CANTERBURY FROZEN MEAT COMPANY.

Press, Volume XLVII, Issue 7526, 16 April 1890, Page 2

CANTERBURY FROZEN MEAT COMPANY.

The eighth annual meeting of the Canterbury frozen Meat and Dairy Produce Export Company took place oa Friday afternoon, at the rooms of the A. and If. Association. Mr J. Grigg, Chairman' of Directors, occupied the chair. /There was a good attendance of shareholders.

The annual report and balance,-sheet, already published, were taken and read. The Chairman moved the adoption of the report. In doing so he said he thought it would be unnecessary for him to make many remarks, as everything that he or the shareholders might have to say was contained in the report. He would, however, only refer to some of the clauses in the report. The Directors were extremely satisfied to find the accounts coming out in such a satisfactory manner, especially considering all the disadvantages the! Company had suffered during the past year. All were perfectly aware of the building having been burnt down, and of the necessary delay in consequence. There was perhaps one point which shareholders would not fully realise unless he drew attention to it, and it was the great loss the Company had suffered in consequence of the contractor not fulfilling his engagements. The new portion was to have been finished by the 21st August, bat the work went on into the middle af December. In consequence of that the Company had, so far as they could estimate, lost something like £2000. He did not think shareholders could have realised that the loss could have been of such an extent had it not been explained to them. There was another point to which perhaps he ought to further allude. It was the great reduction In the cost of working. At the previous meeting he had stated that he believed the savlngwould amount to something like from £3000 to £3300 ayeao, and this would be effected through the erection of- such complete and efficient works. Now they had been long enough at work to verify that estimate, and they could assure the shareholders that the saving would be about the sum which he had mentioned. The next paragraph in the report referred to the making of provision for the Company's offal and other matter. He would tell the shareholders and the outside public that;they were nowprepared to meet them in the Interests of producers in OTery possible way, and i they could now ao what might be desired !

in reference, say to a man or an association of men desiring bacon or butter frozen, If butter from the dairy factories was sent to Belfast, handled properly, and pat into email it vrould command the highest price in the markets, any way especially In hot countries. It was a matter well worth the consideration ■ of the outside public and the shareholders, and It should be known that the Company were prepared to serve them on reasonable terms. In clause 8 the reductions in London were pointed out. This was an important step. They had been gradually lowered until they had reached the position that the Company was now better off than they would have been in earlier times if they had had to pay the rate of Id per lb. This was clearly an advantage which they had gained. He then formally moved his motion, which Mr W. Henderson seconded. Mr Chapman said there was a clause that required some explanation, and it had reference to the freezing or ewe mutton. He thought the step taken was a wrong one. Hβ understood the Company was one which had put its foot down against the freezing of anything like second-class meat, and he did not quite understand what arrangements had been made. He had received no circular from the Company with reference to it, and he aid not know if other shareholders had. (Voices—" No, no.") Mr Gkigg replied that they must not suppose that the Directors were taken by surprise by attention being drawn to what was a somewhat new. departure. He thought he would be able to explain the position satisfactorily. First of all, they came face to face with the fact that the freezing of ewes had become in New Zealand inevitable. This was shown by the number of ewes which were being frozen in the North Island. Some people would be surprised at his giving way, because he had been the strongest advocate that it should not be done. He had reasoned this way. He had said it was an act of folly on the part of the sheep farmer to do anything of the kind whilst he had any first-class mutton to offer. So long as there was any other mutton to freeze, it would be arrant folly to use the works or the freight space for carrying to London a second-class article. These conditions were now entirely changed. They believed all the first-class mutton—where they got such guarantees amounting to 340,000 carcases, they believed that so far as this district was concerned, the first-class mutton was exhausted. Then came this position to be considered". The works were capable of doing much more work. In the interests of shareholders, stockowners, and shippers, the Directors did hot consider they would be justified in keeping the works idle when they could be earning a large sum of money for the shareholders. Aβ a matter of conscience they could not do that so long as they could carry on the business satisfactorily in the interests of their clients and shareholders. A justifiable prejudice against the freezing of second-class mutton was on the ground that -it might be branded and get amongst the first-class. As there was a great difference between them, and seeing that the/ were distinct an inferior brand should be placed on the second class. They had been extremely jealous about second-class mutton bearing their brand. Therefore they had thought it advisable to fight a Company which had taken their brand, and they received a verdict, in their favor, and that matter was stopped, (Applause.) So far they were perfectly safe in their best brand. The Directors considered they were safe in freezing, second-class mutton, provided it was branded as second class. Then came the question for the farmer to understand. The point had been raised by Mr Chapman. Most men looked at it in this way. If you are «oing to freeze ewe mutton, why not give the shareholders the first opportunities? (Applause.) Had the Company been doing the thing 'on a large scale that view would have been appreciated; the argument would have been unanswerable. But seeing they had not frozen any second class animals yet, the whole thing was in a nutshell, and the utmost the lot would amount to would be only something like 10,000 carcases. He would try to show them what folly it would have been—downright stupidity— if they had shown their hand by scattering their circulars about and asking everyone to reply to them. The immediate effect would have been to cause competition for freight space, which was already being taken from them. They had the greatest difficulty in getting the space they required. They would also have had a competing Company, and would have been put in a far worse position than they now were. Theirs was now not an altogether satisfactory one. In regard to a certain steamer they had had a lot of carcases shut out which should have been carried in it. Had they put out these circulars they would have had ewes poured, 1 into, the place o<2 libitum, and every foot of space would have been taken. Under these circumstances were they not justifled in conserving the interests of every, one and acting prudently in the matter of making the experiment with abont 10,000 ewes'j Next year it was probable that the business would grow larger, and be something like it was iv Wellington, where they sent away one-third of the whole. Probably the same would- be done here, but they would never mix the first and second class mutton. Their first consideration was firstclass mutton. Then, if they still had room, and offered a considerable quantity, they should certainly Eive the shareholders the benefit of it. He might be permitted to say that he, of all men, was the most interested in the subject, and he did not think; people generally would give him credit for doing anything diametrically opposed to his own interests and those of all stockowners. The thing was done after very careful consideration by the Directors, and they considered it in the interests of all concerned that it would be well to make that small experiment. They had pat oat advertisements that that space was open, and a gentleman came forward and made a proposal which they accepted and the number amounted to only about 10,000 carcasses, not possibly more than 15,000, He hoped he nadput the matter clearly. He had told them candidly the reason they came to their conclusion. There was one other strong reason which he could not speak of in that room, but he would be happy to tell any sheep farmer privately, and show beyond doubt how necessary it was to begin the thing when they did.. They had a competing Company, which in a commercial sense was* their enemy. They could not be as they were before; they must be ■wary and act carefully ; and he did feel gratified that they should do what they knew would be taken exception to, because he could not but think that if they put in five men as Directors they would approve of the matter. Of couiee those people who were interested in an opposite direction, would not be satisfied, but those who were free to express their own opinion would, he felt sure, say that they had done well. He felt that the Directors had played a trump card, and it had won. Mr Acton-Adams said the excuse of the Chairman was a long one, but it was a bad one. It amounted to this, that had it been known that ewe mutton could have been shipped the space would have been rushed. It would appear, therefore, that there were plenty ready to ship large quantities of it. Instead of allowing their clients the Directors. had allowed other people.

Mr Grigg wished to explain that there was not a large amount of room for a large, quantity. There was only room for a very small quantity, and the gist of what he had said hinged on that pivot. Mr Acton Adams said he looked upon it as a very grave matter.. It was admitted that there was a large quantity of ewe mutton which could he shipped. The larger the quantity the greater reason the shareholders and shippers should have an opportunity of getting it away. Instead of giving the epaca among the Company, it was given to people who did not join and extend a helping hand when it was wanted. These were the people to whom preference was given. The Chairman—You are entirely wrong again. They had been large and beneficial helpers. . Mr JlOAHS—Guarantors? The Chairman—Yes; largely. Mr Adams continued that his impression was that, they were only small ones. He did not know why the Company chose to make the arrangement secret, fie heard about it, and went to the office and asked Mr Waymouth if it were true, and who were the people. Mx Waymouth replied in the affirmative, but declined to give the names of the people. It was altogether wrong to keep the matter from large shippers end shareholders. It was not a long time since that he asked to have shipped some-spayed cows, but the Directors would nob do so then, and now they were going to ship ewe mutton, the meat of which was no better than that of his animals. This was not the only reason he had for dissatisfaction with the management. He was dissatisfied with the attention the Dlrectcrs gave to the minor details of the business of the Company, Seldom could onebefoundat the office or the factory. They seemed to hybernate while Mr Grigg was away, but woke up as soon as he returned. Mt Grigg was the right man, but among the other Directors were some very email

shippers, who were not interested in each an extensive manner as others ■were. They did not take interest like Mr Chapman and others. For some years the Company was Rood and got good prices.. This year things were not right. The first thing was the Edwin Fox ouslneas, where their money wasloafe, butthey would not have been so embarrassed bat that a clause was allowed to be pat in the agreement with Shaw, Savill and Co. which prevented the Freezing Company from recovering the amount. It was not right to allow such an indemnity clause to be inserted. The rest of the shipping business was no more satisfactory. He sent in some lambs in February which were to go in the Ruapehu, but they could not, and now he was told they might get away by April. Either the Shipping Company or the Directors were to blame. The factory was>now full, and he heard that freezing must be stopped in a week or ten days unless the meat was got away. Then as to the question of brands, he asked why the words " North Canterbury" could not be placed upon the labels which were attached to the shanks of the mutton. Then there was the rejection of sheep at Belfast. He considered it was done carelessly, but the fault might be remedied if the Directors exercised closer supervision. Another evil wanted special reform. He referred tostockremainlngfrom the Friday to the Monday until they were killed. This was important, in the case of lambs more particularly, as they lost from a half to a pound a day. In the matter of rejected sheep, he might say that he had known rejected ones to weigh as much as 101b, on a fair average, more than a great many which had been killed. He had abstained from standing for election as a Director because he wished to have his say without it being said that he was working for a seat on the Board. He spoke as a large shipper, and one whose property was not attended to as he considered it ought to be. Mr J. S. White aaked why the Company's sewage was carried on to Mr Grlgg's land. Mr Grigo, in answer, explained that the eewage went on to his land in order to convenience the Company. If Mr "White liked to get a farm adjoining the sewage could go to his land to enrich it. Mr Adams had tried to confuse men's minds with the idea that the Company had a large amount of space for ewes. (No, no.) That was not correct. The space was a mere bagatelle. It was quite true that at one time the Company had refused to ship both ewes and cows. The shareholders must see that so long as first-class mutton was to be got it would be arrant folly to send second-class. That was the reason they had refused, to ship old cows and ewes. He was quite sure Mr Adams was speaking without a knowledge of the facts when he said that no one could be found in the office. Of all the businesses with which he had been connected, he knew of none to which the Directors for so small a remuneration as £50 a year, gave as much time and attention as did the Directors of the Freezing Company. Then, regarding the rejection of sheep, Mr Adams ought to know that weight was not an element of quality. So that point fell to the ground. Mr Adams—lt you say it is not an element of quality, why do you say we must supply mutton a certain weight? The Chairman said it was according to standard, and in the terms of their new regulations. As regarded the Edwin Fox, there was no loss to the shippers. (Mr Adams—"There was a loss of profit.") He agreed with Mr Adams that some improvement was necessary in respect to killing, in order that sheep should not be kept too long. But they must not overlook the fact that accidents would occur, and to meet emergency a paddock had been provided. A good suggestion had been made to the effect that every stockowner should have posted to him, the evening after the killing, a statement of the time *rheh such stock was killed, ao that if anything went wrong he might inquire into it. The Hon. >E. Parker observed that there was an accident which might have been avoided—it was the stoppage of work on St. Patrick's Day. The killing might 'have been done earlier.

• The Chairman said that , if they had stopped without a holiday the Company must have paid a large sum in wages. He had also to say that the manager at Belfast had been instructed to kill no sheep whilst there were lambs waiting. In answer to Mr Adams as to why the lambs were shut out, he said it was impossible to take out sheep .exactly as they were sent in. Tnere was no help for it. Some difficulty had arisen with the Shippine Company which had broken their 'agreement for carriage. This Company was doing all It could, and' hoped by the end of April to be clear of all its engagements. It was the Shipping Company which was at fault. In answer to Mr J. R. Campbell, the Chairman said that the Company bad not settled for the new buildings, and had been served with a writ to take the matter into Court. It was now in the hands of the solicitors. In answer to Mr Widdowson, he said the works, with the exception of one room, were in use.

The motion was then put and carried. Mr J. Deans and Mr S. Garforth were re-elected Directors, and Mr A. M. Ollivier Auditor.

On the motion of Mr W. P. Cowlishaw, a vote of thanks was passed to the Directors for their services daring the year. Mr Grigg having replied, . Mr W. martin moved— ,. That the Company shall have, a Secretary, who will devote hie whole time and services for the interests of the Company." Mr Widdowson seconded the motion, in order to have the matter ventilated.

After some discussion, Mr Grigg stated that the motion had been forestalled by the Directors, who had decided that Mr Waymouth was to take up no other business than that which the Directors permitted. He asked if the motion should be put, and received a negative answer. The proceedings then closed. - •

At a meeting of Directors held subsequently, Mr Grigg was re-elected Chairmen ior the ensuing year.