(PUBLISHED DAILY.) MONDAY, SEPTEMBER 5, 1887.

Hawera & Normanby Star, Volume IX, Issue 1720, 5 September 1887, Page 2

(PUBLISHED DAILY.) MONDAY, SEPTEMBER 5, 1887.

THE NEW ZEALAND FftOZEN MEAT COMPANY. «. The iecord of a failure is only too plainly set forth in the last annual balance-sheet of the above company. Misfortune has attended it from the outset. Large freezing works have been erected, but the chairman of directors laments " the low pricei which have led to the discontinuance of our frozen meat trade," and also states that " in answer to their advertisements they had received no applications 'fiom farmers" desiring to freeze meat in Auckland for export to London. ' When a meat-freezing company with a paid-up capital of £100,000 has to " seek employment

it for " its freezing plant it is obviously in rather a bad way. More especially is this the case when its profit and loss accoust shows a debit balance of £52,000, and its liabilities include an item, " accounts owing by the company," of £66,000. The most striking feature in the accounts are the items freehold and leasehold properties valued at soma £84,000. Eeferring to these items, and the .£34,535 written off for depreciation of those properties, the chairman of directors, in his speech, said : — " It is quite unnecessary for me to refer to the great depreciation in value of property which has taken place within the past two years, and the cotnpauy is, unfortunately, affected by reason of the large amount of its capital invested in buildings, reclamations, etc. To retain the former values would be simply to continue paying property tax on an amount greatly exceeding what could possibly be j realised, and your directors consider j the best course to adopt is to make the > necessary reductions." This is what ( is vulgarly known as a " nasty knock," j but, in addition to that, the directors " regret that the balance-sheet shows [ a loss on the trading operations for the year of £8193 14s Id, which includes bad debts, .£3090 8s 2d, and the sum of .£743 12s, written off for depreciation on machinery and plant." The losses inflicted on shareholders under these circumstances must be in many cases almost ruinous. Farmers, both in the Waikato and on this coast who took up shares in the company, cannot but view this report with horror at the fearful losses sustained. At the same time it cannot be denied tbat the directors have made a "clean breast " of their difficulties, have faced the position manfully, and have eudeavored by their Sydney Ice works and their butter making and creamery proposals to find employment for their freezing plant, and to " stimulate and develop the dairying operations for which our moist and temperate climate 6eems fitted." We only regret that a like spirit of open dealing with shareholders is not likely to be continued, seeing that at the close of the meeting, at which aboul 20 share-holders were present, it was unanimously resolved "That article 94 of the articles of association be omitted, as it was undesirable to give full details of the different departments of their business, as it would only open the way to competition." The portion of the report which more especially affects this district is that which refers to the Waitara works. In the profit and loss account, omitting shillings and pence, the following items are enumerated as profits — £ Stock account, trading profit ... 12,830 Waitara, profit 8 months ... 1,763 Butter department, £ profit 12 montbs ... ... ... 65 Acid works, J profit 12 months... 224 Wailara has evidently greatly helped the company through grave difficulties, but is to be sacrificed. If the directors hope to be able to purchase meat for tinning in Auckland at a price " somewhat under Id per 1b.," we, as representing a grazing district, cannot but hope that they will be disappointed. Fat cattle were last year delivered at Waitara to the number of 5500, at prices ranging on an average from 10s to 12s per 1001b, so far as we can learn. Even this price left very little profit ; in some instances no profit whatever to the grazier. Henceforth the live stock have to be shipped to Auckland at a price averaging, say, 3s per 1001b ; plus risk of shipping, say 5 per cent, on value ; plu.s great damage to the carcase, and considerable los* of weight while awaiting shipment at Waitara and while awaiting slaughter at Auckland. These incidental losses and < # hargeß seem to us certain to wipe out the business now done between the West Coast and the New Zealand Frozen Meat Company. It was reported by a gentleman recently in Auckland that the determination to ciose the Waitara works was arrived at in opposition to the wishes of most, if not all, the more experienced practical farmers and graziers on the directorate. Whether that were correct or not. we are satisfied that the trade in fat stock for tinning purposes lately done with the New Zealand Frozen Meat Company has been killed by this decision. The couclusion is forced upon us, contrary to what we had hoped for and looked forward to from the initiation of the Waitara works. The closing of an outlet where 5500 head of fat cattle and 8000 fat sheep were disposed of last year must at first increase the graziers' difficulties. First the Patea works were burnt down, now the Waitara works are to be removed just at the time when unprecedently large areas ot new grassed lands are about to increase the glut of an already overstocked meat market. This district ought surely now in self-defence to set about providing some local outlet for fat stock, seeing that the only meat-preserving works heretofore within reach have now Veen removed. It is on the cards that the Auckland butter market, Sydney ice and the acid and manure works may enable the N.Z. Frozen Meat Co. to pull through its difficulties, pay off its £60,000 of debts and prosper. We agree with the chairman's remark when he said that " when you consider that the trading has carried the following charges, viz. :—lnterest: — Interest (mainly represented by the cost of unproductive properties), £.3000 ; rents, rates, insurance, property tax, etc., £2250: being a total exceeding £7000 — you will, I think, concur that there is no inconsiderable vitality in the concern." But, looking at the report from the point of view taken by graziers who last year supplied J 14,000 head of cattle and sheep to the Waitara works, but who next summer will have to look elsewhere for an outlet, the position seems serious enough. Waitara was especially a market for fat cow, worth perhaps on an average of £3 os to I£3 10s each ; allowing 2s 6d expenses to Waitara, each cow would be worth to the grazier about £3 3s. It is clearly impossible for a farmer to pay 20s to 25s or more out of 63s or ,65s in order to convey each cow to Auckland, where the company hope to buy meat to tin down for lest than Id per lb.