THE FROZEN MEAT TRADE.

Otago Witness, Issue 2319, 11 August 1898, Page 14

THE FROZEN MEAT TRADE.

A CONFERENCE. (Christchurch Pre^s, August 4.)

A conference convened under the resolution of the Agricultural Conference was held in the A. and P. Rooms yesterday. Present — Messrs W. Recce (in the chair), fi. Jameson. ,John Deans, F. Waymouth, .7. B. Reid, Orboll. G. Anderson, H. F. Cray, S. Carforth, W. Wood, J. T. Ford, and Sir John Hall.

The Chairman stiirl the conference was tho outcome of resolutions passed by the eon fcrence. On the motion of Mr Orbell the ollowing resolutions wore agreed to at the late Agricultural Conference: — "That this conference appoint two committees, one for the North and one for the South Island, to confer with the freezing companies and the Christchurch Frozen Meat Aprfochlion, nnd ur^o them to giro rfffirl In ihp fn'iov, i^-> -.efoi.r^ fa) That tho frc • /-ii>!-, t osnp.aui;-; ( i»nccinlrn!e sales by appointing iirms in London through whom all New Zealand meat bliall bo sold, (b) That it be a condition for freosing that all consignments of meat fiozen shall be sold by one or more of the firms selected, (c) That a paid advisory board be established in London and another in the colony, counting of representatives o! freezing companies, agents Hiul purchasers of meat under the c.i.f. ayx tern, (d) For tho purpose of raising funds for

defraying expensed of the said boards, Iho freezing companies shall make a charge upon all stock frozen, not to exceed one halfpenny for sheep and lambs and sixpence for cattle, (c) That the Govprnrnenl be repuested to take active measures for the erection of cold stores at the Docks, and if necessary increase the present vole for lhi» iiurpose." 'Ihe committee set U27 included Sir John Hall, Mes&r.; Rcece and li. F. Gray, and it had been thought necessary to gel to truck »t once. Ho did not think the conference intended tho discussion to bo tied down to the lines in thp resolutions., but that romcthing should bo dene in this important matter was obvious. It ivas very difficult, no doubt, when thens were conflicting interests to be studied, hut, he f?lt sure if they could arrive at some co:iC'lusiciP ?manuu<.us]y in (he matter which would improve (lie trade, they would be doing a great work for'thc- colony.

Mr Orbell said he recognised that there were difficulties in the way of the development of the industry, but these were not m Bui countable. There were difficulties in all trades, :ind they had to be faced. Canlerbuiy ha^l always beon looked upon a? the head centre of the trade. Their factories were models, and the freezing companies had always led the van in the trade. They were all aware of tho deplorable state of the London market. Men irom Christchurch had gxr.e Home and returned telling us of its unsatisfactory condition. Numberless others interest od in the question had told us the f,ame thing, and uv>n the salesmen had told us if wo in the coloi.y would not look alter our CAvn interest a we could not expect them to do so. He now asked them to accept this opportunity, casting aside any prejudice if such oxisiod. to put .the tiade on a firm basis. AH persons who hd(fr come from London had told them '.hat the trade was not carried on as it should be. There were gentlemen in -that room, notably Sir John Hall and Mr Ueo. Jameson, who had witnessed the evils of the trade in London. He (Mr Orbell) hud been one ot the early shippers, and he had seen matters in London which he would i-p-lat? to them. While ho was at Home a consignment of his lambs came to a HmithScld salesman, and they looked splendid. lie asked how was the trade, and was informed that the market was-- glutted, and the price was from 4d to 4^d. Hn went to Leadenhall Market, and saw New Zealand lamb ticketed up. He spoke to the r.alepman. and told him ho understood tho market was glutted. The salesman said it was not so, and that he was getting 3d and B£d per lb, or just 100 per cent, advance on the price got in Smithfield. "When he co-ine back to the colony he saw hi> friend Mr Reid, of Eldoralie. who had sent Home lambs averaging 381b, for which he netted 10s 2d, whilst his (Mr Orbells'), averaging 3611) of good quality, only brought ss. New he asked the freezing companies to help them tint clay to put ihe trade on a prop3r and sound basis, and that they should not be tcld that there were difficulties which could not be oveicoine. He desired now to direct tl eir itteution to the expressions of opinion by several oxperts. At a meeting in London of importers and consignees of New Zealand loinb, neld at the rooms of the Frozen Me.it Trade Association on April 13, the following companies and firms were represented, viz. : New Zealand Loan and Mercantile Agency Company, James Kelson and Sons, Limited, New Zealand Farmers' Co-operative Association, Blofiekl nnd Lisei.den, W. Weddel and Company, and *he Colonial Consignment and D:Vir:butiue Coirpany, Limited. The reach'tiens unanimously agreed to were as under ; — "Having regard to the fact that the resolution approved at the meeting of March 30, 11-at :\n -iu'ort be made to maintain the pric? of prime Canterbury lamb until thi* datf2 ai 3s 3d per btone. has not been adhered lo by various hcklers. t!m meeting, wink' sticnjjly deprwaling the departure from the &aiil les.oUv'ion. lesclve^ that meanwhile no further wtsps bo taken to limit prices." "fn the opinion of tl is meeting it i« futile, to endeavour to maintain reasonable rates for lamb as long us conMKnracnts continue to be placed in the hands of so many London agents and consignee* for sale." Sir M. Nelson said : '• The great difficulty of the meat trade is Hie absolute want of connection between supply and denial d. The cure for this would Ge combination aiid ooncenliation." Mr Thos. Mackenzie, writing n few weeks ago, said • "At last th>. pi ice of lam!) if, now being :il lewed to Jidvancß. It is to be hoped th.it npxt fe^f-on will witness some refoim lcgavlwe; consignments in tha direction of coin enliotioti." Mr Twoieny had leported: " V limited lumber of consignees can more easily finalise among them^elvoH to ascertain sdoeks, a grcal desideratum, nnd regulate shipments on^ the market. Anything that tends to inpre.\so the organisation and control-' of tl.e M'llcrs is obviously an advantage." The London Association staled "That in order to maintain pri^i liniitod nvmber of consignees i<j desirable." In face of this it was absurd to f--iy that thc=>o gentlemen did not know what 'they -vere talking about. The first proposal was thai a committee should be set \ip i,i London to watch .o\er the interests of the fiozen meat trade. They knew that in Christchurch there was an attempt being mado to fo^m a frozen meal association, which would tuko the position here of the committee in London, r>nd which, only waited for the pupl,crt of the fieofcing companies This flop would no(, he would point out, lend to interfere with or hurt tho tvad-3 in London. The freezing companies would be represented on the boards and committees, and he (Mr Orbell) felt sure Ihfct <he stops would assist the companies, the palefinen. and consignees. It wan ridiculous from a business point of view to suppose that the committee would ant contrary to the wishes and interests of the salesmen, companies, and consignees. On U.o

contrary, their ovcry effort would be diiee'-<a.l U wards working harmoniously with them. He now ca ne to the question of concentration, and here he was told this was an inter-, ference with the individual rights of tho sheep farmers., but he denied it. All that was necessary to be done was that the freezing companies f-houkl i«.sue a short circular to their clients, which -would not cost much. He knew a good many sheep and lambs wine pold in the c.i.f. trade, but as thi& trade lwd e'eme into the hands of a few men, they wouU fie reprssenled on the committee in London, and h oiioe they would receive their co-opera-tion. A good many sheep and lambs, too, •Here sold under thn c.i.f. system, and the difficulties here were more imaginary than ical. Thp.-e buyeis would be represented on the com'nitiee, smd the trade was now settled down into the bands of recognised men. An Mr- Twopeny h&d said the trade was carried on on defined line*, and helped to steady the irarket. These buyer& were owners of the moat in Louden, whbh was a most desirable thing, and being repruseuled 1 on ihe-eommit-Ux would «--<--ciU'c their co-operation: Their buyers in the colony visited tho various farms, and 1 ought only the primeal sh^ep, thus stimulating ill? keeping up of the quality of thoir flecks. It also became an education to thorn as it taught them the qualiiy of meat required if they wished to ship on their own account. The men who only hail a speculative intercut in the c.i.f. trade would be a disturbing clo ment, no doubt, but they were comparatively few in number, and would be easily dealt, with. All the chilled beof from America, lessee! under t lie supervision of the Slaughter House and Chilling Factories, and was sold through them. That was just what he wanted to see done by the freezing companies with regard to tho mutton liade. At present that trade was like a ship without a rudder, drifting helplessly, ond what was wanted w;>s a (.Erecting force, which would be supplied by a committee. lie felt sure the difnVnlliew were more iinagirary than real. Let i.li3'si face them, and i\ the i evolutions now before them did not quite meet their approval, then let them give them something else. Their meat ir> ihe past had boon thrown down on the- Londou maiket, and he hoped that they would now. for the first time, come to tho rescue of the tiade and put it on a proper busis. Le: the fi cozing companies tend out a circular to their clients asking them to send their meat through a certain firm only. He now moied— '" That the resolutions a« proposed by the Agricultural Conference be adopted by this moetirg."

Mr Waymouth called attention to the fact that Dunedin and Southland were not represented.

Sir John Hall said if it were left optional with the producers to send their meat to the committee in 'London or not, it would not be carried. It had occurred to him thpt if he bound himself to send io the committee it would act prejudicially to him if others were allowed to send their ment to whom they pleased. He thought unless the meat all went through one channel to London, the proposal was robbed of all its benefit. He would ask the representatives of the freezing associations present to give them the benefit of their advice. They were the masters of the situation, and it would be most important if they would give them their opinion on the concentration resolution.

My Orbell explained that he only intended the alternative of the option to be brought into force in the event of the freezing companies not agreeing with the olhei part of the resolution.

• Mr Gilbert Anderson said that it would, perhaps, be best for the representatives of the conference to speak first, so as to let them know what, wore their opinions.

Mr (Jeo. Jame-on, chairman of the Canterbury branch of the N.Z. Frozen Meat Association, read correspondence from London with the Chamber of Commerce on the subject. A moeting had been called subsequent to that which the association bai formed. He might read the lelters from tha Auckland, ■Wellington, and Napier Chambers of Commerce, the Napier and Hawke's Bay Freeing Companies, and others. The association was now waiting the course of events,. Mr 'Waymouth said that he might say a few word.-* aa to his dissociation with the Frozen Meat Association. lie was not pre sent, al the preliminary meeting called by the prcwdeut ot the Chamber of Commerce a* the scmsliirv of the Frozen Meat Company, but as the member oi the committee of the chamber. As to the concentration matter, he could not see that it would be of any use haying a commilteo while pales were being macio to persons who were free to sell as? they wished. Then most of the meat sent to London was drawn against, and there might be a conflict between the consignees and the committee as to the sale. One member of the committee) might ha\e a lot of meat and another mieht have a little. Tho former might want the Jaltei to hold until his meat was sold, and vice versa. When a man accepted tho producers' draft ho must be left free to do as ho thought best, quite irrespective of an irresponsible committee, for the commit too mufet bo an irresponsible one. Let him toll them what was the result of ilio effort which had been made in London as to the fix ing of the price of lamb. A gentleman who was concerned had a number of Australian lamhs in hand which ho was able to unload whilst tho Canterbury lambs did not go off. Then there was another meeting, and tho idea of trying to fix the price of lambs failed. Aa to the control of tho beef trade, roforrcd to by Mr Orbell, the result of tho combination of tho River Plato was that their Canterbury mutton was worth 50 per cent, more than the River Plate. Noting the comparative prices they would see with all the River Plate com-

bination 1 they could not raise their price. The fcame thing applied to the rest of New Zealand. If the Litter refused to take the market price to-day, and Canterbury also, then the buyer would say, " Oh-, I will buy Australian or River Plate." No consignee, he would point out, would accept a draft against meat when it was to be sold by an irresponsible committee. What the trade was suffering here was the want of combination at this end. If the companies stuck together in the matter of insurance and shipping, good results would follow. An instance of this occurred the other day. His company refused to ship by a vessel, but other companies did, at an advanced insurance. Had the other companies in New Zealand had the backbone of his company that ship would have gone away empty, and the shipping companies would have Had a lesson they never would, forgot. Then, again, the companies in New Zealand should combine to have a rigid inspection of the ships. The other New Zealand companies would not come in with them on tins subject, and hence the shipping companies brought their ships here half full so as to ceape inspection. As to the sorting stores in London, his company, after his recent Aisit to London, had wiitten to say that they would undertake to put all their ship menta through the stores. The Christchurch Meat Company had also agreed to do so, but with the proviso tl at there should bo no fees. Now, anyone who knew anything of business knew that they got nothing for nothing. Ho ako regretted* to understand that the ShawHavill Company had now raised some objections, but he had wiitten to them on the subject. For tho reasons he had given, his company did not think the resolutions now proposed would be able to be carried out. Mr Anderson sawl that much of what Mr Waymoulh had said was true, but he did not think thai, with tho want of unanimity existing between tho freezing companies, they would do any good al all by the establishment of tha committee proposed. One matter had come out at the meeting which had not been known bcfoie, and that was that the Belfast Company would not ioin the Frozen Meat Association. As the Christchurch Meal Company had not received the rules of the association, he could not say anything on the subioct. With reference to the sales of lambs reYorreJ to by Mr Wavn'oulh, he might say that the rr Mills difi'eied as reported by Messrs W. Woddel and Co. and their own paid agent in London, lie would call their attention to tho following exliael from the report of the Agent-general to the Minister for Agriculture. It was as follows :— "ln my opinion, though our trade hos suffered, and may possibly suffer, from selling the pick of our meat as English nnd Scotch, because that deprives us of a good advertisement that this excellent meat would be to us, still. any,in jury so caused is merely trifling compared to the harm that is done by the fraudulent sales of River Pl^e nnd Australian mutton under our name. The merit-marking law, so far from injuring us, would, I think, be a poMlive advantage to us, provided froi.cn meat had all to be branded with some special mark denoting the country of its origin. It is not expected, however, that such a law will pass the English Parliament, although a bill of the kind has lately, for the second or third time, paseeu its second reading, and come in for some public notice. You would, no doubt, find greater opposition to any such bill amongst perrons concerned in the imported meat trade here, but then the opinions of these gentlemen should be taken with vorv considerable reservation on this point. Many of them are interested quite as much or more in Australian as in iSew Zealand produce, while some, of course, are concerned in the Argentine. I do not mean to suggest that the agents and the large dealers here do not do their bc»t foi the producers,, but in a recent speech by the chairman ot an aceney company occurs this voy true passage —"For the future it, ought not to matter much to this company what price New Zealand mutton goes to in London." That being so. the sheciiowncr. to whom it does matter very much had belter bc-th hiir^oU to keep a do*e eve on his intcre'-t here. If the > groweis would consult the freoxms companies as to tho proper persons to ship to, then he felt sure they would find an improvement in prices. " to Ihe dock-sorting shed, he thought they would not lequire one if they carried out" Mr Orbell's motion ; besides, frozen mutton wa* a delicate product, and if it woro tossed from barge to barge, and shed to shed, the bloom was all taken off the mutton. As to tlio attitude of the Christchurch Moat Company, they agreed to pay their quota until they heird from their expert in London, who put it to thorn : Why should the freezing company* nay for what was in the interests oi the shipping companies and dock companies purely? Ho urged that what was wanted was 'Vieir" own stores in London to Avliich their meat could be sent. If this were done there would be no delay. The meat tor Messrs Weddel and Fritter and Co. would be known, and it could at once go to the stores. They must remember that mutton wanted the most careful handling. This season the meat trade had been regulated in spite of themselves, and the growers had got a good price for their lamb". But let them have a season when the meat was poured into London without any supervision, and then they would see what the remit would he. Ho urged that tho growers and not the. freeing companies should take action. Sir John Hall said thai Mr Anderson had urged that the growers should take this matter up. But the growers were scattered far and wide, and could not combine. The freezing companies could — but those present at the meeting could sec there was but little chance —combine, and they alone. He was very, grieved to hoar Mr Anderson say that the dook-soriing sheds were not in the interests <w *

the growers. X he had seen, as Mr Way- ' mouth and he (Sir John Hall) had done, the ,meat put out of barges on to a little straw, and thrown about, he would not have made the statement he ha^, because he (Sir John Hall) thought that the sorting sheds project would have received the support of the freezing companies. Looking at the attitude of, Mr Anderson and Mr Waymouth in the matter, he was sorry to say he did not think there would be any combination for the general benefit. He had seen the site proposed for the dock sorting sheds, and it was an excellent one. The Government had recognised the importance of the matter, and had offered to contribute to the cost. He thought that they might still obtain the grading ot their meat, as was done in America, where the quality ■was guaranteed by a Government stamp, and inspection of stores and ships, preventing any ship going into the trade which was not passed by a Government inspector as fit to carry meat. Beyond this he did not think they could progress at the conference that clay. Mr Anderson said what he objected to was the spending of £40,000 for a sorting shed when sorting injured the meat. Again, theie was the delay caused w a sorting shed, and why should the people .in the colony pay fox a system which resulted in delay and damage? Mr Waymouth contended that Mr Anderson" «.' idea that the meat could be sorted at this end was a fallacy. Mr Anderson: The Christchurch Meat Company are now doing it. Our meat is sorted litsro. Mr Waymouth still contended that it vius impossible. Mr -TumbuH thought that there was r.o reason why a Frozen Meat Association should not be formed here- II seemed to him 'hat. they had been discussing details connected, with the freezing companies. He urged 'hat the shipping companies had a monopoly, arc! ! were playing it for all it v* worth, and . should the freezing companies combine in this serpect instead of being taken in detail? He I ■would point out that the meeting to lorm the Frozen Meat Association had been composed of all kinds of interests, but they could agree, jvnd so ought the freezing companies. This ■would do a great deal for the trade. It was quite possible for the committee in London taking the price ruling, the consignments to arrive and the quantity in store, to fix tl>o price for the week. It was most wonderful to see how the meat was dealt with in London, it was quite possible now for a man to go into the market and put the price down. This could not be so if the committee were eotablished. As to the sorting shed the dock and shipping companies had ulterior motives in the shape of gel ting rid of their ships quickly, interfering with the business of the O.C. and | D. Company and Nelson Bros. He thoug.it | they would and ought to regulate the trade from this end by establishing a committee in London to fix the price weekly. As to ihe Prozen Meat Association, he thought that, working with sectional sub-committees all though New Zealand, they would be able to put, at. least, a farthing a lb on all meat leaving ■ New Zealand, besides improving the carrying and the rates of insurance. As to inspection, i he knew of a case where, on 250 carcases, a j claim was paid for 9000. It was .scandalous the way the insurance companies were robbed, j and the consequence was that the producers had to pay for it. He wanted to see the association started with branches in the four centres, and a committee in London, presided over by a chairman recommended by tho Agent - general. If the freezing companies could consolidate and work with tho association they would for j,d per carcase be able to put id a lb on all tho mutton leaving New Zealand, and they would also be able to regulate the sliipmenfs. The freezing companies had no right to stand in the way of the farmety getting this increase. Let them do the best they 'could for their own company, but let them also come in and help the producer. All the ! growers in New Zealand should join the association, and if the freezing companies did not do so, .then they should bo forced.

Mr H. F. Gray said Mr Turn bull in his remarks had shown that the formation of an association would benefit the producers. He did not agree that Mr "Waymouth's idea that the cargoes should he held back was intended by Mr Orbell. (Mr Orbell: "No.") Mr Or bell, as he understood it, wished to see tho disposal 01' the meat concentrated in London. As to the sorting sheds, if tho business were •concentrated, then there would perhaps not be ao much necessity ior them. Ha (Mr Gray; was not an expert in the matter, but lie judged 'from what Mr Anderson h^d fcyid that this would be the result. Hp hoped that the two freezing companies would yet come together for the benefit of the whole trade. The directors of these freezing companies, he was afraid, did not realise the position of tl c •ordinary shareholders in the matter, Ho far as he was personally concerned, he was not satisfied with the price obtained for his merit through the broker selected by the Belfast Freezing Company, who. it seemed to him, rather favoured the directors. He hoped to «soo tho Belfast Company fall in with the proposals to form an association, as it would be to the benefit ot the producers.

Mr Waymouth aaid that if they were going in regulate the consigned meat trade they inu-t Also regulate the e.i.f. meat, because no m.vi would buy c.i.f. if he had to have the oa.lt) made by an irresponsible committee. What it really meant was that the consigned jtitcat must be regulated at the expen&e of .c.i.f. That was his contention.

Mr Jameson pointed out that from the tone oi the letters lie had read from all parts of tho colony, there was a general consensus of opinion that the trade should be regulated, :wv\ the colony was looking to Canterbury to ta'co -steps in the matter. Mi Anderson said that the advance of {d in il>t> lb spoken of by iSfr Turnbull would mean an additional £150,000 per annum to the producers. Mr OrbelJ was grieved to find that there tlid not seem to be any chance of getting the trade put upon a sound baMS in consequence ol the opposition of the Belfast Company. ile deeply regretted that Mr Waymouth' had taken up the position he had, and the farmeis would now know who were their friends. He had heard that tho Belfast Company were standing in the way, but did not believe it tiU that, day. The result would be that the farmers would have to go to the Governu-.cut to help them.

Tho resolutions were then put and carried on a division by 7 to 5. On the subject of the provision of a sortingshed,

Mr Anderson suggested that inquiries should be made into the matter. Sir John Hall said that they had been three years dealing with this matter, and (here iwas now no further need for delay. Clause F of the resolution was then pu' and agreed to on the voices.

Sir John Hall moved— "That it is desirable that efficient Government inspection should be established over meat proposed lo ho frozen fgr export, as well as over the vessels by

which such meat is carried." He did not si ggest that the inspection should jo the length of grading ; but merely t& securing the soundness of the meat. As to the veasab, there was no question whatever that this win a class of inspection which was badly wanted. In Sydney, ho understood, the freezing companies had come to an understanding with the shipping companies for an inspection to be made. It was a, deplorable thing that wHb all their experience in the trade, the damage to meat now was greater than in the early period of the trade. Mr Anderson seconded the motioa. Mr Waymouth said that there was a bill before the House on the subject, referred lo by Sir John as lo the inspectioi of meat, and Mr Anderson and himself had given evidence before the committee on the- subject, objecting to the Government gral'ng, but not to a system of inspection providing for tl;e soundness of the meat. As to the inspection of the vessels, he (Mr Waymouth) had proached Lloyd's on the matter whilst in England. He would far rather have the ships inspected by Lloyd's than by the Government, but if it came to a question of the inspection by the Government or nothing, he would be in favour of the former.

Tho resolution was then put. and carried unanimously, and tho meeting adjourned.

1883— Win. M'lntyre 38^4— Robert Smith... ISBs— John Hamilton ISS6— John Hamilton 1887— Charles King ... 18?8— Allan Gait ... 2SS9— Thos. IJocherty 18S0-Hany King ... 1891— 11. Patterson ... 1892-W. Allison ... 1893-D. M'Farlane ... 1891— Walter Clark... 1896- John King JS97-W. A. Gray ... 189S-W. G. Lad brook D.F. Class. Entries. ... 23 U .. 20 40 ... 21 32 ... 22 31 .. lij 28 ... 17 25 ... lti 23 ... 14 22 ... hi 27 ... IS 26 ... 15 19 ... 17 22 ... 23 II ... 22 35 ... 14 2G