COMMERCIAL.

Press, Volume LVII, Issue 17058, 1 February 1921, Page 8

COMMERCIAL.

MEAT TRUSTS.

NO BRITISH COMBINES. (from ottb owk correspondent.} LONDON, December 10. An interim report has boen issued by the Sub-Committee appointed under tho Profiteering Acts by the Standing; Committee on Trusts. Its work was the investigation of the question of trusts, combines, and agreements affecting prices in connexion with the meat trade. So far as the home-grown meat trade and tho trade in imported meat from the Dominions aro concerned, tho comjoittee has not found any evidence of either temporary or permanent combinations which did, or could, exert any seriously detrimental effect on traders or on consumers. Butchers who were in the habit of buying cattle stated that they had not met with any rings of sellers or dealers, and. it was generally agreed that prior to the institution of the Ministry of Food there was no combination among wholesale butchers or commission salesman. The universal opinion was that the Wholesale Meat Associations set up by' that Ministry in connexion with the rationing scheme would be dissolved as soon as control ceased.

"So far as we have been able to ascertain," the report" continues, "there are now no wholesale associations which exercise any control over supplies or prices In fife retail trade we are informed that 70 per cent, of the retail meat traders of England and "Wales are organised locally into associations, which are united in a National Federation, and 1600 of the retailers in Scotland are members of 29 local associations included in the Scottish Federation of Meat Traders, which was formed about eighteen months ago. No charge was made that these organisations attempted to control prices or supplies. Retail butchers, whom we examined, were of opinion that associations would in the ultimate resort be able to counteract any organisation of wholesalers bv undertaking co-operative purchase of cattle from the markets, but wholesalers, on the other hand, were very sceptical of. the possibility of any such action.

"Complaints were made of speculation which took various forms—the reselling of cattle at various markets by dealers before the animals were finally slaughtered, the re-selling of meat by jobbers at Smithfield, so that it passed through several hands before reaching the retailers; and the selling of whole cargoes of Australasian meat even before arrival, at port. We believe, however, that all such speculation is unorganised occurring only under particular conditions of supplv, and is not characteristic of tne meat trade as a whole. Australasian importers have a certain power of holding back their meat, since it is frozen, but •no evidence was tendered to us that that power was misused. It is plain that such power can only be exercised within narrow limits, since new supplies, are always coming forward, and it is obviioua that it doe» cot exist at all with regard to fresh meat, which must be sold soon after it is killed. The only way of holding up supplies of homeraised moat is. to keep the cattle alive and not send, them to market, as was done to some extent by farmers just before the abolition of control in hopes of higher subsequent prices, but once cattle are ripe for slaughter, it is not economical to withhold them from the market."

The committee draw attention to the growth of Vestey Brothers, Ltd. "The interest controlling this British registered company" they state, "controls also the Union Cold Storage Co., Ltd., subordinate companies with meat works in Argentina, Brazil, Venezuela, and China j meat works operated by W. and R. Fletcher, in Australia and New Zea. land, and Nelson Bros., Ltd., in New Zealand, W. "Weddell and Co., Ltd., and the Colonial Consignment and Distribution Co.j Ltd., which are large importers of Australasianpproducte t and the multiple shop retail companies of W. and R. Fletcher, Ltd., the Argenta Meat Co., Ltd., and Eastmajw, Ltd. They also own the Blue Star Line, Ltd., of meat ships, and do a large business in importing provisions, poultry, and eggs from China, and before the war they had a similar trade from the Continent and Siberia. They are, consequently, an organisation of very wide scope. They do not, of course, possess anything like a monopoly, either local or general. No complaints were made to us of their methods of trading, and, although some witnesses expressed the fear that they might enter into alliance with the American companies, the relations between the two parties, at present, at least, do not appear to be particularly friendly. In attempting to forecast the prospective course of the meat trade, the future of this amalgamation of interest cannot be left out of acoount, and should they depart from their present policy of independence the consequences might be very serious." The greater part of the report i& occupied with an examination of the position of the American meat companies, leading up to the following important recommendations: —

(1) It should be the declared policy of the Government to prevent the percentage of the _ beef trade, which is at present in foreign hands, from increasing to the loss of producers at home and in the Dominions, and of British importing companies. (2) In any legislation which may be contemplated for the purpose of dealing with trusts and combinations, there should be provisions for dealing with the form of co-operation, which we believe to exist among the American meat compaiues, and for the investigation of complaints against these companies, and that the utmost publicity should be given to their methods of business. (3) Steps should be taken to ensure that foreign meat companies should be subject to the. same basis of taxation in this_ country as the British meat companies. (4) The Las Palmas meat works in Argentine should continue to be operated on 'behalf of. the Government, so as to afford a means of watching the developments of cost and price movements.

(o) The control of insulated shipping would afford one effective means of preventing British meat supplies from falling under the domination of particular interests, and, accordingly, the Government should be equipped with such reserve powers, and should ma zitain such relations with the shipowners, as would prevent the diversion of meat supplies from the United Kingdom and the wholesale transfer of British insulated shipping to foreign ownership. . (6) The Governments of the various consuming and producing countries should discuss together the possibilities of making joint investigation into the world's meat situation, with the object of to king such, common action as raav be required. The sub-committee point out that the main field of operation of the live American companies, popularly known as the "Meat Trust," is in the United States. _ The Federal Trade Commission, in its report on the meat packing industry, gave an "unqualified affirmative'' to the questions whether combinations, etc., v out of harmony with the law and the phblic. interest," existed in the industry. The companies themselves admitted that in the past they had worked together in "pools" and other forms of combination.

"They now claim," the sub-commit-tee state, "that they are quite independent of each other, but formal independence is quite consistent with a simple tacit understanding to respect each other's position. That by itself

would secure them all the economic advantages of an active combination, and while a certain amount of freedom may be conceded to branch houses for efficiency purposes, we are satisfied .that all questions affecting the strategy of tho trade as a whole are settled in conference between the heads of businesses in Chicago. • ; "The growth of the British and Irish cattle industry over the last 10 years does not suggest," says the report, "that it has suffered material injury from the competition of imported, meat, though the latter has no doubt kept ihe price of home-raised meat lower than it otherwise would have been. Taking the account given in the report or the Meat Supplies Committee, it is plain that the Empire is, or shortly can be, self-supporting in mutton and lamb, that there is nothing to Jear from tho competition of Argentine mutton, and that the American meat companies have no hold in the sheep-producing areas of Australia and New Zealand. The case is very different with, regard to beef.''

EMPIRE^TRADE.

INTERNATIONAL ADVERTISING EXHIBITION. (FROM OUR OWN CORRESPONDENT.) N LONDON, December 10. In opening what has been called the greatest advertising exhibition ever held in the world Sir Robert Home, President of the Board of Trade, remarked upon the innate modesty of the British people in the matter of recommending themselves to the world. "But in these days," ho said, "it is time we allowed tho world to know of what we arc capable. lam anxious, particularly at the present time, when we are at the period of reconstruction of the world, to push our trade in every region of the hemisphere." Twelve years ago prominent advertisers formed what; is known, as the Thirty Club, and to this club is due the credit of having organised what is certainly unique in the history of exhibitions, and what should give a decided impetus to the flagging trade of this country. The immediate result of modern / methods of advertising was that the general public flocked to the White City in such large numbers that the management were obliged to raise the admission fee. But apart from the interest it has created among the public it is a genuine effort to regain the former commercial eminence which the country possessed. The general depression in trade has brought the manufacturers to a realise tion that America an<l Japan have been too active in the Empire markets overseas -which were before the war the peouliar province of _ exporters and manufacturers of Britain. As soon as peace came, partly out of patriotism and partly because it was both easy and desirable to recapture the home- market, our manufacturers bent their energies to the supply of the needs at their own door. Only—in one or two instances did British manufacturers earmark a proportion of their production for' the overseas markets. It is now realised that if the present stagnation is to be overcome there must be a fierce competition against the rivals who have captured the markets overseas. Britain must export more. This great advertising exhibition which has just closed in London may well be looked upon a? a serious effort towards recapturing the colonial markets —a consummation which doubtless the Dominions devoutly desire. ' Perhaps one of the most valuable results directly attributable to the exhibition itself, is the success, now secured. of the tour of the goods of the British traders through the Dominions, which has been arranged for the spring by the Department of -Overseas Trade. This touring exhibition was proposed some time ago, but the support forthcoming was not sufficient to warrant the tour being commenced as early as anticipated. Indeed, when the advertising exhibition opened at the White City only 108 traders }®ui given their support to the scheme out of . the 500 required to make the proposition financially sound. The Department of Overseas Trade procured a stand at the Exhibition, and in. four days the desired number or entries were guaranteed.

Naturally, there is a good deal of work yet to be done. A thousand cases and a similar number of stands have to be made, but contracts for these have been let with several firms, and it is hoped that the touring exhibition will set out by the end of February or the beginning of March.' Mr L. A. Padsh, head of one of the sections of the Department of Overseas Trade, will-be the Director of the tour, and Mr G. Neill, who is responsible for all the preliminary arrangements, will be the secretary. The tour will be made through South Africa, Australia, New. Zealand, and Canada. Ohristchurch, Wellington, and Auckland -will be visited, the duration of the exhibition in each town J being six weeks. Owing to shipping difficulties it has not been found possible to include iDuiiedin in the itinerary. The object is not only to advertise British good's in the Dominions, but to obtain orders as well. The kinematograph will be a supplement to the scheme, especially for advertising these goods which are too heavy to carry about, such as agricultural and other machinery. The original idea of chartering a special "vessel and holding the exhibition, on boa.rd at the various ports is not being carried out by the Department of Overseas Trade. 'The cargo, consisting of 1000 cubiq tons, ivill be carried on the ordinary lines of steamers, and the exhibitions will take place in suitable public buildings in the various towns. It is hoped that the tour will do a great deal towards fostering trade within the Empire, and of re-establishing that ascendancy of the British which existed before the war.

The Kin» and Queen, Queen Alexandra., ,ana the King and Queen of Denmark, accompanied, by Princess Mary, and attended by the Ladies and Gentlemen-in-Waiting, visited the International Advertising Exhibition, and the King expressed himself greatly pleased that the Dominion tour was now an assured success.

Though the Royal visitors were chiefly interested, in the serious side of the exhibition they had heard of Sir Robert Home's venture in the "lucky dip," and were fascinated with the idea of following his example. Accordingly, each member of the party were presented by the lucky dip gij-ls with >a| surprise packet, amid general laughter and merriment, and they passed on cheerily, the King with a bath and a

packet of cigarettes; the Queen with a bar of soap and a sample of face cream; Queen Alexandra with a bar of soap; the Queen of Norn-ay with sweetmeats: Princess Mary with a diary; the L»die6-in-Waiting with soaps and face powders; and Sir Charles Oust' with a pair of socks. The sponge was given by the King to tho King of Denmark, who apparently had been overlooked'. Samples of powders and polishes were also given to the Queens and Princesses, who di<v cussed them Laughingly as thev went through the "streets" of the city.

The King expressed the keenest interest in the exhibition. Continually he turned to the King of Denmark to draw his attention to some clever and unusual advertisement, asking him if Denmark could show anything as novel. Queen Mary was especially interested in advertisements of domestic articles, and both she and the King spent some time at the St. Dunst-an's stall, examining the work of blinded men. Among her Majesty's purchases were a fountain pen, some diaries, and Irish linen teacloths. In the advertiser's house, where some time was spent inspecting the furnishings, the King of Denmark advised his wife to get a noiseless typewriter, in place of tne one she uses. The posters proved specially interesting to the Royal party, who were delighted with their design and colour.

After congratulating the organisers of the exhibition, the King, before he left, remarked to Sir Robert Home' ''This is one of the really big industries. I did not realise its scope before. One can see that an exhibition of this nature is bound to have a benefioial influence on the whole trade of the country."

imperiAl government wool POLICY.

PROTECTION OP COLONIAL PRODUCERS. (FBOM Otm OWN CORRESPONDENT.) LONDON, December' 10. Mr James Hope, Parliamentary Secretary of the Ministry of Munitions, has issued, a further written statement with regard to the wool policy of the Government. This is the outcome of the challenge, by Mr A. M. Samuel in the House last week, of the wisdom of the Wool Department in refusing to sell Government-owned colonial wools during the past summer at prices which ho suggested were then obtainable. ' 'The wool market has fallen very heavily' sinOe May last," Mr Hope writes, "and assuming that the Government Could have reduced prices without being immediately followed by all other competitive sellers, it is probable that a certain limited quantity of wool might have been sold to better advantage if the. price® obtainable in the summer months had been more freely accepted. The highest estimate that can be placed on the business thus lost is 100,000 bales, against a stock in June last of 290,000 bales., The bids actually made and refused' covered a quantity of less than 25,000 bales." OBJECTS OF THE DEPARTMENT.

The objects which the Department have had in view in gradually reducing its reserve prices, instead of sharply reducing them or abolishing them altogether, are: —(1) To prevent a sudden and disastrous fall which might have had very seriouA and far-reaching effects on home trade.;. (2) to allow the wool market to find its new level in the Australian and New Zealand auctions and not to force that down by action in this country whjch might have been thought by the Dominions to be precipitate and inimical to their interests. It must be remembered that the sheepgrowing industry is vital to Australiaand New Zealand, that prices for their wool were kept' artificially low from 1916 up. to March 31st, 1919, by Government action, arid that wool prices have now fallen to a level which, estimated .in gold currency, is on the average at least 10 per cent, below prewar prices, while almost all other' agricultural produce is 50 to 100 per cent, above pre-war levels. A JUSTIFIABLE POLIO?. "It will be seen, therefore, that the course of wool prices has necessarily been bitterly disappointing to Australian -and New Zealand wool growers, and the Department feel that they have been justified in avoiding any suspicion of having aggravated the difficulties under which the wool growers were now labouring. . British traders and manufacturers have not been placed at a disadvantage with any of their competitors. it having been open to them at all' times to obtain their raw material from tho cheapest source of supply."' HOLDING OF £60,000,000.

A memorandum, signed by Mr J. F. Hone, M.P., Sealing, with the cost, work, and staffing of the Ministry of Shipping and the Ministry of Munitions has been published in the form of a White Paper. "By far the most important problem at present in the raw material section of the Ministry ia the; stock of colonial wool bought in pursuance of war contracts, and remaining on hand," the Memorandum states. "This, at Cost price, at March 31st, 1920, amounted to £.73,483,789, whilst to-day the stock remaining approximates some £60,000,000, comprising about; 2,500,000 bales of Australian and New Zealand wool, about half of which is in this country and in transit, and half in Australia and New Zealand. The elimination of the Central Powers during the war and largely since the Armistice as purchasers of imported"'-wool has naturally increased the difficulties of the situation. Belgium and France have, to some extent, been purchasing British Government wool, both at Antwerp and in London, but, owing to exchange difficulties, they are purchasing aa little as possible. Germany has made no direct purchase nor has Austria; but arrangements have lately been made to supply Austria with £BOO,OOO worth of ■wool, and negotiations are gc(ing lon Sn respect of supplies to Poland.

GENERAL OUTLOOK. "At present new clip wool, i.e., wool shorn since June 30th, 1920, which was not purchased by the Imperial Government, is beginning to arrive from Australia and New Zealand. The Australian and New Zealand local sales have been very discouraging, except for fine merinos and fine crossbreds, and the amount sold so far of all descriptions has been negligible. The sales in New Zealand which opened this month have proved so unsatisfactory that all sales have for the present been abandoned. There are large stocks of low crossbred wools iq South America which are being offered to the Central Powers at very low prices. The fall jn prices in the United States and South Afnca has also been very marked. It will be fteen firom tthe foregoing, therefore, that the present position of the wool trade is extremely difficult. To attempt a forced realisation of £60,000,000 of wool at an early date is, ill the first place, impracticable, ana in the second place, it would rum the entire woollen trade of this country if attempted, quit© apart from the fact that Australia and Isew Zealand are financially interested in the profits realised on the sale of Government stocks of wool." INTERNATIONAL FINANCE. A BANKER'S SUGGESTION. (raoii otm own cobbkspoxdknt.) LONDON, December 10. Mr F. C. Goodenough, chairman of Barclay's Bank, gave an address to the Liverpool and District Bankers' Institute, in which he made a suggestion

far improving European exchanges, the j demoralisation of which is an important cause of trade depression. Mr Goodenough pointed out the example of India. He said that as an essential preliminary to stabilising the rupee at. its agreed parity, India had to close her mints to the coinage of a currency which was already inflated, and in the game way tlliose countries who are daily adding to the volume of their paper currency must close down their mints—i.e., tlieir "printing presses." He agreed that, first of all, the gap betweon revenue and expenditure must be filled by some other means than "sacks of paper,'' but he suggested that even when this reform has been effected it will be found that in most) cases a gold standard will be impracticable. Instead, he ssjid, it might be desirable to adopt a gold exchange or sterling exchange standard much upon the lines of that which served India so ■well. This gold exchange standard ha defined as "one which does not require the utilisation of gold for purposes oS currency, but rests on tho provision, by the Government of the country, oi) foreign remittances in gold, or the equivalent of gold, at a, fixed' minimum rate. There is not necessarily any .undertaking by the Government to convert itS currency, whatever'may be the particular form in use, into gold, but? tlhe Government guarantees to purchase or sell foreign exchange at rates equivalent to the gold import and export parities." Count Sforza, a member of the Italian Cabinet, who has been here on matters nertaining to the relations be--tween lus country and 1 Greece, has also put forward « scheme whereby the trade between European countries can be restored. He gives it as a, purely personal idea. Here, again, the principle, is based upon the intervention of the respective Governments. ."If the. Governments would determine on. some measure by which they could finance their own manufacturers and agent firms," he Bays, "the obstacles in the way of an international trade revival would-bo swept away. For instance, let us say that the manufacturers or one country lhave quantities of machinery, railway material, needed in another country which has stores of grain for export. The two respective Governments, when the business agents have settled all the preliminaries to the deal, could, being in possession of all the necessary documents, negotiate one N with the other. Then tnq one Government could pa ( v cash down to the manufacturers, while the other would, give the same necessary financial support to its grain exporters,- or,. better still, the two Governments in agreement could, advance the money needed to the business agents to carry through the deal. It requires a great deal of careful thought and consideration. But I am . sure that the only cure for the present political unrest and general discontent is the restoration of international commerce on which every country in the world is vitally dependent.'' LONDON "WOOL SALES. Dalgely and Company, Limited, have received the following from their London office, dated January 27th: —Wool sales closed very firm, competition animated, improvement in demand partly due' to American buying 1 . Continental and English buyers or© buying more freely. As with lost sales, closing rates, merino wools, greasy, par to 5 per ogpt. lower. 64's-70's combing- wools are often rather dearer. Merino wools, scoured, par to 5 per cent, lower. Crossbred wools, fine quality, greasy, 10 per cent, lower. Crossbred wools, medium quality,. gie-aay, 10 per cent lower. 36's-40 , s sold at 8d to 9d. Crossbred wools, scoured, eca-rcely any- demand. Free Australian, 35,000 bales | offered, New Zealand 1115. bales. Bulk sold. NEW ZEALAND POTATOES." : (press association TELEGBAM.) INVERCAKGILL, January 31. .. Mr T. Buxton, interviewed here, said that the South Island Potato Growers' Association had decided to make an effort to compensate those groovers who lost heavily last i year. .It was hoped that further efforts to lift the Australian embargo on potatoes j would be successful, and in addition the New Zealand Government should be asked to set up a plant for -the manufacture of starch, flour, motor spirit, and other products .from surplus potatoes. SHIPPING SPACE FOE DOMINION. (PRESS ASSOCIATION TELEGBAM.) WELTjINGTON January 31. The Prime Minister haa received the following cable message from the High Commissioner:—"l placed your request tor a larger allocation of. cheese epaoe before the Ministry of Food who point out that space for 8500 tons, representing considerably mors than tho 500,000 cubic feet authorised, was allocated' in steamers listed for the January loading. The total tonnage listed for the February-March loading unfortunately is very small, partly owing. to tho very poor turn rcund of the ships in New Zealand. _ The Ministry is afraid, therefore, that it will not be- possible in ithose months to arrange heavy cheese loadings, except at the expense of tt private shipment of which will be wanted here, and is be-ginning to accumulate' in New Zealand." The Prime Minister has cabled expressing dissatisfaction at the small ampunt of s, ipping space allotted to New Zealand for FebruaryMarch, awl urging tho immediate transfer of refrigerated steamers to Isew Zealand for «trly loading. The allotment of space in five steamers listed for February loading- hae been made a& follows: —Cheese, 85,100 crates, equal to 425,500 cubic feet; free meat, 252,173 freight carcases, equalling 756,519 cubic feot; •"total epace for free produce, 1,182,019 cubio feet; butter, 198,200 boxes, equal to 297.300 cubic feet; Government meat, 29,177 freight carcase®, equalling 87,531 cubic feet; total space for Imperial Government produce, 384,831 cubic feet.

The Imperial Government meat left on hand despatch of the steumera listed for February loading will be:—6olb freight carcases mutton, lamb, anrl sundries, .16,665: beef in quarters, 474,652; freight total, 491,317 freight carouses.

WELLINGTON "WOOL SALES* (PRESS ASSOCIATION TELEGRAM.) Vv: WELLINGTON, Jenuaiy The wool aalee are proceeding. Th« olfc loguo totals 17,000 bale*. Competitiontho main is by Americans for well dhtod, I'iae-eonditioned wools; the prioeo forawi or* up }d on it-ho last saies, tha securing tho best lianbs in competition the local mills. Merinos *ro not Beally super' crossbreda are well up to fl»* Inst"sailo or slightly above. Faulty asdMdjr' lines are below tlie last aale rates, not wanted. ~ Corriedale realised IM. BOATMAN'S CONSOLIDATED, LUX The mine manager reports u follows & tho period ending January 22nd:—Aq talk cipated in last report the repairing of ti No. 1 level (north) in the Fiery Shaitwu completed before closing- down for the CfaW> mas holidays. The continuation of drive in new oountry was commenosd Mi January Bth, and up to the present 11 iMt have been completed. The country jxjw being traversed is very hard, making jra»grcas somewhat elow. Some time in ]fob». ruary the point should bereachod where il is anticipated tho leef wiQ be intercepted, CHEISTCHUECH STOCK EXCHAKGSV'i

AUCKLAND, January »il| Sales—Bank of New' Zealand, £2 9» 8w Wilson'b Cement, 17s. . , - DUNEDIN, January Sales on 'Change—Bank of New ZcatfaA (20s paid), 486 fid (three panels); Natfoail Insurance, 625; Now Zea bind Paj«r MSIW 28a B<L ,

LATEST QUOTATIONS w Buyers. Selknt £ i. i. A •> ii DEBENTURES— N.Z. Govt. 4J p?r cent. 88 M 1 Inscribed, 1989 ■ — N.Z. Govt. 4J p«r cent. Bonds, J.93S — ei it » N.Z. Govt. EJ per cent. iBonda 1938, 90 0 0 BANKS— ,. ..j Australasia 82 0 0 Commercial of Australia (4 p.o. cuiij prei.) ... — New Zealand .. — i M ( iO[ Boyal Bank .. 1 T 0 19 Union of Australia .. — LOAN AND AGENCY- • GoldBbrough Mort (Mel.) 1 18 6 B" FROZEN MEAT— Canterbury 11 10 0 19 U N.Z. Refrigerating (£1 •••<£?• * 1,1 paid) •• •• — "Wellington (£812a 6d pd.) 4 0 0 GAS— 6 3'« Christchurch (cum div.) 5 IS 0 Wellington .. 10 : 5 0 BREWERIES— 8 li> Manning 1 •• 0 . t MISCELLANEOUS— t 9 A Beath and Co. — ■ British Tobacco (Aus- '{ tralia) ' .. 1 10 0 •" "" : tr . Henry Jones Co-op. (Mel.) N.Z. Farmers' Co-op. 1 16 0 (£2 paid) .. ; — Weeks Ltd. (£5 paid).. 7 0 0 ■''' '•"■'Eg Weeks Ltd. (£2 10s pd.) 6 10 0 - ; ' Writcombo andi Tombs — MINING— -110| Wadhi (cum div.) ; — Waihi Gjand Junction^ ■ — °*i