SOUTHLAND FROZEN BEAT COMPANY.

Otago Witness, Issue 3335, 13 February 1918, Page 10

SOUTHLAND FROZEN BEAT COMPANY.

The annual meeting of the Southland Frozen Meat and Produce Export Co., held at Invercargill on Saturday, was presided over by Mr J. M'Queen, managing director. The Chairman, in moving the adoption of the report (already published) and balance sheet, said he presumed the small attendance was due to shareholders being satisfied. Everything . seemed right in the balance sheet so far as the dividend was concerned, and investors should be satisfied. The farmers, on the other hand, might not bo so well satisfied, as . some maintained that the company should reduce its freezing charges, thereby increasing ««.the price of sheep to the grower. The question so raised was a very difficult one, in view of the fact that the cost of handling was ever on the increase. Wages had increased, and the prices of all materialsmeat, cloths, chemicals, hoop iron, timber, etc. —advanced in price; also, the company was subject to war tax. The freezing companies had now got into a peculiar posi-. tion, as compared with the farmers. They had become practically a department of the State. Previously the directors controlled the business, and the staff carried out the directors' instructions so far as possible. Now they found that they had been conscripted —compulsorily made into a department of the State. Some high official in Wellington was in control. Ho sent down an order for so many returns to be made, and the returns were sent. The company got nothing for doing that —it was an expression of their loyalty; but the expense of the stamps and stationery and the wages of the clerks had to be borne by_ the company. Yet they were willing in doing their "little bit" to submit to thus being a department of the State. Proceeding, Mr M'Queen said that the profits of the company were affected to a considerable extent by the season. The higher the average of the stock they were treating the better for them. Last season the average weight of the sheep was about 31b, and that of the lambs about 21b, heavier than the averages of 1916. That increase on the numbers which they handled amounted to a good deal. They were paid bv the pound, but a fair part of the work was done by employees at per head, so that the result was a considerable increase in the profits. At the same time they found that, over all, the average of the mutton and lamb was going down, and not increasing as they would expect with development taking place.- The dairying industry had to some extent encroached on. the pasture from which they drew their supplies of fat stock. Another reason for the declining average was that farmers were going in more for beef, so much so, in fact, that, whereas not so long ago Southland had been a non-exporter of beef, he understood that Bluff now ranked as the third beef exporting port of the Dominion. Ho had been astonished to learn that, but ho was quite satisfied that in a few years Bluff would be heading the list. He said that as one who knew the Southland country and knew something about farming. He hoped that his faith might prov* wellfounded, for then" lack of beef was one of their difficulties in fighting the Meat Trust, of which they heard so much and saw eo little. They knew that that trust had largely secured the control of beef in th» markets of the world, and was so able to dictate to the retail shops how they were to carry on their business. To live, shops had to be able to supply customers with their want*. The British community was essentially a beef-eater. But the Meat Trust had stocks of lamb and mutton besides its beef; therefore, having control of the beef market, it was enabled to force the retail butchers to take its lambs and mutton as well. Ifc would not supply them with beef unless they did. and beef they must have. In the past New Zealand and Australia had been handicapped through having gone in specially

for mutton and lamb. This had given every chance to those having control of the beef to force the retail butchers to take all their supplies; therefore, by entering upon the export of.'-•eef, Australasia was. easing off that handicap which it had carried in the struggle with, let them suppose, the American Meat Trust. Let them, then, see to improving their herds in the direction of early maturity. The dairy beef which they would be called upon to handle would never be of the best, since beef to the dairyman was only a side line, but those farmers whose specialty was beef could be looked to for the best quality. As to the company's operations for tho year, they had been faced with a great shortage of shipping, and had had their store jammed full, so that they had had to stop their business in rabbits, for instance. Then there had arisen the question of what was to be done in the future. Then they did not know how far the Germans would be able to harass their shipping; but, thank goodness, things now seemed to have turned the corner. Faced with the possibility of having to commence a new season with the stores full from the previous year, freezing companies had had to turn to the increasing of their storage, capacity. The ■ difficulty of getting the necessary machinery presented itself, but there was known to be an existing surplus of power in most works, and the idea was to build up to th'e limit of that. That was done, and in addition the Government lent every assistance in getting in further machinery. Fortunately, the Southland Company had seoured machinery from other companies within the country. At the same time, and notwithstanding the increased accommodation, he thought that farmers would be well advised to go in more for winter feed to enable the carrying over alive of any surplus ' which even the extended storage space might not be able to accommodate. -Mr C. H. Roberts seconded the adoption, which was carried unanimously. Messrs Geo. Chewings and P. L. Gilkison were re-elected directors, and Messrs Leary, Cuthbertson, and Webb auditors. Votes of thanks to the directors and the staff concluded the meeting. i