PATEA FREEZING WORKS.

Taranaki Daily News, 3 November 1921, Page 6

PATEA FREEZING WORKS.

THE CHAIRMAN OPTIMISTIC PROSPECTS OF CARRYING ON. SHAREHOLDERS GIVE SUPPORT. Shareholders of the Patea Freezing Works met for the third time at the works yesterday to discuss the question of carrying on in liquidation. The annual meeting had been adjourned on two. occasions, and though the bulk of the business was done in committee, where the details of the scheme 6 were discussed, the general feeling was one of optimism, it being understood that a considerable amount of the required capital to keep the works going this year had been subscribed, and that an additional £5OOO or £6OOO would mean the difference between carrying on and liquidation. Ultimately a resolution was carried that unless the amount required is forthcoming without delay the directors be authorised to take the necessary steps to go into liquidation. About sixty shareholders were present yesterday. Mr. C. D. Dickie (chairman of directors), who presided, stated that the depositors had held a meeting and had decided to leave their money in the company, and also to provide a further amount of capital so as to assist the directors in carrying on the works. On the motion of the chairman, seconded by Mr. Belton, it was unanimously resolved to. admit all depositors to the meeting. In moving that the meeting go into committee the chairman said that there was no need to be pessimistic. It would certainly be a disaster to the town and district if the works closed, 'as they expended fully £20,000 per annum in wages ; but there was no reason to doubt that if the scheme they had in hand was successful the works could be run successfully. The plant was in perfect order, and it looked as if plenty of stock would be available. Moreover, prospects for freezing on owners’ account were better than had been the case for the past season or two. It would, he said, be a blow, not only to the district, but to the Dominion as a whole, if a large farmers’ works were to fail. However, he did not think there was any reason to fear this, as, though the time for a canvass had been very short, there had been a good response, but the directors had decided that they were not prepared to carry on for another year Unless 'the full amount asked for was >*<sscribed.

A shareholder considered that all that was required was the loyalty of the shareholders. The workmen had agreed to assist by allowing 10 per cent, of their wages to accumulate to the end of the season, and farmers could assist by putting in fresh capital, and also by putting rmany cattle through on their own account as possible.

The chairman pointed out that no doubt this season a large amount of freezing would be done on owners’ account, especially bull and cow beef. In the past, owing to lack of space, the company had to refuse this class of business, and stock had to be sent from Taranaki to Hawke’s Bay, .where farmers had to take shares in works to get them to put them through. Now the Patea Company had plenty of room available, and dairy farmers would obtain the benefit of extra competition for their cows and bulls. He considered there should be no difficulty in getting the small amount of capital required. ' The meeting then went into committee. On resuming it was reported that a resolution had been carried, on the motion of Mr. Syme, seconded by Mr. Lysaght, that “the meeting desires the directors and the lenders’ committee to endeavor to arrange for carrying on the business of the company on the lines proposed, and is of opinion that should they be unable to do so without delay the company should go into liquidation.”

At the conclusion the directors held a meeting, when it was decided to at once institute a vigorous canvass to secure the balance of the capital required.