PRODUCE STORAGE

Waipa Post, Volume 45, Issue 3211, 2 August 1932, Page 8

PRODUCE STORAGE

PROPOSED NEW COMPANY. CASE FOR FREEZING COMPANY. Tjjhe Auckland Farmers’ Freezing Company, Limited has issued the following circular to all the dairying companies in the Auckland provincial district:— “|ln connection with other dairy companies you will no doubt have received a letter from the Minister of Agriculture in which he refers to representations which have been made to him by the newly-formed company known as the Auckland Dairy Produce Cold-Storage Company. In regard to these representations, it .is. quite apparent that the pro. moters of the new company have made comparisons in regard to rates in such a way as to purposely cause confusion and misconception in regard to the actual position. “ The Minister refers to the new Cold Storage Company’s statement that the rates it proposes to charge will be 53d per box of butter and lOd per crate of cheese less than those charged by the Farmers’ Freezing Company for the years 1926 to 1931. “ The promoters of the new company would lead one to believe that /dairy produce had been consistently stored for periods of three months before shipment over those years mentioned, whereas it is only within the last season or two,that dairy produce has been stored for any time longer than one month or a short time in excess. When it became definitely known at the beginning of the 1931-32 season thalL the Dairy Board intended to maintain a permanent policy of spread shipments, the directors of the Farmers’ Freezing Company realised their ability as a result of increased revenue from longer storage charges, to reduce the second and subsequent months’ rate from 4d to 21d per box. They were also enabled to reduce the first month’s chrge by id. “Even now instead of dairy produce being stored before shipment for three months as the new company would like you to think the average period is under two months so that a true representation of the position would be as follows: BUTTER.

A.F.F.Co.—First month (73d less rebate id), 7id; second month, 2id; total, 9|d. New Company.—First month, 6id; second month, 2d; total,. Bid. Difference, lid, per, ton. 1 ' '? A.F.F. Co.—First month (Is Oid less rebate 5-7 d), 11 11-14 d; second •month, sid; total, Is 5 2-7 d. . New Company.—First month lid, second month, 4id; total, Is 3!d. Difference, 1 11-14 d, equal to 2s Id per ton. “ Very different from the 19s 2d and 11s 8d per ton mentioned by the new company. A MISSTATEMENT.

“The Minister says that the New * company’s advocates claim that the Auckland Farmers’ Freezing Company reduced their rates last season as a result of the existence of the new company. This is a gross misstatement on the part of the company. The first intimation of the existence of the new company received by the management of the Farmers’ Freezing Company was from an account in a newspaper of February 3rd, 1932, the day after it was registered, while the Farmers’ Freezing Company’s reductions were made in August, 1931. “ The position therefore is that the new company is offering you a bait in the shape of reductions amounting to lid on butter stored for two months and 2!d on cheese if stored for a similar period. Your own freezing company offers you no baits but straight out service at rates which are economically sound, expecting you to stand by your own freezing company, the directors * and management of which assure you of continued care of your company’s interests and careful revisions of rates from time, to time, with reductions whenever justified by lower operating costs. “ With the knowledge which you possess of the serious results to the , : 'dairy industry which would follow the granting of a license to the new company whose interests are quite dissimilar to those of your own freezing companv, we trust you will definitely ■advise the Minister of your company’s objection to the granting of a license •to the pew company.”