SOUTH AFRICAN SUPPLY COMPANY.

Poverty Bay Herald, Volume XXIX, Issue 9400, 9 April 1902, Page 4

SOUTH AFRICAN SUPPLY COMPANY.

WAR MEAT CONTRACTORS' DEFENCE OF THEIR PROFITS,

The South African Supply and Cold Storage, which has been charged with making a huge profit out of its war meat contract, issued its defence yesterday. It is in the shape of a copy of a letter written by the company to the Secretary for War, the chief points in which are contained in the following extracts: — "My directors wish to state clearly what is their attitude in regard to the new contract. It is thus : They tendered for that contract at the lowest price at which the company could undertake the supply, even with its perfect organisation and its experience ;the Government, as of course it was entitled to do, accepted another tender which was a shade lower than theirs, and there the matter should end.

"When the war broke out the position was this: The company had acquired the businesses and assets of the leading purveyors in South Africa, and there was no company or person in the country with the means and appliances requisite for the carrying out of so gigantic aVi undertaking as the supply and distribution of meat to the Army. "If the company's organisation had not been in existence it would have been found extremely difficult, if not impossible, to feed the troops., "The profits earned for the year ending June 30, 1901, as shown by the company's balance sheet, are the profits which have given rise to so much comment in some quarters and envy in others. "The prices which formed the basis of the company's tender were fixed in view of the fact that the undertaking was one of the greatest difficulty and risk.

RECOUNTING THE DIFFICULTIES.

"It is scarcely necessary to recall what these difficulties were, with a single line rtf railway-—where there was a railway at all —with no railway at all in many areas, with columns of men moving in all directions, all of whom had to be fed; with cattle to be kept, often, at personal risk to the company's employes with the columns, and with the uncertainty of supplies of fresh meat jn consequence of the ravages of rinderpest, as well as the war.

"What was a hazardous undertaking resulted in a handsome profit. But surely the shareholders of the company,- which may be said to have rendered an. Imperial service at a time of great stress, are legitimately entitled to that profit, seeing that the risk was accepted by them. "The company carried on its ordinary business in South Africa., which is of great volume, and the annual accounts at June 30, 1901, showed the whole profit earned from its civilian business as well as from the military contract to have been £982, 686 14s lid.

"Promptly the cry -was set up that the company had earned over a million profit from the military contract; and on this false basis the company (as well as theGovernment) is roundly abused. The latest story is that the company has had an opportunity of making or has made five or six millions! This would perhaps not be worthy of notice if it were not given on the alleged authority of Mr Bergl, the new contractor. r

NOTHING LIKE £1,000,000 PROFIT.

"The plain truth is : first, that the company's balance-sheet, a document signed by auditors of standing and repute, is correct ; and second, that the company did not during the year referred to make out of the military contract £1,000,000 profit, nor anything like that sum.

"It is absurd, too, to compare the conditions of supplying and distributing meat to the Army in the earlier days of the war with the conditions prevailing to-day. "All the imported meat that 'has ever been supplied by the South African Supply and Cold Storage Company to the troops in South Africa has been furnished by the Australasian colonies."