THE FROZEN MEAT TRADE.

Press, Volume LXVII, Issue 13939, 12 January 1911, Page 6

THE FROZEN MEAT TRADE.

The Christchurch Meat Company, the annual meeting of which was held yesterday, is to be congratulated on a highly successful year. The directors are enabled to pay a bonus of 2 per cent., in addition to the usual dividend of 8 per cent, per annum, and, what is even more important, to write off a substantial amount for depreciation, to add to the reserves, and generally to strengthen the finances of the company. On this subject, tho chairman, Mr F. de C. Malet, made some remarks which seem to us very much to the point, and which were evidently approved by the meeting. He stated that practically no real depreciation had ever been written off almost since the inception of the company in 1889, with the exception of tho last few when a very modest beginning had been made. This year the directors wisely decided to make a really substantial provision towards strengthening this weak point in the company's position, and it is apparently their intention, should the company continue to be prosperous, to carry out the same prudent, conservative policy, until they have the fi-ffe factories standing at a thoroughly sound and safe value in the books. It was further suggested that they ought also to build up a reserve invested outside tho business, so as to be prepared, should less favourable times overtake the company. That these aro sound business principles on which to work no man of commercial experience will venture to dispute. As Professor Brown pointed out, the frozen meat trade is one peculiarly liable to fluctuations owing not only to the variations in the markets, but to tho vagaries of the climate. It is generally understood that the business of the Christchurch Moat Company is now managed on much less speculative linos than was the case at a former stage of its history, but it is none tho less a sound and prudent policy to continue to strengthen its financial resources. On the whole the shareholders have reason to be thoroughly satisfied both with tho nature of the balancesheet and the policy outlined by the Board. Seeing that, as we showed recently, the other local institution of the same kind, the Canterbmy Frozen Mfat Company has also had an excellent year, and the farmers have shared in the prosperity of ihe frozen meat trade, the people of Canterbury as a whole have every reason to feel satisfied with tho condition disclosed.