TRANSFER REFUSED

New Zealand Times, Volume LIII, Issue 12357, 29 January 1926, Page 4

TRANSFER REFUSED

MEAT COMPANY WANTS TO SELL MINISTER REJECTS APPLICATION OPERATIONS AT A LOSS The Minister for Agriculture (th« Hon. O. Hawken) has agreed with the New Zealand Meat Producers’ Beard in its decision to refuse a transfer of the Wellington Meat Export Company’s license to Messrs Thomas Borthwick (Australia), Ltd., and has accordingly addressed the following communication to the Meat Export Company : ■ “With reference to yonr application for approval of the transfer of your company’s license, under the Slaughtering and Inspection Act, 1908, and the Slaughtering and Inspection Act, 1918, to Messrs Thomas Borthwick and Sons (Aust.), Ltd., I have to inform you that the matter was duly referred to the New Zealand Meat Producers’ Board, which, by statute, is invested with power to control the meat export trade of the Dominion. The board has advised the Government that, after due consideration, it cannot see its way, on the grounds of public policy, to recommend the transfer of the license in question. I may say that In this recommendation I coneur, and therefore am unable to extend my approval to your" application for the transfer of the license. I desire to make it clear that this decision is in no way intended to reflect upon the conduct of Messrs Thomas Borthwick apd Sons (Aust.), Ltd.’s, operations in the meat freezing and exporting business.” BASIS FOR REFUSAL It is understood that the refusal to grant the license—which is to be the subject of a meeting of the meat company’s directors next week—was based upon the Slaughtering and Inspection Amendment Act, 1918, which provides that every meat export license undtr that Act shall be issued for a term of

one year from the date thereof, but may be revoked by the Minister any time before the due date of expiry thereof, if the Minister is of opinion, on such evidence as he deems sufficient, that the licensee “has committed a breach of the terms of his license, or is carrying on business under the license in a manner contrary to the public interest. No license under tbo principal Act shall be granted, renewed, or transferred in respect of any' meat export slaughterhouse without the consent of the Minister for Agriculture. Without in any manner restricting the discretionary power conferred on thp Minister by the Act he may refuse his consent if he is Of opinion, on such grounds as in his discretion sufficient, that the business of the meat export slaughterhouse has been carried on. nr is about to be carried on, in a manner contrary to the public interest. OPERATING AT A LOSS

The Wellington Meat Export Company has to its credit 35 years’ operations. Last year’s efforts resulted in a loss, and it acknowledged a deficiency of £56,953, after appropriating £15,000 from reserve account and £SOOO from equalisation of dividends account. This loss w’as attributed by the directors to high priees paid for stock throughout the Dominion. The chairman of directors, at the annual meeting of shareholders, described competition for stock as * 'insane,” and in part responsible for the difficulties of this company and other companies. Subsequently the shareholders, at a special meeting called for the purpose, resolved to accept an offer made bj Thomas Bortbw’ick and Co., London, of £200,000 for the purchase of the business as a going concern. This transaction would enable shareholders to recover 8s to 9s in the £1 of their capital. This was contingent on the transaction goinor through.