THE MEAT TRUST.

Taranaki Daily News, 29 November 1917, Page 7

THE MEAT TRUST.

GETTING A GRIP, , EVIDENCE BEFORE MEAT EXPORT TRADE COMMITTEE. The very interesting evidence given before the Meat Export Trade Committee, set up by Parliament last session, has been printed, together with the report and recommendations of the committee. Among other things, the coinmittee urges that "special care" should be taken "to see that foreign firms and their agents, and also companies registered in New Zealand, with small capital, which carry on large businesses by means of outside financial support, shall not escape taxation on the grounds that small, if any, profits are made on their trading in the Dominion," while it is also recommended that, to prevent exploitation of both producer and consumer by the Meat Trusts, the Government should "consider a scheme for controlling: (a) The export of frozen meat after the war, and (b) in conjunction with the Imperial Government, the distribution of meat in Britain." PREMIER AFRAID OF TRUST INFLUENCE. The Prime Minister (the Right Hon, W. F. Massey) gave it as his opinion in the course Of his evidence before the committee, that of the surplus New Zealand meat released by the Imperial Government for sale through ordinary trade channels, the proportion which "goes into the hands of the Meat Trust is only about 1 per cent, of that released, and probably would not bo iHore than % pet cent, of that sent from New Zealand. We caimot, however* shut our eyes to the influence. Personally, I am rather afraid of it. They must possess an enormous amount of influence with an enormous capital behind them. . , . The Government must see that there will be na such thing as preferential [shipping] rates- with the American Meat Trust." Again, Dr. ReaV.es (Director of the live Stock and Meat Division of the Agricultural Department) declared that "the incoming of American meat companies into New Zealand constitutes one of the most serious matters that has ever confronted the New Zealand producers. We know (he significantly added) -their history in the United States." A DOMINION-IMPERIAL SCHEME. , A scheme for the joint control of the New Zealand meat output by the Dominion Government at this end and the Imperial Government at the other was suggested by Mr. W. H. Millward (managing director of the Gear Company, Ltd.); In reply to the chairman of the committee, Mr. Millward stated it has squeezed down the producer to a lowe* price, than his stock was worth. "The freights," added Mr. Millward, "were lower than Argentine; and, further than that, what the companies were selling iym their own account in England was far considerably more than the meat released by the Government." Questioned by Mr. W. H. • Field, M.P. for Otaki. he added that he did not think that there was any doubt about it that the trusts were operating in New Zealand. "The trouble is," said Mr. W. G. Foster (managing director of the Wellington Meat Export Company), "the trust companies do not contribute to the New Zealand revenue at *ll as compared with those companies which are registered here and are New Zealand companies. This gives them an enormous advantage over other New Zealand companies which are trading here."

ARMOUR AND CO., OF AUSTRALASIA

LIMITED. Evidence was given by Mv. Washington Carney (a director or /trmour and 'Co., of Australasia, Ltd ) with regard to his company's operations in New Zealand. On a registered capital of £20,000, he explained, .ihey had been able to do business to the yearly value of a quarter of a million sterling, the capital being furnished by the Bank of New Zealand on Mr. j. Ofden Armour's personal, guarantee. The meat handled by the company, he added, was consigned to the Imperial Government under the arrangement that applied to all meat exported from the Dominion; but any surplus meat released for sale in England was nominated to' Messrs McLean and Laurenson, meat salesmen, London. "Is the capital of £!J(),000 sufficient to run your business in New Zealand?' asked Mr. G. V. M.P. for Patea. "Yes," replied Mr. Carney, "it is. ' All our business is done on the guarantee to 1 the bank, and if your bankers see fit to let us have £250.000 on a capital of £20,000. that is up to them. But 1 think, if you will look into the other concerns in New Zealand doing a much larger business than we are, with a very much smaller capital, in the same line in which we are in, you will see there Is nothing extraordinary in our position.'"

NO ARMOUR PLANT IN NEW ZEALANR

Mr. Carney added that there was no Armour plant in New Zealand. They did not own one in the Dominion. During the past year the business done by the 1 company, had been the purchase of 174,. 1 000 lambs, 94.000 sheep, 6000 head of 1 cattle, and 35' pigs; while their total j shipments to date (September 25) had \ been 36,227 lambs, 37,900 sheep, anft 1 17,715 quarters of beef. Last year they ( had started with 22 buyers, 18 on a ] salary and four on commission. At pres- ' ent they had 16 buyers only two of i whom operated in the North Island. Most ; of their meat was frozen at the Belfast 1 adn Islington works. i GOING INTO BUTTER AND CHEESt!. Asked if Armour and Co. were going into the butter and cheese business, Mr. Carney replied, "We are going into tho trade in all the products of New Zealand. I would not say that we are go. ing into the fruit business. These are things which we think in normal times our friends will be able to handle? in tV same way as in t)ie past they have handled them—through the middleman in New Zealand." In r«ply to Mr. Pearce, he stated that possibly the company would be expanding their business in the North Island this year. "NEVER WAS SUCH A THING." "Is there an American meat trust now," asked Dr. Newman, M.P., "ov is it' broken up?" "No, there is no such thing," Mr. Carney assured him, "anfl there never was such a thing." Mr. Carney not only stated that Armour and Co. had bought no freezing works, in the Dominion, but added, "I want to say this: As long as the New Zealand freezing works give us space which w» have had thrs year we are perfectly satisfied to go on as we are. . At to-day's prices there is a great deal of money in it for the freezing works: In

fact, far too much in my. opinion. I dm sucli if Armor and Co. were doing Jt they would say we were robbing the poor farmer." He recognised that the operations of his company were viewed with suspicion in the Dominion; but he declared that Armour and Co, had nothing to hide. All they wanted was a failshare of the business., and he invited the committee to go to Christchnrch and inspect all the company's 'books and correspondence.