THE PROPOSED NEW FREEZING CO.

Wairarapa Age, Volume XXXII, Issue 3197, 25 May 1909, Page 6

THE PROPOSED NEW FREEZING CO.

PROGRESS OF THE MOVEMENT. PROMOTERS MEET AT MAR-TINBOROUGI-I SHORTLY. WHAT THE PROSPECTUS SAYS. The preliminary work in connection with the flotation of the proposed new freezing works—the name of which, by the way, is to be the Wellington Farmers' Meat Freezing Company—is proceeding quietly and satisfactorily. Enquiries from [ one of the promoters yesterday I elicited that an important meeting ! is to be held at Martinborough on June Ist, when the provisional directors and others interested will make the neessary arrangements for registration, and attend to other details. It is practically assured that the minimum subscription will be obtained before the issue of the prospectus, which will be in a few days. The prospectus, which was shown to a Wairarapa Age reporter yesterday, ! reads a3 follows: I "In placing tiiis prospectus before J the public the promoters desire to | make the following observations: — I No agricultural community can ! now be'said to be up-to-date unless j it is well and conveniently served by j freezing works. The institution of i the industry opened up a new era in I the prosperity of the Dominion, and (the inauguration of up-to-date works I must mean a considerable advancement to the districts they serve. The Wellington Province and he adjoining portion of Hawke's Bay consitute by far the best agricultural and pastoral land in the Dominion, carrying a stock of 6,000,000 sheep, nearly one-third of the sheep i n the Dominion, and about half a million cattle, a number considerably in excress of the total number of cattle in the South Island. With the advance of settlement, and the closer settlement of large estates, these figures must in the near future be very largely increased. Ever, now Wellington, In point of export of mutton and lamb, exceeds the totals for Canterbury, up to recently considered the premier province of the Dominion; while in the export of beef, Welling-' ton leads the Dominion by a long j way. The total export of mutton and lamb, apart from beef, from the above district for the present year will probably be about 2,000,000 carcases, and although we have freezing works that probably rank among the largest and most up-to-date in the Dominion, with the capacity taxed to their utmosi limits, they have been absolutely unable to deal with the enormous number of fat stock of the very best quality in the world that has been offered them this year It is estimated that had their capacity been large enough, at least another quarter of a million sheep and lambs could have been dis-> posed of by placing them on the Home market. As a largely increased number of farmers have this season, gone in for breeding of the iamb trade, the position will probably be very much worse next year and as lambs of this description are

as a rule unprofitable to hold over or another year, it is of great importance that increased freezing accommodation be provided, at the earliest possible date. Had it been possible to dispose of all the sneep that were or could have been fattened during the past season, and the value for them in cash put in circulation through our banking institutions, the present financial stringency would not b? nearly so severe. As it is, the amount of surplus stock will now be a charge upon the farmer for another year, with probably no increase in value of the stock, the cost of keeping therefore will almost amount to a dead loss, and the glut is even now having a most depressing effect upon all classes of stock offered for sale. The existing freezing compnies would no doubt rise to the occasion by increasing the capacity of their buildings and plant to meet the largely increased supply of fat stock in the near future. We know, however, that this increase of assets would be provided for out of the profits of the various companies' business, and not by the floating of increased capital. The assumption is entirely based upon past experi- ' ence. The promoters of the Wellington Farmers' Meat Freezing Company propose that as the farmers of the district must pay for the increased accommodation, that they should do so by taking up shares in a company, and thus provide an asset which shall be entirely their own, and not by being forced to accept a price less than the real value of their-fat stock, to enable existing companies to increase the wealth of thair own shareholders. It is proposed to provide at as low a rate as possible cold storage for both butter and cheese, and also to deal with pigs by their manufacture into pork or bacon, and to deal with other dairy products if the dairy farmers of the district support the Company by taking up shares to the extent anticipated. In | districts such as Wellington and Hawke's Bay, the success of the towns and townships entirely depends upon the success of the farmer, and the production of the back country generally. Consequently any industry that will increase their prosperity and value should be encouraged by every business man and investor in the provinces; but apart from the above reasons since the time that frozen meat became a recognised articles of trade, and secured for itself an assured place on the Home market. Freezing works hav<3 been considered a safe investment by all classes of investors and with the rapid development of the farming industry in this portion of the Dominion, it must become more so, and it is proposed that the operations of the Company shall not be of a speculative nature. It is not the intention of the Company to deal generally in the produce themselves, but mainly as agents on behalf of the producers. Consequently, from the experience of other similar companies, there is every reason to believe that this

undertaking will be an advantageous one to those investing therein. Every freezing company doing business in New Zealand to-day is paying its shareholders very well indeed. Owing to the present tightness of money, the directors have decided to extend the enlls over as long a period as possible.