FROZEN MEAT.

Star (Christchurch), Issue 5356, 6 September 1895, Page 4

FROZEN MEAT.

rHE WELLINGTON CONFEBENCE. [Per Pbiss Association.] WELLINGTON, Sept. 5. At the frozen meat conference, which jpened this morning, between forty and Sfty delegates were present. Mr D. J. Nathan, in supporting hia icheme for combination, said that the remedy for the present unsatisfactory state Df things could only be fonnd in combination here and concentration at the other and. For the purpose of bringing about sombination in New Zealand 1 , which be considered essential, it would be necessary to buy out all or a certain number of, the present freezing companies; and to find the oapital he suggested'that a controlling board should be appointed, and empowered to levy a sheep rate, at 3d per head, .'A quarter of a million would thus be raißed annually as the tax ,was paid r far m.er« to receive shares fully or partially paid up for the amount of >their payments^ By adopting this course, . the owners of the sheep would eventually be the owners of the freezing company, which would be of advantage. To avoid tbe risk of the company being made a speculative or commercial business, he suggested that shares granted to nonsheep farmers should be limited to 30 per cent. Apart from the poßßible expansion of the trade, there was every reason to believe that we could get our meat carried under certain conditions and a subsidy for id per lb, and that economies of management, handling and sale would represent another id. This would mean an immediate saving to the growers of £500,000 per annum, without reckoning the increased value of Btock and land. He moved the resolutions drawn up by a provisional committee' uome time ago, and already telegraphed. Mr Orbell, in seoonding the resolutions, said that one of the chief reasons for fluctuation in the markets at Home was the want of a system of distribution. What was required was to place the Nirade on a basis which would prevent abuse. To accomplish it. they must have the control of the trade in their' own hands, and to get that they must place it in the hands of a controlling company. Under the present conflicting interests everyone Buffered. If the freezing companies oould not arrange a scheme they must fall back upon the Bcheme contained in the resolutions. It was not the quality of the produce, but tbe conflicting interests referred to, which stood in the way of the advancement of the trade and the keeping up of prices. Another thing required was a uniform system of grading. Further, they should not have as agents companies interested in the trade. He deprecated the manner in which meat was shipped and unshipped. As to the custom of freights, he believed thai they oould get half a dozen companies Who would carry meat cheaper than it was being carried at pre-

sent. The whole system they had been i working under up to the present had been ■■ : a ghastly failure, and unless thare was an <, i improvement the trade would fail. By the improvements he had indicated half v million sterling, would be annually saved to the growers. i After Mes3ra M'lntosh and Fergus had . Bpoken, Mr Begg, Dunedin, moved— (l) ; *• That in the opinion of this meeting, any | attempt to establish a monopoly of the j frozen meat industry of the colony, would ; be both undesirable and impracticable." j (2) " That in order to give confidence t« j buyers, and to secure as far as possible j uniformity in quality, it is desirable that . the freezing companies in the colony '■ should agree to a uniform system of ■ grading." (3) "That in order to regulate j supplie i to the Home market, and to prevent the glut which has; been occasioned Jby excessive shipments during the first . < half of each year, it would be very j advantageous if provision were made for storage accommodation in the colony, bo that supplies sent forward might be • regulated and any glut prevented." Ha thought, with Mr Fergus, that Messrs Nathan and Orbell were to be complimented on the interest they had taken in < this matter, but some of their statements ! were of an alarmist character. Prices of sheep had not been co very low, and there J was quite a demand in his district. j Freight charges, he contended, would be j gradually reduced by the evolution of trade. ■ Mr T. Mackenzie, Ofcago, seconded the amendment. The conference resumed at 2 p.m. Mr Paddo, M.H.B. (Canterbury), said that there was great objection to Government interference, and to tfie proposal to impose a general tax per head on sheep throughout the colony to achieve the object of the scheme proposed. The tax wonld be most unfair, oning to the difficulty in differentiating between those who would be benefited by the tax and those who would not. The trade was developing, irrespective of any amalgamation. The amendment was comprehensive, but he would like it to go further, and asked the mover to aocept an addition on ! the lineß "that if the New Zealand Freezing Companies wonld combine to provide 000 l Btorage in London and other seaport docks in Great Britain, where our meat was landed, and also have one general agent in each of the large industrial centres to push the sales of New Zealand frozen meat on its merits, it would remove to a very considerable extent the evils complained of by exporters, and that this resolution be forwarded to each freezing company in the colony." ' ■ y Mr Begg said that he could not 'accept the suggested addition. The Chairman suggested that Mr Buddo might bring forward his reoommendation asa further amendment.

Mr Nelson (Hawke's Bay) said that the soheme proposed by Mr Nathan . was utterly unworkable, ■ and the conference ought not to adopt any scheme without first, obtaining the moat minute informtion. Many Bpeakers had said that the whole difficulty lay in London. In bis opinion, it was due absolutely to want of combination on thia side amongst the freezing companies. For instance, in the early part of 1894 there was a great Bcarcity of meat. The effect of this was just as disastrous aa a glut. The result was that the .' customers they had been supplying had to seek other sources, for their supplies. When the meat did arrive it was in double quantity, and there were not purchasers to the extent of the arrivals, and it took until nearly the end of the year before the market was put back' <o its original position. Next the wily sheep-farmer discovered that January, February and March were the best months in -which to. send his mutton Home, so there was a 'demand lor mora steamers. The meat: sent Home, in the beginning of 1895, was the moat outrageous thing they had ever had. The farmer did not take into account that the stores were full of meat at the beginning of 1895, whereas in 1894 they were empty. The result was that meat was jammed on the market, and there was' a fall in prices. Practically in the firac cix months of 1895 the shipments were . equivalent to something like 1,300,000 sheep, and in the next si^ monthß 800,000. From these figures they must see that there was ample reason, for this enormous depression in price. If shipments were properly regulated, the bulk of the difficulty would be amended.

Mr Nathan said that he bad particularly pointed out in his speech that fin til the prinoiple of the tax was accepted, it was no use going into detaila.

The Chairman (Mr Charles Pharazyn) eaid that his inquiries in England showed that a very large quantity of indifferent meat was sent Home. The standard in Smithfield was so high that what would be considered here a very good sheep was there a very indifferent one. If the demand was to be kept up the sheep must be good. Though a great deal had been done in England much remained to be done, particularly in pushing sales. ' Mr Nelson agreed that there was a great deal more to do, but thought that up to the present everything had been done that could be;done. -: \ : , Mr Bobtbi (Wairarapa) thought that, the conference would regret both theßheep 'tax and the proposal to. invite Government interference. The solution of the difficulty lay with the Freezing Companies themselves. Care should be taken to send Home only the best sheep. Assuming that they could seoure a combination by which they could get a better quality of sheep he was sure the difficulty would be 'surmounted if they could also regulate their shipments. To- obtain this latter, however, increased storage accommodation must be procured, which was a matter of money. " Sir John Hall (Canterbury) said that the Association he represented was distinctly opposed to Mr Nathan's scheme. He did not mean to say that they were satisfied with things as they were, but the solution of the difficulty could best be diacuaaed if Mr Nathan's scheme were first disposed of. Mr Lichfield (Marlborougb) opposed the scheme, in view of the possibility of a live meat trade, especially with America. Mr Anderson (Eketahuna) urged a reduction in freezing and shipment charges, and Buggeßted the appointment of Borne competent person at Home to properly look after the distribution of the Bheep. Mr Dalrymple (Bangitikei) spoke of the careless, in fact disgraceful, handling of New Zealand meat from the Gothic, which had come under hia notice recently in the London Docks. At Messrs Nelson Bros.' j establishment, however, the meal; could not have been better handled. He did not think that colonial mutton was properly distributed over England, and it would be an advantage to send it ti Liverpool, Bristol and other ports, as well aa London. Mr Clayton (Maryborough) also spoke of the necessity of the better distribution of meat at Home. He disagreed with the proposal for the amalgamation of the freezing companies!. Mr Eirkbride (Auokland) opposed .Mr Nathan's soheme, which he considered would lend to further taxation. Mr Bidwell (Wellington) thought that Mr" Natna»'fl scheme was not altogether practicable. ■ •Mr Mellward (Wellington) said that 6are was fc&6B,t& freeze only the best aheep. He knew Ihfifcflf the sheep dent to the Gear Meat Company Uet year over 40 per cent were not frozen. The storage' accom-

modation should be increased here, but there was ample in London. . Mr Brady (Wellington) also opposed the scheme. ■_ Mr Nathan then replied. He said that, from the tone of the dißCusßion, he would ask the conference to permit him to withdraw this scheme or amend it. Be had never euggeated Government control. All ! he had advocated was legal power! for the establishment of a controlling Board. I They wanted improvement, but would | I not pay for it. He felt very strongly on ; the question of a reduction in freights, and j I a combination of the freezing companies : would be able to bring strong pressure to I bear on the shipping companies to obtain ■ this. Mr Begg's resolution really aimed at 1 the same thing aßhis (Mr Nathan's) scheme. ■ There was no doubt that it was poßsible to sufficiently regulate the market to prevent a glut or depression. If the trade . was to be developed it must be pushed, and freights must be reduced so that exporters 'could successfully compete with other > countries which were more advantageously situated in regard to freights and State aid. He could not see how the various freezing companies in New Zealand could secure that unanimity which was necessary for success without combination. Mr Nathan then asked leave to withdraw his scheme, which was unanimously granted. Heatty votes of thanks were accorded Mesara Nathan and Orbell for the trouble they had taken in the matter. Mr Orbell, in acknowledging the vote, said that he was neither disappointed nor Borry that the scheme was withdrawn. With soaie reservations, he would support Mr Begg's resolutions. The resolutions submitted by Mr Begg were then put before the meeting. .The first resolution— *' That in the opinion of this conference, any attempt' to establish a monopoly of the frozen meat industry of the colony would be both undesirable and impracticable"— was carried on the voices without discussion. The second resolution — " That in order to give confidence to buyers, and to secure as far aa possible uniformity in the quality of the meat exported, it is desirable that the Freezing Cotripaniea in the colony should agree to a uniform system of grading"— was discussed up till 5 p.m., when the conference adjourned till 10 a.m. to-morrow. ■