THE MEAT INDUSTRY.

Taranaki Daily News, 25 June 1917, Page 6

THE MEAT INDUSTRY.

ADDRESS BY MR. J. 0. COOPER. NEED FOR ADDITIONAL STORAGE. Despite the wet weather, there was a good ijttendonce of farmers at the meeting which was held in Mr. Newton King's horse bazaar, Stratford, and addressed by Mr. J. C." Cooper, chairman and managing director of the "Wellington Farmers' Meat Company, oil the meat industry. • Mr. J. Quin, chairman of directors of the Taranaki Farmers' Meat Producing Company, introduced the speaker, who, he said, would speak to them on meat production, shipping, and other problems of thevindustry;

Mr. Cooper first explained why lie had interested himself in the Taranaki Company. He stated that, as a settler of the Wairarajpa, he had been responsible for the formation of th 4 Wellington farmers! Meat Company, and whether lie liked or not, had had to carry on. THE OBJEOT OF CO-OPERATION.

The first object for the formation of that company was to provide in the Wairaraptw and Wellington province generally, increased cold storage and more facilities for the disposal of their fat stock bv providing bettor and freer comnetition, arid that action had been justified by results. Having accomplished so much they looked further afield, as they felt that the farmer should not only control his meat at this end, but at the other end also, and to do this it was necessary to bring about as much cooperation as they could. He pointed out that one of the well-knowti proprietary firms operating in the Dominion had subscribed £BOO,OOO to the last war loan, and he did not know 'hoW' much to previous war loans, out of profits made from colonial meat, and he felt it was only right that a large proportion of these profits should be returnable to the New Zealand farmer. Therefore, when the directors of the Taranaki Farmers' Meat Company approached his directors for help in the initial stages of the company, they decided to give all the help they could, "because they wanted the co-operation of Taranaki in the big task they had at the other end. They recognised that work's established in .Taranaki, alongside the port of New Plymouth, with a province in the making at its back, and also parts of Wellington and Auckland provinces, properly run and supported by the farmers would be a big factor in assisting them to achieve their aims at the other end, and for that reason they, decided 'to assist in the initial s'tages. TARANAKI WORKS JUSTIFIED. ■ The new works., he said, had got over the first year very satisfactorily. They had not made money, hut, so far as he knew, there had been no loss, and when they - recognised the difference in price they had received this year as compared with the previous year, even after allowing for the small increase in price receivedj from the Imperial Government, they must agree that the company had justified its existence. (Applause.) At the start, he had advised the directors that the iworks were too small for the district, too small to pay overhead running expenses and too small when the lightness of shipping was taken into consideration, and tSat unless the directors took the bull by the horns and increased the storage capacity the works would be 'Shut cturing half the season. The directors had added SO per cent, additional storage. These additions, for which the board of directors had signed a joint and several to. the bank, had been the means of putting a lot of money in the pockets of the settlers.

NEXT SEASONS PROSPECTS. He then spoke as to the prospects for next season. Their works, he said, were just about full, and the same apnlied to practically all the works in the Dominion, with possibly the exception of his own works at Masterton, which had ample space. A fortnight ago it was estimated that there were 3,300,000 carcases (a cr.rcase being 001b) of' meat in the various works of New Zealand at present. Though the North Island works were easing off now, those in the South Island were not, and it could be estimated that by the beginning of next season there would be .4,000,000 freight to lift before they could start' the new season with clear floors. To do that, and also to lift the dairy produce, would require from 45 to 50 ships. This month one boat was available; next month four more; the following month four, and for the next two months tliev would probably get four each month, if no more boats were torpedoed—a total of sixteen. •'They icoiild therefore Bee at a glance tliifKjJte uosition was a very serious one from their point of view. This position had hit us for the first time. That it had not done so previously was due to a remarkable run of luck. Australia had had bad seasons, and each year a number of vessels bail come over from Australia to complete their loading. Next season would be. a good one in Australia, mhicli would require the whole of its shipping, and would probably try and divert some of our shipping. We would commence the next season with tremendous leeway to make up. and would haw to rely on our .own resources.

HOW TO OVERCOME THE DIFFICULTY. After referring to the reasons for the shortage of shipping, Mr. Cooper said the question was how to get over the difficulty. The action of the British Government and of the United States would, in the course of time, procilre the necessary ships, providing our Government is astute enough to see that sufficient of them have been insulated for our requirements. It was the duty of the Government to see to this. PROVISION OF EXTRA STORAGE. The industry had got to he carried on in the meanwhile, and the only way was to add cold storage wherever possible. Tlie works were practically full at present, and the chances were that not half of their storage would be cleared before the next season opened. Tf they wished to carry ~pn next year the shareholders must put, their hands in their pockets and provide the necessary storage. They had the plant and the machinery necessary. That seemed the only logical conclusion. To do it meant additional capital, which there should be no difficulty in ohtaininff, considering the benefits they hud already received. As far as the dairy farmer was concerned the position " - as as bad, and where it was not possible for the dairy farmer to help himself the Government should step in.

There was, lie knew, sufficient power "to, provide refrigerated space if usedFINANCES ASSURED. Regarding tlie financial politiori, lie stated that when the contract was first made between the freezing companies and the Board of Trade, through the medium of the Government, it provided for payment f.0. : b., the British Government to provide the ships and not to have any liability until the meat was on the boats. That worked satisfactorily two years ago, but when the ships were withdrawn it ceased to be satisfactory. They asked the' British Government to accept the responsibility for the meat stored in the works that had been bought on their account. They asked the Premier and Sir Joseph Ward, who were in England, to make representations on the matter. 'Sir Joseph Ward arranged with the Imperial Government for a loan of £2,000,000, not as part payment on account of the meat, but to be repaid out -of the first shipments. Instancing the Taranalci Company's works, Mr. Cooper said that 011 their stock of £BO,OOO they would have received £20,000, and the test two shipments of 7000 carcases would have gone to liquidate the liability. Had anything happened to the works in the meantime, the company would have been liable, so that practically the only advantage would have been a little rebate-in the interest on their 'overdraft. In regard to tihe continuation of trading, they realised that this loan was of no use, bo they insisted on the Imperial Government accepting liability for the meat ill stock, and after considerable trouble they were successful, the Imperial Government accepting liability and paying storage continuously, instead of three' months with one month free, also insurance. They were now able to finance. The c#Bipanies also asked that the Government should pay interest on the money advanced to purchase the stock now in store. After the .Ministers left the Old Country a committee had been appointed, which got the Board of Trade to realise its responsibilities. The finances were now all right, and all that was needed was to increase the cold storage. APPEAL TO SHARHIOLDERS. Mr. J. T. Quin, chairman of directors, in proposing a vote of thanks to Mr. Cooper lor his most interesting and instructive address, impressed on everyone the need for taking up fresh capital, so as to improve the company's position at . the bank. The freßh issue would be much easier to tajte up than the original issue, being 10s on application and 2s on allotment. He pointed out that last year, when not using the space themselves, they had stored dairy produce, and were prepared to do so again if *tho . gpace were available. He stated that the directors had assisted by increasing their holdings of shares an aggregate of 75 per cent, and by giving a joint and several guarantee to the bank themselves. It was therefore the farmers' duty to take up additional shares to the extent of half of their present holding, and so help the industry. Mr. J. C. Cooper, in acknowledging, urged all to take u,p shares, so as to increase the storage accommodation at. the works. If they did not, and found that the works were congested, it would be their own fault, as. he had advised them what to do. ' In reply, to questions, Mr. Cooper said that £20,000 additional capital would be required. This would give storage for an additional 30,000 carcases. He, however, advised the directors, if they were not able to provide all this, to provide what they could. Farmers, lie said, had got a little of their own back this year, and it was up to them to put a portion back to provide the storage. The settlers, so far, had stuck loyally to the company, and if they continued to display that epirt the position of the company would, be assured in a little while. On Mr. MeCutcheon's suggestion, the names of those in the room willing to take up extra shares were, taken, sulting in a satisfactory response, those present being impressed with thg urgency of the position.