BREWERY RING

Hawke's Bay Tribune, Volume I, Issue 176, 12 July 1911, Page 3

BREWERY RING

RAPIDLY SPRE ADIX G. ALARM IX NEW SOUTH WALES. Wagga. July 5. Mr. H. S. Headley, proprietor of the Wagga Brewery, at the sitting of the Engine (hiving and Firing (Sundry industries) Board, stated that in Victoria there was practically a brewery ring. The small establishments in the southern State were practically all crushed out, and, like an American trust,, the ring was spreading out its ten taeles octopus-like over New South Wales, Already, said Mr. Headley, a large number of small breweries in the country towns -"had had to close down, and he recited a big list of towns in New South Wales where at one time breweries flourished. but had been compelled to close owing to the operations of the ring.

Asked how the combined firms achieved the object, Mr. Headley said that it was bv under selling. They sold the commodity in New South Wales at a lower rate than it could be bought for in Victoria, and practically at a lower rate than could pay them. "But that is dumping,” said a member of the board.

i "Yes.” replied the. witness. Mr. I Headley added that one country J firm this side of the border, seeing I ruin in front, had offered to sell j their concern to the monopoly, j The reply was a refusal of the offer ! on the grounds that it was much cheaper to crush them out. Mr. Headley’ said the Wagga breweries would probably share the same fate. The effect of the competition of the ring was already being felt. He paid out something like £2OOO a year in wages. When asked what the effect would be on the price of supplies if the combine proved sufficiently strong to crush the majority or the whole of the small firms, the witness said the price would be raised. The ring was only awaiting its opportunity to put prices up. Unless there was some sort of intervention this would be sure to j happen.