The Evening Star THURSDAY, MARCH 28, 1929. FINEGAND.

Evening Star, Issue 20136, 28 March 1929, Page 8

The Evening Star THURSDAY, MARCH 28, 1929. FINEGAND.

Tue affairs of the South Otago Freezing Company present a paradox; in fart, a sequence of paradoxes. The capital of tho company is £6(1,305 in £5 shares. Tho cost of the works is variously' estimated at from £120,000 to nearly £200,000. Tho works are situated in a slice)) breeding district which has no freezing works nearer than Burnside on the north and Alatanra on the south. It is a iairly well ascertained fact that a great deal of prospective mutton and lamb is railed to Canterbury, chiefly because of Bumside’s inability to handle more stock than it docs. But lor the most part Finpgand operates at less than its capacity. Yet it is claimed that Finegaud has established a reputation for quality, and tho desire to have tho Canterbury brand on the export article cannot be tho sole reason why stock from the district is railed north of the Waitaki River.

The blame for the comparative neglect of tho Finogand works has been placed on tho farmers of tho district where it is situated. It is alleged that many of them, though shareholders in the concern, put their stock tor Ircezing through other channels of export. If they can secure a better price for it, they arc said to bo oblivions to dividends from their holding in the local freezing works. Of this state of affairs the ‘‘dry” shareholders —those who arc investors and not fanners—■ have become tired. They have, alter very extended notice of their dissatisfaction, secured a firm offer from tho principal freezing concern in the South Island to purchase the works for £60,000, plus the agreed value of stores and stock in trade. Tho estimate placed by investors on such an offer is shown by recent movements in share values. These jumped from tho vicinity of 50s to 90s, in anticipation of tho offer being closed with. Had this been tho case, it was calculated that the speculation would show a profit of about 15s per share. But it seems that among the buyers were u number of “ wet ” shareholders or fanners who from geographical or economic reasons should have an interest in tho retention of tire works in the district. They wanted the preponderating interest in tiie vote at yesterday’s meeting, and they got it. The offer to pjirehaso was rejected by a two to one majority. This decision, according to tho estimate of the Stuck Exchange investor, was quite wrong; for, though there was no quote for those shares at this morning’s call on ‘Change, wo arc informed on good authority that shares which were dealt in earlier in tho week at 90s would not bring 40s to-day.

That is the outside, opinion of the farmer’s stability of intention to support bis own district, and what is to a great extent Ids own concern. The Fiuegand worksN wore .set up with the co-operative idea in mind, but many of the farmers exhibited rather fugitive a conception of co-operation and loyalty in the face of price temptation. Now, it appears, they have bad an eleventh-hour awakening and are in process of repentance, the genuineness of which is attested by their putting up hard cash against odds. In tho past, at a time when there was a weeding out of superfluous freezing works in New Zealand, they experienced tho effects of low prices resulting from a minimum of competition by concerns which, had not easily survived a very hard period m the freezing industry. There appears bo boa, genuine fear of tho recrudescence of nearmonopoly. Thus there is the desire, backed by cash and promises, for tho more complete possession and control of works to which hitherto they have given such indifferent support that no dividends have been paid for years. The position is so complex that the observer is completely baffled. There is, however, this to he said: That tho over-sUpply of freezing works in this part of tho dominion is less pronounced than elsewhere; that the Otago flocks are increasing more rapidly than iu other parts of Now Zealand, duo to the realisation of the folly of killing ewo lambs for freezing and to the headway which top-dressing of pastures is .making; and that it is high time that all the mutton and lamb bred and fattened in Otago was exported through this ilrovinco. The New Zealand Meat Board lias been in existence for some years, and by now tho fetish of the “ Canterbury ” brand should have been buried. Local industry and prestige suffer through another province and its ports getting the handling and export of a considerable portion of Otago’s primary production.