COMMERCIAL.

Poverty Bay Herald, Volume XXIV, Issue 7895, 12 April 1897, Page 4

COMMERCIAL.

ANNUAL MEETING OF NELSON BROTHERS. On February 12 tho thirteenth annual meeting of the shareholders in Nelson Brothers was held in the Canuon street Hotel, MrE. Montague Nelson presiding. The directors on this occasion had nn exceedingly grim and gloomy story to tell. It was their unpleasant duty to iiiform the shareholders that the past year's operations had not only produced no profit, but had actually resulted in a loss of L 30,773, this heavy balance to the bad being, attributed to " tho depression in tho markets for frozen meat and tallow." Mr Nelson, in moving tho adoption of the report, expressed tho deep regret felt by the directors in having to report so unsatisfactory a result of tho year's trading. He pointed out that there had boen a constant oVersupply of moat of nil descriptions during tho year, and that tho statistics for IS% showed the avorage selling price to have been lower than at any time since tho year 1852, while during tho six months of 18!>(> Nmv Zealand mutton went down in prico fully '2i> per ceut. It was hoped that tho rapid improvement which set in at tho beginning of the second half of the year would prove of -a permanent character, and that tho better prices would remain firm. Unfortunately, said Mr Nelson, this expectation had not beon realised, and the consequence was the serious loss shown in tho balancesheet. Referring to tho movement initiated in Australia for the establishment of v London committee of advice, representing the large financial institutions chiefly interested in the colonies, Mr Nelson expressed a hope that the recommendations of this committee would have the eil'ecr, of bringill" about some combined method of action and of rescuing the meat trade from tho disorganised state into which it had drifted, and placing it on a sounder basis of working. He explained that in view of tho unsatisfactory condition of the market operations had been restricted within tho narrowest possible limits, fewer carcases by more than 100,000 having boen dealt with at the company's works than in the previous season. He also pointed out that the revorsal by the Court of Appeal to the verdict given for the Southland Refrigerating Company against Nelson Bros., h«d proved that the directors were justified in appealing against that verdict. Mr Nelson concluded his speech with a very earnest and strenuous protest against the practice pursued by certain shipping companies of buying meat in order to (ill up their ships. He pointed out that this meat was sold on arrival at prices which could only yield t\ very low rate of freight, while at the same time shipping companies were- charging the regular shippers tho full current rates of freight. This manifestly enabled the shipping companies to undersell their regular customers, and tho effect was that tho price of the whole cargo was brought down. In this way a preferential rate in the most reprehensible form was established and tho interests of the regular shippers were gravely projuaieed. Recognising this, the directors of Nel'on Brothers shipped by i\ line which did not carry on such an objectionable practice. They now had an absolutely free hand with regard to future business, and were in a position to adapt themselves to the circumstances of the trade in any way that might be required. A shareholder asked if the chairman thought the company was in a hopeless position. The chairman said in reply, that with the assistance of tho London committeo now formed, ho thought the outlook was more hopeful. They were not losing on their present purchases. At tho time when Messrs Nelson Brothers praetic.illy controlled tho whole tr.ido tlu'y were able to command a food paying business, and there was no reason why they should not. be able to do so again. The report was adoptod, the retiring directors (Messrs l'\ Nelson and J. W. Margetts) were ro-ulectrd, .-is were also the auditors (Messrs Chatteris, Nichols, and Co.), and the meeting closed with the usuul vote of thanks.