PRODUCE EXPORT

Press, Volume LIV, Issue 16361, 5 November 1918, Page 4

PRODUCE EXPORT

IMPORTANT STATEMENT BY MR JIASSEY. MENACE OF AMERICAN MEAT TRUST. (SMCIXL TO "TH* PRESS.") WELLINGTON, November 'X Important statements affecting New Zealand produce were made by the Prime Minister in tlio course of his reply to representations made by the delegates from the Farmers' Union Conference, who waited upon him. Mr Massey mentioned the wool and meat purchases, the operations of the meat trust, the distribution of New Zealand meat in London", and other matters. Sir Joseph Ward and the Hon. W. D. S. Mac Donald were preSeUt ' THE MEAT TRUST. Dcalina- tvith the suggestion that the operation of the Commercial Trusts Act should bo extended to cover the operations of the Meat Trust, Mr Massey said the Act already covered everything in tiic nay of foodstuffs. A Bill that" was now "being prepared would extend the Act to cover freezing works. Mr Mac Donald: That is the special point of the Bill. H will bo submitted to the Stock Committee, and there will he an opportunity for those who are interested to give evidence. Mr Massey said he realised that legislation would be required, to make it clear that shipping companies were common carriers for the purposes of the act. Mr David Jones (Canterbury) sa:d that the producers wanted the maximum amount of protection with tho minimum amount of Government control. The Government had an exceedingly difficult task in dealing with the Meat Trust, and it would have the sympathy of the farming community even if it did not quite succeed. ' SHIPPING QUESTION. Turning to the shipping question, the Primo Minister said it ought to be clearly understood that tbo whole of the shipping in the trade between Britain and New Zealand and Australia was now under the control of the British Government. The Imperial authorities were responsible for the rates, which wore based upon the Blue Book rates. Personally, he thought the rates were extremely high, but the Ministry of Shipping in London had assured him that they were fixed to cover only actual expenses. The ships wore not on charter; they were fully in the hands (hf tho British Government, which paid the owners fixed rates. Ho had tried to get tho freight charges reduced, but lie had not succeeded. He did not believe that the shipping companies were making the enormous profits that had feeon mentioned. Tho companies received 6 per cent, on the value of the ship at the time it was taken .over by ! tho Government, and also certain other ! payments for insurance, depreciation, and to forth. Sir Joseph Ward said that when a ship was sunk by enemy action, the | owners were paid' the present value j since that was the cost of replacement, j Payments of this kind would look like large profits, but actually the owners got no benefit, since the money went j for the building of new ships to take the place of the ones lost. Mr Massey emphasised that the owners of the ships were not parties to the fixing of rates at all. The Imperial Government had taken over, the ships completely at a fixed scalo. Sir Joseph Ward: The owners have nothing to do with it. We made representation after representation to the Imperial Government to get some of our ships now employed in the North Atlantic, put into our own trade. The reply was that it was more important to move American troops to France than to attend to our requirements, and eo the sliips could' not come back. THE WOOL PURCHASE. Turning to the question of the wool purchase; Mr Massey said at one time he had thought it would bo perfectly safe to drop the requisitioning scheme as soon as the war was over, but he did not think that to-day. The position was that in all tjj© wool-producing countries vast quantities of wool were in store, principally on account of the scarcity of shipping. The wool could not reach the Allied countries, and it was not allowed to go to the enemy countries. When the war ended shipping would become , available, and the accumulated; wool would reach the markets. The wool held in South Africa and the Argentine had not been requisitioned, and would go upon the market directly peace was deolared. He believedi that the releasing of all this wool would 1 causo prices to drop, and liia own; opinion was that New Zealand producers would be wise to follow the example of the Australian producers and accept the offer of . the Imperial Government to take' the wool for a full season after the close of the war. While in London he had secured from the Imperial authorities a statement showing the quantities of wool held in store. Australia on July 30tli last heldj 1,103,178 bales, and the quantity had increased since. Mr Mac Donald: It will be double that by Christmas. Mr Massey added that on the same date New Zealand had 432,346 bales, or nearly a season's clip. South Africa had 124,000 bales, and South America, had 14.6,000 bales. Ho was informed that the South American bales were three times as heavy as the Australian and New Zealand bales, so the quantity might be multiplied by three for the purposes of comparison. The new season's wool was coming in, and it was easy to so© what would happen if all this wool were thrown upon, the open market after tho war. Sir James Wilson: Has the Imperial Government definitely offered to take the wool for a-full year after the warP Mr Massey: Yes, and I think the offer should be accepted. Mr G. M. Marshall: Wellington province is heartily in accord with your view. The executive committee approved the proposal unanimously. Mr Massey: Personally I should havo boen very glad to havo been able to make arrangements with the Imperial authorities to take the whole of our produce for a full_ year after the war. Every store in (New Zealand will be full five months from now, and ualesa shipping comes, as I hope it will come, we will be in a very awkward position. Supposing the Government takes the produce for only three months after the war, there will not be much got away, and how are wo going to get on after that? But if tho requisitioning scheme is continued for twelve months, tho stores probably will be half emptied, and! we shall b® able to carry 011 without serious hardship. I don't~say that they will do that. I sounded them. Th*y have not made any offer for meat after the war. They made an offer for the wool, and I recommend producers to accept an offer for meat and dairy produce for a year after tbo war at the present prices if it is made. A delegate: Has the Imperial Government said that it will take its stulf from the stores and leave us in the lurch ? 3fr Massey: >»■;. The delegate: Then I will trust the Imperial Government. Mr Massey: The Imperial Government as a whole will not have anything to do with this. The people wlvo have to do with it arc the War Office, Ihe Board of Trade, and the Food Controller, and let mo say that I have no confidence in the Food Controller's Department of the British Government. The Prime Minister added that at present eighty per cent, of New Zealand's wool was uspd for the Army. Tho proposal was that in the event of any part of the wool going on the ordinary market, the producers should get a price not lower than the Australian price. Woolrgrowers must realise that if it had not been for the Imperial purchase, they would have

been in » very difficult position for a lons time past. THE NOMINATING SYSTEM. Mr Massey said he did not agree with the suggestion that the nominating system should be abolished in connexion with the meat export. The system had been designed to maintain the old trade connexions, so that there would be no delay about restoring trade arrangements after the war. One of the conditions had been that a. person or firm handling surplus meat in Great Britain should be of British citizenship. Recently a proposal had been made that the American Meat Trust —Armours particularly—who had been purchasing meat in New Zealand, should have their meat sold through their own nominee in London. That would bo the thin end of the wedge, and he had refused positively to give his consent. If the nominating system were done away witli. Armours and other trusts would have the right to havo the meat sold by anyono they likedFOOD CONTROLLER'S METHODS. Referring again to the Food Controller, Mr Massey said lie had no confidence in that officer's department, but he was not in a position to give xne deputation all the particulars ( he ha a. He and Sir Joseph Ward had been present at meetings of thq Imperial C'onfercr.cc when everything connected with the meat tradofrom Australia and New Zealand was discussed. The discussion that had taken place was - on record, but the day lie arrived back in New Zealand he had received a cablegram informing him that for the prcsont the information that had been placed before him must be regarded as confidential. He was handicapped, therefore, in trying to explain to the deputation his feeling with regard to the Food Controller. "I think that I can put it this way," continued Mr Massey. t: I do not think that wo had anything much to complain about until April of the present year, but about April of the present year it became necessary to get American soldiers to I' ranee, and many ships were withdrawn from the Australian and New Zealand trade for the purpose. The Food Controller said that food requirements must come first. AVo must admit that tho ships having boon withdrawn from Australian, Now Zealand, and the Argentine trade, it became necessary for the Imperial Government to get supplies of meat from other sources. The Food Controller went to the Meat Trust for the suppliers of meat in America, and made arrangements to purchase an enormous quantity of beef for the civil population of Britain and the Allied armies. It was found that a very large proportion of this beef was unfit for liuman consumption. .It was necessary then to increase the price. The price waa increased to the middlemen and consumers, and in jjutting up tho retail selling price of meat, of course the Food Controller included New Zealand and Australian meat. I havo to tread earafully in dealing with this matter. I was informed l>y people interested, and by officers of the Commissioner's Department, that the cost of our meat in store in Ehgland was B?jd per lb. Tho Board 1 of Trade (passed the itieat on to the Food Controller at lOd nor lb, and then the Food Controller sold to retailers at Is Id per lb. He made a nrofit of 3d a lb in addition to tho nrofit made previously by the Board of* Trade. This brought the price up to the same level as American beef, which -s iuferior. The retailer made another profit within tho maximum price fixed for him. Dp you see what has been happening? Tho Food Controller makes very large profits 011 our mutton and lamb, for they do not sell our beef in the open market, and tho inference is that lie uses this profit to make up on the American meat. There is no other explanation I can think of. All of our lamb, and part of our mutton, has gono on the British market. I have the figures, but I am compelled to regard them as con-' fidential. It is not a satisfactory position. THE SHIPPING OUTLOOK. Mr M'issey, referring to tho supply of shin?, said he expected that twelve ships would be loading in New Zealand before, the end of the year. Some day after the war, tho discussions that had taken place in London regarding the j meat would be published, an.d the facts would, then be plain. He could 6ay that a3 soon as the ships came back to the Australian and New Zealand trade —and he hoped that would be very soon —the Dominion's meat would get to London, the Imperial authorities would cease to buy the American meat. Sir Joseph Ward : The American meat is to be stopped then. The Prime" Minister mentioned that he believed the old trouble ovor the weight allowance iri London was going to be overcome. He had not been able to make definite arrangements, but he had little doubt that the producers were going to bo saved tho weight allowance. He was entirely convinced that the Dominion must fight against the Meat Trust. If the Trust were allowed to get a footing in this country, it would be the blackest day in New Zealand's history.