The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1916-02-25
rRICE ADVANCED II srsAL TRUST
Tls stsry n . Nut sAsr

A concise story OF the sisal trust
which may be used In any paper With
or without credit 70 Farm Imylement
News. ,s.. ...r...,.
A complete monopoly OF the sisal
abre output Of Yucatan, Mexico, has
been obtained by the Comision Rexu-
iadora del hercado do HeneQuen
COMMITTEE TO regulate the sisal fbrs
markeo. q body created By Yucatan
law.
A big advance In the price OF binder
twine will be one of the results.
The Comision ReEuladora 10 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
or the large loan required, and which
Will be secured by warehouse receipts
on the fibre stored In New Orleans
and elsewhere. A company composed
~ 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 fxed certain price az the
one required by planters TO make their
crop profitable, but was unable to get
sumctent 6n9pcial backing In Mexico
to carry out its plan. with the power
of Carranza behind II the Comision
aas driven out the dbre dealers and
no Yucatan sisal can be purchased
through any agency other than the
Comlsion. .s-sosis.y.:FISSslHsE
Having complete monopoly the
Comision can dictate the price at all
times. The price It Is now deman din =
Is cents higher than the price II pro-
nounced profitable to the planters in
the beginning. It is 2 cents higher
than the price which prevailed a year
ago. 1t Is IL cents higher than the
average price paid for sisal by binder
ttwine manufacturers last season !:
hence, II no farther advance is made.
.ne price Of twinf is sure to be in
creased that much over the price OF
1919. And there is no telling how high
!he price Will be raised by the Com
ision before the required amount of
hore Tor next seasons twine supply
mas oeen purchased, and In the sue
ceeding years. - -
In advancing the price the Con,..
lon has ignored the law OF SUNNI and
demand; for last year. notwithstand-
Ing the consumption of sisaI fibre wa.
the largest in the history of the trade.
there was large surplus In Yucatan
Under normal conditions of competi-
tion. such as existed before the Com
islon seized the market, the price
would have declined from last years
nSure. The price Is therefore arbi-
trary and unwarranted.
Thus the American farmer IN IN Ia
Iorced to pay tribute to a fibre trust
nnanced with American capital: for
until such time as other fbres suitable
Tor binder twine can be obtained In
suncient quantities. the farmer must
depend on sisal for the greater mart az
his twine supply. Conditions make n
impossible to obtain an adequate sun
ply OF manila fibre at this time. For
every cent added to the price of twine
through the operations OF the sisaI
monopoly. s2.500.0OO will be added to
the binder twine bill of the American
farmer.
Is this monopoly. amenable to the
~ - uot ia"s vi tne united States?
y. = II were purely a Mexican affair, or
~ tue nnanciai backing were obtained
from other countries, the United states
would be powerless to Interfere. But
vince the capital is contributed bv
american banks from deposits of
american depositors, the Combination
mould be amenable to American law
Justice to the farmer requires that the
government take such steps as may pe
taken lawfully to prevent the fnanc-
ing OF the monopoly with Amarican