MEAT TRUST DANCER.

Colonist, Volume LX, Issue 14545, 25 October 1917, Page 4

MEAT TRUST DANCER.

AYH.A.T A SELECT COMMITTiSE

FOUND

AMERICAN OPERATIONS IX .NEW.

ZEAL AMD,

(From Our Parliamentary Correspondent.)

. # Wellington, Oct. 24. Tho Select Committee of the Houso of Representatives appointed to investigate th© alleged operation of the American .Meat Trust in Ke\v Zealand; presented its report to the House today.

In a discussion there was a lively interlude as a result of a inembyr of the committee- cnleavouring. to ■.-■ho-.v that the freezing works managed by J. (t. Ward, Ltd., Invercargill, were owned by Armours, the great American meat combine.

Sir Joseph Ward, in long naotations from the evidence, showed that this assertion was unfounded.

Tho SeJeet Committee reported that Armour and Co. (Australasia), Ltd., is registered in JS'ew Zealand, operate?- on American capital, and is financed and control I**] by A. Ogden Armour, president of tho Armour Company, Chicago, lhis company freezes in various £ew Zealand works, and mentions in a pamphlet that it has a. packing works in ]\ow Zealand, but tho evidence lias not enclosed its existence. Vesty Bros., ef Great Britain and Chicago, conts-o.' the following companies operating in New Zealand':—W. and 11.■Flet-cher,-bid.. West-field Freezing Company. -,vM Whangarei Freezing Company. It had been suggested'that tho Sims. _ Cooper Company was controlled or assisted by American capital, but no proof of that was forthcoming, and--iiuian<-i;i! s.jppcit in Axiv Zealand Guying (vnic irqm local hanking institution*. '6<>i;\£ layers have iiiv^n prices | for" stock -which were not justified in jyiew of the Government races, particularly in the North Island, the result being to canso some freezing companies to .suffer heavy lossesj while one company <:-lo«fid its works for part of- tho season It is unsatisfactory and unfair to Now Zealand producers that enormous profits are made out of the >aJe of -Now Zealand meat in Britain. Freezing companies give large buyers ! rebates and concessions which operate, [against small buyers, tending to create ! monopolies. A system has grown up of establishing companies financed amiicontroMftd from outside .New Zealand, the companies being registered with capital, entirely aisproportionate to ; their" scale of operations. The free/ing works accommodation is sufficient^ .though justifiable complaints are made of space being allotted to large buyers to tne prejudice of small producers. Ihe system of payment f.o.b by the Imperial Government is not conducive to the 'interests of small 'producers, as ittends to put the trade in the hands of large operators. Small producers are not financially strong enough to wait for any length of time for payment, awe! are placed at a disadvantage with, respect to storage and interest" . In some countries the American iMeat Trust has already established control of the meat trade by its operations It first inflates the --prices of stock to kill com- ; petition, and then acts detrimentally to producers by forcing prices down below a fair market value and to consum|6rs by irnpo-sirg excessive prices. .The <:«mraittee finds tiiat, oxcept as of freezing companies, New ■Zealnruj producers have rot suffered, il here is, iiowever, a distinct danger in the growth of any combination which may er.tieavour to control values to the injury <;i: Iwth producer and consumer. ■Ihe. <;omtnittee's recommendations. s-agge«t uo mediate legislation for th 6 eontro^ of inonopoiies, including shipping, -tiivJ to prevent unfair tradioo; and unouo pretereitee to large buyers ia treexui", workp. and shipping space,initt the Government should forthwith r-oiisin<-i ;j. scheme for controlling the ox]x»r?, i:'i frozen meat alter the war m cottjnn-.tirm with the lirperjal Govern™epi } _ iUid the distribution of meat in I>rr r e.in, th\s luaing necessary to prevent tbc i;xploitation of producer or consivmo." by meat trusts; that effective imcasuioß should, in the interests of tho jbrjtii;h <oa? : umer, he-taken by the lm~ |peri;vJ Government to control thfi I priceh of released m^at in Biitain; tha.fr l the <juvfli-nment, either in conjunction ,witii tho Home Government or the JNew Zealand producer consumer, and importer, or with all those parties/should cstahliHU a controlling intorest m freights ami shipping between New Zealuna ar.d Britain.

Daring -subsequent discussion, Sir Josep/s Ward . strongly resented tho suggi'Kiv;.!! of the member for Patea that the Ocean Beach freezing works BJufj, managed by J. G. Wara, Ltd.', were uiniei- American control. fck» showed from evidence that th-* work* were ateotately clear of American influence, and that tiie trust buyers c»ave ihrnr bujuness to a rival undertaking J.h«> s'jormor said there was no doubtthat xh* heads of the .Meat Trust were Pi-aerial]- coUarin X the whole of tho tiade in iHr.gland, and were now in tho position of exploiting both producer turd consumer. The Government wished to see a .sujjiiar position in JNew Zealand avei-teo. Ho ('«d not know wJietber 't wopJd !» necessary to introduce lecrisatjon «n the subject, but if it »Wiie believoii it-would be a good'thinrr tt > do.,w». ihciv 3uty, however, was to%ca jthac thr>. man who handled large ouantihes- ci meat did not put the smaller man ,ii it ■ sercous disadrantaae undev ■the sysicin of rebates. Speakin-r o f tbo ;mereaw m shipping freights, .Mr Ma*spy uttcrod tho belief that the prio-i----].al rosJKon ior tho enormous increase m>igmt,H ■?&» tlw .Imperial Governments aesrn* to-^ovent tlie export of conunotutsrs ivhjfth tl»ey wanted at Hotn.^ Ihe t .i.«im«r added: "We must ooatrol ■surticwnt Klnppmg to prevent anjijhin* m the «i::;iw of'exploiting takih ? place.> 7 .':;«•• f!.scission -was adjourned.