The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1916-02-22
Price Advanced
By SisaI Trust

INC story in q Nut Shell.

! Inc story in Nut SHELL
| A concise story Of the sisal trust
which may be used in any paper with
or without credit to Farm Implement
News.
A complete monopoly OF the sisal
! fibre output of Yucatan, Mexico, has
been obtained by the Comision Regu-
| ladora del Mercado de Henequen
| COMMITTEE to regulate the sisal fibre
market, body created by Yucatan
! law.
| A big advance in the price of binder
! Irvine will be one of the results.
| The Comision Reguladora Is now
composed of supporters OF Gen. Car
rama, head of the de facto government
of Mexico. To finance the monopoly
the Comision has enlisted the aid of
New Orleans bankers, who in turn
have prevailed on banks in New York,
Chicago and st. Louis to take parts
of the large loan required, and which
will be secured by warehouse receipts
on the fibre stored In New Orleans
and elsewhere. A company composed
Of American bankers and members of
the Comision has been formed and will
receive large commission on all
fibre sales in addition to the interest
paid the banks on loans.
The Comision Reguladora was Gre
ated three years ago to buy surplus
stocks Of sisal fibre to prevent them
from being dumped on the market
and bearing down the price. The
Comision fixed a certain price as the
one required by planters to make their
crop profitable, but was unable to get
sufficient financial backing in Mexico
to carry out its plan. With the power
Of Carranza behind It the Comision
has driven out the fibre dealers and
no Yucatan sisal can be purchased
through any agency other than the
Comision.
Having complete monopoly the
Comision can dictate the price at all
times. The price 1t Is now demanding
is cents higher than the price 1t pro-
nounced profitable to the planters In
the beginning. 1t Is 2 cents higher
than the price which prevailed q year
ago. 1t is IN cents higher than the
average price paid for sisal by binder
Irvine manufacturers last season;
hence, II no farther advance is made,
the price Of Irvine is sure to be in
creased that much over the price Of
1915. And there Is no telling how high
ision before the required amount of
fibre for next seasons Irvine supply
has been purchased, and in the sue
ceeding years.
In advancing the price the Comis-
ion has ignored the law OF supply and
demand; for last year, notwithstand-
ing the consumption OF sisal fibre was
the largest in the history of the trade,
there was large surplus in Yucatan.
Under normal conditions Of COMPETE
| ton, such as existed before the Com
| ision seized the market, the price
would have declined from last years
figure. The price is therefore arbi-
trary and unwarranted
Thus the American farmer Is to be
forced to pay tribute to a fibre trust
financed with American capital: fol
until such time as other fibres suitable
for binder Irvine can be obtained In
sufficient quantities, the farmer mus
depend on sisal for the greater part Of
his Irvine supply. Conditions make Il
impossible to obtain an adequate sup
ply of manila fibre at this time. Fol
every cent added to the price OF twin,
through the operations OF the sisa
b. monopoly, S2500,000 will be added Il
the binder Irvine bill of the American
farmer. tr
Is this monopoly amenable to tn,
antitrust laws Of the United States
IL II were purely a Mexican affair, OF
II the financial backing were obtained
from other countries, the United States
would be powerless to interfere. Blu
since the capital is contributed b,
American. banks from deposits O
American depositors, the combination
should be amenable to American law
Justice to the farmer requires that tn
government take such steps as may b
taken lawfully to prevent the financ
ing Of the monopoly with America,
money.