NO NEW ZEALAND TRUST.

Otago Witness, Issue 2895, 8 September 1909, Page 20

NO NEW ZEALAND TRUST.

MEAT-FREEZING CONDITIONS. (From Oue Own Corbespondeot ) LONDON. July 30. Mr G. (>ood=ir, of Messrs Wedclel and ■ Co., vvlS one of the witnesses before the Meat Trades Combination Commission, who ' was specially questioned as to the opera- ' tion of trusts in New Zealand and Aus- ' tralia lie was quite definite in declaring : that there is> iiot a suspicion of a trust in } Australasia. As for New Zealand, lie said, ' there was an attempt about 10 jears ago to make some kind of combination, but it came to nothing. In Australia there are ' 24 freezing works, and in New Zeal.-md 27. • In neither case is there any organisation ' of the companies. | Mr H. C. Cameron, questioned on the epsode of 10 years ago, said there was a j proposal so!iio years afro to combine all the freezing works in New Zealand. j What happened to that proposal' — It was received with <i howl by the people of Now ) Zealand, and the papers wrote against it ; the i.i-ople wfve indigr.unt with the pi o- , posal -ond oppased it, ancl it fell through. Nothing was done. And there is no such combination now in oxistorice in New Zealand?— \o. ; Neither foimally nor actually is there any j sort of agreement among the companies'' — Iso. There might b? agreements between

\ companies in certain districts to fix the price to be given during the year, but, taking the companies as a whole, there is no general agreement as to what price should be paid for mutton or lamb. There i is competition. None of the North American firms are interested in New Zealand?— Not directly. As far as I am ay.are that is so. They don't ov.-n freezing works there I could not say whether they have purchased shares in any of the companies there, but speaking generally they are not interested. Is it not generally thought in New Zealand? — No, It is not understood. They are not nominally owners of any of the freezing works. Havo you any suspicion that they have, in fact, bought shares? — I cannot say I have any suspicion. I could not know — of course, I don't know — who hold ths shares actually. Then we come to the main point. We have to consider competition between the New Zealand companies. You have told us there is no limit on that, no combination of any kind. Is there any combination between their representatives in Great •Britain?— l don't think so. There have been suggestions to york together, and it h.is been found on several occasions when these have been made that there are persons who stand out and will not come into combination. Consequently no agreement tan be fixed, and, of course, while there are people who may stand out combination is prevented. You stated that, with rejrard to a pro posal for the purchase of* export me:it concerns, tho New Zealand public was- opposed to it' — Yes. New Zealand opinion is decidedly :i«ainst any combination of that sort. The proposal was made so:.ie years ago, and it was a failure. Could you state the grounds on which that opinion was -formed? — It was felt that if there were a combination controlling the refrigerating works there would not be competition as to price, and the price of the meat would be reduced _ Naturally, the combination would give as little as possible for the meat. When you speak of public opinion do you refer to the public or to the traders? — I refer to the farmers really — the growers of the sheep. _ j Not the consumers?— Not the consumers.The shares in those companies I referred' to in New Zealand a-re largely held by small farmers, and to a cc.tain extent they might be considered co-operative. They are not quite on co-operative lines, sucn as dairy companies are_, but the smallest farmer who has an interest in them, instead of looking for 5 or 10 per cent, on his money, has got the competition for his mutton, lamibs, and beef of those works. So it pays him to hold his shares in order to avoid a combination to keep clown prices. The shares in these companies are not held by small groups of capitalists, but by a very large number of shareholders? — Yes. I might say there are one or two that ai'e not held in that manner. Nelson Bros, is not a company with shareholders among tha small farmers. It is a private concern, and Thomas Boi-thwiok and Sons i<s a urivato concern : but the Christchurch, Wellington, Southland, and Canterbury companies have- the shares in the hands of farmers, who elect the directors on the j board. Mr Bowerman : I understood you to suggest that the question of forming a combination had been considered?— Yes, it was. I was in New Zealand when the suggestion was made, and I remember it very well. The papers took the matter up, and wrote strongly against it, and farmers throughout the country were all agitated' concerning the movement. The came feeling exists still in New Zealand, and whenever the suggestion of combination not only in this, but in any form, is made -th-er-e is th-© sam« outcry against it. I fe-el perfectly satisfied if any open attempt was mad« to combine it would be, met with opposition, an d I believe the farmers would go so far as to form a mutual co-operative society, co 33 to protect themselves by continuing the competition as to prices, they feel so strongly on the subject. I may take it there is a feeliner in tbo colony that these combinations are not in the interests of the consumers? — They are not in the interests of the producer. I had more particularly the consumer in my mind? — The consumer is in this country. The Chairman : I think that is rather a matter for the committee than for evidence? — We in New Zealand are against this combination in any form, whether it affects the producer or the consumer, or both. New Zealand looks after what affects it in itself. Mr Bow«rman : To encourage this large trade did the Government subsidise it? — No, not since the first shipment of frozen meat was made from New Zealand. In order to encourage the establishment of the freezing industry the- New Zealand Government offered a bonus of £500 for the- first i shipment of frozen meat that would be sent j to England and arrive in condition to j realise a payable price. The firet shipment ' was made in 1882. j Suppose there wae a combination in New ( Zealand, they would not have the same sort of control over the s.upp]y and price in this market as the American beef &hippers Trom the United States have, owing to the distance between the- two countries — they j would riot be in f=uch close touch w ith the t markets here? — I think thej would, because they would combine to give a certain price. Taking the average price for the year, they would 6ay tho prospects are so and co, and we will only give «uch and such a price. They would combine to fix the price to give t to the farmer. I I am talking of the price at which the ' tneat is sold in this market. It would not he very easy for New Zealand shipper*, io combine to fix the price of meat sold in ! this market? — No; ttey could not do that. ' As you probably know, meat is dealt with ( in the same manner as etccks or -.hares are dealt with. It often passcc through two or three hands befoio it reaches the ictailer. | However possible it may be for Ameri- ' can shippers of beof to control the price of be?>i in Smithfield. it would be far more difficult for Now Zealand sh:prei* of mutton to control ihe price of mulion in London. Would that be a fair infer- ' ence 9—l9 — I feel if they were to concent iato their business thoy could to a certain extent, accree as to price. b*cau=-e the whole of the supply would be in their hand-, to <\o with as they ciiC c « They could uphold it. You have got fivwin^ chamLei" and they are in thoroughly ,-ound condition; jou can keep the meat for ecvr-ia-l nio!it.h= ' Mr Field: You could ko«-p it cither in New Zealand or hfie until you those to j sell? — Ye«, you could. [

Mr Field t Not like tke native meatseller. The Chairman: Are stocks, in fact, held here? — In fact, stocks are held here according to the rise and fall of the market. Mr Fountali-n : Can you tell me how many days' shipment") the freezing companies can hold at ady one time? — The arrangements usually «$e to hold one ship to another ; but they bave got to be prepared in case of an emergency to have freezing space for a much larger quantity. I gave you the refrigerating capacity of the Auckland Freezing Company. It has got a storage capacity of 30,000 sheep. I don't suppose the company would ship 30,000 by any one boat. It might, but I don't suppose it would. It might ship, perhaps, 10.000 by a boat. Suppose it shipped 15,000, i% has still sufficient space for a reserve, if necessary. The Gear Preserving Company has space for 180,000. This is more than any boat could cany if it took the Gear meat only. From what you cay, I conclude that large stocks are not kept in New Zealand with a view to watching the prices in London, co as to know waen to ship? — No. I don't consider they tffe. The reason for" having the storage space is to have a good stock ready for shipment in case of aociilant