WELLINGTON NEW

Hokitika Guardian, 5 February 1926, Page 3

WELLINGTON NEW

THE' REFUSED AfEAT LICENSE. (Special to “ Guardian.”) WELLINGTON, February 3. It is very probable that the represen tatives of the Associated Banks will dis cuss the effects of tile Government’s refusal to grant a transfer of tlu •slaughtering license held by the Wei lington Meat Company to Borthwick and Sons. It is difficult to see how they can fail to give the matter serious attention. Bankers generally agree that the action of the Government has rendered meat works of nc value as a .security. The value of any meat export company’s assets is bound up with the license. Its buildings, plant, machinery and land have a value as a banking security only in so far as they are employed in the freezing industry. If "that industry cannot lie carried on except under license, and a license is refused them, the assets of that company are useless to the banks. Not only is the credit of the whole of the moat companies in the future jeopardised bv the action of the Government. but a blow lias certainly been struck at a legitimately British firm,

with large capital invested in the freezing industry of New Zealand. The shareholders’ property includes the license which the company had done nothing to forfeit and no evidence had been offered that Borthwicks were not entitled to take it over. One banker was of opinion that the action of the Government in blocking the transaction was one that opened up to bankers a series of grave possibilities, considering the trend of control of produce exports generally. No banker could now

think of making advances to meatfreezing companies. Some of the cooperative freezing concerns are carry- ' ing on under very great difficulties, they have made very heavy losses and their finances are at a low ebb. If these companies are not nursed hv the hanks they must close down, and that would be a disaster. We have yet lo discover what impression the action of the Government lias bad oil London. It is certain to create a very bad im-

pression. and may have a very detrimental olleet oil the New Zealand loan to bn floated in May next. Queensland discovered that it could not flout the British investor. The Government should at an early date reconsider the whole question of control of our export products. Government interference with trade is always dangerous, and the fact that this interference is worked through hoards make it all the worse. Commercial matters are best left to commercial men to -handle. Aiarkcts will fluctuate, prices wiß rise and fall, and neither Government nor Board can alter them, ’The various boards (hat have been set up are oxcreseiices which are costing the community a groat deal more than they are worth. FROZEN A!EAT PRICES. New season’s New Zealand lamb is selling in London at lid while a year ago the price was 13Id, there was thus a drop of 2]d per II) equal to 20 per cent. 'The above quotations are for light weight lamb. Canterbury quality, l amb of first quality weighing 371bs to -I“Jibs a year ago was fetching L‘Ud or as much as light weight, hut the price now is !)d or -lid less and this drop is equal to 33 per cent. Selected brands of lamb 3blb and under are selling today at 10;d. while twelve months ago tile price was 131 per cent, there was thus a drop of 2;d, or nearly 20 per cent. Heavier lamb 371 bto 121 b which sold at 13d a year ago. now is not worth more than S]d or -lid less, which is equal to a drop of 35 per cent. .Mutton also shows serious declines in a similar comparison. lints ( antcibttrv quality mutton selected brands s(>lb and under is worth at Smithlield to-day 7d. while a year ago Old was the price, there is thus a bill nt 2Sd per lh equal to 27 per cent; 5711) to (Hlbs lias dropped 2d from Oil to id, and the lall is equal to 22 per cent ; liolb to 7211 i (Implied iroiu Sid to bjd. a decline of Ijd or 20 per cent. Other brands of mutton, light weight, fell from !).',d to (>;|d or 2i per cent, medium weight from 3;|d to (vpl or 22 per cent, and heavy weight from Slpl to (ijd or 21 per cent. It is to be noted that the heavy weights have suffered less than light weight. Ewe mutton is apparently difficult to quit just now and compared with a year ago the price has declined 3d per lb from 8d to 5d or 371 per cent. 'The above; figures show that friv’.en mutton and lamb have declined from 20 per cent to 37.1 per cent and the freezing coin-

panics are experiencing a very trying time. Unfortunately this is the time chosen by the workers in the industry to create trouble, and it is also unfortunate tiliat the Government should with one fell blow depreciate the assets of the freezing companies.