The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1916-02-18

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 tc regulate the sisal fibre
markeO, 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 monopo
the Comision has enlisted the aid Of
New Orleans bankers, who in tnrr
have prevailed on banks in New YORK,
Chicago and st. Louis to take paris
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 a 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 1t the Comision
has driven out the fibre dealers and
no Yucatan sisal can be purchased
through any agency other than the
Comision.
Having a complete monopoly the
Comision 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 year
ago. 1t is 11a cents higher than the
average price paid for sisal by binder
Irvine manufacturers last season;
hence, il 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
the price will be raised by the Com
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 competi-
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 ray tribute to a fibre trust
financed with American capital; for
until such time as other fibres suitable
for binder Irvine can be obtained in
sufficient quantities, the farmer must
depend on sisal for the greater part Of
his Irvine supply. Conditions make 1t
impossible to obtain an adequate sup
ply Of manila fibre at this time. For
every cent added to the price of Irvine
through the operations Of the sisal
monopoly, s2,500,000 will be added to
the binder Irvine bill Of the American
farmer.
Is this monopoly amenable to the
antitrust laws Of the United States!
If it were purely a Mexican affair, or
II the financial backing were obtained
from other countries, the United States
would be powerless to interfere. But
since the capital Is contributed by
American banks from deposits OF
american depos'tors, the combination
should be amenabie to American law.
Justice to the farmer requires that the
government take such steps as may be
taken lawfully to prevent the fnanc-
ing Of the monopoly with American
money.