BALCLUTHA FREEZING WORKS.

Otago Witness, 1 June 1910, Page 22

BALCLUTHA FREEZING WORKS.

LARGE MEETING OF FARMERS.

A COMPANY FLOATED

SUCCESS CONFIDENTLY ANTICIPATED.

The proposal to establish freezing works in Balclutha was considered on Friday afternoon by the largest public meeting of farmers. ever held there. The winter show, the County Council meeting, and the horse sales attracted an unusually large number of farmers to the township, and these attended th( meeting in the Harvey Memorial Hall in strong force. Mr A. S. Malcolm, M.P., (presided. THE PROPOSAL JUSTIFIED. Mr Malcolm said, as the meeting was xware, a committee had been" appointed to get together information and statistics as ■ to the likelihood of the proposed freezing works being made a success. This committee had worked hard and interested itself in the matter, with the result that they would be able to present to this meeting some valuable statistics. He was glad to be able to say that they had with them • one of the very best sources of information in Mr Fred. Waymouth, who would subsequently address the meeting. Mi Geo. Smith, on being called on to ■ speak, said it had been stated that they would not have a sufficient number of sheep to make freezing works a success. They had been told that 80.U00 sheep would be necessary. This seemed a large number, but it was the amount necessary to make the works a going concern. The committee had found on going into the matter that last year in Tuapeka and Bruce there ■i were ~ 1,021,000 sheep. If the Balclutha freezing works got hdf of the sheep of ..Tuapeka and two-thirds of the sheep of Burce, and all the sheep in Clutha they .'would have 680,000 sheen. More than twothirds of these would be ewes (450,000), and the increase from these at 8 per cent, would equal 340,000 lambs each year. Half ,|Df these (170,000) they could fatten. If the works got half of these it would equal 115,000 fat sheep, irrespective of wethers Hnd rabbits. The counties adjacent to the works would fatten far more in proportion than their quota of 20 per cent. Having demonstrated that sufficient sheep jwould be forthcoming,- Mr Smith directed attention to Awarua, Southland, and Wallace, which, with 1,678,000 sheep supported jbhree freezing works and one boiling-down 'centre. Surely with all these sheep at liand Clutha could support one. freezing .Works. —(Applause.)

t. MR WAYMOUTH'S ADDRESS. ' Mr Wa3*mouth was cordially received. He said that in. the first place he would 1 , Bom his own experience, say whether he ijhought the locality a suitable one for the 'Establishment of freezing works. Mr Smith Bad already given them the figures in conmection with the sheep in the district. His Connection with the freezing industry had J>een a long one. In 1879, at Litihgow, in 'Australia, he had seen the first cattle Slaughtered' for freezing by the present process. He was impressed with what had S&ken place, and watched with interest the *esult of the first and second cargoes of frozen meat which were sent Home from Australia. Then the New Zealand Land Do. took up the project and fitted out the >hip Dunedin with the refrigerating profess, and the Burnside and Belfast worke Were started. _ His first personal interest in ]he freezing industry commenced with the institution of the Belfast Works Company In show week in ISBO. He became secretary UK> manager The works were built to freeze 300 and store 90W. The history of Jiat compauv was nract-ioaily the history

of successful freezing in New Zealand. The Canterbury Freezing- Company had been carried' on all through as a farmers' company. He held that they could not favour the farmers too much. They were the backbone of the industry, and they had to be favoured. By carrying on business in the belief that farmers should always have an ooen door for their produce the> Belfast works had been extended to a capacity of 6000 per day, and in adoption to that 50 .miles south was Fairfield 1 with a capacity for 4000, and 50 miles further on again was Pareora, dealing daily with 5000. The company had started with a capacity for 300, and to-day could treat 14,000 sheep, and were now running at their full capacity. The farmers and others received profits from it, and everyone was satisfied, and that was the result of the "open door." Why Otago Hangs Fire.

Why was it that in Canterbury the freezing industry bad made such strides, while across the border; in Otago, it had somewhat languished. At the very first the lines on which the New Zealand Refrigerating Company had commenced business were not the lines of success. Its methods were hidebound, and its works were not conducted in the interest of farmers. The farmers did not support it by sending stock, and the result was that the company died of inanition, and was bought out by a foreign company,, which was to be congratulated on its enterprise. The Clutha farmers were not getting the prices that they should get. He asked them, Did they think they were getting a fair price for a 361 b lamb when they received 13s. The value of that lamb in Canterbury was 16s. If they halved that profit of 3s they might very safely count on the result (Is 6d) as being the extra sum they would secure for all their lambs under different conditions.

Now, in regard to the purchase of land, and the effect that the establishment of freezing works would have upon the land of the district. At Fairfield he bought land for the works at £3 15s an acre. They built for 2000 sheep a day, and were told they were- over-sanguine. > In two> years time thev had to double the works. It stood at '4OOO now, because a little further south they builtParaora. Three years after buying the Fairfield property he sold 400 acres at £8 an acre—a profit of £4 5s an acre. And he was quite sure that now the men who bought it would not part with it for £lO. At Pareroa they had to buv 50 acres in. addition to the block on which were the works. Later, they sold 37 acres of that for £lO an acre profit. There was no reason for this increased value except the contiguity of the freezing works. The works had raised the value of good land near Pareora from £lB to £3O an acre. There would be the same result in Clutha if the works were properly managed. The manner in which those works he had referred to had extended operations illustrated the difference between freeziner in Canterbury and freezing in Otago. There was only a river between the two provinces, and yet the Otago combined works would not treat more than 1000 sheep a day. He thought that that dav would inaugurate a new era in the freezing industrv eo far as South Otasro was concerned.— (Applause. 1 Thev could r " : ' improve the district bv the works:_ ■,-. improvingl the district they would improve themselves. The works would _ probably raise the value of lambs in their district 2s per head. The building of the Fairfield works had raised the value of the land in the district there over £?. per acre. It had been said that the works, if established in Palelutha. would be antagonistic to the -works at Burnside, 50 miles away. Nothing of the sort. There was room for hnth establishments — of room. There would Ha «o cutting what-

ever. There was room for freezing works in the Clutha district, and he thought that after a couple of years' work the establishment would have to bo doubled again without coming into collision with the works on either side. The latter would not be nearer than 50 miles, and he drew their attention to the distances between the freezing works in Canterbury. He deprecated any suggestion of rivalry except fair, honest business rivalry. He urged them to establish their works and reap their own profits. Mr Waymouth went on to say that there was one great reason why freezing works at Balclutha would be successful. They had all the accessories near at hand—the main essentials for success in abundant water and drainage; both quite as perfect as possible. They could practically put. as much drainage back into the river as they liked, and it would not matter when the" enormous current and amount of water was considered. Another great advantage was that in Balclutha they would be able to work up their by-products themselves, and work them up into saleable products at a minimum of cost. He knew the value of tallow, for instance, and' then there was edible fat. Had the chairman seen it? Mr Malcolm: No, nor tasted it either. — (Laughter.) Mr Waymouth proceeded to narrate how he had shown the late Mr H. M. Stanley this edible tallow, and how that gentleman had said he would have often been glad of it in Africa. They perheips did not know that this edible fat appeared daily onr of the best English tables as butter, was mixed' with New Zealand butter. People had a way of making one box of New Zealand butter do for a ton. Mr Waymouth then proceeded to point otit the value of skins. They knew how quickly skins could deteriorate. At Belfast and Fairfield they were able to drop them almost immediately into the washing dolly, when they were ready for the painter, the fullers, and drying machines, and next day ready to bale up. Even what the fleshers scraped off the pelts was not wasted. What the London man would not buy the Boston man would. Lambs' pelts were worth 2s in London, and to-day sheeps' pelts .were worth approximately 40s & dozen. The cost of shipping, etc., wa3 5s a dozen. Now, perhaps, they began to realise the value of having works wherewith they could deal with by-products on the spot. He wished to impress upon them how valuable an asset it was to be able to do these things for themselves. Runners, again, were worth £8 a thousand' straight from the slaughterers' hands, and lambs' runners from £2 to £3. Freezing works should be able to handle everything. By doing things with despatch the 6mell would not be noticeable. Coming to the factor of money, Mr Waymouth said the farmer in Canterbury had so many onportunities that he was sometimes embarrassed. The markets were many and open. They could ship to England, if they wished, in the usual way; or if they preferred_ it they could cable to London and get their money the next day. They must be guided by circumstances, however. For instance, there was one class that he would never send to London; again, ft class that he would never send anywhere except to London; another class that he would never ship to anywhere outside of Glasgow. They would see by what he had) said that it was not a question of waiting months for their money. He would (guarantee that they oould always get their money within a week of putting- their stuff into the factory He would also point out how freezing works in the district would benefit auctioneers and estate agents by enormously increasing the amount of stock with which they dealt. Freezing works at Balclutha would raise the financial status of every farmer in that room, though they might not realise the full extent of the benefit at the

present. He had been asked to state what prospects freezing works at Balclutha had of success. They had heard what Mr Smith had had to say on the subject. Would works be suitable in this district? He could tell them that if a district like this with such facilities existed' anywhere in Canterbury the people would have had freezing works there many years ago. He called upon them, therefore, to make this day the beginning of a new era for Otago, and soon they would find themselves in. booming times. Let them follow the lead given them, and be quick about it. Every hour they delayed now meant a substantial lessening of the profits on the next year's products: As for success, he was confident. They should have works here capable of dealing with 1000 head a day. Let them provide their wor 1 -- itih preserving plants and cannin. ■ >-atus. There were the tongues, rej€<.. cull owes to be considered. What could not be canned could always be boiled down. Their fellmongery should be equal in capacity to the maximum of their works, which he had placed at 1000 per day. He would advise them not to start with too small a capital. For 27 years he and others had been making their steady 8 per cent, dividend. A man who wanted more than that for a safe investment was surely greedy. He would suggest that they should not stint themselves in the matter of capital. They must let capitalists benefit a little, and let them remember that if they started their works with too small a capital they would be putting themselves under the thumbs of the monetary institutions. Monetary institutions were excellent things in their way, but when under such they were often bound to do what the eaid institution wanted. He would advise them not to have a tied-up mortgage, or they would find themselves doinw what the man they were tied to wished. The freezing works would be " good money,'' and let them not be afraid of it. Half of what he was worth was in Belfast, and this showed the confidence he had in the industry. After all, what was £SO or £IOO. Let them buy shares, give them to their wives and daughters for a birthday present if they liked, and if they kept them, themselves the shares would keep them out of the old-age pension.—(Laughter.) After relating how, after addressing a meeting of farmers at Hamilton, he had seen o')e of the most successful works in Auckland spring up. Mr Waymouth concluded by calling in his hearers to go and dip likewise.

QUESTIONS ASKED AND ANSWERED. Numerous questions were put to Mr Waymouth, and hio answers furnished replies to most ot the objections raised against the proposal. What would be the cost of the works? was asked.

Mi Waymouth said the works should have a capacity of 1000 sheep per day, and they should make ample provisions' for the treatment of by-products. He estimated that the works would cost £30,000, and something over for land and a railway siding. They should have £25,000 paid up by the time the works were ready to start. Whatever balance was necessary would be readily provided by the bankers as an ordinary overdraft. He suggested that the company should issue shares to the value of £50,000, and the uncalled capital would be ample security for the bank. To raise money for doubling the works, as they certainly would require to do, would be a simple business proposition. Another questioner wanted to know what would happen in the event of another company deciding to try to put the Clutha works' out of business. Mr Waymo'uth said that one company had tried something of the sort in Canterbury, and had lost £40,000, and at another place also in Canterbury, and had dropped £30.000. The Questioner: Who got the £30,000? Mr Waymouth: Who but the sheepfarmers ? It was pointed out that a Canterbury company was one of the strongest in Australasia, and it might be to its advantage to destroy the much weaker Clutha company. Mr Waymouth said that the northern company was there to make dividends. It had learned its lesson, and was not likely to interfere with the honest purpose of the independent Clutha farmers. The company knew, too, that the Burnside works were not equal to the capacity of the district. A Farmer: Even if they do try, we will reap the benefit. In reply to another question as to whether it was not likely that Clutha mutton would not be so favourably regarded at Home as Canterbury, and suffer in price accordingly, Mr Waymouth said it was the best that 3i>aid best, and in one season, under proper management and by offering their best quality, their brand would sell like. ripe cherries, Canterbury or no Canterbury. The next question was whether Clutha would not be at a disadvantage by its distance from a port. Mr Waymouth said Clutha was no further from Dunedin than Fairfield was from Lyttelton. It only cost half as much to rail the produce of the freezing works from Fairfield to Lyttelton as it did to rail live •stock from Fairfield to Addington. He went on to refer to the value of the manure from freezing works, and said the value of 6000 tons of manure produced by the Canterbury Meat Company was sufficient to permit the company to reduce the freezing charges—and 1000 tons of that manure came to' South Otago. Certain questions 'were asked in regard to the London markets, and Mr Waymouth, in answering, asked the reporters _ not to take notice of his reply, which might be libellous. A sheep-farmer asked whether the difference which was believed to exist between mutton grown in Southland and that of Canterbury would affect the price of Clutha mutton in London. Mr Waymouth said that Canterbury's more equable climate accounted for its greater proportion of first-class mutton, but the fact that the works were close to Clutha farmers would greatly improve matters. They would be able to draft more closely, and instead of sending away a proportion of poor sheep in order to use the truck accommodation, they would keep back the poor sheep and fatten them at their leisure. —(Applause.) In reply to further questions, Mr Waymouth said there would be no difficulty in getting good men to run the works. He would with pleasure, if requested, undertake the ordering of the machinery and superintend the operations of the works for the first fortnight after they wore opened. The prospectus of tho South Olago Freezing Company (Ltd.) was '.'..: n '■;•;;<.!. ard ••"< the motion of Mr Ma' u',' ::, M.l'., ;,.x! Mr

J. 'Jiu.vr' -.derson was unanimously approved of. Mr Malcolm said that it would be an everlasting - shame to let this opportunity, pass and let an outside company come in and establish works, as they certainly would do if the Clutha farmers did not help themselves. THE PROPOSED COMPANY. The following is a synopsis of the pros-< pectus:—The proposed nominal capital is £75,000, in 15,000 shares of £5 each, the first issue to consist of 10,000 shares. The provisional directors are: —Messrs John. Begg, jun., of Hillejid, sheepfarmer; Jas. Smith, of Greenfield, sheepfarmer; R. Tout, of Clydevale, sheepfarmer; James R. Mitchell, of Lambourne, sheepfarmer; John Christie, of Warepa, farmer; Joseph Mosley, of Inchclutha, farmer; Jasper Clark, of Lovell's Flat, farmer; George Smith, of Ealciutha, agent; John Clarke, of Wairuna, sheepfarmer; James Cumming, of Axthurton, farmer; Joseph Smith, of Stirling, farmer. It is proposed to begin by erecting works capable of freezing 1000 sheep or lambs per day with a suitable storage capacity; to fit them with the most modem machinery and appliances for freezing and dealing with offal and by-products, which will include preserving and boilingdown plants, a fellmongery, and manure works. The provisional directors propose that as soon as 5000 shares are subscribed the company shall be registered and the erection of the works proceeded with in. order to be in readiness for next season's lamb trade. Mr Guthrie, of Messrs Barlow and Guthrie, architects, Ohristchurch, is, in Ealciutha with complete plans of the Balclutha freezing works. These show the full plant and all details, and include railway siding, yards, races, slaughterhouses, dressing rooms, cooking rooms, chilling rooms, freezing chambers for mutton and beef, cool stores for 15,000 sheep and 1500 cattle, tallow works and store', offal rooms, manure works, digester room, boning room, skin and hide cellar, packing room, preserving house, wool store, wool-washing room, engine and machinery rooms, etc. „ It is proposed •*> erect an imposing building of two storeys, with a capacitv of 1000 sheep and 40 head' of cattle per day. The estimated cost is £IB.OOO. The firm has had considerable experience in the erection of freezing works, and the plans will doubtless he perused with interest. Mr A. S. Mitchell. architect, Wellington, has also submitted estimates. The sum of £4OOO towards the formation of the company was subscribed in the room-