THE MEAT TRUST.

Ashburton Guardian, Volume XXXVII, Issue 9128, 25 October 1917, Page 5

THE MEAT TRUST.

PARLIAMENTARY COMMITTEE'S REPORT.

A WARM CONTROVERSY

WELLINGTON, Oct. 24. Mr Lee laid before the House the report of the Meat Export Trade Committee. : The Committee found that Armour and Co. (of Australasia) Ltd. is a company registered in New Zealand on American capital. It is financed and controlled by J. Ogden Armour, of Chicago. Armour and Co. freeze- nt various works throughout New Zealand, but it was not shown that the company packed meat in New Zealand. Vestey Bros., of Great Britain and Chicago, control the following companies operating in New Zealand- W and K. Fletcher Ltd., Westfield Freezing Co. Ltd., and Whangarei Freezing co. Ltd. It had been suggested that Sims Cooper and. Co. Ltd. were controlled by or assisted with American evidence, but after taking evidence no proof of that had been forthcoming. It was found that in so-far as. buying in New Zealand was concerned the company had financial support: from local banking institutions. . Some - buyers had given'priceß for- stock which -could not be justified in view bt the Government prices; the result being that several 'freezing companies had suffered heavy losses. Ono had to .close for" part' of-last season. It was unsatisfactory that enormous profits should have been made out of the sale of New- Zealand released meat in Britain. The system of giving rebates to large buyers operated to the detriment of small buyers, and tended to create monopolies. Small producers were, prejudiced in the allotting of space to large buyers. In countries where the American Meat Trust had already "established control of the meat trade, it first inflated the prices of stock to kill competition, arid then forced prices down below a fair, market value, which was reflected on.the consumer in the shape of excessive prices. The Committee made the following recommendations:— (1) That legislation be at ouco passed giving the Government power to make it illegal to grant concessions in consideration of exclusive dealing, and to coutrol or prohibit special rebates. (2) That the Government promote legislation' \ generally—(a) to control monopolies, \b) to prevent unfair trading by freezing companies and shipping empanies, (c) to provide for the issuing of licenses to freezing works, and the "business of meat exporters, (d) to deal with shipping companies as common carriers, (c) to make the charges, of such carriers just and reasonable, (f) I

to prevent common carriers giving undue preference to persons or localities, (g) to prohibit the pooling of freights and earnings, (h) to provide that common carriers shall print and exhibit schedules of all fates and charges. (3) That the • Government , should forthwith 'consider a scheme for— (a) controlling the exprt, of frozen meat after'the war, and (b) in conjunction

with,the Imperial Government the distribution of meat in Britain. (Note. — This is necessary to prevent exploitation of the producer or consumer by meat trußtß.) (4) That effective measures should, in the interests of the British' con- ( sumer, be taken by the Imperial Government to control the prices of released meat in Britain.

. (5) That the either in conjunction, with, the.Home or New Zear land v producer, consumer or importer, or with all of these parties, should esta.blißh a controlling interest in freights and shipping between New Zealand and Great Britain.

(6) That the Government should in the interests of the small producer, and in. view of the probable serious shortage' of storage spaco, take power to prevent large buyers monpolising space in freezing works during the war. (7) That special care be taken to see that foreign firms, their agents, and companies registered in New Zealand with a small capital, which carry on a large business by means of outside financial support, shall 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 less than is paid by New Zealand-firms not so financed or controlled.

Mr Pearce Said one very important fact had been .established. That was that an American Trust, C worked by American money, was operating in this country. Armour and Co., of Chicago, operated • here] with a capital of 4000 £o shares; !'3097 of which were held by J, 0 ;Armour,- but it, had not been shown that any J df * the. pperatiohs usually associated with the American Meat Trust were in vogue here. The American Trust owned about' 65 per cent, of the freezing works in Argentina, where prime beef brought only £8 15» to £10 10s, which was about half of what some beasts brought.here. He hoped the Government and the Imperial Government would take immediate- action to prevent- a/similar; state of "affairs here. Dealing with freights, he pointed out that it did not appear from existing conditions that the Imperial Government was looking after New Zealand. It appeared to him that the large shipping rings had a greater pull over the Hoitfe Government than the people here. . He knew of outward freights which had gone up! £4 a ton in the last mo nth/ If something were not done in tins matter, disaster woiild come over the. country.!

Sir Joseph Ward stated that the report was a very important,one. He had boen called before the" committee to give evidence at his own request, because he had heard that Mr Pearce (Patea) was trying to connect him with some of the trusts which were operating here. He was opposed absolutely to trusts and combines of any. kind whatever, and he had never had anything to do with tliem. His company acted as managers for .-'the Ocean Beach Freezing "Company, Southland, which was:'owned by the Federal Steamship Company of England, a purely British concern. The works were for freezing purposes only, and did not buy or sell moat. Mr Pearce had worked round to endeavour to associate him with the American Meat Trust. He (Mr Pearco) had collected newspaper cuttings from

all over the place, and deliberately set about to attack him behind his back, without eyen having the decency to acquaint Him of the fact that he was being attacked. It was perfectly, well . known that the efforts of the American Meat Trust to get into this country were very dangerous. It was the duty of the Government to do everything in its power to protect fair trade and commerce. He did not believe the matter could be solved in the manner suggested by several members. There was no power in the world, to prevent any American meat concern coming to this country and operating. . Eyen if the Government owned all the freezing works in the country and had several shops in England they could not stop Americans operating. The whole controlling factor was the. beef market. Even if Americans were out of the way it could not be imagined that there would not be active competition between different works. In his opinion, if large American companies did get a I hold in this country they would control prices. At the outset prices -would doubtless be high, but in future growers;!wbuld suffer. He would do all possible to keep trusts and combines out of"the ', country. ■' ' Mr Pearce, by way of explanation, said that he had imputed nothing to Sir .Joseph Ward. Armours had advertised that they owned works in New Zealand, 'and Burts of Australia had advertised that; they were -agents:-for' Armours,;,-and controlled the^ Ocean; Beach works.- /■' ■'-." '•'':--. -'■-':■]■■)'

■ Sir Joseph-Ward: That is not Correct. • Burts: do; not own the works. ', Mr ' Massey stated that since ' the Government had taken over the control of meat the value of frozen carcases: disposed of was £18^515,583; In the matter of wheat what they had to do was to look to the future. That was where any danger/ lay, taking a line through r what had occurr.ed in another, country. 1 He mentioned that in Argentina the Trust had taken control of the whole of the Imeat trade. Argentine meat cost.the English jGtoyerriment ;less than Australian or-,^New ■ Zealand meat, on , account of the greater freights from here. In his opinion '(the freights from Homo ■ weire' being increased by the English ,Goy-' ernment in order to discourage exports of goods urgently required at Home. When he was at Home the idea was started that after the war the, Imperial Government and the Dominion Governments would control the whole of shipping and freight throughout the Empire. A Parliamentary Committee had been set up to go into the matter, and he was sure something of the kind mooted would be .consummate*!.: '■'."., ■■-■■ L \ The debate was adjourned until 1 another day. . ; J