WELLINGTON NEWS

Hokitika Guardian, 3 February 1926, Page 4

WELLINGTON NEWS

SALE OF -W EAT WORKS. (Special to “ Guardian.”) WELLINGTON, February 1. The refusal of The .Minister of Agriculture to grant a transfer to Bortbwiek and Son is generally regarded as an outrage. What people cannot understand is why a British linn of good reputation that has been associated with the meat trade of Now Zealand almost from its infancy should be barred from extending its operations. Furthermore people are wondering what are the ‘‘grounds of publie policy ” which warrants the Government ruining a body of over 800 shareholders. Borthwick’s offer of £200,000 would have given these shareholders Ss in the 0. hut the action of Die Government has made the assets of the company valueless, and ii is difficult to

see how the company can escape liquidation. By refusing the transfer of the license the Government does not place any check on Bortliwicks, aim already own two small works conveniently situated to good shipping ports, and there is nothing to prevent Bortliwicks enlarging the capacity of these works and so enable them to draw extensively on stock in the Wellington Province with very little extra cost. The extraordinary part of the business is that while the assets of the Wellington Moat Export Company is seriously depleted hv the action of the Minister Messrs Rorthwick and Son

are in no wise restricted ns to the development of their operations. Their present licenses enable them to operate in any part id New Zealand and their competition generally lias been welcomed by ihe producer. One business man wlm was interviewed on the matter said that it appeared to him that the Government had stolen the “ usehohl ” policy of the Labour Party and applied the principle to freezing works, for the shareholders have merely the usehohl of such works because they cannot realise on thorn without the consent of the Minister for Agriculture. In bis letter to the company the Minister stated that be bad been advised bv the Meat Board not to grant a license, fn reply it is pointed out by the General Manager of the company that the Meat Producers' Board has no legal standing in the matter, and says that in any event the members of ilm Board were not the

appropriate advisers to consult. ‘‘ P must be remembered (says the General Manager) that some at least of the mouthers of that Board are not disinterested in meat works or freezing companies. Some arc directors in a meat company (in direct opposition to my company) and mv directors I eel that however fair-minded such men may endeavour to he. it is difficult for them not to be biased on the question they were consulted about.” It is the general opinion in business circles that

the refusal of the transler ol the license is more due to the influence of vested interests than to public policy. Fancy the Liberal or the Labour Party doing such a tiling. It would lie called rank Socialism. MONEY WILL BE DEAR. In the course of bis address to shareholders at a meeting of a mortgage company. Sir Harold Beauchamp stated that there were indications that the economic conditions of the country would necessitate very caret ul Bundling. !n his opinion money would he hot!) scarce and dear in the Dominion, and tie was inclined to that view Because of the monetary movements in London ami New )ork. Me then went on to sav that the rates ruling in New Zealand must bear some lelation to those ruling in the world':, monel try centres. The banking returns for the past, quarter show that llm process of leaning on the banks to a greater extent than usual bus begun, and the advances show an increase of I‘2,til 7.fi7;i. while the deposits have increased I>y only £1 di-ad,Hfi.'l. The bankrupt* i returns were also adverse for there were approximately (i-VJ ha nilrupteies lasi year, or Id more than in 11)2-1. villi farmers again in the lead. Continuing lie sai l. " When we review the state of the produce markets we have to realise that wool, frozen meat. Imtter and cheese are all realising lower prices than

year ago. nil'l mi lar sis wool and meal arc i iinr-cnicd this; drop is most pronounced. I estimate the loss of incoine owing to the decline in market values at Uti!.0110,000; ruul wool and meat will lie respnnsilile for three parts of the total. licc-nttso of this the margin between exports and imports will he very narrow, and unless the Government and local liodies borrow largely outside of the Dominion the demands on Ihe hanks will lie very pronounced. With the contract ion in the value of our exports people will 'have less opportunity of saving. consequently there will he less new capital available to meet the .increasing demands of borrowers, many of whom will ' he obliged to go without, or greatly modify l heir demands.'’