The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1916-02-22
PRICE ADVANCED BY SISAL TRUST
The Story in Nut Shell.

A concise story of the sisal trust
which may be used in any paper with
or without credit to Farm Imrilement
News.
A complete monopoly of the sisal
hbre output Of Yucatan, Mexico. has
been obtained by the Comision Regu-
ladora del Mercado dc Heneuuen
committee to regulate the sisal fibre
MARKET, body created by Yucatan
law.
A big advance in the price of binder
twlne Will be one of the results.
Ihe 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
nave prevailed on banks in New York.
Chlcago 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
nDre sales in addition TO the interest
paid the banks on loans.
Inc 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
Comislon fixed certain price as the
one required by planters 20 make their
crop profitable, but was unable to get
sufficient financial backing in Mexico
70 carry out Its plan. With the power
or Carranza behind 1t 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
Comlsicn can dictate the price at all
times. The price 1t is now demanding
is cents higher than the price it pro-
nounced profitable to the planters in
the beginning. 1t is cents higher
than the price which prevailed a year
ago. 1t is IL cents higher than the
average price paid for sfsal by binder
t"ine manufacturers last season.
hence, If no farther advance is made
the price OF twine Is sure to be I'm,
creased that much over the price of
1910. And there is no telling how high
tne price Will be raised by the Conn
ision before the required amount OF
nDre Tor next seasons twine supply
mas been purchased, and in the sue
ceeding years
In advancing the price the Conis-
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.
tnere was large surplus In Yucatan.
Uhder normal conditions Of competi-
tlon. such as existed before the Com
is1on seized the market, the price
would have declined from last years
nGure. The price is therefore arbi-
trary and unwarranted
Thus the American farmer is IN hs
forced to pay tribute to a fibre trust
hnanced with American capital. for
until such time as other fibres suitable
ior binder twine can be obtained in
suinc.cnt Quantities, the farmer must
ospeac Oh s.sal for the greater part of
ms twlne supply. Conditions make IL
impossible to obtain an adequate sun
ply or manila fibre at this time. For
every cent added to the price of twine
through the operations of the .sisaI
monopoly, $2.50O,O00 will be added to
the binder twine bill Of the American
farmer.
Is this monopoly amenable to tho
antitrust laws OF the United Statesq
III IL were purely a Mexican affair. or
IL the financial backing were obtained
from other countries. the United States
would be powerloss to interfere. But
since the capital Is contributed by
american banks from deposits OF
american depos,tors, the combination
,houia De amenable to American law.
Iustlce 10 the farmer requires that tho |
government take such steps as NAV he |
taken lawfully to prevent the financ-
ing OF the monopoly With American |
money