FREEZING INDUSTRY.

Otago Daily Times, Issue 18999, 23 October 1923, Page 10

FREEZING INDUSTRY.

NEED FOR CENTRALISATION TOO MANY WORKS IN DOMINION. FARMERS LIVING FROM HAND TO MOUTH. (From Our Own Correspondent.) WANGANUI, October 20. The question has been raised recently that there are too many freezing works in New Zealand, and in consequence many big concerns had lost heavily during mo past year. The Feilding Farmers’ Company is one that sustained heavy losses, the deficit amounting to £10,035 l?s. i'ne need lor the amalgamation of the worms was emphasised by Mr J. G. Cobbe at the annual meeting of shareholders. , He said that he had given the matter serious consideration, and was satisfied that there were tar too many works in Now Zealand in comparison with the amount of stock handled. In his opinion the directors of farmers’ meat companies wore playing with the industry, and he likened them to children building castles on the sands at the seashore • whoa it was considered that tne Argentine, with less than half the number of freezing works there arc in New Zealand, were handling 14,000,000 head of stock per annum as against 7,000,000 handled in New Zealand. He hoped that the time was not far distant when the directors of freezing companies would take a businesslike view of the position with a view to putting the industry on an improved basis. He hoped that a start would be made u> bring about an amalgamation of the works in order to reduce the enormous working costs. No one realised what an enormous industry the meat freezing works amounted to, and wljat it could_ be made oy the farmers centralising their activities. Th“ farmers were at present living from hand to mouth, and he hoped it would not be long before some activity was displayed along the lines suggested.

POVERTY BAY MEAT COMPANY. INDEBTEDNESS TO NATIONAL BANK. (Per United Press Association.) GISBORNE. October 22. Representations having been made to the chairman of the Poverty Bay Farmers’ Meat Company that a false impression may be created by the publication of the fact that the . company’s indebtedness to tho National Bank was reduced by £47,062 between February 13 and August 31 last, Mr Lysnar says it is only fair to state that the reduction included £35,810 cash received by calls, and the amount thus received correspondingly reduced the bank’s security against the uncalled capital. In addition, the bank held on August 31 bills totalling £15,255, of which £13,502 had been taken by the bank from shareholders who could not provide the cash for calls due. The amount of the calls was represented by bills which were treated m the company’s balance sheets on August 31 last as paid-up capital, and_ the amount was transferred to bills receivable! Subsequently. the bank discounted £13,500 of those bills. This, after allowing half a year’s interest, reduced the amount owing to the bank on September 30 to £299,763, compared with £350.388 on February 13 last. But this entailed a corresponding further decrease in the bank’s security of £13,500, making a total reduction of £50,510 in the bank’s security over the uncalled capital, against a reduction of £50,600 in the overdraft.