FREEZING MERGER

Evening Star, Issue 20634, 6 November 1930, Page 3

FREEZING MERGER

[Per United Press Association,] GISBORNE, November o. The plans recently announced for a fusion of freezing interests between the Gisborne Sheep Fanners’ Frozen Meat and Mercantile Company Eld. and Nelson’s (N.Z.) Ltd., with the object of reducing the overhead costs in the industry, wore finalised to-day, when the shareholders of the former company gave unanimous assent to the proposal. Mr H. B. 'Williams, chairman of directors, presided over an attendance of considerably more than LOG shareholders. The Chairman, moving the resolution, said all would agree that a great deal of good could be effected by cutting out unnecessary expenses. The profit in freezing came from handling large numbers of stock, and the nearer they could reach in the full employment of the company's works at Kaiti the nearer would be the stage at which tlie company could show a profit to its shareholders. The Chairman then read a letter from Mr W, I). Lysnar, M.l*.. who, the chairman commented, had been expected to provide the opposition if any opposition won; forthcoming. Mr Lysnar in his letter stated that lie was strongly of opinion that it was not in the public interest that the company should enter into any arrangement with Nelson’s (N.Z.) Ltd. If it was necessary for one works to, go out of operation it should not he tip Farmers' works, but tho outside-owned works. Continuing, the letter stated; “ f can see no wrong in your company undertaking to do any killing for Nelson’s (N.Z.) Ltd. upon equal terms with any other person or company, but 1 do not think you should girt; them any right to take part in tho management. If, as is apparently admitted, there is not sufficient room for two works in tho district, why does not your company arrange to purchase Nelson’s (N.Z.) Ltd. works right out and close them up, assuming, of course, they will sell at a reasonable price and give a long period to pay at a low rate of interest? Failing this being possible the only thing is to make arrangements to reconstruct tho Farmers’ works and got the Minister of Agriculture to exorcise his powers under the Slaughter and Inspection Act of 1019 to determine the license of Nelson’s (N.Z.) Ltd., as 1 refuse to believe that he would sanction tho latter firm getting any further interest in the freezing works of this district; and in tho admitted circumstances the Minister should realise that it is in the public interest that overseaowned freezing works should cease operations in this district.” In supporting the chairman’s resolution Mr Francis Stafford said tho motion embodied a project other than which tho company could see no moans of progress. Award conditions at tho present day had made freezing so costly a matter that it was necessary to reduce other costs to a minimum. (Applause.) The Chairman, in reply to a question, outlined the proposal m the event of a subsidiary company being formed. Two directors from each firm would supervise the works, and the agreement would be for ten years. Eacli firm would maintain its own works, and the Tarn hem works would be kept in order to commence operations if tho volume of stock proved too large for tho Kaiti works. After further discussion tho following motion was carried unanimously ” That tiio directors be authorised to enter into such arrangements with Nelson s (N.Z.) Ltd. and/or any other company or firm as the directors think expedient for tho joint working of tho freezing business in this district for such time and upon such terms as shall be agreed upon, including, if thought advisable, the establishment of and leasing of tho company’s works to a subsidiary company.”