FARM AND STATION

Otago Witness, Issue 2424, 30 August 1900, Page 4

FARM AND STATION

S.Z. REFRIGERATING COMPANY. We are glad to notice the gradually increasing prosperity of the New Zealand Refrigerating Company, which is engaged upon a work closely bound up with the interests of the farming community in Otago. It is probably true, as Mr Mill remarked ab the annual meeting on Friday, that the freezing companies of New Zealand have done more to raise the price of laud and stock in the colony than any other 1 agency, and the Otago company has an obvious claim upon the goodwill and even the gratitude of the stock-owners of the province. The directors and shareholders have had a chequered and anxious time during this last decade of the century. After the readjustment of 1891 the operations during four years resulted in losses, while the small profits of the next two years did not allow a dividend to be declared. Then came three years during which the shareholders received dividends averaging 4£ per cent., while this year the increased profits have enabled the directors to declare a dividend afc the rate of 6 per cent. The company is to be warmly congratulated upon having weathered the " fog " (as Mr Brydone put it) so resolutely and successfully, and we hope that the upward tendency will continue, — though, owing to the limitation of stock in this province, the directors do not expect their business to increase at any time beyond 20 or 30 per cent, further. This advance upon present business, however, would be sufficiently substantial, and there is no reason why it should excite the jealousy of those interesting theorists who are shocked by the spectacle of excessive profits. This limitation of profits movement was noticed on Friday by the chairman of directors, — Mr John Roberts, who made one of his-jLoo rare public appearances and delivered an interesting speech. After referring to the parliamentary proposals in the direction of interfering with the profits of certain meat export companies, Mr Roberts reminded his hearers that losses were often made in this business, and expressed surprise that after one exceptionally profitable year an attempt should be made to deprive shareholders of the dividends which form a compensation for their previous losses. " I see in this movement an endeavour made bo establish a most extra or diuai'y precedent, and if the wishes of the mover in this matter be acceded to, then the sooner we call on the State to run all commercial enterprises the better. If such an infceiference as is proposed is, actually carried out, why not include all limited companics^ no jnatt_ei' what the nature of

their business may be. Then if the State is to interfere in controlling a company when the profits are excessive, they should also be called upon to make some provision for limiting losses when made, and how can this be done ? The proposition made seems to me to be so strange that I can hardly believe that it "is meant seriously." At the same time, Mr Roberts is not backward in deprecating the formation of rings, and he declines to believe that the Wellington companies (against whom the restrictive proposals are understood to be directed) have formed any compact. The establishment of State freezing Avorks has been advocated in some quarters, but the idea is strongly contra-indicated by Australian experience. "We are glad to note that the careful grading of the company's mutton and lamb has resulted in a close approach to Canter- | bury values, while y the beef has earned a most favourable reputation. Less satisfactory is the partial failure of the effort to increase the capital of the company, — the preference shares not having been largely taken up, — bat the directors reasonably hope that the improved position now shown will " infuse fresh confidence in the undertaking," and tend to increase the financial facilities by recommending, the preference shares.