WELLINGTON MEAT EXPORT COMPANY.

Wairarapa Daily Times, Volume 4, Issue 1067, 6 May 1882, Page 2

WELLINGTON MEAT EXPORT COMPANY.

A MEETING OF SHAREHOLDERS.

(By Telegraph)

An extraordinary meeting of shareholders was hold in the Chamber of Com•merce yesterday ■ afternoon to oonsider the question of delaying the order for machinery. Eighteen persons were pre sent, principally Wairarapa settlers. W. C. Buchanan (Chairman), stated that the object of the meeting was to decide whether the action of the directors in ordering machinery for shore freezing was to bo confirmed. A section of shareholders demurred to this, and the pvesent meeting was called. The question was a difficult one, and any opinion from the meeting would not be altogether satisfactory, as the majority of votes would be given by proxy, and those. who had given the proxy forms, not hearing the arguments would be in the dark. He would call on those who had opposed the action of the directors to explain their views.

Mr Hawkins demurred to the view taken by the chairman. Ho said the directors were restricted to making arrangements for ships, and he would ask the directors why they had departed from this in ordering shore apparatus. The Chairman in reply 'did not understand anything of the sort,- It was understood on all hands that the machinory should be ordered, though it could not be got in time for this season. When the resolution was before the directors why did not thoso who were in t.ppusi i.,n raise this objection. It was now for those who objected to slato their reasons. MrG. Beetham thought Mr. Hawkins had raised a point of order. As one of the opposing director* he did not think it was understood at their first meeting that they should not order machinery, it was certainly understood that there should be no unnecessary expen3o Mr Hawkins said it was simply a misunderstanding, He thought the direc tors were limited to'securing ships already fitted.. He admitted the right Of thedirectors to get machinery, but thought they should haie taken an opinion from shareholders- 2308 shares had been taken up, representing £11,530. The reason he opposed the aotion was becauselie thought they should not spend all their capital until they were assured of ihe success of the freezing apparatus. Several cargoes had brought remunerative prices, but some had been very unsuccessful. It had been said that this was not the fault of the freezing machini ery, but through negligence, etc. In spending they should go on a very careful basis as they did not know what the real difficulties were, and so could not contend with them, they had not sufficient data or experience _ When about to spend £B,OOO or £IO,OOO it was desirable to hesitate a moment, especially when meat freezing was mUs infancy. He argued at length on the undesirableness of getting machinery until all defects in it were remedied, Bygetting apparatus at once they would save a year, and perhaps by making one falso step lose five or six. In Dunedin and Christcliurch they were going in for works, but they had more money there and could afford to make experiments, Their beef and mutton was better than any other in the colony, and they could make a regular market for its disposal. There was no management in England, and cargoes might arrive from America, Australia and New Zealand and so flood the market. There was a prejudice at Home against Colonial preserved meats, and it would take very little bad meat to damage the frozen meat market. He hoped the directors would feel their way, and «.. into (he whole affair thoroughly, and clear the way for future operations. It should not be thrown at those opposing the action of the directors that'they were mere hinderers. The people who consign meat should not bo disappointed, He thought many producers did not understand what they would have to do in the way of charges, and when they did underhe thought there would be a difficulty in getting them to go in for it. After fully watching .the whole 'thing he came to the conclusion that they would have to use extreme caution. The steps taken now showed a little of impetuosity and that was why he had joined with others to demur, He would conclude by moving, " That in the opinion of this meeting the order of machinery should stand over and that the directors ahoukl endeavor t< charter one or more ships with meat freezing apparatus to take freight from Wellington." Mr G. Beetham seconded the resolution. To ensure, success they must proceed step by step. Thoiv capital was limited and the shares--had been taken up only by those directly interested. If, as he stated at the first meeting of the directors, their refusal to order machinery would have the eject of putting'a stop to the action of the Company, he would certainly not approve of it, but it would not do so, 'lhere were two ships in New Zealand, the Mataura and Dunedin, which they might have secured. It had not been Bhown how they would benefit themselves by the establishment of shore works, He thought they might get ships to take meat |U a pound cheaper than if the meat was frozen on shore, If shore works were established the meat could arrive and produce could come in more gradually, bat this meant expense to the producer, as it was not reasonable to suppose the Company would keep thoir works open for months without an equivalent for storage. Stock might not be so plentiful as was imagined. Many sheep had been preserved, and if they were to be successful thoy would have to compete with the meat preservers. He regretted a personal aspect had been brought into the affair. The papers had it that his brothers and Mr Williams were about to establish meat preserving works, and this was why they opposed the Company importing machinery, He did not think anyone who knew tnem would think this' (hear, hear). If he could see the least advantage to be gained he would certainly be one of the first to push on. The chairman had been very energetic in getting information to lay before the directors, and left no stone unturned to make tho thing a'success, and it was certainly not his fault if the directors were not in a position to decide what was best, They would have to depend altogether on the West Coast and the Wairarapa for stock. They would have to get written guarantees from stock owners, and they would not be able to secure a ship without giving a guarantee. If ships came fittedwithout a guarantee so much the better, but he felt certain they would not. It would cost at least £6OOO to establish works, leavin?£sooo to deal with in purchasing Btock. There was bound to be some failure in the supply of stock, and the Company would have to find money to buv stock to make up the deficiency. This £SOOO would be nowhere for the purpose. He would merely say in conclusion that they wero not warranted in making the expenditure when they had the certainty of getting ships by guaranteeing freight. Ho very much regretted the other West Coast directors were not ' present. .

Mr W, Booth aaid that at the outset he disagreed with the resolution. ..Mr Hawkins _ said he had confidence in the directors, but it did not appear so. He had not heard anything but what they had fully considered before. Shore works would entail a large expenditure, but they would be as good as ever ten years hence, Both machines tried had been found

satisfactory. All the evidence had satisfied him that they would not be wrong in Retting either. There had not been a single instance of,failure by the machinery It was simply faults before freezing! There was no reason why they should not get shore-freezing machinery. TheOom- • pany that could put their oargo on board straight off would be the one that would secure the ships. Even should the machinery turn out to.be a' failure, thay * ' would not lose much. If they established works it would tend to hasten direot steam communication which was a great thin?. From reliable authority he was satisfied there would be no difficulty in securing stock. The establishment of shore works would not interfere in the least with meat preserving, and when tin demand was created they would get an abundance of stook. It would be frail'') with advantages so great that he •Bs^'. say go ahead by all moans. It woSo create an outlet for everybody, the small farmer as well as the large. The directors did what they had done in the fullest confidence of success, and now their action might be upset by a lot of proxies which he considered very unsatisfactory, Ho did notthinkfor one moment that the Beethams were influenced by personal motives. Mr W. H. Levin would refer to a few points on which he thooght Mi' Booth was in error. If the machinery proved unsatisfactory it would be thrown on their _ hands, and he did not think the machines _ were satisfactory. Mr Booth had said it was not intended as yet to freeze beef, but he thought this was one of the principal objects of the company. Thoy would be more likely to get ships already fitted than those places which had shore works. If there was anything' like a decent market in the colony they would have a difficulty in getting a supply of stock for freezing. He did not desire to see £IO,OOO or'£ll,ooo oalled up and then be told next year that thoy had made a mistake. They had a parallel case '"** in the electric light. They were told a lew years ago that before now every city in the world would be lit up with it on accouut of its cheapness, etc., but this turned out to be very .much exaggerated. At the lime they started the market was glutted with stock, now the case was different. He could not think the delay of a few months wouhl put them back much.

Mr J. E. Nathan intended to support the resolution, the directors wero not unanimous in ordering the machinery. It was very seldom works of this description were carried out at the first estimate, and would absorb most of their capital, The chairman read letters from Messra Dalrymple and Lysaghf, of West Coast, the latter expressing opinion that they should get the machinery. In case it might be Baid he took a one sided view he said ho might have come there with proxies sufficient to carry tho action of the directors. He disagreed with Mr Hawkins that they should call tho shareholders together to get an opinion from them, What was the object of the Company \ Had anything turned up Bince that they should cease operations ?.He failed to see that there was any proof whatever of failure in the machinery. If anything had arisen to warrant it ho would be found voting with the objectors. There was a monopoly, and the preserved meat did not cure it. It had been stated by gentlemen whose authority they could not doubt that meat had boon delivered :"* in London in such a state that it could not be distinguished from freshly killed meat. The Australian meat was sent .; from two centres, one 200 miles from Sydney, and notwithstanding every pre-""* caution, the meat would go soft before being frozen on board. The fact that the Orient Company had gone from one machine to another, went in an indirect manner to show no great improvement's wore likely to bo made. As regards tho surplus stock, Messrs Gear ami Barber tinned 5,000 last' year, and would put through 50,000 this year before tho season ' was out. They would also get a surplus' from Napier and the West Coast. They could depend on a surplus from year to • year, which was more likely to increase'-.-, than decrease. As to freezing beet ihe ' difficulty was greater than that with mutton, and it sold comparatively lower. . While on the question he would point out to those who say that beef cannot be sold profitably at Home that the prime cuts oould be frozen and tho fore-quarters tinned by Messrs Gear and Barber. Reference had been mado to insurance, Aftor considerable trouble ho had got particulars from the Underwriters' A*s,ciation, which he read to the meeting.' He also read a telegram from Mr Gregg, • chairman of the Christchurch Company, who could not understand the folly of delay, and said several companies should be started simultaneously. Tho charge made by the Orango Freezing Company was half-penny per pound, which included paddocks, slaughtering, freezing, and delivery on board, Eleveh cargoes had gone Home without any failure whatever, He read extracts from papers shewing the good prices realised at Home, and that negligence in packing accounted for some of the meat turning out badly. He here gave the cost of machinery, etc,, showing what the Com. pany would be likely to lose in case of failure, but that, he maintained, they had no reason to anticipate, and he didjiot think they should delay for another year. Stock owners would get 50 per cent more than they now do. They were not getting one shilling more per head this year for fat cattle than they were last. The present ■ demand for sheep was on account of the plentiful supply of feed, and there could be no question as to the surplus. The price of meat at Home was the same now as it was ten years ago, and it was nwrJL, likely to rise than to go down. He cotlr eluded by moving as an amendment, "Thatthe resolution of tho directors Id order machinery be adhered to." Alter some further discussion im which Mr Poulson stated there was a feeling of dissatisfaction among the West Coast shareholders that nothinghad been dene and that there was undoubtedly a surplus of beef there.

Mr Hawkins replied to the arguments brought against his resolution, when the ehairman took a show of hands, resulting in the resolution being carried by 9 to 8. A poll was then demanded, the amend'ment finally being carried by 344 votes to 304, there being 30 proxies, representing 309 votes. . 6

A vote of thanks to the chairman terminated the meeting.