THE FROZEN MEAT TRADE.

Ashburton Guardian, Volume V, Issue 1051, 16 January 1884, Page 2

THE FROZEN MEAT TRADE.

Mr Charles Pharazyn writes as follows from London to the New Zealand Times : —“ The following information on the above subject will, I am sure, interest many of your readers, and may perhaps be of use to some of the Companies now in process of formation. Mr John Reid, of Ellerslie, who is nowin Loudon, seeing clearly, as I have always done, that the present charges on meat are too high, has entered into the following arrangement— A large steamer is to be built by certain owners on their own account and furnished with three of Bell Coleman’s machines, and under contract with Mr Reid will make six consecutive trips from Oamaru, at intervals of si* months, the first load to be shipped in August next, 25,000 sheep, which will be frozen on board, to be taken each time, the steamer lying thirty-five days for this purpose, and allowing fifteen days for discharging without extra cost. Every detail has been carefully attended to, and splendid arrangements have been made for selling the meat. On arrival it will be distributed all over England and Scotland by a firm largely engaged in the American meat trade, and who have numerous depots. There is no reason to doubt their ability to dispose of each cargo satisfactorily within the fifteen days allowed. I have seen the contract, and though not at liberty to state the actual amount payable for freight, I may say that I have taken out the figures carefully, and find that, as compared with the total expense of freezing and shipping, insurance and sailing under the arrangements made by the Wellington, Ohiistohurch and Dunedin companies, Mr Reid will affect a saving of at least 6s per sheep of 721 b weight. Of course the principal saving effected will be the cost of freezing on shore, but in addition to this there will be a difference in the rate of freight in consequence of employing a slower and leas expensive vessel, and giving her a full cargo. There will be also a very material saviqg pn this side by qsing the steamer as the store ii.stead of incurring the cost of double ha dling and rent of cold stores. It is easy to see that in this way the saying may be shown, and yet such a pate of freight be paid as to bo very profitable to a steamer costing probably about L4Q,000, and worked at small expense, which would probably do the passage in a little oyej? 50 days. The owners are so satisfied with their contract that I understand they are quite ready to build a second vessel on the same terms. Had I authority to do so, 1 believe I could at once make a similar arrangement for a steamer for Wellington, and so add 6s per sheep shipped from there. It may perhaps be said that shipping a large quantity in one ship is a dangerous experiment, but it must be remembered that these three machines an 1 the chambers will be separated so that, though in one vessel, the shipments really will be as much divided into three as they would be in separate ships, with the great advantage that in case of accident to one machine the other two can do the work. In any case it must be admitted to be a bold experiment and deserving of success. I feel the greatest pos able confidence in the plan. Since ray arrival in England I have always advised the Directors of the Wellington Meat Export Company that all the information I could obtain pointed to the gi eat economy of sending large cargoes by special vessels adapted for the purpose. They, in common with the Directors of all other companies, have differed from ifje, and a very large capital has been sunk in works in which, if this new plan proves successful, it will be found that a great mistake has been made, and it would be well riow to consider this point before further papitalis sunk in this direction by other companies. It is obvious that: it will be impossible to subiqit to a continued loss of 6s per sheep, and the corm

pany which first arranges to carry the I meat at the reduced rate which is now 1 shown to be possible will command the trade. It may perhaps be considered necessary to wait the result of Mr Reid’s first cargo before following his example, but even if so it would clearly be foolish to invest further capital in shore freezing works which may no longer be required. For urging th s new scheme I am aware that I am liable to be again accused of over caution, but I am accustomed to this, and am content to be judged by ultimate results. My object is to do all I can to aid in the development of the trade as a whole. I shall, therefore, be glad to give any assistance in my power to any company which may decide on making arrangements for a special steamer for Wellington. This may bo done either by one of the existing companies, or by a new one formed for the purpose. In either case but little called-up capital will be required. All that is necessary is a sufficient share list to form a g )od security on uncalled capital for the charter. The meat can be insured and drawn against in the same way as wool, and the vessel can be chartered to load at any port or ports required. I hardly think it necessary now to say anything about the Quality of the New Zealand m itton, or of the certainty of there being a market for it. These points are so securely established that it may be considered as almost as safe a shipment as wool. Though no doubt for a time there will be considerable fluctuations in value, the system of selling will be gradually improved by experience, and then the market will become steady. The one important point to consider is that expenses of transit must be kept down to a minimum. At present these are so high that unless a good price is obtainable results are unsatisfactory to shippers What is necessary is to reduce them to a point which will leave a profit on even a low price. This is what I hope to find Mr Reid will succeed in doing."