AMERICAN BEEF TRUST.

Poverty Bay Herald, Volume XXXVI, Issue 11871, 8 June 1909, Page 5

AMERICAN BEEF TRUST.

DREADING ITS TENTACLES

ATTEMPT TO WIPE OUT -ARUEXTIXE COMPANIES.

HOW X£W ZEALAND WILL BE AFFECTED.

(Per Press Association.) CHRISTCHUROH, this day. Enquiries made among representative.'* of the Canterbury freezing companies and meat exporting firms failed to elicit * that anything liad so far transpired to ■* support the statement by the New Zealand correspondent of the London Daily Afciil ...that the Beef Trust, which has ac<saif*sl large interests m the Argentine, ■was making enquirres m Australia aud }sew Zealand, with a view to the supplies of those countries being controlled by the Trust. It was stated by gentleman seen that it had been a, matter of common knowledge for some time ,that the Beef Trust had been spreading its tentacles m the Argentine, and that it had obtained control. of two large native institutions. There still remained, however, five other concerns, three being native-owned, and thei other two heto" by British shareholders. These two latter were James ; Nelson and Sons and the Argentine Fresh Meat Company. Both of these, had shops m various 'parts of the United Kingdom, and dealt directly with consumers. It was regarded' as extremely doubtful that the Americans ehould be able- to buy out the companies named, and it was thought more probable that recourse would reo.uire to be had U> the expedient of crushing them by direct competition. British capital is stated to be largely represented m the three remaining. Argentine-owned' companies, and the. Beef Trust may not even be able to acquire tliese without a struggle. The aim of the Trust, it is surmised, is not' so much- to capture the mutton trade as the beef trade. If it can secure the remaining Argentine works, the Tmst will have practically the beef industry of ..the , world under its command. The only serious competition that is likely to be offered is by Queensland, but as jthe beef industry were is only m its initial stages, the Trust could well afford, to ignore ihs rivalry from that quarter for "some time to come. - ■ . ■ . ■ ■'■„-. \ It is feared by some,, on the other hand, that American enterprise m the ■Argentine may avail to seriously 'affect produce, and it will not be long before the best Argentine mutton fetches as much as the North Island (New Zealand) mutton. The keenness of the South American competition has resulted m North Island growers exporting lamb m preference to .sheep, while since the influence of Swifts began to assert itself (as the result of their acquiring the La Plata Company), the Argentine, cutting is largely upon the lamb trade as well. It is regarded as certain that if the Trusty acquired control of the South American freezing concerns, New Zealand companies would be faced with a bigger problem than ever before. In .AAVrder to meet the solid front that would y be presented by the Trust, it ir> suggested by some that all New Zealand companies shpuld be represented at Home by a single office, and .'that some 1 fcort of working arrangement bo entered into m regard to placing supplies on the • ; - Jnarket, »o as to avoid . disastrous "unlonaings'' at unfavorable times. In any •Case,_it Is not regarded as at all possible that the Trust could buy out the New Zealand companies. In" the first place., it is pointed out that the temper of the Ole' would' riot permit any. such proing, and would fiiid expression m legislative interference with the proposal. 1 Further than that, even supposing the Americans obtained possession of New Zealand freezing interests, tbeir first

step would be to reduce the price of supplies purchased from farmers. The probable immediate effect of this would be that farmers would retaliate by starting freezing works of tlreir own, and if the Trust desired to "retain its monopoly intact, it, would have to go on biiyihg up factory after factory indefinitely. The opinions of those interviewed by a newspaper reporter point out the neces•'feiiy v oi more effectively meeting American oh the London market than is now possible by the action of] rarious companies acting' independently' of each other- The greatest demand at Home is for cheaper classes of frozen meat, and the Argentine having sedulous* lv cultivated that "trade, how' practically dominates the mutton market. " Wliether it will be successful m capturing the lamb trade- as -well remains to.be seen. No doubt strong efforts will be j. exerted m that direction. As against the possibility of the Beef Trust's acquiring New Zealand companies, the ■physical configuration of the Dominion 16 quoted. 'The" Beef, Trust owes . its success to the fact of being able to focua supplies? of rnw material f or . treatment upon given centre*. Chicago is mentioned as an instance of this. Such a toolicy would be jmpcissible m New Zealand, unlesa at great expense. It is Tegard*d as imperative for the successful pursuit of. the industry to retain the present^ lengthy ' chain of isolated freezf^' ing wofrks, stretching practically from one end of New Zealand to the other. (Received June fi, 10.30 a.m.) SYD-XEY, June 8. Mr Arthur Kidman, the well known cattle king, states that when, m London last October, he talked ,over ' with Armours the question of extending the Beef Trust to Australia. The • idea; however', was pooh-poohed, and may still be pooh-poohed. In Kidman's opinion it is ridiculous nonsense. It Would bo a good thing if the Trust did ' make ill* purchaee of meat m Australia, for that was all it would do. , There was, however, no prospect of it extending its operations hiere'." .'''' ;' ' : " ""■' .*''