WELLINGTON NEWS

Hokitika Guardian, 9 October 1925, Page 4

WELLINGTON NEWS

DOMINION FREEZING WORKS.

(Special to “Guardi-,n”.)

WELLINGTON, October 7. Mr J. S. .Jessup, Yi(e-C!iairman of the Meat and Control Hoard and ( liairmaii of the Wain in I - armors' Moat Coy, addressing the shareholders of the latter stated that the freezing works of the Dominion whether buying works or iarnters’ works, were in a precarious position, and that with \erv tew exemptions the money invest-

ed in freezing works was being loaned to the eonntrv withont interest. This indicates a very dismal state of affairs and yet meat prices have not been low, that is to say the London rpioiations have keen reasonably good. Mr Jessup sin's there were two tones operatine; last season whielt alleeted the industry, Imt in reality there has been only one. and that lots been operating lor some time. The trouble with the freezing industry is that there are too many works in the Dominion, and some of them were started with insufficient capital, while others again were ruined_ hv ineliicieltt management. Meat freezing is one of those industries in which the overhead charges must he kept down. With the multipliedv of works tins i-. 1111 it <■ impossible. Ihe co-opera-tive concerns have not received the support tlmv anticipated when the works were started, becatt-e the buying cuiiM'i'ns have been abb to oiler hotter prices lor cash. Ihc whole position centres in the tact that there are too manv establishments for the volume ol business offering. and in the resultant

competition lew. if any concerns are diniig iniv good. I lie Meat Control Hoard was practically an outcome of this for it was h.dievod that, the proprietarv concerns were trust organisations and should lie eliminated. 'I lie Meat Hoard has been operative for liver two vears and the position is lllst as iinsatisiaetoi'v to-day a> it was at ttttv period. Home ol the works should be closed down and the losses written olf. There is no sale for meat works because there arc no buyers, and if there arc buyers they must lie outside of New /calami to whom the Meat Hoard could nut sanction a sale ; it is doubtltll even if it would permit a freezing concern to borrow say in London or Chicago. The unwanted works must be closed down and the machinery sold in parts or allowed to rust ; In anv event it means a loss to the shareholders. Freezing works were erected all over the North Island without regard to economic necessities and now those who invested their money in such ill-considered ventures must lose. When some of the weaker concerns are squeezed nut of existence, and competition brought within governable limits. there will he work and profit for those left, and the industry will he on a sound footing. It is suffering to-day from excessive competition and excessive overhead charges.

WOOL SUBSTITUTES. In their annual Wool Review, alter pointing out that‘one effect ol the period of high prices had been to enormously expand the production and ns* of substitutes for wool. Dalgety and Co. direct attention to the tact that while tin* value of authentically compiled statistics covering wool trade operations had to he recognised. itwas imuossiblc to estimate consumption in accurate terms, and without them oilier statistics relating to wool had their limitations. Relerence in this connection is made to the compilations of Sir Arthur Goldfinch, and it is said another point where estimates based on statistics have proved misleading was that they have failed to indicate the power of resistance of consumers t<' high prices and the increased Use ol substitutes. Of the future the Review savs that artificial and theoretical aids to stabilisation tnav hamper rather than expedite progress, but presuming t 1 at nothing is done to usurp the functions of trade control in Australia, there I- reason for expecting a strong demand tor wool u lieu the main Australian sale opens. The trade, it is pointed out. is passing ihrou.gh a period of crises, and there arc indications of a recovery ol confidence, and with it restored under normal (otiditi.ms of selling there should lie a very material expansion of Iminess. The statistics show Hint of the Australasian wool soli! last sem,in (i.'i per cent was merino and .'l7 per cent crossbred, i Nearly the whole of the New Zealand i wool of ICL’Jfio bales was crossbred aildj I Hi. glf.'t bales of the Victorian sales of | 270,!7i! bales were the same staple. | 'I he average weight of the wool a bale

last season was .‘127.21h5, or practical tin* sail'.- as lor II 21, hut l\lh a ha worse than in 11)2.2-2-!. Ol the wo sold in lho nasi season only 2 per eei was scoured. The orand total value ( the wool sold in Australia and Xe /.ea la ml hist season was C(>9.fW2.l w 2.