The labor world. [volume] (Duluth, Minn.) 1896-current, 1916-11-25
DEFENDS YUCkTAN
S|sAL BOARD FOR
BREAKING TRUST

NEW YORK, Nov. 17.-Sol WEEK.
Ter, president of the Pan-American
commission corporation, which is
loaning money to the Yucatan gov
eminent commission regulating the
sisal output, defends the Yucatan
board in an article in The Wall Street
Journal. *
The Comision Reguladora is an as
ISOLATION similar to that of the Cali
fornia fruit growers, Mr.. Wexler says.
The association on the part of the
planters, assisted by the government,
became an absolute necessity by rea-
son of the fact that 80 per cent of the
whole production, of Yucatan sisal
was purchased by two concerns,
working in harmony. one of which
is one of the most severely criticized
trusts in America, against which pro-
ceedings have been taken : in more
than one state.
Broke Trust Control.
The practice of these two corpora
lions was to remain out of the market
until the Yucatan growers were
forced, by need of funds. to sell at
any price that was offered: After the
bulk Of the crop had been thus pur-
chased at prices which left the farm
er no profit and often caused a loss,
the small quantity remaining was
systematically advanced. 50 as to Gre
ate a basis upon which to fix a high
price for binder Irvine to the Amer
lean farmer. BY this means both the
Yucatan grower and the. American
user were MIXED for the benefit of
the two concerns referred to.
AS the growing of sisal is practi-
cally the sole sustenance Of the entire
population of the state of Yucatan
and its prosperity is, therefore, so en-
tirely dependent upon the price OBJ
tanned for this product, the govern
ment undertook to correct the dis.
tressed condition of the farmers by
creating a commission through which
the entire crop should be sold.
The commission was made up OF
Yucatan farmers and the president of
the state Of Yucatan became the
chairman of the commission. Several
years after this organization, that is
from 1912 to December, 1915, the eff
forts of the commission to obtain a
reasonable price for their sisal were
abortive because they were without
the necessary financial facilities for
Withholding their product from the
market until u fair price was obtain-
able.
Bankers Help Yucatan.
In December, 1915, they succeeded
In obtaining the necessary financial
assistance through an ordinary bank
ing arrangement under which the
lenders agreed to lend reasonable
percentage of the value against hemp
shipped to the United States, stored
in American warehouses and fully
covered by insurance. At the same
time the commission opened Offices
in New York and New Orleans, es-
tablishing a policy of selling it's prod
uct to all manufacturers at the same
price and of insuring an adequate
supply always on hand in the United
States SO that every manufacturer
could buy his requirements from time
to time as needed and could be alb
solutely certain that no one enjoyed
any advantage over any other
Since this arrans ement was entered
intD the sisal commission has been
able to secure fair prices for it's prod
uot and Notwithstanding that sisal
was selling far below the price Of
other similar hemps entering into
competition with it, the price WAS
maintained at a very reasonable fig
ure.
Shortly after the European war
hrn :~1,
than 20 cents per 100 pounds to 81
per 100 pounC~. insurance premium
rates advanced proportionally and the
cost of production of sisal increased
to an enormous extent. Therefore 1t
was imperative that the price of
hemp be proportionately raised.
Blocked Country's Ruin.
Yucatan produces practically Moth
ing except sisal. 1t purchases all of
its breadstuffs, raw supplies, etc., in
the United States, and if the price OF
sisal had not been advanced and in
habitants of that country were com
PEELED to pay prevailing prices for
everything it requires it would have
been long. since bankrupt and in a
state of starvation and distress.
Therefore the organization Of the
planters under the governmental
commission was not only justified but
may be regarded as highly commend
able. Germany pursues similar
course in the sale of it's potash to the
United States and the beet producing
countries of Europe also entered into
combination to regulate prices and
to. keep the supply in proportion to
the demand.