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MEAT TRUST OPERATIONS.

REPORT OF PARLIAMENTARY COMMITTEE. IMPORTANT RECOMMENDATIONS. By Wire.—Our Parliamentary Reporter. Wellington, Las* Night. The Meat Export Trade Committee presented its report to-day. The committee finds that the war necessarily created abnormal conditions in the meat trade. Armour and Company (Australasia) Ltd., is registered locally, and operates in New Zealand on American capital. It is financed and controlled by J. Ogden Armour, of Chicago. Armours (Australasia) freeze In various works throughout the Dominion. Armours (Chicago) state in u pamphlet that they operate works in New Zealand., but the evidence has not disclosed these works, or that the company has such Works. Vestey Brothers, of' Britain and Chicago, control the following companies operating in New Zealand:' W: and R, Fletcher, N.Z., Ltd.; Westfield Freezing Co.; and Whangarei Freezing Co. It has been suggested that Sims, Cooper aiyl Co. are controlled by, or assisted with, Amoricon capital, but no proof of this has been forthcoming. Financial support is received by the company, so far as buying in New Zealand is concerned, from commercial banking institutions.

The committee finds that some buyers have given prices for stock which could not be justified in view of the flovernmellt rates. This has obtained more particularly in the North Island. The result of these undue prices has been to cause some freezing companies to suffer heavy losses, and has brought about the closing of one of the works for part of last season. It is unsatisfactory and unfair that enormous profits should have been made out of the sale of New Zealand released meat in Britain.

Other findings are: (1) That freezing companies are giving large buyers special rebates and concessions. This operates to the detriment of the small buyers, and tends to create monopolies. (2) That a system has grown up of establishing locally companies financed and controlled by outside capital. There is a complaint, which is justified, that space is allotted to large buyers, to the detriment of the small buyers. i(3) That the system of payment f.o.b. by the Imperial Government is not conducive to the interests of the small producers, as it tends to put the trade in the hands of large operators.

Small producers are not financially strong enough to wait any length of time for payment, and were placed at a disadvantage with respect to Storage and interest.

4. That in some countries the American Meat Trust has already established control of the meat trade. It first inflates prices of stock to kill competition, and then acts detrimentally, firstly to producers, by forcing down prices below the fair market value; secondly to the consumer, by imposing excessive prices.

(5) That in this Dominion the producers, except as shareholders of freezing companies, have not, up to the present, suffered from the operations of large firms, but keen competition has induced high prices. There is, however, a distinct danger in the growth of any combination which may endeavor to control values to the Injury both of the producer and consumer.

THE RECOMMENDATIONS. Mr. Lee pro.-0.nt04 to the House U>> mpht the above .tuua -, together with Uw following recoiuniwiiuations: ' (1) That legislation be at once pass(Hi giving the Government power to make it illegal, to want concftMununn consideration of exclusive dealing and control or to prohibit special rebafts. (2) That the Government promote legislation generally: (a) to control monopolies; (b) to prevent unfair trading by freezing companies or shipping companies; («) to provide for ft. emng licenses to freezing works and the business of moat exporters; (d) to deal with shipping companies aB common carriers; (e) to make the chatt»s of such, carriers just and reasonable; (f) to prevent common carriers aiTinft undue preference to persons or \offi. ties; (g) to prohibit pooling of freights and earnings, and (h) to provide that common carriers shall print and exliibit schedules of all rates "and charge* (3) That the Government shoula forthwith consider a scheme for: (t!) controlling the export of frozen meat after the war, and (b) in conjunction with the Imperial Government, the distribution of meat In Britain. (Not*. —This is necessary to prevent the «*- ploitation of the producer or consumer by meat trusts). (4) 1 That effective measures shoßld, in the interests of the British consignor, be taken by the Imperial Govfinmenfc to control prices of released meat in Britain. (5) That the Government, either in conjunction with the Home Govftflfment or the New Zealand produser. consumer and importer, or with all of those parties,, should establish a. controlling interest in freights and snipping between New Zealand and Great Britain. (5) That the Government should, in the interests of the small producer, and in view of the probable seriotjn shortage of storage space, take power to prevent large buyers monopolising space in freezing works during the war.

(7) That spocial care 1m taken to see that foreign firms and their agents registered in New Zealand with 6mail capital, which carry on a large bustnees by means of outside support, Bhall not escape taxation, on the ground that small, if any, profits are made on their trading in the Dominion. Provision should be made that such firms shall be taxed to an amount not leas than is paid by New Zealand firm* not so financed or controlled.

THE REPORT DISCUSSED. SIR JOSEPH WARD ATTACKED. Mr. Pearce said the committee had el. tablished one fact—that American tapttal was bein<* used in connection with the meat industry in the Dominion,, although there was no evidence that the methods of the meat trust had been employed here, but since American finance was known to be in New Zealand, it was necessary that the Government should take such action as will prevent the trust doing as it has done in other countries, particularly in the Argentine, Ha did not agree with the passage in the report, which stated that there was no evidence that Armour and Co. had no plant in New Zealand, and was proceedin" to show that the Ocean Beach works, which were managed on a salary By J. G. Ward and Co., belonged to Armour and Co., when Sir Joseph Ward said if he (Mr. Pearce) proposed to deal Jfith his private affairs, he J. Ward) would retaliate, and deal with Mr. fPearce's. Mr. Pearce denied that his remarks had any personal application. He wa* merely arguing on what the evidence supported. Sir Joseph Ward: It does not support It, and yon know it.

Mr. Pcarce maintained that the evidence supported the view that Afmonr 1 and Co. owned the Ocean Beach works; that they could change their management at any time, and that there was a danger of their getting a footing at that point. He drew attention to the recent increase in overseas freights, and urged Government action to counteract such increases in the cost of living. Sir Joseph Ward deprecated the at-, tempt to hitch him to the American Meat Trust. He had always been opposed to monopolists and combines ot nil kinds, and he was not connected with i\nv of them. He road from the evidence to show that the Ocean Beftch freezing works were owned by the Federal Steamship Company, a purely British company, which acquired them, not for speculating purposes, but with the object of maintaining their shlppmffCOnnoetion with the country. J. G. Ward and Co. merely managed the bttifoWss, for which they obtained a salary. J.'G. Ward and Co. never speculated in meat beyond New Zealand. He wished to make it plain that any rumors to the effect that an American company were owners or part owners of the Ocean Beach freezing works wer» absolutely baseless. Sir Joseph also quoted from the evidence of his manager. Mr. R. A. Anderson, who, in reply to ft question, stated that J. G. Ward and, Co. had no proprietory interest iri the Ocean Beach freezing works, nor did they Bwn any shares. Armor and Co. did all their business in Southland with rival Works. If they owned the Ocean Beach \tork«i they would freebe there. Concluding, Sir' Joseph said ho had never contentplated any member would Wake the committee a fishing expedition against him. nor did he over contemplate he would have to enter upon the defence of Ills personal connection with the large, business With which he' had been actively connected for 36 years Personally, ho recognised the daiißer of the American Meat Trust getting a footing in the Dominion, and ho was now, as he had always been, a free R«ent to tak» any steps' on the part of the State t6 Wuntcract such efforts, but it was jttlt M well we should all recognise th« difficulties surrounding the position. The most effective method, in his opinion, was to pass anti-mohbpoly and anticombine legislation, and, as far as .he was concerned, he would be ready to give his assistance to bring about ftbsolute domestic free trade within this country. . • ■ « , Mr Massey said the report and evidence justified the setting up Of the committee. He dwelt 'H»n,the tapwtnnce of the meat trade to Now Zealand, showing that £18,515,583 worth of meat had been purchased for the Mjr*™{ authorities between 1 Match 3, WIS, and September 30, WYt. He drew attention to the position in the Argentine, where the American Trust completly controlled the market, a position which mtiit b» avoided in New Zealand. He pointed out that while the Continental herds had enormously depredated since the outbreak of the war. the herds in Britain had increased, and as it would take fiveyears to restore the Continental'herds, that meant great quantities of meat would have to be imported, and he urged New Zealand farmers to keen their herds Up to the highest standard. Jn anticipation of the trade in the future. The debate was adjourned, on the understanding that it would be resumed on some future day,

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19171025.2.32

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 25 October 1917, Page 5

Word count
Tapeke kupu
1,638

MEAT TRUST OPERATIONS. Taranaki Daily News, 25 October 1917, Page 5

MEAT TRUST OPERATIONS. Taranaki Daily News, 25 October 1917, Page 5

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