ARMOUR AND CO.

Wanganui Herald, Volume LIII, Issue 160731, 18 August 1920, Page 11

ARMOUR AND CO.

MEAT EXPOET LICENSE. The matter of granting an export license to Armour and Co. came under review at the Sub-Provincial Executive meeting of the Farmers’ Union today. Mr Hodges stated that there was a feeling among sheep farmers in his district that it would be beneficial to them if they could get a penny or two pence per lb. more for their mutton and that it would be advisable to grant the export license to Armour and Co. provided' the firm was not allowed to establish works in New Zealand. Mr \V. J. Poison said as a matter of fact he did not want the Farmers’ Union to do anything that would make them look foolish. He admitted that the farmers of New Zealand had no desire to be in the hands of the Moat Trust. He went on fp refer to a report on the American combines, known as “the Big Five,” and the methods adopted of obtaining special rebates and holding up prices, 'they were all agreed that these methods were very bad and the less they had to do with the Meat Trust the better. On the other hand they had to remember that they wanted free markets for New Zealand and they were anxious to get their meat into America, and later would come a tremendous demand for pur meat. Under the circumstances, he did not want this question of Armour and Uo. to cloud the w'hole issue. Armour and Co. could now buy our meat f.o.h. and enter into a contract to have the meat delivered at the ship’s side. The farmers of the South Island wore those who had shown the chief concern. They wore- complaining that Armour and Co., being in a position to do so, would continue to buy, but not from the farmers hut from freezing companies. In that case the profit would go into the pockets of the freezing companies, and that was where the South Island farmers were feeling the pinch. There were other American firms besides Armour and Co., anxious to deal with New Zealand, hut the point was those people did not want to come here but were prepared to buy through the freezing companies and were prepared to buy and sell in America. He agreed that trusts were dangerous, and they did not want to encourage them in New Zealaud. They wore not seeking to encourage them but to relieve the accumulation of meat in stores. He could not see the danger of allowing a certain portion of our meat going to America, providing that the Government did its duty arid prevented Armour and Co. from taking advantage of the position. He considered that for the Union to pass a resolution preventing Armour and Go. from trading with New Zealand would be only stultifying themselves. Mr Middleton said Armour and Co. was a monopoly and out for definite gain irrespective of the consumer. A large amount of English ■ capital was invested i@ tho concern, not to say that English monopolists were any better for the community at large than American. He was afraid that if this strong combine was allowed to come into New Zealand with its strong financial backing it would be detrimental to the producers. If allowed to get a hold in this country the trust would fix the price here and at Home, so that the working men could not afford to purchase the meat. They had to look to the future of this country and prevent monopolies. What they required was a free market. If Armour and Co. got control of the shipping they could divert our trade any wav they liked! The matter was then referred to branches for their opinions.