THE DOOR SHUT.

Sun (Christchurch), Volume II, Issue 457, 28 July 1915, Page 8

THE DOOR SHUT.

FURTHER GERMAN ARGUMENT. ENTHUSIASM IN UNITED STATES LONDON, July 27. Washington reports state that Mr Wilson's unequivocal Note warning Germany has stirred a wave of enthusiasm in the United States. Relief is expressed that the doors are shut to all further argument about the main issue. There is no talk of war, but only of the rupture of diplomatic relations. It is hoped and believed in many quarters that Germany in future will refrain from imperilling American lives and property. The "Frankfurter Zeitung" says:— "If Herr Wilson persists in not yielding to his dogmatic views the world will have to bear the consequences." THE COMMONWEALTH. GERMAN CONTROL OF METAL MARKET. MINISTER RETURNS TO THE CHARGE. MELBOURNE, July 27. Mr Hughes, Federal Attorney-Gen-eral, has made a further statement about the control of metals. He quotes extracts from a letter written by Merton's from London in May, 1910, to the Metallgesellschaft, in Frankfort-on-Maine, suggesting a convention or arrangement whereby "we would be in a position to regulate and control the market and hide our operations from dealers and brokers, and gradually make them afraid to interfere." Mr Hughes adds that the method suggested was approved, and from then the German control o*f the British market was complete. This gives an idea as to how Merton's and the Lead Convention worked. He quotes cablegrams of February 2 to March 11 last, covering offers from a British firm of excellent standing and in a big way of business to the Broken Hill Proprietary Company tp purchase its lead. The firm's agent offered terms similar to Merton's at the same time suggesting certain alternative proposals. The firm's cablegram to its Australian agent asked: "Do the directors suppose that British consumers would prefer dealing with a nest of German Jews? The whole trade would welcome dealing with us. The suggestion is impossible." The firm added that they had to guarantee to produce evidence that consumers of fifty thousand tons would prefer them to Merton's".

Mr Hughes adds: "No business resulted, yet the Broken Hill Proprietary would have the public believe that the company was eager to deal with British buyers." He goes on to say that as a result of persistent pressure by the Federal Government, the Broken Hill Proprietary was induced to give three months notice, expiring on June 30 last, of withdrawal from the Lead Convention, and terminating the contract with Merton's.

Coming to the Broken Hill Associated Smelters' Company's offer of Saturday last to sell lead to the British Government, which the Federal Government has approved of, Mr Hughes says:—"This is not enough. It is just as patriotic to supply genuine British manufacturers of munitions as the War Office." He describes the efforts made to show that Merton's is an English firm and the agent of the War Office and the Admiralty as tactics by which it is hoped to confuse the mind of the public. Merton's unscrupulous methods have driven out all rivals. The Government had only "Hobsoh's choice," to buy through Merton's. Mr Hughes'concluded by saying:—"lt.is essential that all metallic products in Australia and elsewhere should pass through British channels. While Merton's influence lasts, German control is assured. We must destroy it and those supporting it."

A FIRM DENIAL. ! REPLY TO MR HUGHES. (Received July 28, 11 a.m.) MELBOURNE, July 28. The Broken Hill Associated Smelters' Co. has made a reply to Mr Hughes. The statement says that the comany was formed only this j year, with a capital of £750,000, sub- ] scribed by the North and South Proprietary Broken Hill Companies and' the Zinc Corporation, the object being to smelt and refine the whole output from Broken Hill. Under the Articles of Association foreign shareholders were prohibited and no alien was allowed to participate in the management. An independent agency was established in London to sell direct to the consumers. The board on a number of occasions had refused to do business with certain London firms, some of which are apparently approved officially. The company claims that all its operations arc fre'e from German influence or control. On June 2 the company repeated, to the British Government, the offer |to sell the whole output at such prices and for such a period as the British Government desired. Negotiations are proceding, it being understood that the company offered to accept substantially lower prices than the ruling market. The statement adds:— i Mr Hughes apparently believes that the Broken Hill Proprietary and the Associated Smelters' Proprietary are really the same company. It is a mistake, having such grotesque consequences in his statement; that no reply is necesary to a number of his allegations."