WAR ON MEAT TRUST.

Marlborough Express, Volume XLVIII, Issue 112, 14 May 1914, Page 2

WAR ON MEAT TRUST.

AN ARGENTINE COMBINE

BRITISH AND AMERICANS

FIGHT FOR ENGLISH TRADE,

. LONDON, April'l.. •An .important move, in the. Argentina meat trade lias just occurred in the amalgamation of Messrs James Nelson >aJtd Soms and tile jEtiver Plate Bi'esh-Meat'Gompiaay. The value and profit eaa-ning capacity of the former company is fixed1 in the new co-noem at 45 ■'per cent, and that of the latter !at 55 per cent. Messrs James Nelson and! Sons (will be the absorbing company. It is - proposed to reorganise' its capital so that it siball consist '„of 1.'£600,000 of 'six. percent, cumulative ! and jburticdpating preference shares,, [ and £1,400,000 of ordinary shares, and to change its name to the "British and Argentine Meat Company." The company will'■purchase-"the1 assets of the River Plate Company for £657^--000, payable as to £247,000 in prefer-; eiice and £410,000 in ordinary shares, and' th© araouiit to be issued to James Nelson and Sons will be, £537 : ,5wl £202,500 in ptJeference; a,nd £335;000 in ordinary shares. ••' '■ ' [.'•■.'■" Tlie directors of both companies consider that there will be a great saving of expense^ not only in tho Riv€ir Plate, but in many ways )in England, where interefits' overlap. Dq-{ cember-31 last is the official date or absorption, and as 'the new directorate-'. will be ooonposed "of representatives from both compa.ni€iS there lvill be, ho change ica the general direction of the business. , .. i

AMERICAN COMPETITION • , In meat trade circles tlie fusion, of tho two principal English companies is held.to be the beginning'-of a. Ing fight against American tactics in the Argieiitine. ; " During recent years the unmistakable trend of events lias been for the American companies to increase the scope of their operations, entirely at the'expense of the English and native undertakings. The indications are that in the near future the. trade in chilled aiid frozen meat from the Argentine will have passed entirely under United States control: In order' to achieve this object; tho American interests have been willing to do business on. almost any ternis, cattle in enormmis numbers having been bought at' inflated prices, mainly with, a view to preventing their ac(juisition^by rival interests, and quite irrespective, of their probable market value when slaughtered, jn.tlie belief that as soon as the English branch of the industry 'lias been captured selling prices can bo raised to a level which will recoup the Beef ,■ Trust organised by certain financial magnaties in the United States. The success or otherwise of .any consolidation of British-Argentine meat companies must -depend upon their control of supplies and their'ability to maintain an increasing quantity of live stocky It is felt that the new amalgamation should prove successful. • . s ■

POSSIBILITY OF DEAR MEAT. J Last year- one-fifth of the total j amount of boef consumed m this j country—namely, 380,000 tons—was | delivered from' the River Plate. Of ; this total, 192,400 tons, or 50 per I cent., was despatched by two Amen- j can companies, tho ba-lanqe coming j from organisations controlled by Bri- I tish and native interests, who work in | friendly relationship. j "With the. transfer of the United j States from the list of exporting to j that of importing countries, amd'tho i diminution in the available supplies of J beef in European Russia and tho j United Kingdom, there is every prob- ! ability tliat during the next few years beef and mutton prices' will advance. This factor will tell in favor of thoso with sufficient' herds of cattle to keep the market supplied, but any shortage on the part of the com- j panics engaged to maintain a .regular ■ supply of carcases will entail on, the j unlucky stock-raisers disastrous i losses, and it is, therefore incumbent j upon all concerned to s©e that, white ■ maintaining their shipments to this s

country' and elsewihere at a highly level, tiiey are at the same time adding to their herds. ■ it is safe to assert that as far a» stock-raising .is • concerned, English breeders in foreign lands are well able .to'hold"their'own, and will probably maintain their position. AN UNEASY FEELING. "There is no' reason to think that 'riocent changes in the distribution of meat siipplies do npt_ represent the frill limit., of modification,' says The Times, "but only initiate a movement tliad may be sweeping and.vsei-ious.in its effect. The position, in this' country is not j ret acute, but for some time past things have been drifting, lately wi'Jh' gathering speed, in that direction, and a broad survey of the quas'tiv<n/does not allay the uneasy feeling that' lias already shown, itralf. "Tlie River Plate has not nearly reached the. limits of its productive capabilities, and there is also room for. important developments, especially in mutton/ in Australasia and , South xlfrica,' .but it is cleiair that the Ba-itish markets will no longer have a monopoly of the surplus productions, of tlxo new. countries. ■ While the' Uniiied. States are at present the most formidable competitors, meat is forming an'-increasing item in the diet of niaaiy- other nation-Sj and as meatf-eat-j ing extends the distribution of the supplies will broaden, to the detirij mont of the countries most, dependent j upon external provisions."