FINANCE AND COMMERCE. NEW ZEALAND MEAT. WORLD TRADE.

Press, Volume LXVI, Issue 20076, 4 November 1930, Page 12

FINANCE AND COMMERCE.

NEW ZEALAND MEAT.

WORLD TRADE.

MARKETING METHODS. MR BERNARD TRIPP ADVOCATES A CHANGE. [T]IE PRESS Special Service.] WELLINGTON, November 3. Striking changes in marketing in order to improve New Zealand's meat . export trade were suggested to-day by Mr Bernard Tripp,' of Timaru, who returned oy the Makura from England and Australia. Put briefly, Mr Tripp's scheme is for heavy carcases which are at present unwelcome on the London market to be tinned here and exported to the East. The. opening up of this new shipping connexion between New Zealand and Japan appeals to him as an opportunity for the plan to be put into effect. '' I have spent a great deal of time during my visit to England in' making a study of the wool and meat questions," said Mr Tripp, "and I trust that my experience will-' help my brother farmers. My chief object" in life is, to see New Zealand- wool and meat put on a. better footing." Mr Tripp attended tha-big wool con' ference held at Bradford on June 24th and 25th. He had much to say concerning wool production "and advances which were being made in the industry. So far as meat was concerned, he drew attention first to the good work being done by the Meat Board in England. It was advertising well the quality of New Zealand lamb and mutton, and had advertisements in 20,000 shops. These were very effective, and the advertising "had greatly increased the consumption of New Zealand lamb. It had been stated the increase since the beginning of the campaign had been 25 per cent. "It makes one shudder to think where we would be if we had no Meat Board,?' said Mr Tripp. "Great credit must go to Mr R. SWsyth. A number of leading business men told me that • the work he was doing was excellent, v and by saving, storage rates and in -other/ ways, he has benefited New Zealand farmers by thousands of pounds a -year." ; ... , - Eastern. Market. It. was - not much use; Mr Tripp continued,' lending fat told ewea.- assd heavy* ■ weigjit wethers. to the London market. Good prices were given only for'light- ■ weight joints, and at times heavy sheep were. almost unsaleable. He considered that these heavy-weights should be. tinned in. New Zealand and sent to the East, where a good market could probably h© found if. it were. pursued now tfa.atNew Zealand has adireet Japanese • shipping line. Mr Tripp would like to--the -Meat Board* send a man round.. the East securing markets and agferits forr.New Zealand "tinned meats. By keeping the fat old ewes and' heavy : wethers-off the- London market, it would tend' toward Abetter prices for lamb. "XJnlefsa this is done," said Mr Tripp, am afraid that "for some time we most expect much lower prices for. ourlambs. The total number of frozen carcases eoming into England each year is ■ increasing. The number of. frozen carcases of mutton and lamb from all countries imported into England in 1913 ~wam 23,000,000. In 1930 the estimated number is 17,000,000, and in 1931 it is estimated / that 19,000,000 carcases will be imported. From these round figures it can be seen that substantial increases ara taking place. "I would like to point out," said Mr'Tripp, "that American meat firms in the Argentine pack their tinned goods much more attractively than we do. We might well eopy them and push the .Eastern trade for all weT. are • worth." DECLINE IN PROFITS * ARRESTED. GrUINNBSS'S AND ADVERTISING. From the preliminary statement it • would appear that the decline in the profits of Arthur Guinness, Son, and* Company,the I>nblin brewers, which " went on during the four years ended . _ June 30th, 1929, has been arrested, the London "Times" stated recently. During that period the net profits, after • charging taxation, fell from £3,039,096 to £2,209,388. While the company . has not yet. announced its profits for the past year, the figures of allocations point to a recovery of about £860,000. The improvement in the revenues of this famous "Dublin brewery coincides with the completion of the first full" year daring which the company's intensive advertising campaign hais'been carried on. At the meeting last year the chairman spoke hopefully of the . experience gained from an advertising programme that cohered only three months of the previous financial year, ' mentioning that, whereas, profits during the first three quarters had shown • a decrease, those for the last quarter had increaed. . ' * PROBLEMS OF THE PACIFIC. COMMERCIAL ASPECT. [THB PBBSS Special. Service.] AUCKLAND, November 3. It is ' proposed that problems of the Pacific from a commercial aspect should be discussed at a conference which the International Committee of the San Francisco Chamber of Commerce is endeavouring to arrange for 1932. Details of the proposal were outlined to members of the executive of the Auckland Chamber of Commerce this morning by Mr Warren H. Mcßryde, of San Francisco, who has brought messages of goodwill to New Zealand from the San Francisco Chamber of Commerce. The proposed conference, which will be i confined to business men, will be held m San JVanciseo. The Auckland Chamber will probably be represented. * • , dominion theatres. [THE FBCSB Special Service.] AUCKLAND, November 3. At the annua] meeting of the shareholders in the Dominion Picture Theatres Co.. helc to-day, Mr C. R. Chapman presided. The report and balance-sheet were adopted. Tqe-payment of the usual dividend at the rate of 7$ per cent, per annum was authorised. Messrs C., JR. Chapman and W. S•Whitley were re-elected directors.

AN OPTIMISTIC NOTE- * CONFIDENCE RETURNING. » (PBXB3 ASSOCIATION TELZG&AM.) WELLINGTON", November 3. An optimistic note was struck by Mr i Bernard Tripp, when discussing world trade, in the, course of an interview today. Mr Tripp, who has been on an extended visit to England, and returned by the Makura, expressed the opinion that the end of the world depression was not very-far off. "The tide is just about turning," he said, "though the process will- probably be slow.'' When he was leaving England there were indications of greater confidence.' Several cotton mills which had been closed down, for a year or two, were reopening, and; he had since seen that there had "been an application for permission to work double shifts in various factories at home. That strengthened his opinion that confidence was increasing. One of the biggest drawbacks in trade .was want of confidence. If only that could be overcome the trade of the world would ' increase irrespective of the class of trade; Everybody was buying only,from,-hand to mouth, and stocks generally were below normal. - While in England Mr-Tripp attended the Woolgrowers' Conference at Bradford on June 24th and 25th. Some of the biggest woollen mill-owners said their stocks were not above normal, probably below. In fact, one big manufacturing firm said stocks had never been so low, and they were practically waiting for shipments to arrive, whereas in the old days they often had a year's stock of raw wool. With the creation of a spirit of confidence, better prices for wool could be looked for. Referring to the work of the conference. where New Zoalanders were called together to discuss wool problems and the breeding of sheep, Mr Tripp said Bradford eJrpressed the opinion that New Zealand wool had deteriorated through the use of too many Homney sheep. "They did not seem to realise," said Mr Tripp, "that a lot of country here would carry a Bomney and any other sheep you put on it would die. They were just looking at it from their poin.t of view. '' Wool B«search. The delegates to the conference visited the Research Department for Wool near Leeds, 'where wonderful work in experimenting with woollen, goods was being done. Experiments were tending to make woollen goods finer, to obviate shrinkage, and to prevent the "pricking" feeling, which was objectionable in underclothing. Bradford, Mr Tripp said, gave so much- towards research work, the Marketing jHso contributed, and there was a voluntary •levy -of 2d per bale on all wool sold in England. - Instancing one aspect of the experiments, Mr Tripp said a brand for. sheep which would scour out, had already been produced, and that would do away with the fearful Wss occasioned Where; sheep were brande <1 with paint, which*" would not scour oi l. South- Africa;, had-agreed to a levy of Is a bale, which was bringing in over £40,000' per year to go towards research work in the woollen industry and propaganda in advertising the advantages of wearing woollen goods. Meat Board's Activities. Commenting upon the activities of the Meat Board, Mr Tripp said, _he considered the Board had done excellent work in England, and he did not care to think what would happen without the Board. New' Zealand mutton and lamb were being advertised in 20,000 butchers' shops. The outlook for meat for a year or two did not appear „ very bright, on account • of the .big increaso in frozen carcases goings into England from New, Zealand, Australia, and South America. Second 'Class beef from Brazil, which formerly went to Germany,' would- be forced on to the Lon-don-market, as Germany had shut the doors on it. The high dtity America had pat on beef and meat "was als<* forcing beef'th&t used .to go into America on to .the London market. That meant that England: had to consume a much greater quantity and that would have a-tendency .to, bring prices downi In reference to the permanency of the . position Mr Tripp staid ■ America's population was- increasing at such a tremendous pace that, he thought she would be forced to open her door again for meat. If she fcnee did that., the position would very soon right itself. WAGES REDUCTION* NO LOSS OF PURCHASING POWER The question of reduction of wages is pressing on other communities than ours, says the "Sydney Morning Herald." It is agitating minds in Great Britain, where unemployment is rife and where a reduction of wages, it is considered, would help export industries and so benefit the community generally. The main argument used against a reduction of wages is that the purchasing power of the community would be thereby reduced and so the industry of the country would suffer. Professor J. H. Jones, Professor of Economics, and head of the Commerce Department of the University of Leeds, who has contributed articles on unemployment to the English journal '' Accountant, " in the course of one of those articles, writes that he has been asked a question whether a reduction of wages would not reduce the purchasing power of the community, and thereby increase the amount of unemployment. He continues: "The reply is that the real purchasing power of the community would be increased, not reduced, and that the average standard of living would not be lower than at present." TOBACCO PROSPERITY. ARDATH'S PROFITS. The Ardath Tobacco Company reports a . big increase in profits during' the year ended June 30th. Net profits have jumped from £471,441 to £715,174. On the £3,000,000 of ordinary capital, which is privately held, the directors propose paying a final tax-free dividend of 8 per eent., makings 12 per cent., tax free, for the year, compared with 5 per cent., tax free, for the preceding year.

Ajiother £150,000 goes to reserve and £25,000 to the reserve for modernisa--011 buildings. and equipment, while the balance carried forward is raised from £29,395 to £125,569.