MEAT MERGER

Hokitika Guardian, 13 November 1924, Page 3

MEAT MERGER

HAM'’- HO HOC >TT KX SCI IK A IK. AVKLLIXGTOX, Xo vein her 11. Some references were made at the annual meeting ot the Wellington ...eat Kxport Company to the proposed freezing company merger discussed hy representatives of freezing interests in Wellington some months ago, hut which has not since developed. .Mi- ,|. W. .Marshall, acting chairman of the company in moving the adoption of the report and balance-sheet showing an improved position, the company having returned to dividend-, paying conditions, remarked that some tentative proposals lor H e amalgaiiia--tit:n of all freezing companies were outlined a short time ago. “The more sueli a scheme is examined,” lie said “ the more complex and dillioult it is to iceoiieilo the diverse and ecnllicting interests under one control, even if finance could lie arranged. That there are more freezing works in Xew /calami than are needed lor the output ol meat is undoubted, hut how to arbttrari 1V close down works without injustice to shareholders or mortgagees is a difficult question. If nripiired by an existing company the hoge.v of ‘meat trust’ is flamed, in the Press. Without long coast line and various ports of call Xew /calami will probah lv he able to maintain many more works than are theoretically necessary to deal with stock offering. Kvery port insists upon having its works. The nearer to the port the better it is plated. Inland works are heavily handicapped by railage on all classes of their output as well as having to boar extra costs for railage to the works of coal and all supplies.” Mr -Marshall advised that the present policy of the producers should* he one of caution in Inward purchases or store stock and not to run undue risks on an uncertain market. The meat business, he said, is always highly speculative. Karnvrs expect to get the parity of London prices of Hie day for meat that will not he on that market for, say, three months alter leaving the farm. The purchaser has to carry all risk of market fluctuations and to hear incidental expenses, often for a considerable time-when the uuu--1 ket is weak. A year ago the London c.i.f. buyer must have lost heavily oil his puruiinscs. In the past season the e.i.f. man lias been very cautious, at one* time merely buying from hand to mouth.