LONDON PRODUCE NOTES.

New Zealand Mail, Issue 1248, 30 January 1896, Page 5

LONDON PRODUCE NOTES.

(From Our Own Correspondent.) London, December 13. I believe it to be a " popular idea amongst colonists that there is in Smithfield a ting which exists only for the purpose of keeping; down the prices of frozen meat. Personally I have never been able to trace the outline of that ring, and do not for an instant believe such a thing exists. But it is a fact beyond dispute that for many years past more or less powerful rings have been formed amongst commission agents and importers to keep up the prices of frozen nn-at. Ihe success ol these combinations has not been of a nature calculated to give colonists much faith in any future "ring"; indeed most ol: them have been utter failures, for the simple reason that they never had any reality about them. Hilf-a dozen men met and declared, say, that they would hold their beef or mutton for such a price, and then went back to their businesses, and took just what the buyers were open to give. If five of them did make an eff jrt to keep to the fixed price, the sixth found himself compelled to break away in order to prevent a competitor independent of the ring from getting his customers. To have the slightest chance of success, indeed, a " ring " must needs embrace not only the big men but the minor men also. The non-adhesion of one large importer or agent, or the exclusion of the smaller fry, is fatal, as was shown conclusively in Mr Henry Reynolds' attempt to rectify the evils of the butter market.,

Personally I do not bslieve any organisation partaking of the nature of a ring can succeed unless the colonists accept the policy of concentrating their consignments into the hands of a few first-class firms. And even then some arrangement will have to be made with River Plate and other producers. For what would be the result of an Australasian frozen meat ring's " bulling" if the Argentine importers were unwilling to lend a hand ? The Danish butter people have answered that question for you. They drove up their price, forced buyers on to colonial, and have had to come down in their quotations with a run. !

Still a " ring" may be able to do some good even if it fails to achieve its entire object, and for the good that it may do I welcome the formation of the Frozen Meat Trade Association, the Phoenix which has risen from the ashes of the combination set up some months ago by Mr William Forrest, chairman of the Queensland Meat Export Company. The objects of the new Association are formally defined under three heads :—(1) To promote and protect the interests of the frozen meat trade ; (2) to afford such assistance to members of the Association as may be considered advisable in supporting or opposing any matter .affecting the general welfare of the trade; and (3)

to make, such rules and regulations for the benefit of the Association as may be considered desirable

The subscription is five guineas, and the entrance fee two. It is proposed to engage a secretary and a suitable room. It is pointed out that the practical way in which the Association may benefit the interests of colonial shippers is by the establishment of sections, such as "New Zealand Mutton Section," ' ; Beef Section," " Paver Plate Mutton Section," etc. So far the following firms have joined the Association : The CC. and D. Co , Ltd., W. Weddel and Co., Mcllwraith, Mcftachern and Co., Sausinena and Co., Jas Nelson and Sons, Ltd., W. and R. Fletcher, G. S. Yuill and Co , A Towers and Co, and the River Plate Fresh Meat Co. Here then is the very considerable nucleus of a very powerful combination, and it will be interesting to note developments. As I have said, the Association can do little unless it receives the warm support of colonial shippers, and this I'm afraid it will not get. I remember only too well that the butter committee, which was brought into being by a producer, received, instead of support, vilification, and that, certain of its members were ordered by their consignors to clear consignments at such prices as they could get at the very moment, when, fearing a slum]), the committee had decided to hold for a certain price. At this moment I should like to take 3 to 1 that the Association is minus a couple of its present members twelve months hence.