TARANAKI FARMERS’ MEAT CO.

Taranaki Daily News, 21 October 1922, Page 4

TARANAKI FARMERS’ MEAT CO.

The Taranaki Farmers’ Meat Company had a uniformly successful career until this past season, when, like many others, it met with adversity in such a form as to render the continuance of its operations uncertain without reconstruction or the provision of new capital. The present capital, owing to the calamitous year, and the fact that much of the previous season’s output did not realise even the freight and other charges, has practically disappeared, and the story the directors had to tell the shareholders yesterday was not a pleasant one. It serves no useful purpose to place blame upon the directors for the position that has arisen; they have not only lost their own share capital like the others, but are individually liable to the Bank for a big sum which they guaranteed in the interests of shareholders. The plain fact is that the company struck a financial tornado that may never recur in a lifetime, and the company has not got the reserves with which to meet it. The point the shareholders have to consider now is whether they should allow the works to close down. The feeling at yesterday's meeting was decidedly against such a course. It was felt—and of course it is an obvious fact —that the works have been of immense advantage to stock owners, not only in coping with the stock offering, but in serving to check and maintain prices offered by competing freezing firms. Besides, the works have brought big ships to the port, so developing the trade of the port, and given employment to a large number of men, whose wages have added to the spending power of the town in so many ways. The meeting decided upon the only right course of action in setting up a committee to go into the whole affairs of the company with the directors, with a view to bringing down a scheme for carrying on, and submitting it to another meeting of shareholders. The position is admittedly a difficult

one, but the district has been confronted with even greater difficulties in the past, and has surmounted them. It is no occasion to indulge in fault-finding and repining, but one that demands courageous action on the part of both townsmen and country settlers, whose interests in this, as in most other things, are identical. The Patea company has had a similar trouble, but the situation there is being faced with courage and confidence, and there is every reason to believe that with the support of the surrounding district the company will pull through successfully. Given the same assistance, and tackled in the same way, the Smart Road Works can be put on an even keel again. The townspeople have loyally supported the works in the matter of share capital since their inception, and we have no doubt but that they will do so again if a practicable proposition is placed before them. The country settlers are vitally concerned, for the keeping open of the works ensures them an outlet at market prices for their surplus and fat stock. Tt. is to be hoped, therefore, in the interests of all concerned, that a way will be found for continuing an industry that has played so potent a part in the development of the town and district.