THE FARMER AND THE FREEZING COMPANIES

Dominion, Volume 13, Issue 44, 15 November 1919, Page 8

THE FARMER AND THE FREEZING COMPANIES

Sir,—Comment is being made in all the papers at iho colossal annual profits of Coats and Co., manufacturers of reel " cotton, and that their 20s. shares are saleable at J!10. The market price of some of our freezing company shares are not far short of this phenomenal, figure, and tho Board of Trade should take note. One of them found it necessary to reduce tho buying price of fat stock last j ear, probably to provide for the increased income and oilier taxes and owing to increased profits and prcspoctivo advantages, find their 20s. shares in demand at ,L' 7, with few sellers. Another good "runner-up" returned no less than the equivalent of 115 ,per cent, to its shareholders last year, and these salted shares are .at a 6wanking premium already. All these prodigious profits which go to wake up the increased capital value of shares _ l ave been extracted from the pockcts of tho farmer, who, as we iiuvo seen, has not only to provide his own land and income taxes but to meet those of freezing and other kindred companies associated with liiin in the business of . tho primary production, while the commandeered prico of his wool and hides is roducod to zero. If the meat contract with the Imperial Government is to be renewed, Mr. Massey would be wise to stipulate for payment in cash for the carcass within a reasonable time after slaughter, instead of when shipped, as it is quite unusual to hold the owner responsible for damage in store here after the goods have been removed from his "order and disposition." The heavy toll exacted by the freezing companies for undertaking'this risk ami paying cash to the farmer for his stock has much to do with the enormous profits now disclosed, although they would have us believe they have all been made out of tallow. The oll'al, which has alwavs been sunk to tho company and which had little or no commercial value in the early stages of the industry, appears now to be of some moment, although the slaughter and consolidated charges have not, so far - as I am aware, ever bcr changed and remain at a halfpenny ~ . The cooling allowance „ a many pounds per carcass made te- too buyer is out of all reason and slioi id be reviewed and the offal pickings revalue.*. It would be of immense advantage I the farmer if ho could deal direct with 1 the Government, and would go far to abolish all the meat trusts.—l am, etc.. • PRIMARY PRODUCER.