WAINGAWA FREEZING WORKS

Dominion, Volume 21, Issue 12, 8 October 1927, Page 12

WAINGAWA FREEZING WORKS

Sir.—The announcement that the Bank of New Zealand has taken over the Waingawa Freezing Works, and is to open them on its own account, has created much comment. Some are disposed to question if the bank is empowered by its charter or articles of association to take up a commercial business, and risk the shareholders’ money in what has been a losing affair. It is urged that, while the bank might take over . and run a pawnbroker’s shop as an affiiliated business, meat freezing does not come within its scope. Others question the policy of opening', on the bank’s own account, works which must enter into active competition with the bank’s clients, who rely on it for the financial assistance which is the proper, business of a. bank to give. It is said that some of the directors of the bank are largely interested in a company with which the Waingawa works must compete. What is the position of such directors ? Are they to support the bank in rivalry to their personal interests, or vice versa? Again, many sheep farmers are under financial obligations to the bank. Are they likely to" be free from hints, more or less direct, that they are expected to put their stock through works owned by the bank ? And, what does the Meat Control Board say to the acquisition of a freezing works by a purely money-making institution, whose sole and legitimate business is to make as large a profit as possible for Its shareholders ? As the board ■ has opposed the sale or transfer of freezing works to powerful companies, will it advise the Minister of Agriculture to refuse an export license to Waingawa?—l am, etc., AN INQUIRER. Marton, October 5.