The Frozen Meat Industry.

Feilding Star, Volume XVI, Issue 264, 11 May 1895, Page 2

The Frozen Meat Industry.

Mil D. J. NATHAN'S SCHEME. j I One of the most, if not the most, j important meeting ever held in j Feilding- was tho one held in the Assembly Rooms yesterday afternoon , to discuss Mr I). J. Nathan's scheme for improving 1 the present unsatisfactory state of the frozen meat industry. ■ There was nn attendonco of nearly j two hundred, principally of leading I farmers from all parts of tho district. Mr J. H. Fry was voted to the eh iir, on the motion ot Mr J. Saxon, and r-xplained the object of the meetingand introduced Mr Nathan, «ho was in attendance to explain his scheme. Mr Nathan, after expressing his pleasure at being- invited to attend the meeting", went on to show the importance of the frozen meat trade to New Zealand. He referred to the present low pric>' > , of sheep as compared with that of last yoar, and the absolute necessity there was for action of some kind it" sheep-fanning was not, like flix, to be reckoned an industry of the past. The solvency of the colony depended upon the success of the formers and they in the towns cou d not live unless the former were prosperous. Recent papers to hand from Australia showed that the very scheme he ha<i propounded, details of which ha 1 been cabled over, was being- urged on the farmers of Australia. The idea was noc altogether new as it was discussed eight ov nine years ago. The possi bilities of expansion were certainly great, and unless the 'colony made a bold effort to maintain the premier position the tride would soon be wrest< d from it by the enterprise of competing- countries. The practice at Smithfield was to sell New Zealand meat as English and Scotch, while inferior carcases from Argentine were offered as New Zealand mutton. He asked can no means be found to improve this state of thing's ? Could they by any scheme, whether his, a modification of it or any other, get some of the profits going 1 to the middle men I It was for the farmer to-day to look to the carcase :is well as the fleece. The present positi n was a very grave one, as so many people were directly or indirectly depending- i;pon the trade. He referred to the slides other industries had made by combination among-st those concerned in them, especially noting Jwhat |had been done, for the Indian and Ceylon tea trade and the Californian wine industry. If they could raise the price of meat, butter and cheese would also rise, and it was ol national importance. Single handed people had tried to get the difficulties in the way of success removed, but had failed, and he advised them that combination and concentration was the best means of assisting themselves. The meat trade suffered greatly through so many financially weak freezing- companies, besides which there far too many consignees. The cost of freight, insurance, and brokerage charges swallowed up most of the profits, and the absence of adequate storage at Home, was responsible for a great loss to the producer. His proposal was that, all freezing- companies should combine and form one company with one management, the various concerns to be taken over on a basis of valuation and the shareholders to rank as shareholders in the new company. New shares partly paid up would be issued to provide liquid assets for emergencies. In addition to the ordinary capital of the company he proposed that, as the colony, would be greatly benefitted by the operations, it should be asked to guarantee £2,000,000 worth of debentures at, say 3 per cent., to be secured by a sheep-tax of not exceeding 3d per head on the flocks of the colony. The guarantee would cost the colony nothing, but would save the company at least £20,000 a year in interest charges. It did not matter for the success ot the scheme that the Government should assist them. They could do it without, but by borrowing through the Government they could get the money cheaper. It was a matter of detail how this could be arranged. The tax, if levied up to its maximum, would not represent in 20 years the loss in price of sheep this year, as compared with the price two years ago. The number of sheep in the colony being roughly estimated at 20,000,000, a tax of l|-d would bring in £125,000, which would pay the interest on the debentures and leave £55,000 a year for advertising the meat and extending the markets. He pointed out that shipping companies charged New Zealand jd per lb more than they charged Australia, and if the company adjusted this item alone the proposed tax would be more than recouped to the flockowner, to say nothing of the saving to be effected in insurance and brokerage charges. The value of their land^went down with the value of sheep, and was it too much to ask for State assistance 1 It would, therefore, be seen that in return for the £125,000 to be raised under the proposed tax, the sheepfarmer would gain indirect advantages. Their best sheep were retailed at Home at from 9d to Is Id per lb, aud it was a share of this he wanted to get, instead of allowing it to go into the pockets of retailers. They should have one. person to deal, and not many small vendors. It had been said that retailers were making from 15s to 20s per shesp above a legitimate profit. Australian and Argentine mutton is being pushed in the Home markets, and what they do New Zealand can do. His critics admitted that something should be done, and, after he had explained his scheme to farmers, he had not met opposition from them. He pointed out the scheme was based on purely cooperative lines and that we have labor, which, if not employed, must be kept and they must face the question. It was better to find employment for labor than keep it on charitable aid. They have all they want to be prosperous, and must be up and doing. He had been told by gentlemen who had considered his scheme that it was both feasible and opportune and only needed the support of farmesr. it was no use townspeople speaking for farmers, the latter must speak out themselves. They must voice themselves through their country papers lor they CDuld not get; the town papers, to do it . It had been contended the company

wouid be a monopoly, but there is already a bad monopoly and farmers are out of it. Farmers should bind themselves together and secure this monopoly for themselves. He admitted tJbere were difficulties in the way which would have to be adjusted. He concluded by reading an extract from his first pamphlet. Colonel Gorton said the frozen meat industry was the most important in New Zoaland and it would be disastrous if a failure. They could produce as good, meat here as in any other country. He was in favor of a large company being formed to break the ring in th« English market. He read an extract from a Christchurch paper showing that Canterbury mutton had been proved to be as good as the best Home grown. He also referred to the manner in wbich Now Zealand mutton was sold as Home produce and vice versa, and it was to the detriment of all to allow suchastat* of tilings to exist. It was a big question to break the existing monopoly and the State should take up the matter as it was of national importance. There wa3 nothing to prevent the nation opening up retail shops and he contended state management would be advisable. By obtaining money through the State they could get it far cheaper and everyone would benefit. He suggested that a committee of the House of Representatives should go into the question. He moved " That owing to the ruinously low prices to which all classes of store stock have fallen in this colony, that urgent steps be taken by the Government to more thoroughly the frozen meat trade in Great Britain and every endeavour be made to dispose of the stock direct to the consumer. That a copy of this resolution be forwarded to Mr John Stevens, the member for this district with a request that he will, during the coming session, table a motion asking the Government to appoint a committee of the House of Representatives to report fully as to the best means of carrying such into effect." Mr G. Wilks seconded the motion. Mr H. C. Wilson considered that whatever was the outcome of the present scheme, the thanks of the colony were due to Mr Nathan, who was acting the part of a benefactor. He was, however, opposed to State assistance. There was no man in the room who would be antagonistic to any movement that would improve the price of sheep. He would suggest that a conference of sixteen or twenty representative sheep farmers of the colony should meet and discuss the scheme aud decide on the most feasible means of carrying it out. He would move as an amendment •' That the Minister of Agriculture be requested to call a conference of representative sheep farmers at some central place to take into consideration some method of improving the markets for frozen mutton on Mr D. J. Nathan's plan, or some other plan, and formulate some system of dealing with the matter that will ameliorate the position of farmers and advance the interest of the colony." Mr T. A. Bryce thought one point was overlooked, If such a scheme were tried all classes would benefit, and he asked why should the producer be asked to give the guarantee. The State should do it and the whole colony find the security. If a conference was called they could arrange a scheme, wbich he would prefer to see leading farmers arrange. He would second the amendment. Mr G. Wheeler did not think Government control would meet the approval of the meeting, and he did not wish to see the business of the colony managed by the Government. He would oppose the motion as. proposed. Mr Nathan suggested that a conference of agricultural societies be invited to meet and discuss the question. He did not suppose his scheme would be accepted at once. All they wanted was for the Government to pass an Enabling Bill. He would read the following extract from a letter sent to him by Mr W. Postlethwaite, of Canterbury : "Itis a great pleasure to find that the scheme you have in hand is receiving such success. lam as firmly convinced as I was ten years ago that, unless snch steps are taken, we producers of sheep must be sacrificed by middle men in London. I have known our mutton retailed ont in the West End of London as prime Scotch mutton at Is Id per lb. I have also known in Smithfield market of our New Zealand mutton being lowered in price so as to enable the middle man to get his prices for his beef. I could enumerate case after case. When in Liverpool, what did I see but two men monopolising the whole of the Argentine mutton trade, and what has been the result ? It is now sold (a very inferior class of mutton) in nearly all the manufacturing towns in Lancashire. We ask ourselves, Why are we not Bdoing the same for our New Zealand mutton ? The answer is not far to seek — combination amongst the growers. Wbat has been done in other countries can certainly be done here." Mr Nathan was strongly of opinion that there must be co-operation, and an Act could be passed that the day such a company as he proposed to be established should be* come a commercial concern in the bands of speculators it should cease to receive Government support. They should not go into too much detail at present. The Government had already taken action and were only waiting for the farmers to make a move. Mr R. Brown asked if it was the hard times at Home that had caused the depression in meat. Mr Nathan replied that within the last few years the consumption of meat had increased 30 per cent, at Home. Mr Wilks opposed the idea of the State working freezing companies. If Colonel Gorton's motion was given effect to, a committee of the House would enquire into the matter and would not bind any* thing. M r Fry preferred the amendment. Mr W. P. Jacob asked if Colonel Gorton would withdraw his motion in favor of the amendment so as to get an unanimous vote. Colonol Gorton only wanted to do what he could for the colony, and would with* draw his motion as suggested. The amendment then became the motion and on being put to the meeting was carried. Colonel Gorton proposed, That a hearty vote of thanks be accorded to Mr Nathan for bringing the scheme before the colony, and for attending at that meeting. Mr P. Y. Lethbridge, in seconding the motion, expressed the opinion that it was necessary for them to combine. The motion was carried by acclamation, and the usual compliment to the chair closed the meeting-