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Show Price Advanced By Sisal Trust 7 m: story In a Ant 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 tho Comlsion Ilegu-ladora Ilegu-ladora del Mcrcado de Hcnequen (commlttco to regulato the sisal Jlbro market), a body created by Yucatan law. A big advance In the price of binder twlno will be ono of the results. The Comlsion Itcguladora is now composed of supporters of Ocn. Car-rnnza, Car-rnnza, head of tho do facto government of Mexico. To llnanco tho monopoly the Comlsion has enlisted the aid of Now Orleans bankers, who In turn have provallcd on banks In New York, Chicago and St. Louts to take parts of the large loan required, and which will bo secured by warchouso repclpts on the llbro stored In New Orleans and elsewhere. A company composed of American bankers and members of the Comlsion has been formed and will receive a large commission on all llbro sales in addition to the interest paid tho banks on loans. Tho Comlsion Itcguladora was created cre-ated three years ago to buy surplus stocks of sisal fibre to provent them from being dumped on the market and bearing down the price. Tho Comlsion (lied a certain price as tho one required by planters to make their crop profitable, but was unable to get sulllctent financial backing In Mexico to carry out its plan. With the power of Carranza behind It the Comlsion has driven out the fibre' dealers and no Yucatan sisal can be purchased through any agency other than the Comlsion. Having a complete monopoly the Comlsion can dictate the price at all times. The price it Is now demanding Is 2 cents higher than the price it pro-nounccd pro-nounccd profitable to the planters In the beginning. It Is 2 cents higher than the price which prevailed a year ago. It Is 1 cents higher than the average price paid for sisal by binder twlno manufacturers last season; hence, it no farther advance is made, tho price ot twlno Is sure to bo increased in-creased that much over the price of 1915. And thero Is no telling how high tho price will bo raised by the Comlsion Com-lsion before the required amount of llbro for next season's twine supply has been purchased, and In tho succeeding suc-ceeding years. In advancing the price tho Comlsion Comls-ion has Ignored tho law of Bupply and demand; for last year, notwithstanding notwithstand-ing the consumption ot sisal fibre was tho largest In tho history of tho trade, there was a largo surplus In Yucatan. Under normal conditions ot competition, competi-tion, Buch as existed beforo the Comlsion Com-lsion seized tho market, the price would havo declined from last year's llgure. Tho price Is thercforo arbi trary and unwarranted. Thus the American farmer Is to bo forced to pay tribute to a llbro trust financed with American capital: for until such time as other fibres sultablo for binder twlno can bo obtained in sulllcicnt quantities, tho farmer must depend on sisal for tho greater part of his twlno supply. Conditions mako It Impossible to obtain an adequato supply sup-ply of manlla llbro at this time. For every cent added to the price ot twlno through tho operations of tho sisal' monopoly, $2,500,000 will bo added to tho binder twlno bill ot tho American farmer. Is this monopoly amenable to the anti-trust lnws of the United States? if It wcro purely a Moxteun affair, or if tho financial backing wero obtained from other countries, the United States would be powerless to Interfere. But slnco tho capital Is contributed by American, banks from deposits of American depositors, tho combination 1 should bo amcnablo to American law. 1 Justice to the farmer requires that the 1 government take such steps as may be . taken lawfully to prevent the tlnanc-. tlnanc-. lng ot tho monopoly with American , money. |
