LETTERS TO THE EDITOR

Dominion, Volume 12, Issue 81, 31 December 1918, Page 6

LETTERS TO THE EDITOR

MEAT TRUSTS

Sir,—ln reading your article on the American Meat 'i'riwt some days ago I noticed you referred to the New Zealand I freezing companies as having their interests very much Iwund up with those of tile producer, and that lliey have suffered more or less loss during the war. A person unacquainted with the whole question could easily imagine from that that these companies were sort of easygoing concerns, run largely for the benefit of the producer, iiut the fact is the freezing companies regulate prices, although of course in a •mailer way ilinn the American Trust. If they made a loss during the war it was entirely their own fault, as they were not compelled to buy anything, and whatever they did for the Imperial Government was handsomely paid for, I should say. Besides that, they have the New Zealand Government and the producer at their mercy, at any irate, judging by their conduct in tho last, jew years. Government regulations for the shipping and purchase of meat w?tk brushed lightly aside, and the producer finds the meat commandeer a farco as far as the companies are concerned.

Wo all know the meat companies shipped pretty much what they liked, and bought what they liked, and at any price that suiled themselves, during tho last few years. Take the beginning of last season, for instance, after Mr. ifnssoy's very pessimistic speech on the shipping outlook. There was no shipping available, we were told, and every farmer in the country vrsi* a.dvi?cd to grow ferd to carry the lambs and surplus stock through the following winter. Regulations were issued, so that the necessary beef and wether mutton for (he army might be squeezed info Ihe small space available; ewes, if killed at all. were likely to ibe boiled down or tinned, but lambs were not to be touched. -What do we find the freezing eomnanics do? They lowpred the nrice of million all round by about •!*. Bd. per head, which on even the first million carcasses pans out at a nice sum to console them for their losses. As for the lamb that was not to' be touched, they jumped the price from Ids. to ,C 1 and rushed it, as if every day were Christmas Eve, and nothing else worth buying; just fell over one another to buy lamb, light through the season. The companies evidently knew more about the shipping than the Government, or didu't trouble much about the regulations. Can anyone blame tho farmer for being suspicious of the freezing companies and tho power they have?

Tin's season, even without the old shippin; bogey, they hare', again lowered the price V mutton, and as'evidence of their power, dictate a price below that of the Government commandeered rate, which must be accepted or the stock left to waste in tho paddock This lowering of fat prices about ss. per head in the last twelve months affects not only the man who fattens, but every man with store sheep as well, and to the same extent, so that the loss to the producer must run into millions, and the only ones who 'benefit are the freezing companies. What is the use of the Government co>. tinually advising the farmers to increnst the exports when this is the' sort of eii couragement they get? It seems extraordinary, also, in, a free country like this, that, everything the farmer grows is under fixed prices, but a few freezing companies cn.u compel thousands of these farmers to take less for their stock than what that stock is commandeered at. If the Government, doesn f. see that its agreement with the producer is adhered to, the country must conclude that the Government is certainly af tlif mercy of the companies. Considering wages to be still on the increase, and' nearly everything at war prices, and likely to remain so for a long time, this is a most unwarranted effort of the freezing companies to again lower the price of stock for their own benefit-I am, etc., ' pKODUCEE _

I Inquiries have been made from the | local meaf freezing companies about too allegations in this tetter. It is denied that there is collusion for the restriction of prices. It is a fact that all the companies offer the same prices, but the}, arc all buying, on the.same government purchase prices. In the year 1916 there was keen competition for stock owing to the opening of the new works at Wanga-' nui, for tho new,companyhad to buy a footing, and the only way it could do tins was to force prices up. As a, result ot that competition prices were raised somewhat above the opening prices, but it is still claimed that the market did notwarrant the increase. In tho year 191/. tho opening prices were the same as the opening prices in 1916, and in 1917 the opening prices wore sustained, * hich s some evidence that they represented the full value of tho meat.. In both years there was keen competition fo^rtock-. With regard to tho statenunrtihat the meat commandeer was a farce, this.tact is worthy of note. One of the Wellington companies, it is pointed out, used to freeze a considerable quantity of meat for clients before the war-about onefourth of tho total output. After the commandeer this business was continued for a time, and) tho company wouid be prepared to resume it, now. But in the past two years not a carcase has been handled on account of clients. \s fo the alleged lowering of the price of mutton and lamb at. the beginning of last season, the reply of the companies, supported with documentary evidence furnished, is that the opening prices for 1!I17 were exactly the same for most classes of meat as in litlli, that m no case was there a reduction, and that in the case of beef there was an increase of 2s; Gd. per 1001b. \s to tho rusli for lamb alleged by our correspondent to have occurred last, season the fact is stated to be that one of the big worlds hero has still in stovfl every carcase of lamb-killed last season, and «ome of the' lamb from the previous season. It is not the company's loss it that lamb id never shipped. The meat is the properly of the Imperial Government., Somo of the meat may have lost the bloom before it is marketed and will havo deteriorated in valuo in consequence. The companies do not mind having lamb in store, They would in any case have to hold some sort of meat in'store, and it is immaterial what sort of meat it, is. It is denied that tho companies "shipped pretty much what they liked." The amount of space to be failed was allotted by tho Oveaseas Shipping Committee in accord with instructions received from the Imperial Iloord ot Trade, and tho companies filled the space having regard to the preference stated. Usually the preference was first for beet, then for wether-mutton, and then ewe mutton, lamb lieing last of all. Some ships, going to discharge at a I'rench port', would take nothing but beef. The reasons for the lowering of prices at. tho opening of this season are dealt with in an article published elsewhere in this issue. U is further pointed out that of the 15 works in New Zealand only seven are controlled outside of New Zealand. All the others, even proprietary concerns, are owned and operated by farmers, who arc themselves grower,-) of slock for export.!