Stock and station Companies

Hokitika Guardian, 11 January 1922, Page 4

Stock and station Companies

NINE OBJECTIONS TO SCHEME.

WELLINGTON, January 9,

Representatives of stock and station companies carrying on business in the Dominion met at Wellington to-day to consider the proposed compulsory meat pool. These companies, it is stated, ha've advanced the farmers in New Zealand! approximately £25,000,00P- The uiUmimbiis opinion of the meeting was in favour of supporting any scheme which they felt would assure better returns to the producer, whose interests are identical with those of the com-

p.'.nics. After carefully weighing the pros and cons’ of the suggested scheme it was unanimously resolved that the Govern-' .pent proposals are too far reaching and fraught with too great danger, whilst the advantages to be gain el are too hypothetical to justify the companies in recommending the scheme to their clients. The meeting was of opinion that the modified pools already inaugurated by the large export' houses, and which provide for poolingAd.each^freezing works of various cbm parties of clients’ meat would largely ctercrttrie the delay and expense occasioned in the past season by- mnltirfHcity ’ of 1 brands aiicT murks; and it re'com’rnffiiils that this internal poo’lftig ' should be encouraged'.

The objections' tlW' inciting saw to the proposed'CCriijnils'di'V’ fiddling schfemo were as follows: 1. It' wotilcl' 1 ertfi' otit the present system of export business. 2: It would greatly redtice" cbih'Jietitfriii 11 at fat' stock sales ill" public salevUiVls. as‘exporters woiild "cease'to c6tfipote with' lricrtT biitclifefs 3. It would, through want of precise khfiU’Tcdfgo of faf stdsk' v-alues, and wvthoiifc competition’ fmin' export buyers provide' ntt gurtfantCe th'ttfi full' values were recCiv'ed for fat stock sold fdl’ local cCifimniptiori.'

!. It would' disorganise the' sale of store stock, as neither farmer nor stock agent cohid' fix its value because' of the absence of exact knowledge of fat stock values, and the farmer would have difficulty in ai’farigirtjg finance through only receiving a portion of the valhe of his fat stock 1 gdliig into the pool.

5. Sale of all mbat thrbhgh' ohe channel at Home would' destroy existing selling arrangements in the' Old Country, Built up after miniy years of cx| orieUce, mid antagonise those who have handled out meat for so many years. On the other hand if' it suggested that present selling- agents will he used for disposing of pool meat, of what advantage is the pool? 6. It would offer a strong inducement to buyers in England to combine together and possibly all buy through one organisation, thus destroying competition.

7. It would cause buyers and meat salesmen in England to give more consideration to pushing free meat from other sources as the basic object of the pool must be to push up prices. 8. It is an endeavour to force up prices and thus try to make the consumer pay heavy charges for treating and shipping meat, whereas every effort should be made to get these costs reduced. If a reduction of one penny per pound could be made (and charges are about twopence per pound above pre-war rates) the present London prices would return a payable rate to the grower. 9. The pool boards could not force prices beyond market values, which are obtained under the present competitive system, and there will be the heavy expenses of boards and an army of clerks and others at both ends to provide for.