THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 30, 1902. COLD STORAGE IN SOUTH AFRICA.

Otago Daily Times, Issue 12471, 30 September 1902, Page 4

THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 30, 1902. COLD STORAGE IN SOUTH AFRICA.

The significance of a cable message we published a few days ago relating to an amalgamation of cold storage companies in South Africa has probably not been fully grasped by many people in this colony. What it .means is that the gigantic monopoly by which the meat supply of South Africa is virtually contrailed has been strengthened and that its grip has been tightened upon a market where, if the Government of New Zealand had shown only a little energy twelve months, or even, six months, ago, our producers might have obtained an extensive outlet for the commodities that we can supply so abundantly. The consolidation is of such a nature as, we fear, sensibly to diminish the prospect of New Zealand produce securing for itself that fair field without favour that is only necessary to enable it to command the attention and approval of South African consumers. It ia a consolidation, on the other band, that may, from

the interest that Australia possesses in it, bo of distinct advantage to the Commonwealth. It represents the consummation of a project that has been openly on foot for several weeks, and that has in all livelihood been under the consideration of the principals in the amalgamating, concerns since the Imperial contracts in South Africa were obtained last year by Messrs Moritz Bergl and Co. When this firm's tender for these contracts was accepted by the Home Government ifc set about forming a company for the purpose! of distributing the supplies, and this company was styled' the Imperial Cold Storage and Supply Company. A number of influential firms, the ramifications of whose businesses include stock-raising, shipping,' and . the supply of cold storage, were associated with Messrs Moritz Bergl and Co. in the establishment of the Imperial Company, among them being Messrs Houlder Messrs Birt, hotter, and Hughes, Messrs Rhodes, Beit, and Co., and the Do Beers Consolidated Company. The capital of this company was one million .sterling. It has now acciuired the business of the South African end Australasian Supply and Cold Storage Company. This latter company, floated in London about six months ago with a capital of £1,500,000, bought up the business of the South Africa Supply and Cold Storage Company—the origiual concern which, as , is matter of history, securing the arniy contracts from the Imperial Government, amassed enormous profits through the wax*, its operations for a single year (1900-1) returning a trading profit of £1,071,169, and enabling it to pay a dividend and bonus of 105 per cent, on the ordinary shares and to add £737,000 to. its reserves, and thua to increase its fighting fund to more than £1,00,0,000. For the business of this wealthy corporation the South African and Australasian Supply and Cold Storage Company gave the sum of £1,0.00,000, of which amount £400,017 was paid in cash, £333,333 being i - epre« sented by": ordinary shares in the new company, £150,000 by preference shares, and £116,650 b'y debentures. The purchase was effected, of course, after Messrs Moritz Bergl and Co. had secured the army contracts and the South African Supply and Cold Storage> Company had consequently lost what had been in the previous year the most profitable branch of its business. And 1 now the successors to the present and the past contractors for the supply of stores to the order of the Imperial Government in South Africa have come together. According to information which, was published in the Australian papers two or three" weeks ago, the arrangemenfr.was that the Imperial Cold Storage and Supply Company should acquire the business of 'the South African and Australasian Supply and Cold Storage Company for the .sum of £i,G50 5 000 and increase its capital by 100 per cent., making it two' millions. But whether it is' by amalgamation or by : acquisition or by absorption, that the process of blending the operations of the two companies is being accomplished, the net effect is clearly and unmistakably to deepen the foundations upon which the meat supply monopoly in South Africa rests and to establish a vast and powerful concern the existence of which cannot be regarded in New Zealand save with misgiving. Tor it was part of the policy of the South African and Australasian Supply and Cold Storage Company to encourage the exportation of Australian goods to the exclusion of New Zealand commodities. For this reason it was actively supported by State GovernmeiltS in Australia. Its policy in this, respect will almost certajnly be followed by the company which takes ove , ? jts business. The fact that the general manager and the assistant manager r/ the South African and Australasian Company are, as- , been announced, to occupy similar positions in the combined concern sufficiently indicates that », cod? tinuity of policy will be observed. And this obviously does not augur well for a. New Zealand trade in South Africa. The company will probably come to this colony for its supplies , when Australia is unable to satisfy the demand, but not otherwise... The interests that are repre-- ! sented in the company are opposed to the exploitation of. South African markets for the benefit of New Zealand Whero these interests are not connected with Australia they are centred in Argentina. It is. therefore, difficult to see where New Zealand is to come in. The effort to establish a regular steam service 1 between the colony and South Africa has, as everyone knows, been bungled by the Government. But if a direct service was in existence, what should we do with our frozen meat and dairy produce when,we got it to Durban or Capetown? Are t-Kere dealers in our products in those towns, not connected in any way with the powerful company that has been formed, sufficiently strong to encourage us in onr efforts to establish a direct trade ? We should like to believ©~this to be the case, and that we are not entirely at the mercy of the monopolists, but we are afraid the hope cannot reasonably be entertained. The Government , has not thought it necessary to provide cold stores at the South African ports. It has acted in this matter upon the foolish advice it has received from its Trade Commissioner. Additional cold storages, Mr Gc-w has informed the Government, are not necessary in South Africa, for the existing corporations " can take up and store as much frozen meat as we can give them, always provided, of course., that our prices compare favourably with those of Australian and other competitors." But to send our produce for cold storage to the capitalistic combination that now controls the market in South Africa would be a very hazardous step. The Imperial Cold Storage and Supply Company may be looked upon as a collecting, shipping, storing, and distributing agency, and it may be taken for granted that its operations will be upon a mammoth scale. Obviously'it would be unsafe to rely upon obtaining cold storage from it in South Africa. There would always be the possibility of its stores being choked with its own consignments and unable to receive produce from independent sources, and of independent shipments for which itG stores offered temporary accommodation having to be removed at short notice to make room for its own stock. Moreover, it is hot unlikely that it might refuse to grant cold storage except on terms -which Would confer upon it the right, to distribute what it housed. It may be difficult and risky, as Mr Gow asserts, to venture upon a competition in cold storage with the mighty concerns that exist in South Africa, but it would probably be quite as risky to trust New Zealand consignments to the tender mercies of the great combination thai has now been created. It is much to be feared, indeed, that, from whatever

aspect it is viewed, the golden oppor* tunity which New Zealand had in South Africa hue to a large extent been sacrificed.