to any market, the Frigorifieo finds itself compelled to close for a time. It may be added that representation.', have been made to the 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 ones, and are evielontly bent on securing control of all supplies. We now come to New Zealand. It is known that at least four of. the freezing works in this country belong to, or are controlled by. the Meat Trust, and persistent efforts are being made to secure others. A statement has been published which, if correct, is an example of how the.Trust manipulated the exploitation of New Zealand lamb on the London market during the past', season. When the Imperial Government commandeered all supplies of New Zealand frozen meat at fixed prices, one of the conditions was that any meat not required, foi. Army purposes would be put back on the London market, to be resold by certain, agents who the shipper had the right to nominate. This worked admirably for. a time, but as soon as the Trust discovered that no lainb was being used for the Army,- then the NewZealand market was open for exploitation, large operators began tc do business in lamb at prices well above those paid by the Government; these buyers would of course only receive in the first glace £ftjment from the Government at

schedule rates, but in view of the certainty that their people would handle that lamb at Home they could afford to lose money at this end, well knowing that enormous profits would lie made at the London end. They also made arrangements with some of the freezing companies that they were able to get most of the space in the works, and the farmers were thus unable (o get their stock through. Tke American firms are fcreign concerns and outside the control of tlic Imperial Government, neither arc they members of the Incorporated Society of Meat Traders, and were able toj put iip the price of River Plate lambs at one time to a.s much as, Is per lb Further than this, the Xew Zealand Government would not move to prevent the American firms obtaining supplies of Xew Zealand lambs, which enabled them to dictate the price and the quantities that the buyers had to take of River Plate lambs before they could obtain any Xew Zealand.

So the agents of the Meat Trust are moving to capture the Xew Zealand markets just as they have captured the control of the meat'at Home, in U.S.A. and the Argentine. How to rescue the Xew Zealand meat trade from the tentacles of the octopus is one of the tasks to which the New Zealand Legislature must apply itself. In two or three of the years immediately preceding the war, several of the freezing companies gave a concession 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 they handed over to the reputed representatives of the Mekt Trust a. large portion of its frozen meat, provided the buyers of the Trust did not operate in this company's district Shortsighted measures of tins kind which endeavor to buy off the enemy are only inducements for him to ei.ter further and further into the fieM, ami unless the remaining freezing v-orks arc to be completely under the thumb of the Trust the companies will have to agree on a scheme of mutual support and combined defence against the combined enemy. Many of the leading producers of this country are fully alive to the position, but so f ar there is no organisation, and without this, individuals can do little; while the ma-, jority of the farmers bury their heads in the-sand, like the ostrich, and refuse to recognise the urgency of action.

All the time while the farmer* and the freezing companies are waiting to let someone else make a move, or delaying until they see what their neighbors are going to do, the Meat Trust is steadily and insidiously throwing out its tentacles.

There is evidence that the Uviial methods employed by the Meat Trust, i.e., the forcing up of prices above a payable limit and thereby gradually squeezing out of existence the smaller exporters and freezing companies already in operation in New Zealand. If this is allowed to continue it is only a question of time before the Trust will have what it aims at, and what it is prepared to spend enormous sums to obtain—that is, the monopoly of New Zealand's supply of meat. Once let this state of affairs come about and the New Zealand fanner will find himself in the same position as his friends in the United' States and the Argentine, and with the greatly reduced prices he will obtain for his stock the values of land must necessarily decline.

The danger is a real and urgent one; the enemy is at our door, and the only way to successfully fight him is by whole-hearted co-operation. The farmers must combine and refuse to sell their stock to agents of" the Meat Trust; the freezing companies will have to agree not to kill on behalf of the Trust, and the Government will have to pass drasfcjee anti-trust legislation. And it will be only by co-operation between the farmer and the freezing company, assisted bv the Government, that the community will free itself of the net that is slowly but surely enclosing it. Therefore, let the farmer beware oi the buyer who now offers more than legitimate prices for >his stock. The farmer may think it is his turn to-day, but assuredly it will be that buyer's turn by 100 per cent, more to-monoiv.