FROZEN MEAT COMPANIES' COMBINE.

Otago Witness, Issue 2809, 15 January 1908, Page 21

FROZEN MEAT COMPANIES' COMBINE.

MB JOHN M'QUEEN'S VIEWS. THE ADVISABILITY OF CONTROL. (Fbom Otjb Own Coebbspokdent.) , CHRISTCHURCH, January 13. A special correspondent of the Press at Invercargill interviewed to-day Mr \Fohn M'Queen, managing director of the SouthI land Frozen Meat Company, in regard to ! the North Island scheme to form a combine. Mr M'Queen said that he had heard nothing about euch a proposal. Some time ago it was suggested that the various meat companies should appoint delegates to attend a conference to discuss matters in connection with the frozen meat trade, and they were circularised to that effect, but nothing came of it, as one or two influential companies apparently did not fall in with the suggestion, and consequently representatives were not appointed^ There -was no combination as far as he" knew, and if~"such a thing existed he, personally, could not see what was to be gained by it. It had been suggested that New Zealand shipments should be forwarded to a central depot in London so that . they might be marketed to better advantage, but he did not think that such a thing wa« likely. " There is no fear," Mr M'Queen added, "of our produce 'not bringing its value so long as the supply does not exceed the 1 demand, and it is abgurd to- contend otherwise. It is claimed by some that New Zealand does not get relative value for her produce^- compared with the English grower, but, after all. the mejket value is obtained, and there is sufficient fair competition to attract the New Zealand exporter to place his wares there." Besides, it was not a market that could be cornered, 'and "he could not call to mind during his experience with the meat trade an. instance in which any move in that direction was made. The Home market was decidedly one which fluctuated with the supply, and when consignments were heavy the prices j were depressed, while on the other hand light supplies brought good figures ; in fact,- to put it briefly, it was the old law of supply and demand, which was to be found everywhere. It might be argued, he said, that if the Home markets were centralised New Zealand might be able to force prices, but the question was how

far they could do that advantageously. If the Dominipn adopted 6uch a policy the consumption would be reduced, and then the oTitput had to be restricted 1 . "We want an unlimited market," Mr M*' Queen declared, "for all we can supply. W« have other countries to contend with — Australia and South America, for example, and in fact the whole of America and come countries in Europe. We ehould be playing into their hands if we formed a combination and unnaturally I'aised the prices." Mr M'Queen, in pursuing the subiect further, 6aid that there was no attempt to form a " combine " in the American sense, though possibly there might be come talk of controlling the English market on the principles he had detailed. He thought there was some foundation for the assertion that if the meat fell into too many hands one would bid against the other, and there would be a rush to h& first to •"unload." with the result that this competition would cause a downward tendency in the price; but as long as New Zealand had the advantage of a free and open market she could come into contact with the distributors and with the great meatconsuming people, and set the advantages of their trade to absorb the supply quickly. As a grower, he would certainly raise his voice against any combination at Home. When asked if the operations of the American Meat Trust affected l the New Zealand trade, Mr M'Queen Teplied that any euch trust was to New Zealand's' advantage, as wherever a trust existed it would restrict the output, so he would cay: "Let them go ahead." He pointed out that the combination N among the freezing companies in South America some time ago had not proved beneficial to that country, and the prophecy that their frozen meat trade was going to oust that of New Zealand 1 had not been fulfilled. Some of the companies were at present barely paying expenses, and some -were only (so it was stated) saveoT from insolvency through the large amount of land they held, which had considerably .appreciated .in value through the growth in population. Altogether, he thought there was nothing to fear from the American Trust. WEDDEL AND CO.'S REPRESENTATIVE INTERVIEWED. AMERICAN COMPANIES' METHODS. Mr G. Goodsir, a partner in the wellknown firm of Weddel and Co., English meat salesmen, has been for some time in New Zealand inquiring into the nature of the trade at this end, and is now in Christchuroh. A Press reporter sought him out to ascertain the importers' view of the step proposed to be taken. Mr Goodsir mentioned that when he was in the North Island a few weeks ago the question was being vigorously canvassed by representatives of the companies there, and a general meeting (of which he has not yet received any intimation) was to have been held subsequently to carry the proposition further. " There is no doubt,", he said, " but that an effective combination would result beneficially to the trade in New Zealand. Extensive savings are to be effected, for one tiling. Better shipjping arrangements would be made, an<T"the present multiplicity of agents at the other end might be obviated. The circumstance is often to be noted at present- of several agents selling for one company, and all selling against each other. That is not good business, and there are many other ways which will readily suggest themselves in which savings ] might be effected and improvements made ! in the present system, which is very much a go-as-you-please. Such a combine, however, would not do much against the American Meat Trust, which is operating considerably to the detriment of the New Zealand trade at Home. The Americans have a marvellous faculty for organisation where money-making is concerned, and in connection with the English provincial trade the price at which American beef may be sold is rigidly fixed every week, and below that no dealer may sell. In London the line is not quite so strictly drawn, although there is a general understanding arrived at daily outside of London. In the provincial markets, where the price is fixed on hard and past principles, Yankee shrewdness comes into full play. In order to secure trade for their beef these companies buy quantities (among other brands) of New Zealand mutton and lamb, and sell them at lower prices than the ordinary dealers. This, of course, injures the trade of the latter very considerably. It might be argued that tho trade of Messrs Swift and Messrs Armour ouarht to prove a. good thing?- for NewZealand. But when you look into it [ closely it is anything but that. If one J dealer is enabled to wipe out two others, J competition is naturally restricted in that proportion. Nor would it be possible for any New Zealand freezing -works combine to refust to sell to the American Trust people, j Their answer to the South American com- > panics indicates that. They simply went j and bought out the works, and^they mjght | just as easily establish works in New Zea- , land. If they want New Zealand mutton and lamb you cannot keep it out of their j hands, because there is nothing to prevent them getting unknown agents to buy it for them The trust controls practically all the retail shops in, America, and it is , quietly buying up shops In England. When , the American once gets his head in -the •. whole, of his body will follow. New Zea- J land cannot hope to fight such a tremend- 1

ously wealthy organisation. Of course it lias not come into direct contact with it yet, but it may. Prudence, therefore, suggests the wisdom of placing the trade on the best possible footing by means of the combination, proposed by the North Island companies." DEARER BEEF. MR REEVES'S VIEWS. Writing on December 6, our London correspondent stated 1 : — Considerable anxiety has been occasioned in England lately by the rise in the price oi meat, and there is talk of a meat trust, of a monopoly in meat, and so forth; but it is pointed out that meat includes not only beef, but also mutton and lamb, which are not likely to bo cornered. "So much," says the Westminster Gazette, "was made plain by Mr Pember Reeves, the always-alert High Commissioner for New Zealand, in the course of a ohafT~which he was good enough to afford to a representative yesterday. Mr Reeves is interested in the question, of course, by reason of the fact that suoh a large proportion of the mutton and lamb supply -the world comes from Australia and New Zealand, and it was reassuring to learn on such excellent authority that, however the matter may stand in regard to beef, thanks to the efforts of the American Trust, which has now obtained ~ such control of tfoe market, there is not the least probability of tho" lamb and 1 mutton supplies being similarly controlled. Mr Reeves put the matter very clearly by means of some figures which he has got out, and which may be taken, therefore, as authoritaive." In the case of beef, Mr Reeves pointed ouit, there s no question as to the vast preponderance of the supply coming from America, North and South. Thus, whereas in 1906 New Zealand exported 121,853 quarters, and Australia 13,112, there came from the Argentine alone 1,768,315. So far as beef goes it is idle to look to Australia to provide an alternative supply to that which is controlled by the great American firms. In the case -of mutton and lamb, however, the case ,stands very differently. In this instance the supnly comes practically from two sources only — namely, Australasia and the Argentine, with the balance of advantage enormously in favour of Australasia. Canada and the United States rear sheep, of course, but none more than sufficient to meet the home demand, the same applying to South Africa and other parts of the world, with the result above-stated, that, speaking broadly, Australia, New Zealand, and the Argentine divide the trade among them. In the matter of mutton, the total supply of Australia and New Zealand is 2,319.891 carcases, or considerably less than that from the Argentine. On mutton South America has the advantage. In the case of lamb, it is the other waj about. Thus, in this instance, New Zealand sends England 2,386,829 carcases, as against only 120,106 from the Argentine. Putting lamb and mutton together, Australasia sent England in 1906 some 5,880,616 carcases, as against 2,919,276 sent from the Argentine, showing an excess from New Zealand and Australia of 2,961,340 carcases. , Any attempt -to corner the mutton as well a 6 the beef supply of the world could only succeed by getting control of the Australasian as well as of" the South American output, and Mr Reeves was very emphatic on the point that by no amount of Yankee enterprise could this ever be brought about. AlQce in Australia and New Zealand, any attempts of this kind would be strongly resisted by all concerned. "In fact," he declared, " I do not hesitate to say that if such a thing were necessary the New Zealand Legislature would pass forthwith an emergency act to make it impossible." It is therefore taken for granted that, however the price of beef may be raised by the operations of those controlling the market, no apprehensions need be entertained of mutton and lamb following suit.