TRUST METHODS.

Sun (Christchurch), Volume II, Issue 364, 10 April 1915, Page 11

TRUST METHODS.

IN AMERICAN MEAT TRADE. The Trade Commissioner to America (Mr Xiel Nielsen), in a recent dispatch' to the New South Wales Government, makes the following observations respecting the Beef Trust:—"Although certain main facts are commonly known in a general way, when one sets out to secure' proof, it is impossible to do so. The system in force seems to be as follows: —■

"(1) Control of the stock market by getting purchasing options over practically all the stock in the country; this is done by agents in the employ of the trust offering advances to growers of stock. (2) Control of the sale of stock by the ownership or control of the sale yards. (3) Control of or agreement with the railways operating in the main stock districts. (4) The fixing of definite prices for stock of certain generally attained weight, and squeezing out any buyer who offers more or any seller who demands more.

"If the trust agent goes to a grower, and such grower refuses to give an option over his stock for present or future delivery, the grower first finds that his stock is blacklisted, and no buyer in any way connected with the trust or who fears the power of the trust will make him an offer. If he gets someone outside to make him an offer, which, of course, must be based upon delivery at a specific date and to a specific point, he. finds he cannot get the necessary railway cars to carry his stock. If he tries to travel them, no farmer or stock owner along the road, who is N working in with the trust, dares assist him in any way. If the distance is short, and he manages to get his stock to the appointed place at the appointed time, he finds all means of temporary accommodation for his stock closed against him. He cannot even secure for them a drink of water. By this time he has become fully convinced of the power of the trust, and either has to surrender or go out of business as a stock raiser.

The most important power of the trust is undoubtedly the getting control of the stock before it'leaves' the growers' holding. The agent will offer a' certain price for immediate delivery,,,; a price for delivery, say in three or S/ix months, and if the stock is young sometimes on dates extending over two years. The owner gets an advance; he lias to insure the stock, and as the price is not fixed at per head, but at so much per pound live weight, he has in his own interest to keep all the condition on them that he can.

"It is very often specified what he is to feed them on even to the extent of the daily ration, and if,he has not the material on the farm the trust supplies it, and makes this a charge against the balance that is to be paid oil delivery of the cattle.

Tlie power of the trust is accentuated by reason of the railroads, the sale : yards, the packinghouses, and abattoirs being all in private hands, and these various monopolies each work to suit the other by means of friendly understandings, which are not reduced to writing but are kept because of the various means that can be adopted of bringing pressure upon any party to them making a breach. The whole system is based upon the principle, or want of principle, of giving to the grower the lowest possible price, while extracting from the consumer the highest possible price, all the difference being distributed among the various institutions assisting in the exploitation."