CO-OPERATIVE MEAT WORKS.

Dominion, Volume 7, Issue 1883, 17 October 1913, Page 10

CO-OPERATIVE MEAT WORKS.

MANAWATU NEGOTIATIONS. (By Telegraph.—Special Correspondent.) Palmerston North, October 16. Mauawatu fanners camo closer to grips to-day with the co-operative meat works proposal than at any previous meeting. Only four attended— Messrs. Mellsop, Balsillie, Wingate, and Barber—but the details submitted were sufficiently comprehensive to fine down the issue.

Mr. Mellsop reported that tho National' Mortgage and Agency Company, replying to the last meeting's offer, agreed to accept £30,000 for their interest in the Longburn Works, but stipulated that a new company be capitalised at £100,000, of which thoy would take £30,000 shares, farmers £30,000, and of tho unallotted balance tho present company have the right to take one-half, so that they always Tetain a half-interest in tho new company. They also stipulated for full control of the management, and sale of the output. The meeting unanimously rejected these stipulations as entirely undermining the co-operative principle, and did not further discuss the negotiations. Two other schemes were then submitted. Tho Palmerston Abattoirs Company intimated that it was willing to sell to the new company, £1500 new capital being required for extensions to increase tho capacity to 600 daily. It was pointed out that the abattoirs have a local trade which would provide a valuable outlet. The proposed total capitalisation was £30,000, but tho abattoirs were now earning £2500 annually, which was equivalent to interest at 5 per cent, on £50,000. Messrs. Abraham and Williams,, on the company's behalf, stated that almost the whole finance' could bo arranged; so that only ss. per share need bo called 1 up. Tho other proposal related io. Mr. Mitchell's premises, Wangamii, comprising 800 acres on renewable lease, with abattoirs, wharfage, machinery, and everything except freezing works. They valued their interest at £1700, would take £7000 in shares, and they estimated that £18,000 would provide works with a capacity of 100 daily. One grazier was willing to take 5000 shares if other Feilding farmers would support this scheme. Mr. Mellsop stated that the architect estimated ho could reproduce the Longburn works in brick on a site adjoining and nearer the river, with a 1000 daily capacity, for £25,000. - Mr. Balsillie: That's £5000 less than we offered Longburn, which would be available to buy 50 acres, of land at £100 per acre. "" ' Mr. Mellsop stated that Feilding farmers favoured Kakariki, where landborne fuel would cost 10s. per ton more than the sea-borne equivalent. Mr. Balsillie thought new works at Longburn would receive most support. They could open shops at Palmerston.. Mr. Wingate: The Longburn Company must bo well satisfied with their earnings to require to retain control.

Mr. Balsillie: A few years ago they almost threw tho works at us for £15.000 —half what we now offered.

Mr. Mellsop, emnhnsising the profits of meat works, said the Gear Company, with £92,000 naid-up capital, had a reserve of £158,041 ana snares £5 paid ui) were worth £12 12s. 6d. The last dividend was 15 per cent. The Clirist'church Moat Company, with £237,902 paid-up capital, had a reserve of £141.000, and its £10 shares woro worth £16 7s. 6d. The last dividend wan 7 per cent. Wanganui made £12,000 profit last year, with a 1000 daily capacity. The Vancouver market was worth a farthing per pound more than London. Feilding would save 4d. per head by railing to Wanpanui instead of to "WelliiiKton, and Palmerston ' itfouH save 1 4-sd. Feilding would save a further threepence on all over-charge, making a total saving af sevenpence. Tho meeting adjourned till next Thursday.