Frozen Meat Trade.

Opunake Times, Volume II, Issue 82, 16 April 1895, Page 3

Frozen Meat Trade.

A BIG SCHEME

At a special meeting of the Chamber of Commerce, Wellington, Mr D. J. .Nathan read a paper dealing with the frozen meat trade and the' possibilities of its expansion. Mr Nathan proposes to form a company, or syndicate, with a eapifal of from two to four, million pounds sterling, to take over all existing-freezing companies iu the colony, on the basis of valuation, the whole to be worked ns one concern under one management, and the present shareholders rank as shareholders iu the new company. His finance is thus stated :—Assuming, for the purpose of illustration, that the paid-up capital of the existing companies amounts to £ , I would propose to raise another £ in shares to be partly paid-up, in order to provide sufficient liquid assets to meet emergencies arising out of the extended operations, the details of which will be touched upon at a later date. It may be here assumed that the farmers, recognising, as did the vine-growers of California and the tea growers of India and Ceylon, the advantages likely to accrue from combination in the cheapening of freights and insurance, the opening of new markets, and- the reduction in brokerage commission, would be prepared to make the necessary effort to subscribe the capital required. In addition to the capital indicated, large though it be, it would be desirable to have a further sum available in view of the extended operations considered essential to command success. To provide this I would propose that power be obtained to raise £2,000,000 at Home, on debentures guaranteed by the colony, at, say, 8£ per cent, the interest and sinking fund to be secured by a tax of not exceeding 3d per bead on the flocks of the colony. There is nothing very startling in this proposal, as will be seen after a little reflection. This tax, if levied up to its maximum, would not represent iu twenty years the difference between the price of sheep last year and this. Moreover, there is every reason to believe that the mere establishment of the company would send up sheep to the value of more than four times the amount of the tax. That there is ample precedent to invite the upport of the State, will be presumably admitted. I submit that, important as State aid pay have been in the direction iu which it has already been given, it was in no sense of so vast consequence to the community as is the proposal now under consideration, for the very existence of New Zealand depends on the success of the sheep-farming industry. Its collapse would mean irretrievable ruin to all, from the wealthiest to the poorest. In seeking the support of the State, .it is not contemplated that its guarantee should be given without tangible and ample security being offered. The flockowner at first might reasonably b? expected to object to being singled out for special taxation ; but when it is pointed out to him that the operations’ of the company could not fail to reduce the insurance cost of working expenses, interest freight, brokerage, storage, &c., by a halfpenny per lb at least—probably in time by more—and that the increased demands consequent oa the development of the business would afford an outlet for all the sheep lie could raise, he would indeed be obtuse if he*cou!d not see that he has everything to gain and nothing to lose by the scheme. As I before explained, so far as the general taxpayer is concerned, he can offer no objection, for, while he would receive indirect benefit by the sympathetic expansion of trade following the impetus given to the farming industry, he would not be called upon to pay the interest on the guaranteed debentures, and would therefore only reap benefit from the scheme.