BUSINESS AND BOODLE

NZ Truth, Issue 510, 27 March 1915, Page 6

BUSINESS AND BOODLE

BY "CAMBIST."

The Christchurch Meat Company, Ltd. Report and Balance-sheet for Year Ending October 31, 1914. ■ i The "Shipping Ring" Denounced by I "Fat." 'The above • balance sheet covers nearly four months of the trade which the war has been responsible for, and considering the results shown for the period covered, one wonders if "all has been disclosed." Neither the accounts, nor the remarks made by the chairman at the ."general meeting of shareholders, bring home to' this simple-minded scribe a full sense of satisfaction m these respects'. The fact is that all the chatter that chairmen, delight m, is so dusty that one can hardly see, let alone | hear. Looking over the reports of all the freezing companies, one learns practically nothing of the business from them. By reason of the various monopolies that shelter behind it, the frozen meat business has become almost as tricky as the' jewellery trade. One can hardly tell whether the stuff is eighteen carat, nine, carat, ,or merely gold filled. The "hall marks" give no help .to the exploited, whether he is a buyer. of Brummagem jewellery or a seller of a. fat. lamb. Come to think of it, the farmer, m the face 1 of the freezing companies, is just a lamb* being led to. the slaughter. Well, it serves the farmer right m a sense, for he is so fortd of sponging upon others that he must ■ . '. • "FALL INTO THE SOUP" at times, v As a rule the people who own the freezing companies are the people who farm the, farmers. Glancing through the share list of this company, the biggest shareholders are not farmers, so there you are. The motives .that Inspire these industries is 'only profit snaring, and under such conditions the farmers may just make up their" minds to let the fruits of their industry fall into the pockets of other people. This year of stress the shareholders receive their ten per cent; though much more is hidden m replacements and ropairs, while £26,673 is carried forward m the "profit and loss" account. The carry over is £13,---517 more than m the previous year, but nothing has been placed to tho visible reserves. Nevertheless the profits are enormous, for before the profit and loss balance is struck, the company has written off £10,000 for "special repairs and replacements." Had that little item been dealt with m the usual manner, after the accounts were balanced, the balance of profit and loss would, have been £53,594, instead of ten thousand pounds less. It is m this manner that a secret reserve fund is built up. "Cambist" haa nothing to say. against reserves, but he objects to the secret process, just as much as> he objects to the "spy system." If the Christchurch Meat Co. is piling up reserved profits, they can only do so at the expense of the stock raisers. However looked at, it is the man upon the land that supplies the medium of the huge earnings that this' company is now able to hide. No one could grumble at the shareholders being paid 10 per. cent, on their money, and even another 6 per cent, for all replacements, but when debt-ridden farmer has to stand by and look at the huge proj fits being "socked up" year by year, it 1 must disturb his bucolic mind somewhat. The farmer never gets the value of his labor, any more than the town worker. It is that fact which ought to bring tho two classes together. They have a common interest — that is to regain the FULL. VALUE OF THEIR WORK. The most remarkable feature about the profit and loss account is the drop m the item "rates and taxes." This year the amount paid under that head is £6423, or £1323 less than m the previous year. There mu«t be a great many people In the Dominion who are making "pots of money" who would be glad to learn the secret of this wonderful saving. "Cambist" cannot explain the problem, for tho accounts are not set so that they could be properly dissected. All he can say is that the fact of this company enlarging their : property account as they have, and stuffing away so much reserve, makes tho matter one of considerable moment to income earners of every class. Has the Massejtopovernment, In tho interests of "Far?" done something to mako life smooth m tlie * taxation line? All tho other items on tho debit side of the profit and loss account show bigincreases. Including tho £10,000 al- | ready referred to, tho sum total of I theso is £21,120. The general expenses are £7749 more this year, but then tho new works arc costing something more In. the operations now started. Interest and exchange has also Increased a large amount, but the business Is bigger, values higher, and the company hns not enough capital to cope with tho finance. Therefore they miisi lean upon some financial prop. Whether thoy are being helped by tho bank, or whether thoy are helped by some other .scalper, It acorn* that they must have some kind of drafts floating n« against their consignments, and shipments Thul Is the usual manner with shipping concerns. However, tboy may have a different method, but what It Is the accounts give no indication. Anyway, tho auditors should state the amount of contingent liabilities. If any, at foot of the balancesheet. Should there be none, that fact ought to be Indicated as well.

THIS FEATI'IIK IS SO IMPORTANT that the auditors should be asked for information on the 'subject. If ihcso gentlemen foci hurt at reference being made to this matter, "Cambist" would like to hear from them. The omission is something unusual, In this writer's opinion. This column is always open to companies who wish to explain matters referred to m It.

Looking at the profit and loss account is like trying: to look into n .•hut safe and say what is Insld*. Neither of these arc Intendftd tor curious inspection. This company sols out thes« accounts In n fashion which J» of very little use <o "Cnmfolm," Tho gross proIlis uro there, loss depreciation* and expenditure on renewals nnd replacement*. This method 1m too obscure for ih« purpoHe of comparison, or conclusions tiH to the exact position of affair*. However, looking at In at yonr'n accounts. th« KroHK return on Urn «t<wk handled uppt-urn to luivo been about In lVfrd p* i r liond. Tlilm year the return tfwuiA m tho region of lit ]%«|, no If Uiu.l is v correct method, of looking at

the position, the farmer is m a worse plight than he was twelve months ago. "Cambist" does not press this as a sound conclusion. It will, however, serve to prove how much bettor the set out m the accounts could be. x It is possible to render accounts so that such matters can be viewed and discussed, as they should. Possibly some of the wide-awake shareholders agree with this writer, just as much as the farmer will when he reads these lines. The balance-sheet of the company is a strong one, and the movements are of a nature that saves discussion.. There is not time to take them seriatum, nor space. The chairman at the meeting indulged m SOME MUTTON PATRIOTISM. . But at the same time he, gave a roar like unto the death roar of the 1,529,914 animals, who offered up . their lives m the killing works of the company. His objective was the "Shipping Ring," which "Cambist" often refers to m these notes. • He remarked: If dislocation with which wo are unfortunately how faced is, as wo have reason to believe, largely the result of a lack of appreciation on the. part of. certain shipowners of their obligations to the producers of the Dominion, out .of whom they have built up their business, then it is essential that j every possible step should be taken ! to prevent both ourselves and the producing community from again being placed m such a position. So here, my farmer friends, you will see a very nice classification of. interests. The Christchurch Meat Co. is not a producer, but a handler, of other people's products, and the, ahem, "certain shipowners" have built up their business upon the farmers. What is so remarkable about this is the fact that a short time back the farmers were belting into the workers for striking against the "certain shipowners," and now the "Shipping Ring" is neglecting its. duty to the producers and shippers. "What fools these mortals bo," is a fit and apt quotation m this case, for which, Mr. Shakespeare, mucli thanks. The remedy for the future must be State-owned ships to carry the producers' products to market. This will wipe out the individuals who fatten upon the labor of the man on the land, and provide a decent wage to tho sailorman and wharfie m the future, an end to "lock outs," and fair play all round. Tho bitter bellow of Mr. Chairman Knight has done much to illuminate the people of this Dominion. It is better than ail the sermons listened to at the -farmers' ! unions. It proves that the •'Shipping Ring" is throttling the country, and the time has come to throttle the "rotten ring."