MEAT PRESERVING.

New Zealand Mail, Issue 21, 17 June 1871, Page 12

MEAT PRESERVING.

It will be seen from a report of a meeting held at Greytown recently, that a Meat Preserving Company is about to be established in the Wairarapa irrespective of that at the Upper Hutt, and that the larger portion of the proposed capital of £BSOO has already been subscribed. Under these circumstances it id a question for the shareholders in the Hutt Export Meat Company to decide whether it would not be prudent to withdraw from the latter company and join the one which is sure to prove more successful, as it possesses much greater advantages, both as regards position, and the command of stock, than the one which is about to fix its head-quarters at the Upper Hutt. If the immigration and public works policy is vigorously carried out in this province there will be much less surplus stock to dispose of than there-is at present; and even now it is doubted if there is any more than would be sufficient to keep one large meat preserving in full and constant operation. If this is the case,.an unnecessary waste of capital will be caused by the erection of two establishments, and a great reduction in the profits must be the result. While not the slightest doubt is felt that one establishment would prove alike beneficial to stockowners and remunerative to shareholders, frdm which many indirect advantages would be conferred on the province, it is considered very questionable, whether, if two are started, either of them will prove successful. The majority of those shareholders who have nominally joined the Hutt Company, but these by no means represent the majority of the shares taken, are simply interested in the expenditure which will arise from the works being established in their locality, and are actually indifferent as to the advantages which will be reaped by stockowners and shareholders from the establishment of those works. On the other hand those who have joined the "Wairarapa Company are directly interested in reducing the expenditure to a minimum, and consequently there is a much greater prospect of economic management and high dividends in this company than in the other.

To. secure an expenditure arising from the establishment of a local industry in their neighborhood is avowedly the chief object of many of the smaller shareholders in the Hutt. Company ; while to prevent a reduction in the price of meat below that at which it can be produced at a profit, by the opening of a market on the spot for their surplus stock, is the chief object of the promoters of the Wairarapa Company. For this reason all stockowners should take shares in the Wairapa Company, that being the one which will be the most likely to regard their interests; but there is another and a better reason why they should do so. As every stockowner will participate in the advantages, they ought also to share in the risk of the undertaking. With many graziers this reason will have more weight than any other in determining them to take shares in the company. We are persuaded that there is scarcely a grazier in the Wairarapa who would not be ashamed to participate in the advantages of an undertaking, started to promote his special interests, unless he had also shown a willingness to bear his fair share of the cost and risk that had been incurred in its establishment. It should be looked upon by the stockowners in the light of a .mutual insurance society, to the funds of which each should contribute in proportion to the amount of stock which he would have virtually insured. From its operations he would derive Uto profits; the major being the enhanced price realised by his stock, the minor being the dividends declared by the society. When the stockowner views the matter in this light, he will see that he is, to a certain extent at least, morally bound to take shares in the Wairarapa Meat Preserving Company.