Unilever Combine

And Prices of Raw Materials

IN view of the interesting particulars regarding the amalgamation of the Lever Bros.’ interests with the Margarine Union, described in The Pacific Islands Monthly of May 14, it is not inopportune to bring to mind remarks of the Chairman of Directors of Margarine Union Ltd., at the extraordinary general meeting held in London on December 10, 1929, when the amalgamation of the two concerns was finally decided upon and the terms of agreement drawn up.

The chairman of directors was Rt.

Hon. the Earl of Bessborough, who is now Governor-General of Canada.

After assuring the meeting that a 10 per cent. dividend would be maintained and that the amalgamation opened up “great prospects of increased efiiciency and economies to the benefit of both the public and the shareholders, Lord Bessborough continued in this strain: “Though low raw material prices constituted a direct benefit to the concern, the directors realised the necessity of a reasonable profit to native and other producers. Demand for the concern’s products were rapidly increasing, and raw material production must keep pace. Stimulation of raw material production demanded and received constant attention. Directors would support every genuine attempt made for the establishment of reasonable and stable prices.”

Just how far the directors have supported every effort for such an establishment is, of course, beyond our knowledge. So many contributing factors have been at work to lower the raw material prices, that it is difficult to gauge whether Lord Bessborough’s remarks were made in good faith or with his tongue in his cheek.—Gordon Thomas. ===