THE BURNSIDE REFRIGERATING WORKS.

Otago Witness, Issue 2371, 10 August 1899, Page 14

THE BURNSIDE REFRIGERATING WORKS.

It is to be hoped for the sake of the shareholders Tind for the credit of Otago that the progressive policy upon which the New Zealand Refrigerating Company has now embarked will turn out satisfactorily. For the past few years the company has wrestled, though not altogether unsuccessfully, with adversity. It has been hampered in its operations, and it has suffered in its interests, because its machinery was of a type that had become obsolete. As a consequence ifc has not been in a position to handle its by-products in the profitable ftfay that attends the efforts of its younger •competitors. In Chicago, it is said, the pig is so successfully treated by those engaged in the pork industry that nothing except the grunt escapes being turned to commercial gain, and the ap-

pliances with, which the freezing works in Canterbury are now equipped are believed to be so complete that the bleat only of the sheep is not profitably utilised. The New Zealand Refrigerating Company has been at a serious disadvantage as compared with its northern rivals, whose buyers have become particularly active in Otago — even in a district in which are situated freezing works belonging to the company that is managed from Dunedin. The competition of the northern companies had, indeed, become so severe that, in order that it should be adequately met, it was necessary . that the New Zealand Refrigerating Company should take measures- to provide itself with appliances of a superior type to those with which it had been working for many years. The first step in this direction was taken last year, when the company expended over £12,400 in now machinery and buildings. The benefit of this expenditure has already been realised, for Mr John Roberts informed the shareholders at the annual meeting that had the additional capacity which was' thus secured not beeD provided the company would have been qu\ta unable to cope with the work uurmg the last three or four months of thi3 year. Improvements to as large an extent are yet in contemplation. To quote Mr Roberts: "During this last half-year considerable alterations had been made to the works, half of which were modernised, and the directors hoped, with the consent of the shareholders, to modernise the other half, besides introducing machinery which would economise labour and perform work cheaper." To enable tho completion of the modernisation of the works the directors requested au- | thority from the shareholders at the annual meeting to increase the capital of the company by £20,000 by the issue of preference shares, and the necessary authority was granted without a dissentient voice. It. seems to' us that the shareholders acted wisely in sanctioning the directors' proposals. The result will be to place the company in a position to cope fairly with the competition of its rivals. Mr Roberts and Mr A. C. Begg, who may be regarded as safe commercial guides, both speak very hopefully as to the future of the company. The effect of increasing the capital is likely to bo the material improvement of the position of the. present shareholders, who, moreover, are to have the first opportunity of .subscribing the preference shares. Mr Begg expressed tne opinion that when the company is furnished with the additional ftuads it is almost certain to be able, not only to pay a dividend upon the preference shares, but also to pay a dividend to the present shareholders. In any event, the earning power of the company will be largely increased. Wo trust that the happiest results will flow from the progressive policy which has now been inaugurated, and that the pioneer meat-freezing company of the colonies may again take a leading place among concerns of the kind.