CO-OPERATIVE FREEZING WORKS PROPOSAL.

Wairarapa Age, Volume XXXII, Issue 3146, 25 March 1909, Page 5

CO-OPERATIVE FREEZING WORKS PROPOSAL.

CONFERENCE OF FARMERS' UNION DELEGATES. THE MATTER FULLY DISCUSSED. AFFIRMATIVE RESOLUTION CARRIED. PRELIMINARY STEPS TAKEN TO FORM A COMPANY.

I A conference of delegates from Wairarapa and Bush Branches of the Farmers' Union whs held in the Masterton A. and P. Association rooms, yesterday afternoon, whei. the matI ter of the feasibility or otherwise ot establishing a farmers' co-operative freezing works was discussed. The following delegates attended: — Messrs J. C. Cooper, Pahiatua (in the chair); F. Perry, R. Clephane, Maryborough; R. B. Robertson, Pongarua; G. H. Clallam, Horowhitu; T. Quirk, R. C. Ellingham, Pahiatua; J. P. Lomax, Eketahuna; D. McGregor, jnr., Masterton; R. D. McKenzie, and F. W. H. Rummer, Mauriceville; F. Grows, Tinui; W. L. Falconer, Kaituna; Holmes Warren, Pirinoa; W. Brown, Waiahora: J. Cross and H. Williams, Masterton. The chairman, in his opening remarks, explained the objects of the meeting, and said that although it had been a record season for fat stock, farmers had not received the full benefit of this fact, as the companies had not been able to deal with the large output of stock from the district. The fat lamb trade had now assumed very large proportions in this district, and the companies had not kept pace with the advancement of the district in this respect. New Zealand, it seemed, had been beaten in the race for supremacy in the frozen mutton trade by the Argentine, but it also seemed that New Zealand would be able to hold its own in the fat lamb trade, and farmers could see that it was going to pay them to dispose of their stock as fat lambs instead of keepiug the animals for mutton. Farmers of this district could see that the conditions as regarded dealing with the fat lamb trade were going to be the the conditions of next year, and perhaps for some years to come at least. It was this fact that had been the means of bringing the present conference together. The farmers of this district desired to see the freezing trade not run, as at present, as a separate business, but as an adjunctory business to the farming industry, exactly on the Hues of the dairy industry. A consideration of great importance was the fact that it was th.3 maintenance of New j Zealand supremacy in the fat lamb trade—and for that matter the fat sheep trade—that necessitated such steps as that proposed by means of the present conference. As things had been the action of freezing com panies had been conducive to the production of second-class animals, i as nothing hit heavy sheep were j taken by th" companies, and these were the animals that farmers were told by Home people were not suited for the trade. Mr Cooper then invited full discussion. (Ap- J plause). Mr Perry stated that the Martin- J borough Branch had, at a meeting i of about thirty members, discussed the matter for which the presert conference was called in a vrry full manner, and the Branch had decided that it was advisable to start a cooperative company. To place the discussion on a formal basis he moved, That an effort be made to start a co-opsrative freezing company in Wairarapa. The obect of the meeting at Martinborough was to try in some way to bring about the very de-irable position that the farmer should get top prices for top quality of hia sheep. As it was there setmed to be one price for all qualities of sheep and lambs, and this was not as it should be. The freezing industry, in short, should be on the sime basis as the dairying industry, in which those who produced a good quality article should receive a commensurate price.

Mr Clephane, who seconded the motion, said that as a producer he had been connected with the frozen meat industries for many years. Contrasting the position of affairs in the Wairarapa with that in Canterbury, the speaker said that it seemed to be the general th'ng for the two local freezing companies to have a standard price for all classes and qualities, whereas in Canterbury good animals brought good prices. The formation of a co-operative company in Wairarapa would not necessarily cut the ground away from the feet of the existing companies. He believed that instead the production of the district would increase, especially as settlement advanced. The chief point to be faced was,would sufficient support be forthcoming? If the movement were taken up it would be necessary to put before farmers in the proper light—how necessary it would be for them to give the project their initial and continued support. If a company werejstarted and proper grading carried out.it was likely that the new company would soon get a good name on the Home market, and the animals would bring l top price. Mr Quirk said he had much pleasure in supporting the motion, not so much because matters in connection with the farming industry were as they now stood, but because he believed in co-operation among farmers. The existing companies did not seem to be able to cope with the output of the district. There were now three powerful companies operating in the district;, and it was only natural that it a co-operative company were started these other complies would use their best endeavours in the way of offering high prices to maintain the support of farmers. With this in view it would be essential that the shareholders of a new co-operative company should be bound. There seemed to be an opinion that the finding of the necessary capital would be a big obstacle io the formation of the company, but if this burden were spread over a large disrtict it would not be so very serious after all. Against this there was to be considered the probability of an increased price for stock, which would soun compensate for any sacrifices. Mr Gillam said he gave the motion I hearty support. Mr Lomax said that he had heard when at Palmerston North that in

that district there was a strong feeling in the same direction as that in the Wairarapa, but there the farmers were in favour of co-ODerating with the Wairarapa, and of having the headquarters at Wellington. Bush districts were, he believed, solidly in favour of supporting the proposal, as the last season had shown farmers how necessary it was to take a step in the direction proposed. It was, however, no use I shirking the fact that the proposition involved a very big undertaking, and it was, he believed, little use commencing operations on any basis under a capital of £100;,000. He gave the motion unqualified support. Mr Falconer, in endorsing the remarks of the previous speakers, commented on the fact that the existing companies, though they had met the farmers very fairly, no doubt, had amassed huge reserve funds, and had otherwise done every successfully With these reserve funds the companies could no doubt wage a big fight with a newly-formed company, and there was no question but that shareholders should be in some way bound to give their suppurt to the company. He had much pleasure in supporting the motion. The Chairman asked as to whether he could furnish any information as to the probable cost of a freezing works of a given capacity, said he had been promised information of a very valuable character in this respect, but at present it was not available. Mr Gillam laid on the table information in the nature of the probable cost a freezing works, based on information gleaned from different sources. On the request of Mr Gillam this information was dealt with in committee. After a discussion on various points the motion was put and carried unanimously. Mr Gillam then moved that the company be formed on the lines of the Gisborne Co operative Freezing Company—namely, freezing on account of owners, who are bound to freeze! with the company. Mr Quirk seconded the motion. At this stage, the Chairman announced that Mr M. J. Corrigan, late Chairman of Directors of the Nelson Freezing Works, who wab i.i Masterton, was present in the building, and was willing to give the meeting full j information in regard to the cost and manner of working of the Nelson i works.

Mr Corrigan gave the meeting a quantity of valuable information on various mat'ers connected with the founding and carrying on of his company, the matter being take i in committee. Mr Corrigan said that the Nelson works, though small, were considered by the experts to be the most up-to-date in New Zealand, and he offered to supply free of charge the provisional directorate with plans of a suitable sized works free of charge, his company's engineer being a very up-to-date and able man. Mr Corrigan was against binding shareholders down to supplying the whole or any part of their stock to the works. In expressing this view he stated that in experience it would be found a difficult practice to enforce, and moreover, the chief object in view was uot to freeze for a profit on the works themselves, but to increase the price of stock, and in the creation of a new company stimulated rival companies to give a greatly increased price, it would pay even the shareholders to close- down the works pro tem and accept the higher price of the rival companies. A discussion ensued as to whether shareholders should be bound to supplying the company or not, but the motion by Mr Gillam was eventually carried. t ! The question of the financial basis of the company was next disucussed. Mr Falconer moved that the nominal capital of the company be £IOO,OOO, and that the company proceed to allotment on £IO,OOO being subscribed. ! Mr Grove seconded this motion, which was held over.

Mr Kummer said that th"e scope of the works bore greatly on this point. He thought it would be a great mistake to establish works in Wairarapa, and court the same fate as had befallen companies elsewhere. The advantages to be gained by a Wairarapa works were greatly outweighed by the disadvantages. He moved j that the works be establishad at a j suitable point to serve the whole ! Wellington province, and a greater area, if necessary. Mr Groves seconded this motion, which was carried unanimously. Mr Gillam moved that the worKS be established at Wellington. Mr Groves seconded. Mr Falconer moved as an amendment that this matter be held over for the provisional directors to decide, contending that the directors would, after due investigation, be in the best position to decide as to the most suitable position. j Mr Perry seconded the amendment ( Mr Lomax thought the question should really be le,ft to the shareholders. The Chairman thought the motion was somewhat premature, as the first concern, in connection with the site question, was—where were the shareholders to come from? The amendment was then put, and was carried by ten votes to four. Mr Falconer's motion regarding the capital was then discussed, and carried unanimously. Mr Falconer moved that the value of the shares be fixed at £5, and that not less than two shares be held by any shareholder. This was not seconded. Mr Gillam moved that the Gisborne Company's basis of holding shares be adopted—namely, that the liability of each member be fixed at approximately (5d per head on his last assessment of sheep by the agricultural returns, and that the face value of ordinary shares be £l. Mr Groves seconded the motion. A lengthy discussion ensued as to whether the terms uf this basis would be found generally acceptable in this district, and it was eventually lost, an amendment by Mr Perry being carried that the 6d per head basis be not mandatory, but merely a basis for the distribution of shares, and that the capital be subscribed on a £1 per share Dasis. A motion was then passed giving the provisional directors power to vary the terms of the foregoing resolution. It was decided to call the company the Wellington Farmers'' Co-oper-ative Freezing Company. Mr Perry niuved, and Mr R. B.

Robertson seconded, that the initial expenses be guaranteed by the delegates present. This was carried. After discussion Mr Lomax moved that four members be appointed to the provisional directorate, and that the vacancies be filled after a conference with Palmerston North representatives. This was seconded by Mr R. C. Ellingham and carried. Mr Gillam proposed and Mr McGregor seconded, that a committee consisting of Messrs Quirk, Lomax, Cooper and F. Perry, be appointed to carry on the business of the Company until such times as a provisional directoiate be appointed. The proposal was carried. Mr Ellingham proposed that the committee act as delegates to a conference with Manawatu representatives, the date and place of meeting to be arranged by the committee, which resolution was carried. A hearty vote of thanks was passed to Mr Corrigan for his address.