THE FROZEN MEAT TRADE AND ITS EXPANSION.

Otago Witness, Issue 2151, 16 May 1895, Page 14

THE FROZEN MEAT TRADE AND ITS EXPANSION.

The following is the conclusion of Mr D. J. Nathan's leply to his critic 3:— BONUSES IN OTHER COUNTRIES. Iv comic ti vjj with whatl havc-a'd withrcga;d to lonise an 1 bouaticb paiJ in other count: ies, it is exceedingly instruc'ivp to nut." wh.it is taking pl.ic'i. The Uritisb Trade Journal of i\lctrch 1, 18!).j, writing of the Germau Sugar Bill, says :— " The opinion prevails tbat the present bounty will be maintained or moderately ra'sud, Germany cji.siduriog herself fully justified in this new departure, as otbei countries never followed suit when she reduced bounties. Miantime Austiu continues agitating, and French papers talk of raising their import duty." EFFECT OF COMBINATION. With regard to tea, which by the foresight of Indian and (J«.ylon growers in taxing thsi»»<slv'e3 was foiced on the notice of the world, the same journal lemniks :—" The Russian market h now fast becoming an impoitaut outlet foi (Joylon tea, while South Af'io jbows a con.-iderjb'e progress as regard i l>o»h Indian and Cuyliiu " There is theliest po < -iliU' reason to I.ehevo that uiniilar remarks will be made in the neir future with regard to New Zealand " Ked Stir MuHon," if the grower^ of this colony are wise chough to profit by the entßipti.->c and experience of producers iD other parts of ihe world. tiih un'icn BUTTF.n rino. ReporLing on l)utt"r, the above-quoted journal says:— "The Copenhagen Cooimitto-J linvr this week reduced the pi ice of Danish but er to 92 kiouer, Wiiich is 4s (id below last week's quotation. It w^s thought probable that a2s icduction would be made, but the pies-nt fall is a surpr'fte to the trade. . . . The Manchester market ha 3 received C72ocwt of Scandinavian butter tliis week, vhich is <!() lons iv excess of Uit, and prices arc 6s to 8i lower." T<ie Mguificanccof ihis repoit is apparent when it UlcarueJ that the Dan .•>!) butter linrket is ruled by h committee which bis power to fix pr'cei at \\i'l, phil which, in order to kill th'i Australasian rMmpctitiou, can sp <il the sileof tha Utt'.'r a: . ulo l<y reducing tho prices and glutting the market when AustiaUsiiiD fhipnient3 come to hand. The above reduction fo lowed on the arrival of shipments by the Mas-ilia and Uiient, somt 42.G00 boxes — Verb tap. STATJJ AID TO COMJIKHCE —LINE TO BE DKAWN WHKiIE EXI'KDIKNCV DF.MAM'S. J have been asked to S'.y where the hnouhouldbe drawn in seeking SUte aid to private enterpiisa My reply is simple :— Where expediency shall show it to be necessary in the inletestsof tbei'tople as a whole. SUtoa do not make railway?, construct tMegmpb Hups, endow harbours, form romls, cvect forts and hglrhousos everywhere; neither do they carry parcel aud subsidise mails and cables to every p^rt of the world, uor give bonuses to every loual indintry. They übc their di-civhon, and are ame> ably to the people for errors of ju-lg-in-nt. The> have subsidised the butter indistry, for instance, but they woull piobaUy diaw the live at dollV-eu' m lung They have aid d, i-ii'l will continue to aid, commerce and iii'Mihtry where fuch ai^ is tlcemed to he wi'o ; avd I sub mit that the frozen meat trade of this colony, trom the large number of people employed in it, snl itb far-reaching elects and p >=si'"ilitii>B, is the one industry above all olh rs which justilies national .support in the bi^lK-st deg c*. Ni:n:s^u'v i'or aci'ion— ei-thci 1 or indifference In the fiuzcn meat trade we. hav^ an industry wl.iJi is in e\ ly wav f-uitalile to the country, whi' h has .-prung by le.tpj and bound- up to an tnnual v«h'.e of over £1000,000 steil'iix, but ffbich, owina to outside comuetition. is no longer

able to bear the execsive charges consequent on divided interests and want of combination, and sh >w<3 signs of colhpse. Are \vi>, as coloiv'sta, to stand idly by and witness its downfall for the waut of a little tiuu-ly a sista >cc ? All over tho couutry tho f ree/inrf coiupanioa, partly on acciunt of thuir tiuai.cUl weakness, are reoucin^ bands and curtailing op 'ruiions, forcing the famicrdin their turn to d'Vchur'e banos, an-1 ti cell sheep, in s >nic instances, at perdcz 11! Yf.t we are t< ' Id by one criti — a townsman— -that tins industry, whnb more th-m any other represents the Holveucy of our colony, should "fight it' own luttle"l To this wnter, and to all those who think with him, I woull commend tha pregnant obsorvation of Lonl Delasvar in tho llou.se of Lords. Spe »king of the languishing asricult.iral industiie-f of rTi-ciit Britniti, be&aid tnat " the losj re-ulti'ig from the fall in thy value of hud and prices of agricultuial pro>lue.ts h.id readied £000.001.000 111 10 ycar-i." And, arcoiding to bir J.xnies Oaird, the bigliQ t uuthority on agricultural matters, "tbe bpenrlable iucoiue of the airi.-ultnral classes in 10 years bad decr.a-ed by £42,000,00')," and this reduction is understood to have l.etin nearly d-aibled siucv that eslim'-te wa? given— eight y^ara ngo. Ju-lg n.< by the criticnm , of home of our w..uld-be le.ulerj of public ihoiuht, I Ihey wouM view with cqnarvim'y sonuwut fiiinilar reaiiltn in tl.ib colmy. Many of our co.onistb tli ; nk diffo-ently, however, and wou'd prefer cxpan&ion of trade aud boli.l indusI trial piot-perity, callin? forth mental activity and ! phys dl encifty, to cmipulsoiy leisure for the I study of a bundle of economic precepts liid down by men of a past age, unable t> fo:c«Ukt the exigencies of modern conim rc-i and the t end of mo(ieri) legislation. When a fanner has to bell sheep— culls though they may Ic-at3a a dozui he is apt to overlook the g'oriouv princip'es of political econ-'iny. And if, as lias been msge*tcd, tny proposed tax will prove to bo the la>t straw to bivak bis back-well, in all probability, he will be thankful to be ldieved of bis circs and rospons'bil't es. Th- numerous farmeis with whom I have been brought into communication, however, think differen ly, for in no single in-t-mce has the power to levy a tax been obj> cted to by those who will be c tiled upon to pay it. Hie solicitude of tho-o who will not be calied upon to dofco oimbt not to be reg .riled. WHAT IS DONE IN THE UNITED STATES. Some peiple are fond of referring to New Zealand as being in the van of process ho far as «• peri mental legislation is concerned, but they should waMi the ticud of legi laliou in otl'.er couutiies to g-u'n an idea a^ t-> w hit is beiii^- tione by w.ij of encouras'eiiient to ivd 1 : trial enterprise Takexonio of tlu'^talfH in Anifiiei as an example. There, towns not o»ly have power to giunt bites for tlic ccctioa of factories, but also to forego taxation for certain periouS to private firms and corporations. EFFECT OF THE BUTTF,H BONUS IN VICTORIA. Let u.i, however, come nearer home. A f-w years a;;o Victoria and New South Wales weie our best cusUmi<;r.-> fo\ butici and other dairy proiluce. Tv-day tbe former colony, through Stite assibtanc in the way of bonuses and reduction of railway f-eiaht", is able not only to supply its own wants, but to export butter to the extent of nearly £1.000.000 sterling per annum, and promises to become ono of the higebt butter pridu' ing countries ia the woild. S"pp^c UieG vemm.'iit of Vii toria had, as ouc critic sti/gctts, l.t th*: indimtry "hKhtits own battlii," WoulJ the results have been the S4UIC? LOSS TO COLONY TintOl'Gll COLLAPSE IN IXAX INDUSTRY. In pondering what these colfnies can produce if then: be combination nnd Siatc aid, one cuicot ri'pressa tonisbmentat the gonctal apathy of the people We allowed the flax indus^iy to be sun fled out without n. tliou.^lU of its importance. Had aioQue suggested that it would have well paid tins colony to hive given a bounty of £'d or X'J a ton on all (lax exported he would have been coi.si'leicd lipe for a luratio asylum ; yet it is dVmonsliahle that the co'.ony would have been a j great g-.iuer. It should even now be done, for, say tbe export; were 10,000 tous aniully and the bonus from £30,000 to £10,0!'0, tbe direct expeudituie ou labour alone in one form or another would be at least £121 000, takiug fhx at it:* present London value. Work would be foii'id for about lOUO hands dnecily, and half as many m >re indirectly, and the industry would be re-: s'ablMie'i on a firm basis. Ev< ry class would receive benefit;, and portion of the bonus v ould come back in customs duti-s, railway freight, &c, direct ; but this is opposed to the ideas absorbed from waters of a past genera' ion, who are still regaidc-1 by many as authorities on all economic questions. Were natural laws iv force all over ths- world, I admit tbat such questions of expediency would 11 jt obtrude th-ni^elves ; but we have to contend agaiust protected Industrie.-) and bounty.feJ commodities, and the:eforc must use the weapons at our command, or drop out of the struggle. BONUS V. PAUPERISM. Had the flax industry been assisted, there would not be bo many dependent on charitable aid at the prc3ent time, for it must not be forgotten that idle people, whatever their fault, must live. If we do not see the ucc bsity, they do. We cannot freeze labour and st>ie it for use when required ; auJ if we let if run to waste we not only bavi- to support or m.initiiii it <.ut of the taxes, but, r»ar an army of hereditary paupers. If G> Vi riiineuts of ot'ier countiio-t deem it wise to assist, either diiectly or indirectly, iv the extension of trade, what, will become of the producing country which, lacking rapital aud enterprise, i.s content to sit still, adhering to principles of days gone b> ? Such a country may have tbe satis faction of lo owing that it has followed an easilyproved scte itilic principle, but its industiinl progress must be mieio-coiiieally small. We are living in an age of expediency, and the sooner that fact ib understood and action taken Ihebelfcsj it will be for »h.

WHAT OTHER STATES ARE DOINO. I am awan: th vt it may bo contended that trade and the development of these colonies will follow in due course by piivate effort. So it may, but this colony has committed itsolf too f^r to wait for what may he termed natural ui.foMinent. While we are wait 'lig other countries are quickening and thuttu c; us out of the markets. If wa would boM what wo have got we must resort to tbo expedients adopted Ly other S atts. Recent advic.s from Australia show that those inte^sied in llie fiozcn iuc\t trade tluro arc lasting ab-.,ut for gieatcr powers of expansion, and are determined uot to let their trade languish for wswit of ctierpy and capital. I'UIVA'I E INTEIIKSTS PHEVENT OENERAT, SUPFOttT. Unf'irluuately many business men are directly interested in keeping tiwde in thii colony in its pivseut unoiga iel condition, therefore the farmer cannot L.ok for much asjis'ance from the towns. When one pausis to consi.Jer the number of people ongiged in shipping and iu-uranre cin-lts, all of whom think that any change would be disastrous to their iuttrcsts, one cm easily find cause for their opposition. Whether it would be so or uot is fairly arguable, and I am not prepared to venture an opiDLn oneway or the other just now. AN ASSUMED MONOPOLY.- REAL MONOPOLIES. S ms wiitM'n have st.itod that such a company as I suggest would in time become a gigantic monopoly. How this c^'uld happen I fail to see, having regard to the fa)t that the sch-mepro-vi'K-s for co-opeiatiou among the farmeis arid other hit rests in its widest sense. But graufc that it would, it could not fnil t) be a bcc/ict*nt monopoly, Idee the railways for insUiiKc, or tho postal sci \ice, for its l>ou> tils would be asf.ir-rennh-ii)tr. Its obj-ct being t-xtciii-ion au 1 not restriction, no p is-iilile li.-inn could accruo to any but hdstile in'ere&ts But in coni-cction with, this matter of monopoly, do the farmers ever stop to con-ider the effects of the monop< ly they already Buffer under with regard to existing compnnieb? Were it not for diiclo<ing and putting ioto cold tyi>e the methods at pi c-ent employed by those eng.iged in the trade, and which are well understood by most commcrci >1 men, I could open the eyes of the grower to a monopoly which would caupe no little astonishment. Has not tbe farmer to meet a fixed price for killing, freezing, and exporting and stoiMge, and to submit to fill kinds of terms when the meat le.tclus the Homo niaiket? As illustrating the manner in which produce i 9 hs>iiJi>apped in tbe London market, I ni'*y menti'in that on every bale of wool finding its way Home, a demand of 4s nnd 5s for storage is made for wlut iateimed eui^oli-lakd charge^ which on th'-a-.'gr-«nt« e-.p^rt fr 111 this colony amounts to al'out XIOJ OUO 1 er annum. • Iboso accuse m«d to paying colonial rates for storage and handling nm-t see that an enomi'iis saving c uld bo efficted in this direction. It is true tbat there are plenty of men with large capi'al in I^md >v who have endcavouied to light this monop'/ly without suoccis, but with larger numbers ami moK powirful conibin ition much could be done. ALLEGED IMI'UAC'IICABII.ITY 01? SCUEME.— COKCLD". SION. Some of my critics have urged that tbe schema is inipnct'caUe. This plea has been urged against almost every great undei taking. In this case it needs something more than a bare as^eition. Many well-known colonist", whose inteiestsare laige, and wbojc opinions always cairy co'.Mderable weight, have gvine very c*refully into it, and thoroughly agree with me as to its feasibility and i veil in cosily. The main difficulty is to obtain the concurrence of all those moro nearly concerue'l-^tho fanners— and ti.cir acceptmce of tho scheme natuv-tlly d-'pends upon their acquaintance with its de> tails. With th-jui, to understand is to accept ; but for them to unJerota'.d di.scussion 13 needed, and the obstacle in the way arc pot over-rated. One of the most formidable diffi*

enltie* which presents itself ia the provincial jealousy which has always blocked efforts to secure colonial action. Politically and commercially New Zealand has suffered disastrously from centrifugal forces handed down from provincial days. Surely it is now timo to segregate and work with ft national spirit in order tbat we may hold our own with outs-ide competition. In the hope that my crii ics may look at this question m a broad, national Bpirit, I leave it for full nnd free discussion, and would conclude by a»king whether, in view of the dark outlook for our chief staples, they can offer a better scheme for the solution of the problem. If not, I claim that it is tbeir duty as Rood colonists to assist in rendering tbe scheme effective. The necessary machinery for carrying it to a successful i'-sue exists in tiie colony to-day, and also, to a certain extent, in London. In fact, very little more than the controlling bojrd is necessary— none of the troublesome details that some people imagine arc likely to- block the way. If the farmers are alive to their interests they will call meetings and discuss the matter among themselves, and should the general opinion be favourable to the adoption of my proposals, or a modification of them, arrangements can bo made for a con'crcnce of delegates, to take the initiative, after- full and free discussion. If-tho scheme bo acceptable to U>e sheepfanners of the colony there need bo little doubt as to the result. I have already sufficient evidence to warrant me in savins; that the essential features of the scheme are likely to be warmly Btippo'ted. Wellington, May 1.