MEAT MERGER

Hawera Star, Volume XLVIII, 12 November 1924, Page 5

MEAT MERGER

HALF-FORGOTTEN SCHEME,

A DIFFICULT QUESTION

MEAT TRUST BOGEY. (By to Star.) WELLINGTON, Nov, 11. " Some references were made at the annual meeting of the Wellington Meat Export Company to the proposed freezing company merger, discussed by representatives of freezing interests in Wellington some months ago, but which has not since developed.' Mr. J. W. Marshall, acting chairman of ..the company, in moving the adoption of the report and balance-sheet, showing an improved position, the company having returned to dividend paying conditions, remarked that soipe tentative proposals for the amalgamation of all freezing companies were outlined a short time ago. The more such a scheme is examined, the more complex and difficult it is to reconcile the diverse and conflicting interests under one control, even if the finance could be arranged. .That there are more , Ireezing works in New Zealand than are needed for the output of meat is ■ undoubted, but how to arbitrarily close down works without injustice to shareholders or mortgagees is a difficult question. If acquired by an existing company the bogey of “meat trust” is (lamed in the press. With our long ■' coastline and various iiorts of call New Zealand wjll probably be forced to maintain many more' works than are theoretically necessary to deal with the stock offering. Every port insists upon having its works, and the hearer to the port the better -it is placed. Inland works are heavily handicapped by railage for all classes of their output, ■is well as having to bear (extra, cost ior railage to the works of coal and all supplies.

Mr. Marshall advised that the present policy of the - producers should be one of caution in forward purchases of store stock, and not to run undue- risks >n , a » uncertain market. The meat •msiness, he said,' is always highly speculative. Fanners expect to get •parity of London prices of the day for meat that will not be on the market say, three months . after • leaving the farm. The purchaser has to carry all the risk of market fluctuation and bear incidental expenses after, for some considerable time, when the market is weak. A year ago the London c.i.f buyer must have lost heavily on his purchases. Jn the oast season the c.i f man has been very cautious, at one time merely buying from hand to mouth. -