THE CHICAGO BEEF TRUST.

Gisborne Times, Volume XXVII, Issue 2523, 9 June 1909, Page 5

THE CHICAGO BEEF TRUST.

CABLE NEWS.

MR. KIDMAN’S STATEMENT.

RE THE EXTENSION TO AUSTRALIA.

United Press Association —Copyright. SYDNEY, Juno 8. Mr Arthur Kidman, the well-known cattle Icing, states that when in London last October, ho talked over with Armours tho question of extending the Beef Trust to Australia. Tho idea, however, was pooh-poohed, and may still be pooh-poohed. In Mr Kidman’s opinion it is ridiculous nonsense. It would ho a good thing if tho Trust did make tho purchase of moat in Australia, for that was all it would .do. There was, however, no prospect of it extending its operations here. THE TRUSTIS _ OPERATIONS IN ARGENTINA. [Per Press Association.] GHRISTCHUHCH, June 8. Enquiries miido among representatives of the Canterbury freezing companies and meat exporting. firms failed to elicit that anything had so far transpired to support the statement by the New Zealand correspondent of the “London Daily Mail” that the Beef Trust, which has acquired large interests in the Argentine, wa.s making enquiries in Australia arid Now Zealand, with a view to supplies from tlioso countries being controlled by the Trust. It was stated by gentlemen seen that it had been a matter of common knowledge for some time that the Beef Trust had been spreading its tentaclesin the Argentine, and that it had obtained control of two large native institutions. There still remained, however, five other concerns, three being nativeowned, and thei other two held by British shareholders. These two latter were James Nelson and Sons and the Argentine Fresh Meat Company. Both of these had shops in various parts of the United Kingdom, and dealt directly with consumers. It was regarded as extremely doubtful that the Americans should be able to buy out the companies named, and it was thought more probable that recourse would require to be had to tho expedient crushing them by direct competition. British capital is stated to be largely represented in the three remaining Argentine-owned companies and the beef trust may not even be able to acquire these without a struggle. The aim of the Trust, it is surmised, is not so much to capture tlie mutton trade as the beef trade. . If it can tho remaining Argentine works, the Trust will have practically the beef industry of the world at its command. The only serious competition that is likely to be. offered is by Queensland, but as the beef industry there is only in its initial stages tlie Trust could well afford to ignore the rivalry from that quarter for some time to come. It Is feared by some, on the other hand, that American enterprise in the Argentine may avail to seriously affect produce, and it will not be long before the best Argentine mutton fetches as much as tlie North Island (New Zealand) mutton. The keenness of the South American cbmpetition has resulted in North Island growers exporting lamb in preference to sheep, while -"ime the influence of Swifts began to assert itself (as> the result of acquiring tlie La Plata Company) the Argentine ct tting is largely upon the lamb trade,as well.

It is regarded as certain that if the Trust acquired control of the South American freezing concerns, New Zealand companies would be faced with a bigger problem than ever before. In order to inept the solid front that would be presented by the Trust it is suggested by some- that all New Zealand companies should be represented at Home by a single office, and that some sort of working arrangement be entered into in regard to placing supplies on the market, so as to avoid disastrous “unloadings” at unfavorable times. In any case it is not regarded at all possible that the Trust could buy out New Zealand companies. In the first place it is pointed out that the temper of the people would not permit such a proceeding and would find expression in legislative interference with the proposal. Further than that, even supposing the Americans obtained possession of .Now Zealand freezing interests, their first step would be to reduce the price supplies purchased from farmers. Tee probable immediate effect of this would be that farmers would retaliate by starting freezing works of their own, and if the. Trust desired to retain its monopoly intact, it would have to go on buying up factory after factory indefinitely. _ . - i The opinions of those interviewed by a newspaper reporter point out the necessity of more effectively .meeting American competition on the London market than, is qpw possible by the •action of various companies acting independently of each other. The greatest domaiul at Home is for cheaper classes .of frozen meat, and the Argentine having sedulously cultivated that trade, now practically dominates tho mutton market. Whether it will be successful in capturing the lamb trade as well remains to be seen. No* doubt strong efforts will -be exerted in that direction. As against the possibility of the Beef Trust’s acquiring New Zealand companies, tlie physical configuration of the Dominion is quoted. The Beet .Trust owes its success to the fact of being able to focus supplies of raw material for treatment upon given centres. Chicago is mentioned as an instance of this. Such a policy would bo impossible in New Zealand, unless at great expense. It is regarded as imperative for the successful pursuit of thp industry to retain the (present lengthy chain of isolated freezing works,' stretching practically from one end -of New Zealand to tlie other.