SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 93
A representative of one of these companies, a British concern, advises
 that the purposes of the agreement are to stabilize the industry
to distribute the meat shipments as the markets can absorb them}
to maintain prices evenly—not, however, at a level adverse to the
public interest, but in such a way as to avoid the violent fluctuations
caused by ill-timed and unorganized placing of excessive amounts of
meat on the market at certain periods (creating extremely low
prices), followed by periods when deficient supplies would tend to
increase prices unduly.
No allotment of selling territory in Great Britain is made, apparently;
 and it is also stated that no price agreements are made. Apportionment
 of the trade, in volume, is agreed upon orally, a certain
percentage of the total shipments from the Argentine being allotted
to each company.
Business in meat from South America is entirely dependent upon
the sea tonnage available for its transportation, and it is by allotting
this tonnage that the percentages agreed upon are made effective.
The shipping records naturally afford a check upon the close observance
 of the agreement by the companies concerned.
The market for meat products in Great Britain is such that no
advertising effort seems required, the business of the individual
companies here being developed by agents sent to provincial centers.
The domestic meat supply is so inadequate—constituting less than
30 per cent of the consumption—that South America and Australia
are essential sources for chilled meats (beef). The United States
have practically ceased to send chilled-beef products in large anrounts
to the United Kingdom. Argentine meat is sold in competition with
the domestic product and is said, in general, to be placed on the
market at a price about 2 cents a pound below that of domestic meats.
It is stated that the companies in this combination depend for the
maintenance of profits upon increasing the volume of business, multiplying
 the turnover and improving the organization, transportation,
and handling of shipments, and that price agreements and price increases
 are not a part of the understanding between these firms.
Meat is sold f. o. b. Argentina to the British company whose
representative was interviewed. Contracts for the transportation
of this meat are mostly made with independent shipping firms, and
schedules and deliveries (in normal times at Liverpool, Southampton,
 and London) are arranged to suit the demands of the market, as
far as practicable.
The shipments of this member of the combination are said to have
increased some 500 per cent in the past five years,
At present the port of Southampton is under Government control,
as are also many of the ships engaged in this traffic, and the handling
of the customary business is therefore much disturbed. Cargoes,
upon reaching England, are promptly distributed to the markets or
held in refrigerating warehouses at the London docks, or in other
depositories in provincial cities. The size of these islands permits of
the development of a highly organized and very prompt system of
distribution from central points like London, Liverpool, and Southampton.
 Trainloads of meat leaving London at noon are on sale in
Glasgow retail shops the following morning. Refrigerating cars are
used, and, while each car as a unit is probably one-third the size of