WELLINGTON NEWS

Hokitika Guardian, 22 September 1926, Page 4

WELLINGTON NEWS

THE FREEZING INDUSTRY. (Special to ‘‘ Guardian.”) WELLINGTON. Sept. 9. During the next few weeks the freezing industry will claim a good deal of attention not only on the part of those interested in the trade lint also with the general public. The position of the freezing companies at the present time is pretty well known. They have all lost mriney, and with a few exceptions the balance sheets which will he presently issued will he very disappointing. Something has to he done, at least that appeal's to he the general opinion, lmt there is no unanimity as to what should he done or could he done. Acceding to Mr T). Jones, Chairman of the Meat Control Board, local or district mergers of freezing works is desirable and practicable, while the Vice-Chairman of the Board. Ur J. S. Jessep, favours a compulsory national merger or freezing companies. Under the "latter scheme the works would freeze only, and not speculate in fat stock oil their own account. The majority of members of the Board picfei to let each district solve its own proidem. which means that the Board as a. whole except the vice-chairman have no scheme to submit. They are bankrupt of ideas and that can ho readily understood. .Mr .Tessep does offer a definite scheme, which is not impracticable, but it is certainly dangerous, for it involves confiscation, An Act of Parliament would be necessary to effect the compulsory merger, and such a measure would go a long way to iropaii our credit in the London money market and we cannot afford to run that risk. Neither district measures or a nationa 1 merger will accomplish any good. District mergers will mean finding new capital and unless the farmers themselves find the money, there will he nr capital, for the average investor wil not touch any farmer freezing concern with a forty-foot pole. Farmers’ co operative companies of whatever nature are held ill very poor cstimatioi |,v those who have money to invest. But even if the capital ho found it will not help to restore the market values of fat stock. The merger concerns, whether operating under a district or national agreement, are to freeze only, which means that the buying of the fat stock will he left to the exporters. True, the farmers can do their own exporting as they can now, hut a halfpenny per pound would soon, prevent that. The buying of fat stock would really be left to the exporters, and who are they? They are Vcsteys, Bortliwicks, Swift and Armour, with some smaller fry who are scarcely worth including in the picture. How long would it take the big four to come to aii understanding and quite in a lawful way. The prices for fat stock would he kept at very low figures. But it- may be said that if the prices are too low the farmers will do their own exporting, and they can certainly do this. Suppose that the majority of farmers decide on' exporting on their own account, to whom are they to sell the carcases on arrival in London. Again it will he Vcsteys. Borthwicks, Swift ami Armour with a. few others too small to lie included in the picture. Where is the gain? The members of the Meat Board and the majority of the meat producers seem determined not to face the position; they will not view the facts squarely, but- bc.lieve that by some spurious political juggling' they can make black look white. The whole aspect of the frozen meat trade has changed since 19.19. The control of the retail trade in the consuming centres lias passed into a few controlling hands, and instead of recognising this the Meat Board hopes to get past those in control and achieve wonders. It is a foolish dream. Either the Board must take entire control of the industry, provide its own storage in London and retail shops in the metropolis and the provinces, or sit tight and do nothing beyond collecting the fees and enjoying the fat salaries. To control the industry as suggested would require an Act of Parliament and nil enormous capital. The Board would have Lo ho given extensive powers, ami as the exercise of those powers must be under the control of the Government the loans would be regarded as State guaranteed.’lt is now coming home that mixing business and „ politics is a huge blunder. Had the operations of the Control Board been limited to arranging freights, insurance and other charges and furnishing statistical information they would have done a great deal of good, hut the power of compulsion is destined in prove very dangerous, especially in the hands of men who are mere novices in com- ■ m-orco.