THE PRICE OF SHEEP IN HAWKE'S BAY.

Press, Volume LIII, Issue 9363, 12 March 1896, Page 2

THE PRICE OF SHEEP IN HAWKE'S BAY.

" Weekly Press and Referee." Messrs Nelson Bothers have addressed the fanners of ITawke's Bay upon this subject, and \ra print the linn's remarks in exiento, together with tho ensuing correspondence in the Ilawkz's Bay Herald : — To THE SUZEPF.UiMSUS OF HAWKES B.VY. Gentlemen, —A feeling of considerable astonishment was occasioned when the public were made aware of the gigantic losses Messrs Nelson Bros, had experienced during their financial period ending 30th September last, and we think a few remarks on the past season of the frozen meat trade and its prospect for this year will not bs out of place. For some years the average value of frozen meat in the English market has been steadily decreasing. There are several reasons to account for this. Firstly, a gradual but certain excess of supply over demand. During the twelve months ending 31st December, 1895, there was an increa3e of 1,308,266 in the sheep imported into the United Kingdom as compared with the same period of 1894; of this increase New Zealand supplied 481,000 sheep. Again, the general quality of meat from New Zealand from many ports has deteriorated, whilst that of meat imported from other countries into England has improved. At the same time the demand does not progress in proportion with all this immense increase of supplies, and consequently the storage accommodation of all firms in the trade has been utilised to its uillest capacity for most of the year through, as the season opened with heavy stocks in London, and both New Zealand and Australia landed their new meat' earlier than usual, the market was rapidly glutted, and prices fell rapidly at a time of year when, as a rule, some advance takes place.

The year just closed has been a disastrous one in the meat trade generally, and especially for a firm like ourselves," which has fixed purchasing contracts with sheepfarmers in most districts, at prices originally based ou the value of meat three or four years ago. The average price realised for New Zealand mutton during the twelve months ending 31st December, 1895, was 3.18 d per lb, and as this includes best quality (viz. North Canterbury) mutton, as well as that from Timaru and Dunedin, the value of which " brands " varies from fd to |d per lb more than North Island mutton, it will bo seen that the price which North Island mutton averaged for the year was per lb in London.

As regards ourselves, we have lost £102,000 by our moat purchases during the twelve-months ending 50th September, 1895, which means that we have paid that amount more for the meat than it was icorth. Out of this £102,000 Hawke's Bay purchasers are responsible for over £35,000, or in other words the sheepfarmers in the Hawke's Bay district have received from us £35,000 more for their sheep and lambs than the meat realised in London. That this cannot go on must be apparent. At the present time the English market is overstocked. Large arrivals are daily taking place and expected for some months ; the meat stores are full, and Uie price is steadily declining.

In November, 1394, we came to our contractors with a request for a reduction in the contract price at which wo were then purchasing their meat. On all hands we experienced the greatest sympathy and consideration, and our clients (with only two exceptions throughout ail the districts in which we have contracts), met us in a truly liberal spirit, and accepted our proposals for the reduction. In spite of this reduction wa have experienced the above-mentioned heavy losses.

In October, 1895, we thought (in common with all other large houses in the trade) that the outlook was hopeful for better pricss, and feeling that our contractors were due ovary consideration at. our hands, and anticipating that for the first . few months of thi3 year, the market at Homß would be comparatively good, we hinted to our contractors that we should pay them the same prices for their .meat delivered up to the end of February ok we did during the previous season in spite of the fact that their amended contracts ..provided for a, further"reduc£ionfroni. the. Jaginning-of ■■this' season. Our anticipations as to the improved market have not been realised, and we are losing heavily over our this season's purchases. The increased prices given to our contractors to the end of-February mean an extra loss to us of some £4000.

Hawke's Bay mutton is now selling in London for 3d per lb at a time of yeßr when it is usually realising more. Taking into consideration the tact that only a small proportion of this season's meat from 2Te\v Zealand has arrived in London as yet, the outlook is quite as bad, if not worse, than that of last year, and prices will recede much further as soon as the market is glutted with the new season's meat. The question before everyone interested is, " What is to be the future of the trade as far as New Zealand is concerned ? " No firm or individual can afford to continue buying at a loss of at least 2s and often 3s per carcase, so that the sheepfarmer will have to face the position and in future accept the real rather than the fictitious value for his stock. Taking the average realised "value in the Home market for the past year, wethers in Hawke's Bay have not been, worth more than from 5s to 6s off" the shears, for freezing purposes. The offer of such a price to most sheepfarmers would be a shock, but most shocks are unpleasant and the facts of the case'have to be realised, however distasteful.

As there will doubtless be many owners of sheep who will prefer to ship on their own account rather than accept the prices we are able to offer, we have decided to make a considerable reduction in our charges for freezing and shipping, and we take this opportunity of intimating to all sheep-farmers in Hawke's Bay that we are not only prepared to take consignments on behalf of the Colonial Consignment and Distributing Company, who are acting as our agents in London, but we will hand over any stock entrusted to our care to any agent in London, whom any owner of stock .may appoint; and we also undertake, at all times to provide freight at the lowest current rates. We call special attention to this point, as we have heard it stated (unintentionally, no doubt), that we have in the past declined to provide freight or allow stock frozen with us to be shipped to any other agency than our own. Such a statement is far from correct, as we have for years provided freight and consigned stock in accordance with the wishes of our clients. Our reduced terms for freezing, shipping, insuring, and consigning meat either to owner's agents, or to our agency in London will be forwarded to all interested in due course. —We are, yours faithfully, Nelson Bros., Limited. Tomoana, 18th February, 1896. Nelson Bros.' Appeal. Sir, —The announcement by Messrs Nelson Bros, that a further concession is required from those sheepfarmers haying contracts is no surprise to persons familiar with the position. The subject is of such vast importance to this province that I feel no excuse is needed for introducing it. It will be remembered by old settlers here that some years ago the late Mr M. R. Miller actually formed a local company and completed "arrangements to buy the business then carried on by Messrs Nelson Bros. The London partners, however, thought they had too good a thing and would not sell—and they were right. The success of the company (at once formed into Nelson Bros., Limited), induced some venturesome spirits in Hawke's Bay and the West of Scotland to start the "North British and Hawke's Bay Freezing Company. The enterprising Nelson Bros, immediately tried to strangle the opposition by making contract* with nearly all the sheep-farmers in the province, and it is these contracts that they now find so unprofitable. Now there .can"be.no doubt that for many years Nelson Bros, made a great deal of money. Did they .offer to'share their prosperity—the result of paying too little for their sheep— with the grower? Certainly not. Then what right have they now a3 a solvent firm l to ask any person to share their loases ? I speak plainly because I think the people of this district "have an " Old Man of the Sea" on their shoulders that should be got rid of at any cost. It simply amounts to this :— The sheepfarmers of Hawke's Bay have to suffer because someone has blundered. They have to pay for the folly of building works at V/aipukurau and Woodville ; they have to provide she salaries for numberless I managers; thty have to pay for all mistakes

made, all losses incurred, all waste allowed, i I am informed on the best authority that the Gear Company are giving 3s per head morn i-, for sheep south of "Makotoku than Nelson ( Bros, glvo at Waipukurau at the door ( of their works. Why ia this? To go ] bank a little. What moral right had Nelson ; Bros, to get £50,000 or ao for goodwill ! - from the Coloial Consignment Company l - when at the very time they were asking '< their supporters here to take something j less than thoy hud contracted to give ? If £ Nelson Bros, were right in asking such a •-, price for goodwill, wore they justified in . - asking a reduction in ''prices they had ( promised to pay ? And if business was so . t bad that an engagement of this sort could ' j not be carried out, what justification had { the firm in asking such a price from the i London company ? I only notice t.-nia i because it is evident that the long-suffering sheep-farmers (and in the end the whole dis- ! trict) have to pay. It seems to mc that all ' sheep-farmers having contracts with Nelson ' Bros., should very carefully look into t'nii ] matter from their own point of view, and not from that of the company and its army of i managers, as they have heretofore done. Has | not the time arrived when some change is necessary? These appeals alone prove it. —I am, &c., j-

Jack of all Tjiadks. ; Napier, February 18fch, 1896, I

- . • ; i "Jack of all Trades." ! . Sin.—Will you kindly supply m 3 with j your definition of a Jack of all trades ? I , have to-day asked several people what class , of article it is, whether animal, vegetable, or ~ mineral ? If masculine, feminine or neuter j - One of my referees replied that he remem-1 J bered an old saying (which, others have ! probably heard also). "Jack of all trades, l and inastej.! of hone," and this reply, though , ncit a "direct answer to inyr question, is,, suggestive. We may assume that though '• \ anyone, attempting to master all trades and nob succeeding in becoming the owner of ai solitary one, brands-'himself as an absolute . and complete failure 'as a tradesmaa ; yet it is still (as I thiuk Disraeli said) " open to hini '■' to become a critic." But even as a oritic ' he may be a failure; as a critic ' without accuracy, justice, decency, manli- - noss (sufficient, for instance, to enable him . to have to put his name at the foot of a , criticism in a newspaper, should he indulge j' in such), common sense, or other like attributes, surely we may look upon him as a "failure." Again, he may be a man who ■ has neglected his. opportunity of -picking up ' ( some of the good things of this world'which have been within his reach, and which other men, confining themselves (and that success- j fully) to one business, have picked and , retained to their great advantage. ■■' But it; may be that the universal Jack is a.veget- i able; if so, what species? A small potato, ; an indifferent cabbage, or a chump of wood ? ' Again, perhaps it may be a mineral', and may have come out of a gold mine ; but, for , choice, I should say it's origin would probably have bean the " dust-bin."—l am, &c, v ' . '. W> Nelson. j Tomoana, February, 21st, 1896.

PvEply to Mc Nelsox.

j Srß,—Mr William Nelson's letter hardly I needs notice, but I will try to satisfy; his curiosity. In this province it is not difficult J Ito find an illustration of my 7io/u de phime. \ I know well several Jacks of all trades. The : ' best example is an old friend who commenced ! life in New Zealand as a sheepfarmer. He j I then became a flaxmiller. His third venture \ was in the butchering line. He next tried i ! saw-milling. He has now become an inventor. { I If the invention is as successful as the other j trades, Mr William Nelson, general manager \ 'of Nelson Bros., Limited, need not look far ' for Ids, answers. Since writing my last \ letter I have been examining a certain pros-1 pectus issued by Messrs Nelson Bros., on ! the Ist March, 1892 :—" We have for some ! years paid a steady dividend of 10%, and > we propose to continue paying 10% if po3- j sible, aud we consider no English capitalists .' can be expected to embark half a million of I money in a business they know nothing; about without a prospect of such a return ; i but we wish particularly to draw attention I to the fact that wo shall never pay a higher j 'dividend than 10%, and should we at any: time make larger profits they will be devoted j to reducing our charges and increasing the \ prices we pay for stock." What could be a ' more severe criticism on the present state of . affairs ? There is another way of looking at \ this extract. Such words as those quoted, \ when used by a firm of standing, amount j almost to a promise, and no doubt were [ intended as an inducement to the public to take up shares. Does Mr W T illiam Nelson, j general manager for Nelson Bros., Limited, ; think that it was right to hold out such a [ bait ? Mr William Nelson, general manager j for Nelson Bros., Limited (I am particular in : describing Mr Nelson as I do not wish my readers to confuse him with any of the other managers) provides mc with particular argument in his evidence in the lawsuit ! Loughnan v. Loughnan. Mr Nelson stated that he had " a great number of sons coming on" — I leave sheep- , farmers to draw their own conclusions. Further Mr Nelson admitted in evidence (vide Hawke's Bay Herald of 22nd February), that Nelson Bros., shares were worth only about lOd to buyers " but I will make it my business to see that state of thrhgs altered and before very long too." Idle boasting most people will think, but I say Mr Nelson has made his first move, and the sheep-farmor will soon know that "state of things " will be altered. In short, as I said before—he will have to pay ! Expenses will go on ! Managers will flourish ! And fat wethers will fetch 5s 6d ! When I last went through the Belfast works, I noticed a good many managers there too, but they all had their coats off. Candour compels mc, however, to admit that they were not so ornamental as the Hawke's Bay article. In the office, too, I could only see one or two clerks. They also were in their shirtsleeves. Referring to the Woodville works, when in that town lately, I learned that the weekly output there, could be put through at Tomoana in half a day. What comment from mc is needed? And what must be Mr William Nelson's opinion of his own sagacity ?—I am &c, Jack ov all Trades. • Kapler, February. 22nd, 1896.

Jack of All Trades. g Sir, —I am sorry you camio'., supply ma m with the information asked for in my letter of Saturday last. One of your correspondents says Mr Nelson need not look far foi his answer ; probably this is true, but where am I to look? As you, Mr, ?HH.it know the whereabouts of one of tho genus, I will ask you to obtain the permission of the one specimen, whose letter appeared in jour issue of Friday last, to publish the name attached to the communication, without which it would not have found its way into your columns. If the specimen is a num (according to a Britisher's acceptance of the term), you will obtain the permission I ask,and no doubt publish the same ; but I must admit I havo grave doubts as to the specimen being able io lay any claim to the old time-honoured title.—l am, &c., X \V. Nei.mow If Tomoana, February 2'lth, 1896. fj