WELLINGTON NOTES.

Hokitika Guardian, 17 November 1924, Page 4

WELLINGTON NOTES.

K.VC'FSS FREEZING AYORKS. I

(Special to “Guardian”.)

WELLINGTON, November 11. 1

At tho :i 11 li 11:1 1 meeting of shareholders of tho Wellington .Moat Export Company (Air J. W. Marshall) after referring to sonic tentative proposals to amalgamate the freezing companies said

" That there are more freezing tvorhs in New /calami than are needed for the output of meat is undoubted, hut how to arbitrarily close down works without injustice to shareholders or mortgagees is a diflicult question. If acquired by an existing company, the hooey of 'meat trust’ is limned in the Press.” The position of all hut a lew of the freezing companies in the Dominion is unsatisfactory and several are in a very tight corner. A reduction in the number of works is desirable, lint Lliis cannot be bronchi about except by voluntary action. The existence of the Meat Control Hoard can, and no doubt will, prevent the sale ot the works to outsiders. It is only with outside capital that an amalgamation of a croup of contiguous companies can be bronchi about, but when tho Hoard refused an existing company to issue shares to London capitalists there is little hope ol a sale as suggested being sanctioned. 'lhe Hoard approved id' Ihe sale of tlm Poverty Hay .Meat Works to Vesty Rrother.s., but in that case Yostv’s were already in operation in -New Zealand and the sale to them meant merely the transfer of the license from one works to another and the closing down of the old works. There was no violation ol any principle, nor yet any divergence trout the purposes lor which the Hoard was established, at all events those were the claims made. Since amalgamation by sale seems unlikely then closing down of works from linancial exhaustion and other causes seems probable. This season three works are certain to he dosed. These are the Kakariki works near Fielding, which it was dolinitelv announced during the week would not resume operations, the Otaihape works which are to be closed under certain linancial and work ini' arrangements made with the Foilding Farmers’ Freezing Company, and the Taranaki Freezing Works, which were sold bv the liquidation of the company to httvers who do not intend to use the works in the meat industry. The closinc down of these works will brine some relief, but not all the reliel that is required. Perhaps some ot tho concerns in other parts ol the North Island, which have suffered severely niav find it desiroable to close down this season. The meat trade is very speculative and strong finance is essential for success, besides sound matiago-

ment. FA 1.1.1X0 PRICES. I Professor .1. 11. C otidlille ol Canterbury University Collepo, has on several occasions expressed the opinion that the general tendency of prices was downwards. ’l’lie prolessor has arrived at his conclusion after close reasoning and is probable right, but an observant . business mail in tliis city seems to view things in a dillereiit light. In course, of conversation he suggested spending . a quarter of an hour or so on the . bit iimeuised llult Hoad and count the, number ol private motor cars travel- ' line Ihe road. That there are scores of motor vehicles travelling tin- road is well-known. Ten years ago most people travelled by train. those who used the road travelled in a due cart, , thi* horse Iran and harness worth I nlimit L* 10 to :m.| it would hr aj smart turn out at that. Now puoplo aiv Iravollin.j; tin* sanu* road in irotor j f:irs worth t’nun C-00 to LdOO au l more and costing a good deal lor upkeep, and they are living in houses worth from Cl.-TOt! to L2.T00. wearing j suits that cost from ten to loiirleeii guineas, enioving themselves at theatres. cabarets, and jazz at tall prices.; Mow can miens lull r Furolv Ibis in,ll. a. api.rai-eineio of v:'lii"' ; . uhicli arc now becnmili". more or Ic s, stabilised: 1 Supposing. however, that | values do go down to say *_’o tier cent ( above pre-war level, what will happen i then? was tin* question put to the oh-j servant one. and his reply was "Hank—ruptcy with a hip ‘l!’.” lie was good j ciioiiph to admit that if money became dearer in London it would upset calcit-; latinos, lie was also poneroiis enouph to say that he could not fathom thej present economic conditions. ’I In*; I'nited States possessed most of the i world’s pold and was rich beyond tin*, dreams of avarice and yet America isj uidv iust recoverinp Irolil a period ol j dull trade, and wool brokers are still, wnnderiup whether the Americans will buy Xew Zealand, wool this season. In South Africa the pold mines are pro-

'Infill;: more gold than over before, nil! yet trade in tlint ( <lllll try is very dull. In Aiislniliii wool is soiling: at ext i-oino prices, anti tliurr is 11 bumper wheat crop, 11 big silkin' flop, and 11 liiiimtcoils wine crop, mill lhero is 11 sfiirritv of money in t lio Common-] wenllli iviL l l rules of interest running up to S per cent. In New Zealand notwithstanding. high prices for Inittor, cheese, nielli and Wool mill the 1:1 Visi 1 borrowing mid spending of the (I overnnient, 11ml the nursing of the Advances Depnrtinent tiiul the Honrils of Control fur this, tlnit and the other industry, triple Inis lieeu dull and the moratorium, that hall mark of financial iifsecurity, is with ns. Queer conditions are lie.voml Lite power of tlm oliservtmf to explain.