WOOL AND MEAT.

Press, Volume LXIII, Issue 19171, 30 November 1927, Page 10

WOOL AND MEAT.

OUTLOOK FAVOURABLE. PROSPECTS BRIGHTER FOR FREEZING COMPANIES. [THE PEESS Special Service.] WELLINGTON, November 29. "With the present prices operating for wool and other primary products we are of opinion that prospects are much more favourable than they have been," said the chairman, Mr 0. S. Watkins, at the annual meeting of shareholders of the Wellington Meat Export Co., Ltd., to-day. While striking a generally optimistic note, he uttered a word of caution that New Zealand exporters should be careful as to the quantitv of secondary lambs sent to tho Old Country owing to the large quantity of low grade lambs going forward from Australia and some parts of the Argentine. There was an attendance of about 20 shareholders, including the directors. The annual report and balance-sheet were adopted, and a formal resolution to pay a dividend of 8 per cent, on preference shares, carrying forward a balance of £6233, was carried. In drawing attention to the substantial improvement in the company's affairs, Mr Watkins v said that the merger with the Wairarapa Frozen Meat Co., Ltd., having been completed during the year, the paid up capital now stood at" £231,634, as against £144,304 a year ago, and the effect of the introduction of fresh capital was seen iu the reduction of the company's indebtedness to its bankers, the overdraft now being £30,760 Is 4d„ as against £128,710 12s Id at September, 1926, and thero were sufficient liquid stocks to cover this amount. The over- ] draft had since been further reduced in anticipation of a heavy killing season as tho outcome of the merger. Considerable alterations had been made to the buildings and plant at Ngab.auranga. The electrification of the power plant had proved an outstanding success, and certain rearrangements of the refrigerating machinery would enable this department to meet all demands made upon it. The directors considered it unnecessary to provide for depreciation beyond the amount written off motor vehicles. A new departure was the erection of a soap, factory, the company having taken over the soap manufacturing business which the. Wairarapa company had carried on successfully for many yers. While the eventual profit on the year's trading left a satisfactory balance, the market throughout the season was a very fluctuating one, and there was a long period when profits were a diminishing quantity. 'Not only was the meat market unsatisfactory, but the tallow market went through a severe period of depression. Wool, however, stood well. This showed that the industry was of a speculative nature and at times hard.to control. It was now generally recognised that concentration of the industry in factories of large capacity was the most successful way of carrying on the business, as overhead charges were decreased. Kef erring to the prospects for next season, Mr Watkins said it was always a difficult matter to forecast the trend of prices in the trado. Owing to the good.winter, stock was coming forward in excellent condition, and the value of top-dressing was apparent in the large number of lambs of good quality coming in to tho works. There had been an increase of about one million ewes this year, which should provide at least an additional half a million lambs for export. fit is doubtful," continued the i chairman, "whether prices in the Home markets will remain at their present high level, but on the other hand there seems to be evidence of a steadier tendency for the future, so that fluctuations in prices may not be as violent as they have - been in the past. Our London agents have been warning us rocently that owing to the large quantity of low grade lambs going forward from Australia and some parts of the Argentine, New Zealand exporters should be careful as to the quantity of secondary lambs sent forward from here, as the market for these will be affected by the prices at which the competing lambs are sold. With the present prices operating for wool and other primary products, we are of opinion' that prospects are much more favourable than they have been, and the directors hope that next year will show a still further improvement in the prosperity of the company." Messrs W. D. Hunt, H. Morrison, W. S. Bennett, and ,0. S. Watkins were re-elected directors.

OIL PROSPECTING. A WRONG ATMOSPHERE. (by cable— press association—copyright.) (australian and n.z. cable association.) (Received November 29th, 8.20 p.m.) MELBOURNE, November 29. Mr Watt, a former Speaker of the House of Representatives and a member of the House of Representatives and chairman of directors of the Taranaki Oilfields, Limited, New Zealand, criticised oil prospecting in Australia and New Zealand in his annual address to the shareholders of the Taranaki Oil Company. He said it had to be remembered that commercial oil production in Australiaand New Zealand was not yet an accomplished fact. Such prospecting as had been done was a spasmodic effort and was not infrequently surrounded by an atmosphere calculated to alienate the sympathy of sound business elements of the community. In fact, most Australian efforts had become perilously near being a byword, and a holder of shares in an oil prospecting venture was still looked upon in some quarters as fceing, financially speaking, a little unbalanced. There had been no opportunity in Australia or New Zealand for the general public to form a correct view of the quest for oil, but contrary to the erroneous but popular view, the search for oil was as legitimate and straightforward a business as any other. big Merger. ARMSTRONG-WHITWORTH AND VICKERS. (BY CABLE—PRESS ASSOCIATION—COPYRIGHT.) (AUSTRALIAN AND N.Z AND SUN CABLE.) LONDON, November 28. Meetings of the holders of various classes of shares and debentures in Armstrong-Whitworth and Co. passed resolutions for a fusion with Vickers. Some debenture-holders angrily . protested against writing off £11,000,000. Meetings of Vickers shareholders also approved of fusion. EGG AUCTION. Harris, Bros., Ltd., report that the weekly auction sale of "Feather Brand' guaranteed fresh eggs was held yesterday afternoon. The following prices were realised:—Hen eggs Ist grade (2oi or over), Is 6d; hen eggs, Sad gr»de (under 2oa). Is od.