The Press MONDAY, NOVEMBER 26, 1917. The American Meat Trust.

Press, Volume LIII, Issue 16068, 26 November 1917, Page 6

The Press MONDAY, NOVEMBER 26, 1917. The American Meat Trust.

The printed report of the evidence given liefore the Meat Export Trade Committee, from which we gave an extract on Saturday, makes interesting reading. Seldom is it that any commercial organisation lias been called upon to discloso so much of its business is is set forth ' in the evidence of soma of the representatives of the freezing companies and meat export firms called before the committee. We cannot say that the proceedings stride us as showing a very judicial attitude on the part of the investigators. Some members of the committeo crpss-ex-amined general managers and directors companies, and representatives Df high-class meat export firms muoh as an Old Bailey counsel would crossexamine a hostile -witness whom he wished to convict of unveracitv. One cannot help being struck with the oir of suspicion, unsupported by proor. which seems to envelop all tho proceedings. Let us give an example of ■what we mean. Dr. Reakes, the Director of tho Live Stock Division in the Department of Agriculture, in his evidence, said of a Christchurch firra, Messrs Sims, Cooper and Co., that they were reputed to be associated ■with. Swifts. He admitted that he bad made searching enquiries, but had not been able to find any evidence of lock associations; that Mr Sims h n c*

offered him every opportunity of investigating the affairs of his company in Now Zealand, and offered facilities for going to his bank and obtaining everything he wanted in the way of information. Dr. Reakes did not accept this offer, but that did not prevent him from saying, in his evidence, when askod whether he thought the firm was connected with the Swifts or not: "All I can say is that they '* arc very astute and clevor operators, ' and my own private opinion is that "when they started business they prob- " ably got somo financial support from "tho United States. Of course, that " is absolutely guesswork, but whether " they are associated with Swift and "Co. or not now, I cannot definitely "say/' "When we find a high Government official giving evidence after this fashion we can hardly bo surprised that other witnesses, whoso standard of impartiality might reasonably bo lower, stated that "it was generally behoved "in the trade," or "everybody said " so." although they, too, had no positive evidence to offer. The auditor to the firm, Mr C. M. OUivier, repeated to the Committco tho offer which had been made to the Government by Mr Sims, and stated that the firm were financed solely by tho local bank. It will bo remembered that tho Committee, in their report, said:—"lt has "been suggested that Sims, Cooper, "and Co. (N.Z.) (Limited), are con- " trolled by or assisted with American " capital, but after taking evidonco "from various sources, no cvidenco of "this has been forthcoming to that " offcct, but that financial support is " received by the company, in so far "as buying in New Zealand is con- " corned, from local financial institutions."' That tho firm of Armour and Co., of Australasia, Ltd., was controlled by Mr J. Ogden Armour, of Chicago, was frankly admitted without any concealment whatever. It was shown, howovor. that tho firm "bought in the ordinary way, and that competition for stock was even keener on the part of some British companies. There was absolutely no evidence of anything in the shape of "trust" methods prevailing m New Zealand. Tho existence of a great deal of trade jealousy, however, was clearly apparent, especially in the North Island, where the advent of the New Zealand Refrigerating Company was apparently resented by concerns already in the field. Tho consequent competition for stock must have been very gratifying to tho North Island farmers. Doubtless tho company expected competition, and was fully prepared to meet competition conductod on fair lines. They had, however, to meet- a campaign of slander. Rumours were circulated that they were connected with the American Trust, that the "Wanganui works were put up with American capital and so forth. Needless to say, to all these statements a most emphatic denial was given both by the chairman of directors, Mr H. A. Knight, and the general manager, Mr Murray. They stated that the Wanganui works were erected, partly by means of debentures to tiie extent of £150,000 floated locally and partly from their own resources. Mr Murray explained that some years ago there wore somo debentures owned by English shipping companies, but "these were all paid off in 1910. He added that there had never been any English capital or foreign capital in the company save tly> shipping debentures before referred to. "It has not been "asked for, nor dreamt of, nor offered. V There is no more purely New Zealand- " owned concern in the Dominion to"day than my company. We have "no agreements or arrangements, of "any kind with American firms what- " ever." i

Although no evidence was forthcoming that American Trust methods were being applied in New Zealand, many of the witnesses expressed apprehensions as to the future, and nearly all of them urged that a keen watch should be kept, and nny attempt of the kind vigorously grappled with. Very few were prepared with practical suggestions as to how this was to bo done. The favourite solution seemed to be that the entire meat-trade should be kept in the hands of the Government here, acting in co-operation with the Imperial Government, and that the latter should continue to regulate tho prices, even after the war, with the assistance of a Board of experts. The more practical witnesses, however, shuddered at the idea of such a complicated commercial undertaking as the purchase and supply of meat being left in the hands of Government departments. It is, indeed, difficult to see how either the producers or consumers aro likely to benefit by such an arrangement. It is no doubt necessary in time of war. but tho waste and absence of economy must be enormous, and obviously this would have to be borne by the consumer, the producei, or both.