THE MEAT TRUST

Ashburton Guardian, Volume XXXVII, Issue 9053, 25 July 1917, Page 7

THE MEAT TRUST

PLEA FOR ITS ELIMINATION.

MR V. H. REED'S ALLEGATIONS

WELLINGTON, July 24.

Reference to the danger threatening'in e\v Zealand by* tlie invasion ol tho Aleat Trust was made by Mr V. H. Reed in tlie House ol Representatives to-day. ,

Mr Kecd said that the question of whether the Trust was already firmly established or not wjis immaterial. Tho aim of the Government should be to keep the Tr"ust"':out of Mew Zealand if it was not':hefe^*'an^'ffeP-Jbiirn it out if was here. In the';Argeiitine, where, the Meat Trust controlled the, export trado, it had never been the policy'of tlie Trust to build works; it had never erected worl<9 there; the policy of the Trust was to purchase works already established. The Argentine meat,trado was not built up by the Meat Trust, .but by the British. It was after the Trust had got control of the trade in the United States that it went to tho Argentine and purchased ceitain of the works there at large prices. It raised the price of stock to fabulous prices, .making every company -operat-' ing,• in the Argentine lose money. With its enormous wealth, the Trust was "able to withstand the competition. "If vit starts this process in New Zealand," said Mr Reed, " how long will it take it to- knock out tho small cooperative freezing companies, or even tho formidable Gear Company ? The small co-operative company would last no time, but ; would fall clown soon after the Meat Trust began operations." Mr Reed went on to tell how, in the Argentine, the Trust, after getting control by eliminating competition, proceeded to get its money back by reducing the price of stock to the farmers. ' ,

"It is not too early to aofc now," aaid Mr Reed. " Some say it is too late, but if we do not act,at once we. shall find that the Triist'''will'' get a firmer foothold in'the country, and we shall find that the Trust will get an enormous influence, enabling it to block future legislation exactly as is, the case with the licensing question mow. Look at tlie 'unutterable mess the iliguor trade is in. now as to its relation to the people of the country. Why ? Because neither side can move.

"If we shut our eyes fco this question before we know where we are we shall find that tho farmers' companies will be selling out half of their interests to the Trust in some form or other, and then you, will find that you are up against a proposition in regard to the Meat Trade,-in the same way as you are up aaginst a proposition in dealing with the liquor trade now. " The first step to make is to prevent any outside capital being in any freezing "works. Make all the freezing works locally-owned. That is one step, but I don't vsay ;that it. is going to be, sufficient^/ .■ Another!;■ step ; that would '.probably bovadvisable wotild:be; to' prevent, -sales, of 'fat stock in ;th'e' dominion and to make, all producers freeze on":their own account. I know it ia a big step to take, Init to my way of thinking it would be. a. most effective step if fat stock sales were prohibited (except for the local market). This would prevent buying by the Trust. I believe that at the present time ■ • buyers." for"" certain 1 '"- works 'which are reported to belong to the Trust are scouring up and down the Manawatu buying stock and taking it past co-operative works down to , these works of their own, paying the farmers a bigger price than was offering at the door of their own works. What is this being done for ? It is be-ing done to break down these small companies."

Mr Reed nrged also that it was of the utmost importance that New Zealand should secure its own shins in order to fight tin? Trust, which always sought to get control of shipping.