THE MEAT TRUST

Otago Daily Times, Issue 17065, 25 July 1917, Page 4

THE MEAT TRUST

DANGER TO NEW ZEALAND. PROMPT ACTION URGED. • (Fbom Ode Own Correspondent.) WELLINGTON, July 24. .Keference to the danger threatening New Zealand by the invasion of the Meat Trust was made by Mr Reed in the House of Representatives to-day. ~Reed said that the question whether the trust was already firmly established or not was immaterial. The aim of the Government should be to keep the trust out of New Zealand if it was not here, and to turn it out if it was here. In Argentina, where the Meat Trust controlled the export trade, it had never been the policy of the trust to build works. The policy of the trust was; to purchase works already established. After the. trust had got control of the trade m the United States it went to Argentina and purchased certain of the works there at large prices. It raised the price of 6tock to fabulous prices, making every company operating in Argentina lose money. With its enormous wealth the trust was able to withstand tlje oompetir£ 01 \' i',, starts this process in New Zealand, said Mr Reed, " how long ' will it take it to knook out the small eo-opera-Ji e freezing companies, or even the formidable Gear Company?" The small co-opera-t'ye companies would fall down soon after the Meat Trust began operations. Mr Reed stated that in Argentina the trust, after getting control by eliminating competition proceeded to get its money back by reducm S Jne price of stock to the farmers. If we did not act at_ once the trust would get a firmer foothold in the country, and wouid get an enormous influence, enabling it to block future legislation exactly as was the case with the licensing question now. If we shut our eves to this question the farmers' companies would be selling out half of their interests to the trust in some form or other. The first step to take was to prevent any outside capital being in any freezing works and make all the freezing works locally-owned. Another step that would probably be ; advisable would be* to prevent sales of fat stock in the dominion and to make all producers freeze on their own account. It was a big step to take but he thought it would be a mast effective step if fat stock sales were prohibited, except for the local market. This would prevent buying by the trust. He believed that at present buyers for certain works which were reported to belong to the trust were scouring up and down the Manawatu buying stock and taking them past co-operative works down to works of their own, and pay m£ the farmers a bigger price than was offering at the door of their own ■ works. This was being done to break down these small companies. Mr Reed urged that it was of the utmost importance that New Zealand should secure its own 6hips in order to fight the trust, which always sought to get control of shipping.