MEAT WORKS.

Press, Volume LXI, Issue 18552, 30 November 1925, Page 8

MEAT WORKS.

CO-OPERATIVE COMPANIES. A PLEA FOR LOYALTY. (SPICIAI. TO "IHI P&XSS.") GISBORNE, November 28. The dangerous position of the freezing industry in Xcw Zealand was pointed out by Mr J. W. Nolan, chairman of directors of the Gisborne Sheepfarmers' Company, at the annual meeting of shareholders to-day. In pleading for more loyalty on the part of shareholders, he declared that unless a considerable supply of stock was forthcoming for each of the works, operations would have to be carried on at a loss or the factories shut down.

"The killings at the three works show a shortage of 41,500 as compared with last season," said Mr Nolan. "Hicks Bay showed an increase and Tokomaru Bay a slight decrease, which is much more than accounted for by a strike at the works towards the end of tho season, which necessitated closing dowr, leaving heavy bookings with which we were unable to deal. The killings at Kaiti were 37,395 short of the number put through during tho previous season, whilst Tarnheru for the same period increased its killings by 74,208. That such a position should arise or be allowed to occur under tho conditions existing in this district is, I suggest to you, neither loyal, right, or even honest. You have invested your capital in the company, and by doing so have induced other people to do likewise on the distinct and mutual understanding that you will assist one another in the preservation of that capital and work together for the general weal, and yet we find that a large proportion of shareholders, as shown by tho figures quoted, aro deliberately risking not only their own, but that of their co-shareholders. A Question for Shareholders. "Now think this position over, and ask yourselves, is this a fair deal? The conditions under which the freezing industry throughout New Zealand has been working aro anything but satisfactory,, and if permitted to continuo have every appearance of becoming less satisfactory, and, indeed, Competition has been so keen that charges have been cut down to a figure that unlesß a very considerable supply of stock is forthcoming to each works, the works must be carried on at a loss or shut down. As no company can continue to work at a loss, it is evident wo will have no option but to cease operating. Some companies have already done so, and more aro likely to follow, and unless the works arc dismantled and scrapped will no doubt be open for sale to the' highest bidder and sold at probably 5s in tho £ on their cost or value, which enables them to be brought into competition on an invested capital that permits them to again lower charges, thus squeezing out other still existing companies. And so the process goes on until only the companies with immense capital are left to carry on the industry. If.and when this does happen you sheepfanners will know all about it. Wo in Poverty Bay have had an experience in this kind of thing that, so far as I know, has not happened elsewhero in New Zealand. "Prior to the year 1902 there was only one freezing works in this district, when the ruling price for wethers was a maximum of Bs. In 1902 this present company started operations in a very small way, but it had the immediato effect of raising tho prico to 15s and 16s. Now, that is what is going to ha,ppen to you again if you allow yourselves to be squeezed out, and squeezed out you will be unless you pay more attention to your own company's welfare and are more loyal in its interest."