New Zealand Refrigerating Company.

Otago Witness, Issue 181, 6 August 1886, Page 17

New Zealand Refrigerating Company.

The annual meeting of the New Zealand Refrigerating Company was held at the Chamber of Commerce on Wednesday afternoon, about 30 shareholders being present.

The Chairman (Mr J. Roberts) said he did not propose to make any elaborate explanation of the balance sheet and profit and loss account and compare this year with last year in detail, but he would touch upon several points upon which he was satisfied shareholders would desire an explanation. During the past year the company had had frozen at the Burnside works 76,765 carcasses, which with 1245 slaughtered gave a total of 78,110 against 90,173 last year, showing a decrease at the Burnside works during the year just clobed of 12,163. At Oamaru the number frozen (24,216) was small, but, as they were aware.these works had only been about four months in operation. The operations generally daring the year had resulted in a somewhat less favourable profit and loss account than last yearj and some explanation of the shrinkage might be expected. In the first place there was a considerable shrinkage in the weight of the carcasses. Tine average weight last year was GS^lb, and this year it was only 5451b — a shrinkage of 321b per carcass. This, at id per lb for freezing, came to the not inconsiderable sum of £1919, purely owing to the lessened weight of carcassescaused, no doubt, by the severity of the season passed through. The drought had been universal North and South, and the result had naturally been this shrinkage. Another item which contributed to the unsatisfactory result was that last year, ending June 1885, the company was in the habit of charging Is per head extrnfor treating lambs.which had been knocked off altogether during the year just closed. If this charge had been continued it would have made a difference of £720. The company had aLo during the year been obliged to make use of the Edwin Fox at Port Chalmers for freezing purposes owing to the shortness of water at Burnside. They found they had not enough water to condense their steam, and were therefore compelled to use the Edwin Fox at an outlay of £600 during the year, which could otherwise have been obviated. Then again, the sum of £438 13s had been expended on the railage from Oamaru to Port Chalmers of meat intended for vessels which were loading at the latter port. It was needless to say that the company hoped steamers might go into Oamaru more often; but in the event of shipments of Oamaru meat having to be made at Port Chalmers, it would be necessary in future that it should be charged to shippers; the company could not bear it. There had been a small increase of £450 in the expenditure, £250 of which was interest on a heavier overdraft than had been running before. Summarising these several items, it came to about £3600 shrinkage compared with last year. This more than made up the difference in the profit and loss account, and he hoped the explanation given had fully explained the cause. As they knew, the Oamaru works had only recently been completed, and this time last year he estimated the cost would be in round figures £7000. They found it had actually come to £9900. This difference was mainly caused by him (the chairman) having overlooked the cost of the freezing machine, which had been really bought but not paid for. When operations were commenced at Oamaru they were overrun by applications for space from sheepownersand others who were not shareholders. As the company had all along acted ou the principle that shareholders only should participate in the benefits of shipping, they 1 bought it advisable to offer these applicants shares in the company. The result was that only 190 shares were taken up. The indebtedness of the company, as would be seen, had considerably increased, there being something like £7000 owing on overdraft and advance account. This was pretty heavy, but the directors hoiked with the fair amount of business expected that in a year or two the account would be in credit without calling up any more capital. They had no intention of calling up any more. Turning to the depreciation, it would be found that last year £3031 had been written off for depreciation on the Burnside works. This year it was proposed to add to that £1293, so that would give £4324 actually written of the first cost of the works for depreciation. This, if continued, would bring them down to a very fair and low level. The Oamaru depreciation had not been so great. Last year there was £349 written off the cost of the abattoirs. This year it was proposed to write off only £330, which was an allowance for the abattoirs alone, because the works themselves were so little used and so very substantial and good that this would cover all that was necessary. In speaking of the Oamaru works he might say that the whole work had been done by the architect and contractor in a way which was fully satisfactory to this board, and he thought to the Oamaru board also. He had almost overlooked one item that had contributed very largely to the shrinkage in their revenue. He referred to the decrease in the value of offal. The decrease at Burnside as compared with last year was £917, while at Oamaru it amounted to £550 in the year, making a total of £1467. It would thus be seen that during the past year there had been a general shrinkage all round ; considering which, they had come through with a very satisfactory profit and loss account indeed. He went on to refer to some matters of general importance in connection with the frozen meat trade. Regarding the proposed increase in the shipping rates, he said there had ' .•• n a good deal of talk. The New Zeala ! ■•-•,;, pj n g Company had not, up to the present n,a-, intimated their intention of raising the freight ; but the Shaw, Savill Company, he understood, would take nothing after the new year at less than lfd. There was no doubt a good deal to be said on both sides about this increase, but he believed the shippers were themselves to blame for the increase, because they offered it in the first instance. Ho went on to refer to the Haslam compact, characterising it as a most iniquitous affair, and remarking that the Shaw, Savill people should be ashamed of themselves for the part they had taken in it. It looked as if a strong effort had been made on their part to stifle the trade altogether. He for one would be willing to lend himself to any move that would be the means of upsetting the arrangement. With regard to the London agency, the following report had been received : — 'I he Directors New Zealand Refrigerating Company, Dunedin.

Gentlemen, — In conformity with the resolution passed by you on the 106h December last, we have lately made full inquiries into the present working of the frozen meat trade in England, and have devoted much time to the subject with a view of recommending to you some mtthod of selling here by which we may hope to get a price for our meat more nearly approaching its real value. Prom your knowledge of the subject, we feel certain that you will agree with us that to make the most of our meat sales, we should direct tho various consignments, as far as possible, to one central controlling and distributing agency in London, so as to lessen competition amongst agents and consequent depression in prices, arising from tho anxiety of many small consignees to sell oub their shipment's. If the meatwa* more under central control and the market wk* regularly and carefully " fed" in no-

cordance with the daily demand, we have no doubt that a better average of prices could be obtained ; at present, for instance, the price for frozen meat should be quite §d per lb higher than it is, in sympathy ■with Home fed mutton, which has risen considerably. Instead of this, however, our frozen meat is actually falling in price t owing to the undue competition amongst agents. We are also of opinion that any agency company controlling our meat sales should be as independent as possible of other interests, and should have sufficient capil al to further the development of the trade in every way possible, especially by opening up fresh channels to increase the consumption of the meat in the provinces.

Seeing that the present time is so extremely inopportune for floating an entirely new and independent consignment company, -we cannot advise any such step being ventured on, and we think the attempt would result in a decided failure. With these facts before us, we have turned our attention to the only other available consignment company which, in our opinion, goes far to fulfil fhe requirements of the trade, viz., Messrs Nelson Brothers (Limited). We are aware that in the colony this company did not at first stand high as a satisfactory channel to sell through, bub they have latterly gained much experience in the trade, and have, we consider, now done so much towards making themselves masters of the business that they can safely be trusted to handle very large quantities of meat. To work the supplies sent to Smithfield effectively, they have completed excellent refrigerating stores capable of holding fully 40,000 sheep under Cannon stroet railway-station, at a cost of about £20,000. The carcasses are lowered from the ship intoinsulated barges, which bring them up the Thames right to the door of the cold store, and so save them from injury by excessive handling. On Smithfield market, Messrs Nelson Brother* have a special arrangement witli a firm of salesmen whereby they retain complete control over the meat they place with them for sale. In the provinces Messrs Nelson Bros, have been diligently pushing their business, and employ travellers to canvass for orders and to introduce the meat to probable buyers. To facilitate the supply of frozen mutton to the west coast of England, a hulk has been purchased and is being fitted with refrigerating machinery and chambers to hold 8000 sheep. This store will lie at Plymouth, and arrangements are beiug made with the shipping companies to discharge aportion of the cargoes of frozen meat into it when the steamers call there on their way from New Zealand to London. A coasting steamer lias also been fitted with refrigerating machinery, and is now running to Middlesboro, where business has been commenced. Messrs Nelson Bros, had the handling of some 120,000 sheep last year, and this year they expect about 200,000 carcasses.

Their charge for selling in London, including storage and everything, is £d per lb, and they express their willingness to reduce the cost of selling still further so soon as it is found possible to do so. You are doubtless aware that Messrs Nelson Bros, have freezing works at Napier, and have alao some land and a limited amount of station property in that district.

Last year, when the public ceased to supplymutton for freezing in the colony, Messrs Nelson Bros, were compelled for a time to purchase aheep in. order to keep their freezing works going ; but ifc is not by any means their wish to buy or freeze on their own account, and we do not think that there is any risk whatever of the company sacrificing the interest of consignors, even supposing that now and then they are compelled to have a shipment of their own mutton to sell.

We suggested to Messrs Nelson Bros, that It would perhaps be advisable to sever their London business entirely from their New Zealand interests, thus forming a distinct meat consignment company under a new name, but it was Jound there were so many obstacles in the way that the scheme had to be abandoned.

Messrs Nelson Bros, agree to sell none but New Zealand aheep, and the firm in Liverpool of the same name, which sells River Plate mutton, is in no way connected.

While declining to sell anything but New Zealand mutton, it may be found advantageous to accept moderate consignments of Australian or American beef, so as to keep the buying connection together, and meet the requirements of retail butchers who canuot deal in mutton alone.

Peeling that it is most desirable to obtain tho cooperation of as many consignors as possible, and with a view to ascertaining the opinions of others regarding our personal views, we called a meeting of colonists, which was well attended, chiefly by r<? presentatives from Christchureh,sWellington, and Napier. The subject was discussed at length, snd we found that the views of others coincided almost entirely with our own, and that the appointment of Messrs Nelson Bros, as a central distributing agency was generally approved of. It was at the aame meeting decided that Messrs Nelson Bros, be asked to allow three nominees to join their board to specially represent the interests of New Zealand meat consignors •

Messrs Kelson Bros, have invited the writers of this report to join their board a 9 special representatives of New Zealand consignors, and this position they are willing to accept it those interested in the colony approve, and if we receive such distinct assurance of support from growers and others as will guarantee the success of the proposed scheme of concentration ; a third member for the board, therefore, falls to be nominated, and the Hon. Georee Buckley (formerly of Me3srs Buckley and M'Lean), now resident in England, kindly offers himself for the post. Mr Buckley is well known in the colony especially at Christchurch, and his name should, give confidence to the consignors from that district.

Wo would suggest that you endeavour to aecuw the co-operation of the Gear Company at Wellington and the Refrigerating Company at Christchurch, which we trust may be arranged, at anyrate to some extent, understanding as we do that several influential coloni6ts interested in these com panics arc writing to tho colouy recommending the step.

The details as to the best manner of selling tho meat need not be entered on here, and must necessarily be left the board of Messrs Nelson Bros., at which your three representatives will be present. From the foregoing we trust you will agree with us that, intheabsenee of of an independent consignment company entirely meeting our requirements, Messrs Nelson Bros., with their large capital, re« frigerating stores, connections, and consignment* already secured of perhaps 200,000 sheep, offer special attractions for combination and centralising the control of our meat.

They express themselves aa being determined that no money or pains will be spared to develop the trade and make the business a success, and their actions up to the i resent time are certainly confirmatory of their future intentions. The importation to London for 1885 from New Zealand reached 492,013 frozen sheep and lambs, be=sides which there were 09,527 carcasses from Australia and 179,388 from the River Plate— in all, 771,528 sheep. Assuming that the New Zea'and and South Canterbnry Refrigerating Companies, together with the New Zealand and Australian Land Company, can i>end 200,000 sheep, and Messrs Nelson Bros, receive consignments from other sources of 200,000 more, ifc would centralise the control over 400,000 out of a probable export of 500,000 to 000,000 carcasses from New Zealand.

We have to impress on you the improving quality of the River Plate mutton, and the great necessity tbere is for doing everything possible to maintain the character and price of our New Zealand meat. In conclusion, we are glad to remark on the increasing consumption and popularity of New Zealand frozen meat, which is st eadilv finding its way to consumers through new channels, and vhich in our opinion only requires continued good management in New Zealand with regard to the quality of the meat sent, in conjunction with a proper and extensive control over supplies placed on the Home markets, to ensute abettor average price to the grower than is now obtainable. We remain, yours faithfully,

\V. S. Davidson, Chas. C. Murray. The directors after considering this report decided upon making arrangements with Messrs Nelson Bros, to receive cargoes, and already one shipment had been forwarded to them ; and since the receipt of that report they had cable advices to the effect that the N.Z. Consignment Co. had sold out to Messrs Nelson Bros. As to the total exports, they had for the year ended 30th June amounted to 606,003 carcasses. This was an increase of 99,455 carcasses as compared with 1885; the inorea.se. being— from toe NortJj

Island 87,446. and from the South 12,009 carcasses. The number of shippers through the compauy had been 120 this year, as against 79 last year ; and the average numjber of carcasses per shipper this year was 8 11, as against 801 last year. The result of the shipments during the past year had been somewhat varied. At first the sales had been very unsatisfactory, but latterly they had been a good deal better, so that the net result would come out at about 2Jd with skins and fat. This was on the whole a slightly better price than could be obtained in the local market ; whereas, had they been compelled to sell all their produce in the local market they would have had to bo content with a little short of boiling-down prices. He moved the adoption of the report, which was unanimously agreed to. Mr Anderson referred to Wo matter of insurance, and advocated the c c i •.';!'. hi _..: '. of an insurance fund by the company lt-.'jli\

Mr James Smith (Greenuelo) also madu bomo remarks as to the rate of freight.

Mr A. C. Bego, referring to a suggestion by Mr Anderson that a charge of 6d per head should be made to shippers for the risk taken on the meat while at the works, said this risk was nothing to be compared with that on board ship. There might be a breakdown in the machinery at the works, but there was no reason why it should not be repaired within 24 hours, and the temperature would preserve the meat longer than that. The charge of £d per lb was intended to cover all that, and the fire risk was always covered. He agreed with Mr Smith that a great drawback was the insufficient tonnage, but the reason of this was the Haslam compact. Some shippers had been anxious to get first place, and had hastened to offer l|d. This was a thing to which they should not be exposed. They did did not want mail rates, and a vessel which could make the passage in 50 or 60 days would suit them just as well as those fast steamers, Steamers such as the Elderslie would burn less coal and make the trip far more cheaply. No matter what ships came here, they should give their meat to these vessels, and let the shipping companies see they w?re not to be sat upon. Mr Herbert asked if it was necessary that meetings of the directors should be held every week. Country people found it almost impossible to get to the board so often. The Chaidman thought it was necessary in the interests of the company. They would otherwise have to be continually signing emergency cheques, &c. There was always a good hour's work to be done each week.

Mr Smith expressed the same opinion. Mr Ritchie, referring to the freight and shipping, said he agreed with the chairman as to the Haslam monoply, and it was eutirely repugnant to his feelings that such a compactshould exist. At the same time the company was in a difficulty, as Haslam had preferred to get a royalty on the shipments rather than make profit by others using hi 3 machine, and the company were informed that if they did not accept it it would be offered to someone else. As regarded the rates of freight this year, he thought there was no question that the rise was entirely due to the shippers in New Zealand. All the Shaw, Savill agents in the colony, without exception, were unanimous in opposing ifc, but it seemed the shippers at tke North had taken freight at the short tonnage, aud rushed to anticipate each other in getting space, so that shippers here who remained loyal to the understanding were left out in the cold. Still he found it difficult to blame Shaw, Savill, aud Company, because they were offered the freight, and there were now on both lines some 30,000 or 40,000 sheep going begging. The reason was hardly that there was insufficient tonnage, but that for six months of the year there was twice the quantity of sheep there was during the other six months, and for the latter time the steamers were at their wits' ends. It seemed to him a question of great importanjeto the shippers to see whether they could not meet the necessity of the shipping companies to have their exports spread over the year, thereby obtaining the minimum rates of freight.

Messrs Spence, Begg, and Reid were nominated for election as directors.

Mr Hbkbeet said his only reason for nominating Mr Reid was that Mr SpGnce was a representative of the shipping interest. He had not one word to say against Mr Spence, and he believed that as a member of the board he would not say anything against the Refrigerating Co., but still a case might some day arise where Mr Spence would have to represent the shipping Interest.

On a ballot being taken Messrs Begg and Spence were elected. The voting being — A. C. Begg, 999 ; E. J. Spence, 956; John Reid, 802. Mr Callender was re-elected auditor for the year. Votes of thanks to the general manager and the company's employes for their efficient services were passed, also a vote of thanks to the directors.