PRODUCE STORAGE.

Waikato Times, Volume 112, Issue 18703, 1 August 1932, Page 2

PRODUCE STORAGE.

PROPOSED NEW COMPANY. REPRESENTATIONS REFUTED. CASE FOR -.FREEZING COMPANY. The Auckland Farmers’ Freezing Company, Limited, has issued the following circular to all the dairying companies in the Auckland provincial district: — "In common wth other dairy companies you will no doubt have received a letter from the Minister of Agriculture in which lie 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 promoters 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 propores to charge will be 5Jd per box of butter and lOd per crate of cheese less than those charged by the Farmers’ Freezing Company for the years 1920 to 1931. "The promotors of the new company would lead one to believe tha* 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 that the Dairy Board intended to maintain a permanent policy of spread shipments, the directors of the P’armers’ 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 2*d per box. They were also enabled to reduce the first month’s charge by Id. "Even now. instead of dairy produce being stored before shipmont 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: —r Butter. A..F.F. Co.—First month (7ld less rebate id), 7id; second month, 2id; total, 9Jd. New Company.—First month, 6id; second month, 2d; total, Bid. Difference, lid, equal to 5s per ton. Cheese. &.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, speond month, 4id; total, Is 3id. 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 tlie pari of the company. The first intimation of the existence of the new compnay received by the management of the ‘Farmers’ Freezing Company was from an account in a newspaper of February 3, 1932, the day after it was registered, whilst the Farmers’ Freezing Company’s reductions were made in August, 1931. "The position tlicrefon? is that the new company is offering you 'a bait in Die shape of reductions amounting to lid on butter stored for two months and 2id'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, expeoting 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 revision 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 lioense to the new company whose interests are quite dissimilar to those of your own freezing company, we trust you will definitely advise the Minister of your company’s objection to the granting of a license Jo the new company.’’