WELLINGTON NOTES.

Hokitika Guardian, 25 June 1924, Page 1

WELLINGTON NOTES.

THE FREEZING iXDOTRY

(Special to “Guardian”.)

WELLINGTON, June 23

In the course of a lew days when the dehate on the Address in Reply is in full swinp we are hound to hear a very preat deal about the frozen meat industry, for the sale of the (’overly Ray Freezing Work's to Vesty Bros., sanctioned hv the Meat I’mincers Board, i- certain to form the lending topic villi tin- memkem; from the I’nvertv Ray di.-triil. It i- interesting ia view of this to have the authoritative 'lateni 'lit. ni t!m noting chairman of the Rank ol NY'.v Zealand who referred to (die matter i:i Ids address t.> t.he sliarelioiders last we"l;. He state! tlmi I lie

majority of the meal freezing coinpauii- were in a most un.-at i.l'oetniy financial condition, and this he declared was largely due to there being tar too many works in the country, parii, iila.rly in the North Maud, to I'mlor-oapitalNati u. to in experienc oil management and to failure to httild up r“-..'i'ves wlieii lime, were prosperous, lie slated tin:L sever.:! companies acre staggering on under loads of debt and it vas «li(!':• i;it to see lmw they Were to e-eape liquidation unless some sat-

isfactory merger of inlcresls could he ai ranged. The plain facts appear to he t'nat there is more freezing plant available for the (|iuintity of stock than can. under prc'cnl condition-, he made lit for export. In order to keen machinery in operation there has been keen competition for the limited stoel: olferinp and the prices paid have been above l.'Uidon parity; furtlieriuore s"e ml piv.de sheep and lambs, particularly lambs, have been pul llirmiph the works In the detriment of the pood name of ill" Dominion. It is useless expectinp London values to advance., hei eii-e i lie mal lei is dominated hy lS■ *• volume of chrao chilled heel : the :il i.-r -unlive i- i" ruilm-c lie- moiiilht ol Ireezinp plant- and herein lies the difficulty for there is no district willing to make ill" simriliee. A merger s.lienm was considered some weeks ago Inn it was so much in lle nature ol a

"v.ild eai" proposal that it r'ceivod very little support. A eointuillee, however, vas appointed to m.ike tn-

i|uiries, hut wild her i hat lommiilee iuis |n:i"tioned is not known to those iuter.".i",! in ilm trade in Wellington. I ll K MUR \TORIUM.

Rankers are ahsolutelv opposed to i lie continual ion of the Moratorium af;.-i- the close < i the current year mid this matter also was referred io at the Rank of New Zealand meeting. It is a relied ion on the country that while oil one hand it i- claimed to he ia a prosperous condition, on the other hand it is the only Dominion in the British Empire that at l lie present lime is maintaining a .Moratorium which in ii-.elf is an admission that the conditions me not as prosperous as the politicians assert. ’1 he Moratorium is really harmful, lor it i> helping to maintain inflate I land values. Owing to lei- inflation many lenders on mortgage have lest heavily from depreciation in values, while others have narrowly e-caped loss after years ol anxiety, am! now no one i-. anxious to lend on mortgage ol hruad acres. I lie moliev that would otherwise have been so invested i-. going into the debentures of Ini al bodies, which are now* (lending the market, the interest rate

rnuyiny from of per ("in. to t! per cent. TI;o Imhlci- "t t!.e debenture has no anxiety «ha ti-cor. Ills -oeurity is sale ami any haule r will collect- his interest ami credit his account. I here is no iv.Alin i the convenience of the In iTnwor. no writ ill" of letter- demandin'' the in tore -1 and no worry at all. It ua - stated at the Hank moctiny tint, eotiiitrv land- had not chattye,l hand- to till, extent, vemlors ideas ~| value -till beiny milch in excess ol iho-e of prospective httyers who are mil it rally limliiiy it diHieiiil to ohtain lina.nce ha-ed oil the hiyh value- ol laud. With the termination ol the .Moratorium no doitht some mortyayorv. i! 1 have to surrender their properties, htli in iiio-t such case- tlie cause- of failure would he due lo pnrehiisilty hind at itdlatcd price-, acpiiriiiy more la ml than v.a> warranted by the eapital in lit,, pos.-essiott of the pttreha-er and h\ inciimpetent farming. It is time tlm country laced tile po-ilion and ma.de tlte necessary adjust men 1 s in--lend of endeavour!uy to po.-tpone the evil day. lIIK Wont. MAItIxKT. A wool sale was ledd ai Wellington la -I Friday. It was a clean up sale of odd- and end-, about 70 per coni of the olferiuy represent in", crut chinys. Tlte wool -ales held in l.oildon witnessed :t decided fall in value-, and al the sales held in liri-hano. .Melbourne and Sydney tlmre was soma drop in values. It was anticipated from this that the \v eTlijiyloti sale would rellect the outside couditioiis and -how a drop also, 'hut iho-o anticipations w ere not realised. , j;. . was an e.xeapi ionally ynufJ one, for the biddiny was spirited ami sit-tnined. and at times it was extremely animated. 'I here wa- not much ib'oee wool olferevl nor yet was t!:ere more than a vary tritliny .piaitIHV ol merino and half-bred wools, not uyh on which to base an opinion. 1,1)i. ero-.-hred Wools sold well at rates ef.ii.d to th.o-e ridiny in May. Compe’.iti, :t wa- very keen for criltehinya. siiper-crtlteltinys realising up to l,d lb. and the average price for ai! y miles of ertitehiny.- is estimated at ptd to l id. v. hi, h er.nttot lie rcynrdet as a price. Next weak the Louden wool sales should be in full '" l: d and -lioultl furnish some yuido to the trend of the market. Finance ■' e dominatiay inlluonce, and if Kurope tImmlieapped in this respect there may lie a drop in prices.