IMPORTANT MEETING.

Gisborne Times, Volume VII, Issue 336, 10 February 1902, Page 3

IMPORTANT MEETING.

J PROPOSED CO -OPERATION BY • SHEEPFARMERS. A meetng of sheepfarmers was lield ' on .Saturday afternoon, to further consider the project of a Sheepfarmers .Meat Freezing Company. 1 Mr C. t.. DeLautour was voted to the chair, and read the Committee's report as follows “ The subscription has been well responded to, the results being as tabulated. We submit the prospectus, memorandum of association and the articles. These had to be somewhat hurriedly prepared to conform to the statute law ; the articles can Ire amended if required later. The difficulties of canvassing this great district have been very great, and the time at our disposal has been extremely limited, :.ut we have no reason to doubt from •he very favorable reception the prospectus has met with that a full subscription can be made. We have received a promise of financial assistance to the extent of £IO,OOO, which sum will be available upon flotation, upon terms to be arranged. It ns hardly necessary to point out that there is now a difficulty in arranging for the fat stock being frozen at one wciks. This dilficulty will be greater as the season progresses, and large quantities of fat stock must, unless the Gisborne works are opened, remain on the farmers’ hands to be wintered as stores. From the enquiries we have made the advantages of a eoo; ci a live freezing works in this district are now established. These advantages are (1) a maximum price for fat stock at a minimum of cost; (2) |

stability of market; (3) free competition among buyers of stock at the wrrks; (4) a certain service for export of all available fat stock. The heavy reclamations made for advances upon wool in 1901 although necessarily limiting the funds available for subscription emphasise the necessity of every effort being made to obtain a full price for meat, and the Committ*e is of opinion that no present saci: pee on the part of individual sheepfa: mers to obtain this object can be deemed to be too great. A number of sheepfarmers reside outside the district. and it lias been found to be impossible to obtain definite answers fom many persons in time for this meeting. Should the sheepfarmers see their way clear to subscribe from 150(1 to 2000 additional shares now required, negotiations for a contract can be commenced. If these are successful freezing operations can be at once stated. On the other hand the Committee does not claim to have an in limited commission and must resign office. . Speaking on the subject, the Chairman said that the shares taken up

now aggregated 14,137, leaving a deficiency of 303. Many who had every reason to help them, and whose assistance they had every right to count cn, had not yet finally decided to come in ; gentlemen who were living in their immediate neighborhood, and were bound up in its welfare and in its past progress, and who would bring in 2370 shares, were still considering the matter, and though a full subscription had not yet been obtained, they were so close ~o it that it c. eld be assured. The advantages of oecning at once were latent to all. The Committee could not keep delaying , they had a duty to the subscribers and to the district. The Committee were bound to say there must be some finality, and they did not care to keep the matter open further without some instructions. The deficiency now was so slight that if it were guaranteed, and all future applications, as they came in from day to aay were supplied out of the balance so guaranteed, an immediate flotation might be accomplished. The Committee had not thought it their duty t) put such a proposal to them, but it, seemed to him that the work was one that could easily be done with perfect safety ; it was however, a matter for ttie shareholders to consider. -From end to end of this great district they had not met with one definite opinion that it was not necessary to open second works. Second works were necessary, not as a source o! competition, but to supply the normal wants of the producers of the district. Otherwise there must be a bloc! in the stock operations, and They could not be assured their stock this autumn would reach any market, q jje position was extremely accentuated bv the heavy reclamations on wool. So far from those being nounds for withholding their support, they were most emphatic reasons why they should give their support, be-

cause if they had to make good retlamations on their wool they could not do it every year. They had to f a r. e the position that crossbred wool had come to stay at low values and unless they created a firm market lor fat stock, they would find it difficult to maintain a favorable balanc.e Qh i.iofit and loss account. The only chance to save the stations was to ■. te p up the markets for lat stock. It ivas all very well to talk of mixed fa'mine ; they could not begin that all at once—there were the next few years to get through. They could not witn '...punity throw away the prospect of keeping a firm market for their fat stock. He moved the adoption of the Mr W. Douglas Lysnar trusted that the balance of the shares would be taken up, and the flotation secured. IS was, he thought, accepted by a*i that the works were necessary, and the position resolved itself into a. question as to whether they were to keep the second works open foi- the benefit of the sheepfarmers, or whether Jr me firm should take them up and squeeze all they could out of ttm timers in the way of dividends. If tii-v got the works into their own hands it would not be run lor dividends, but to enable sheepfarmers to iret their stock put through at a minimum of cost. The Beltast Freezing Works in the summer put through mutton at 1 1-lOd per pound less five per cent; rejected sheep were taken over by the Company at lid per lb., or the owner had the right to take

them away. Nelson Bros’, charge for sheep was" lid. (A Voice : lf-d.) No (said Mr Lysnar, after looking at his papers), it was Ud, all the reacts being taken at specified prices. (Voice : A penny.) Those blemished were taken at ifd, lean at -id, and nothing for very lean. From the pxufit’s opinion they should be able to put, through sheep here at l|d per pound,' and cattle at a penny. Then they would make a saving by their own works of -Id per pound for sheep. By getting outside buyers to compete in the local market, which they could do by having facilities for freezing their sheep, they should make a net gain of 2s lid more for sheep, and £1 7e (id more for cattle than they were getting now. That amount was now being lost by them. Mr DeLautour had referred to the block there was in sheep ; if there was one now, what wc uld the position be later on . From what he had gathered some farmers had been kept back by the belief that if the farmers did not take up the works somebody else would. He would go so far as to say that they would be opened by somebody else it ,tke farmers did not; but if they allowed the works to be opened up by other than sheepfarmers, it would make no difference in the value of stock. They wanted the works opened to their advantage, not to their detriment. There was an idea that the works might he closed down, being so close to town, but special provision had been made by Act of Parliament for the freezing works in existence when the Act was passed, and they ci. uld only be closed down by Act of Parliament.- They cculd clear away a nuisance, but not shut down the works. The works were leased for 21 years, with right of renewal for another 21 years. That would surely I&3 a sufficient; period. Soma bad

doubts as to their ability to manage the works. He anticipated no diffi-

culty 'in that matter. They should have a board comprised of .sheepfarmers, and appoint a capable manager, g.vieg him a free band in the details of management, the board having a controlling voice in such matters as to whether they would purchase new machinery and as to the general prin-t-pies. 'fbe manager should only be removable by general meeting of the shareholders, for breach of duty, or for misconduct. He seconded the acoption of the report. Mr ,J. C. Parker raised the question as to price. Some, he said, objected tj them giving £25,00(1. The Chairman said that not more Ilian that sum was to be given, but when they were prepared to approach Mr Shelton, in a position to buy, they I canid depend upon it that the Com- I mittce would, as a matter of business, do the best thing they could for the I Company in which they themselves I would have very large interests. Mx Parker said lie had confidence in

the committee, but lie still thought the price asked too high. in reply to Mr Geoffrey Maclean, who said that he thought that the price had been fixed, and that if £15,000 were not obtained within a certain time the project would fall through, the Chairman said that unless the number of shares required were subscribed in a few days they must abandon the proposal. But on the other hand he looked at the result as a splendid one. It would be a great pity to lose what had been done for the want of a slight balance. Even little Nuhaka had taken 293 shares. If a few people guaranteed the deficiency the whole thing would he done in a week, and they would not he a penny out of pocket

Mr Chambers -said lie was sorry to six that tiie Shaw-Savill Company would hold 2000 of the oid shares, as •i would be more hat'sfactory to be dealing with their own money only. Ail weie heartily agreed as to the necessity of a second works. If they diu not make it co-of erative, and another company started, it would be to the advantage of that company to out down the prices for stock instead of increasing them. If this project fell tnrcugh they would not be able to do my more in the matter for four or live years, by which time they would have lost as much money as would have bought the works two or three times overi They rn-.ght go as far as casing the terms a litile, but u tins project fell through, it would be a gi eat disaster to the Bay. Mr Kenway suggested that evei> subscriber should become a canvasser, with the object of getting the small 1 glance of shares taken up. Mr Clark said that the thanks of ihe whole district were due to the fjc mmittee, who had done uncommonly well, much better than he ever ill nght thev would. They should be e ven a little further time, in which tiieie should be no difficulty in getting the number required, 'there were many sheepfarmers who, in common honesty to the other farmers, should give their assistance. He moved that a week a extension of time be g veil to the comMr Barker seconded the motion, but afier some discussion it was agreed that the extension should be for a F. Somerville said that l,e would move as aji amendment that the committee at once approach Mr fahe.lou and ascertain the lowest price he would take. He believed if that were settled some would be more ready, to c r me forward. They might then be ai,ie to settle the matter at once. It would be a pity to lost more time, as tl'cre were barely two months of line .season yet to run. The opening of the works by the farmers should lead to buyers coining to compete for the sleep, and thus they would get the best price. ~ , Mr Maclean seconded the proposal. The Chairman said that it was nor an amendment on Mr Clark s motion, • rid would be submitted as a separate motion. The motion giving the Committee a fortnight’s extension of time was earred unanimously.- , As to Mr Somerville’s motion, the Chairman and Messrs Clark, Kenway, and Lysnar thought it would he putting tiie Committee in an awkward position to instruct them to ask the lowest price before they were able to say they were prepared to buy. Mi Somerville disagreed with that view, and Mr Parker said that he had not yet taken up his shares, but lie was prepared to trust the matter to the Committee. Mr Chambers said Lhat if an extravagant price were asked, it meant that they would lose the season, and could before next season put up works of their own. The motion was lost. The meeting then concluded with a vote of thanks to the Chairman.