"WILL DO WHAT IS RIGHT"

Evening Post, Volume CVI, Issue 89, 12 October 1923, Page 6

"WILL DO WHAT IS RIGHT"

It is reassuring to learn on the authority of its chairman that the policy of the Meat Producers' Board " has been, and will be, to do what is right." Thiß was the

word given to the Poverty Bay Farmers' Meat Company, Ltd., on Tuesday, having reference to a suggested sale of its property to Vestey Brothers, Ltd.—or the Un-

jase may be". The Poverty Bay Company is one of seven farmers' co-operative meat companies which are just now passing through ( a very diflr^'W; experience. It is indebted *-/ its bankers to the amount of £299,768, and an offer has been made for its works on behalf of Vestey's of £225,000. The directors of the company value their works at £400,000, and consider the price offered as inadequate. The bank, as mortgagee, has informed the directors of the company that it must insist upon a sale, because the company has lost its capital (paid and uncalled), and therefore cannot possibly carry on, and the bank cannot afford to lose the opportunity of the proposed Bale. The alternative is compulsory liquidation. The bank has also stated that it holds an assurance from the Government that it will not object to the sale. The Meat Producers' Board has likewise intimated that it offers no

ibjeotion to the transfer. The ihareholders, however, have de:ided to refuse to sell, but will enleavour to carry on, asking the oank for further time in which to meet its demands. Full responsibility " for the right and proper thing being done " has now been placed by the directors of the company upon the Government and the Meat Board; but if the bank refuses to give it time and the Government and the Board do not stop the sale, then, it has been resolved, every legitimate step will be taken to prevent " Vestey Bros, or any overseas interest from continuing to acquire any freezing works in New Zealand." It is not our intention to comment on the above facts, certainly not to enter into any discussion as to the business between the Poverty Bay Partners, their bankers, Vestey's, and the Meat Board. But there is the strong probability that the affair may have very important issues concerning the public interest. On that ground some pertinent questions may bs asked and answers

called for. An official statement

'Rom the Minister of Agriculture of

the Government's position would be helpful, but until that is made there is not much to be done in the •way of comment, except to express the hope that the Government

" will do what is right," undeterred by any threats or insinuations, no matter whence they originate.

Here is a case where a com-

pany, through stress of circum-

stances, is compelled to ask for time from its bankers, and where the bankers have an opportunity of recouping themselves by the sale of property mortgaged to them; it is that or compulsory I liquidation. The question is:

should the . Government interfere in any arrangements between banker and client? It has itself given the answer by raising no ob-

jection to the proposed sale; and the Meat Producers' Board has made no objection to such a transfer. If the Government deoides to

let the parties directly concerned in the matter settle it for themselves, we think it will be well advised, otherwise some very knotty questions of principle may well arise if there is any undue inter- } f erence with established legal

rights. It would never do, for instance, with the Prime Minister already there, to have it bruited in the City of London that New Zealand was comparable to a certain Australian State that took such steps as made it difficult when its Premier went there for a loan to obtain what he sought. If the Government of the Dominion at any time has reason to believe that the interests of its meat-producers are in jeopardy, it has legislation that can be applied to protect them all operations of external meat trade organisations, and no doubt would apply it in such cases. Above all, it shbuld set a face of adamant against any party use being made of the affair of the Poverty Bay Farmers' Meat! Company and the proposed transfer of its property under financial pressure. New Zealand stands well at Home, because it has ever striven to "do what is right." It would be deplorable in the extreme if, in response to clamour, it did otherwise, and thereby sullied its excellent reputation.