FROZEN PRODUCE LETTER

Otago Daily Times, Issue 16916, 31 January 1917, Page 8

FROZEN PRODUCE LETTER

IWION COLD STORAGE DEVELOPMENTS. TRADE AND TAXATION. (Fkom: Onn Si-eoial Coruesi-ondest.) 9, LONDON, December 5, 1916. JJiero aro already signs m the moat market of the falling oil of home supplies, and this, in company with , tho cooler weather, accounts lor tile rather livelier demand at last sotting in. As a matter of fact, prices rule periectly steady, and the consumer must conyiatulato himself that the price of English mutton earlv in December, in tho third year of the' wur, is only Hid' per lb wholesale. Recent releases have continued on the careful basis of about 90,000 lambs ami owes per week by Uie Government, and there has . now been a belter demand for tho lambs, which fetch 9id per lb, as before, .South American la-rubs selling steadily at a fraction under 9d. Larger supplies of frozen pork from America are coming to hand. Frozen beef is decieedly firmer at existing values—viz., oid for fore Government bull and cow beef, and for hinds. .South African beef is a good penny in advance of these rates, indicating its present good quality. As to the Christmas markets, the anticipation of some that poultry, game, etc., will kuep meat at its comparatively cheap level, 1 do not consider justified, as all sources of poultry and game imports, will yield only a small portion of their old quota. It is quite, on the cards that in the next five weeks wo shall experience a period of considerable scarcity. Favourable reports are to iiand from France regarding tho first large cargo of 5030 tons of South African beef which was discharged at Ha.vro direct from Natal about a month ago. The French military authorities took charge of this, and the lean quality of tho beef is said to have made if particularly popular with French consumers. The fact that such a largo shipment was managed speaks volumes for the progress of tho infant industry of South Africa* Moreover, 5000 boxes of butter actually went in the same boat from the same source, and this is to be followed up by : a similar shipment later. There are, in fact, many signs of the African trade quickly getting on to a large organised scale; extensions of cold storage- accommodation in various parts of the Union are heard of, tho latest being a largo provision for tho new teade at new projected abattoirs for the Corporation of Pretoria. This is the time par excellence for increases in the capital of refrigerating undertakings, and since my last letter two such announcements have' been t made on the market. The Smithik'ld and Argentine Meat Company is seeking authorisation to increase its capital from £350,000 to a million sterling, and to issue forthwith £300,000 further capital. The Smithfield and Argentine concern is the smallest of the frigorificos companies operating in the River Plate, and seeing that,the English companies between them export only 21 per cent, of the total Argentine output, and tho native-owned companies 9 per cent., it is satisfactory to see this English concern increasing its capital. , Tho big American meat companies which own the several works exporting 70 per cent, of the Argentine's total output, have between them, of course, a total capital of nearly $0,000,000 sterling. Another new capital issue 'is that of the Union Cold Storage Companv, which is by tho way, quite the largest British refrigerating undertaking in the> world, and the onlv one 'which, with its capital of £2,300,000, can put up a decent fight against the Americans, as far as money power is concerned. The Union Company has just gained sanction for tho increase of its capital by a further £700.000 which it requires, it says, for four ships to be built to facilitate its overseas operations. In the past year this company has made a total profit of £248,000. some £55C0 less than that made m 1914. Conditions of trading were, it was stated, more dim cult, although the company's gross earnings had been maintained. At its nineteenth annual meeting- last month, 1 it was reported that its now Zarate works in tho Argentine were just commencing operations, and that thePort Darwin works were hoped to be ready for operations for next season's cattle A 10 per cent, ordinary dividend is paid', the samo as a year ago. At the eighth annual meeting of the Bovnl Australian Estates (Ltd.), the Hon' fair Cornthwaite H. Rason, the chairman referred to the growing sense of burden ■which colonial companies felt in tho double and treblo tax which was being levied upon them. _Ho said that, if that company were Tearing cattle in England ifc would llo t have to pay excess profits tox: because it was doing so in Australia ft had to pay that tax. freaking as one who had h°cn a .Prime Minister in another henrisnlmre he was bonnd to say that a .statesmanlike policy would be to remedv the inhi'tieo at once, The frozen moat fraclo has a rurtiifT grievance—namely. thnt whilo eoloria.l companies jue hoarinsr this multitaxation, the American Trus>t firms in this country are getting oft scot>free