WELLINGTON MEAT EXPORT COMPANY.

Wairarapa Daily Times, Volume VIII, Issue 2431, 21 October 1886, Page 2

WELLINGTON MEAT EXPORT COMPANY.

THE FROZEN MUTTON FREIGHT MONOPOLY.

The following circular, signed by Mr W. C. Buchanan, has just been distributed among membera of the Company:— The Directors of the Wellington Moat Export Company think it desirable to lay before shareholders and stock-ownors generally, a briof statomunt showing tho facts and roasons by which they think all interested in tho trade ought to be guided. ' It is unfortunately only too true that that the average price now obtained for frozen meat in London is considerably less than, in tho infancy of the trade, even the least sanguino thought might be expected. The mtormous importance of this new outlet is, however, immediately realised, if we only ittiagiuo it suddenly closed up, and the price of stock and land thus made dependent upon—not the present low prices of preserved meat and tallow, but the prices to which they would descend, were our whole surplus converted into these two articles. It isobvious, therefore, that we should foster tho healthy development of the frozen meat trade by every means in own power, and, by keeping down the cost of placing the meat on the English market, endeavour to moet successfully the competition which we must certainly encounter from other parts of the world. The expenses maybe classed as follows, viz., freezing, freight, insurance, and London charges; and it will bo the best to take thorn one by one, pointinsr out what has been done, and what appears to tho Directors to he poaaiblo in tho future.

Ist. Freezing, which including killing and all expenses of putting on board, is now at |d, perlb,, and all that is wanted to make a further reduction possible is that the works should bo mora constantly used up to their full capacity, and this capacity increased as required. It is obvious that there must bo a considerable incroaso of expense in many ways so long as tho works present to be started afresh each time a shipment has to bo prepared, This was really tho position during tho whole of last summer; while settlers, who wore tlion sufficiently ontorprising to ship, have actually netted 133 and 14s for lambs, and 15s to lUs for sheep, which wore worth littlo more than half those prices in tho local markots. It is therefore hoped that applications will ho received in future for so large a number that tho directors may find themselves in a position to make further reductions in the charges. 2nd. Freight—This is by far the most important item, and at the same time tho most difficult to deal with satisfactorily. Tho trade is almost entirely in the hands of two shipping companies; and it was only by the most strenuous efforts that shippors were, lust year, enabled to secure a reduction of freight to lid per lb., and 10 per cent primage. A concession of fd per lb., was also secured upon wool freights at the samo time. It is notorious that these reasonable reductions were only gained by a combination amongst New Zoaland shippers to obtain outside shipping at the lower freights then and now current in tho Australian Colonies, viz.,'ld to ljd per lb on meat, without primage, and |d on greasy wool, by steamer. j

Sinco November of this year, however, the freight upon frozen meat has been raised to lfd by tho Shaw, Sayill, and Albion Company, and, while the right of that Company to fix their own rates of freight cannot be deaied, it may fairly be quostienod if it was good policy on their part; and it is generally understood that tho advance in freight was made against tho wishes of their several agents in Now Zealand.

The New Zealand Shipping Company, oil the other hand, lias been contented with the former rate of 1 Jd per lb, and the Directors have accordingly urged producers generally to engage all tho space available by ships of tho latter Company, and also to send all their wool and- other produce by tho Company, which has thus shown its willingness to encourage the devolopement of an industry which is allimportant to the aettlers of Now Zealand, and which may oven now be stifled in its infancy unlesß fostered by thoir staunch co-operation. It is of the utmost importance that settlers thoughout tho country should see the great danger of allowing a monopoly in the carrying trade to be established, Few, probably, are awaro of the full

extent to which this spirit of monopoly hag already been carried. ■ The. following facta cannot, - therefore,'fail v t6. prove interesting, In the Lyttelton TimesV October 19th 1885, was published a .Report by the Canterbury members of the Conference of Freezing Gompanios, which disclosed a! condition of affairs whicli is almost unprecedented in the history of any modern trade. The report referred to states that all attempts to arrange with other steamship owners were met by tlio initial difficulty that Mr Haalam, the patentee of the freezing machines, had entered into an agreement not to supply his machines to any vessel intended to compete with tlio existin? companies in .the Now Zoaland trade. The report embodies the reasons given by Mr A. Searlo Haslam for entering into an arrangement with the ShippitigjCompiuiies. Jt is, however, hardly necessary, to enlarge upon this arrangement, except to point, out that, if wo are to judge by results, it is decidedly inimical to the interests (if atockownors. If is ut well-known fact that tho whole of the Bpaco at the disposal of tho two bhipping Companies is already engaged up to June next, and that the efforts which have been made by this and other parts of the colony, for some months past, to secure outside space, has hitherto signally failed. It is also woll known that the Wellington district has secured much loss of the available space than was successfully filled last season; and with the increased supply of meat which is sure to be ayailable upon the oponing of tliii Manawatu Company's line in November, a ruinously low range of prices which would leavo handsome roturiiß, while wo know that numbers of steamers aro laid up in English docks, but under existing circumstances wo cannot , avail ourselves of them. Aro we then' to remain helpless in the matter, and is thero no escape from this position ? • Reference has already been made to the means by which a substantial reduction in meat and wool freights was secured last year. By means of the latter article, as well as other produce, shipped from New Zealand, we havo a most powerful lever in our hands. Ample freight can bo socuretl by way of Sydney or Melbourne, or by charter of outside vessols, to load in Now Zoaland. All that is necessary, therefore, is,'that each settler should at mice instruct his agent to arrange his wool and produce freights only upon the linen above indicated. The Directors of this Company only require that their hands may bo strengthened by tho support of those interested, and they have 110 doubt of being able to put the freight question upon a sound basis. No doubt the freight ultimately Hxod must bo one which pays shipowners; but if the present plan of fast steamers fails to pay, it will havo to be done by Icbs oxponiiivo oneß. This will all settle itself if only monopoly of any kind is broken down, and tho trado is carried on upon ordinary business principles. It is further also important that stockowners should fully realize tho fact that moderato rates of freight are only possible if the ships aro steadily filled throughout the year, If wo wish to ship only so as to catch the highest English prices, and vossels consequently have at times to go otupty, they must necessarily eliargo higher frei ;hts to balance this. There is no doubt, that the best plan for all concerned is to ship steadily throughout the year, as the sheep aro fat. In this way vessels will be always filled, and tho producer will find that if ho takes his average price for the year, ho will havo done far bettor than by any spasmodic attompt to secure the highest price only, Tim Is not stated merely on theoretical grounds, but is fully confirmed by tho oxperionco of those who have pursued this courso from tho first Tho Directors havo, therefore, no hesitation in asking all those concorned to fully recognize this as afijcd principle, and to make their applications for opaco accordingly. Insurance.—-There is liltle to bo said under this head except what is altogether satisfactory. In place of a policy costing (i guineas per cent, as at first, and so worded as to enable the Insurance Company to refußo payment in many casos of damago (as has been frequently done), we have now one at only 80s, which absolutely covors all risks, so that, shippers can rely on perfect security if they elioose to pay tho premium. Should steamers continue to deliver their cargoes ill as good order as they have dono°for some time past, wo may reasonably hope for a further reduction even than this. To those who know anything of the difficulties surrounding the insurance question at first, the importance of this arrangement will be at onco obvious.

London Chargoa.—These aro now generally covored by a "consolidated rate" of fd per pound, on wliicli no'doubt there will bo ut further reduction, as the large business dono makes it mora profitable. For this charge we now securo almost unlimited storage in London, with admirable arrangements for soiling and distributing ovor the whole of England. Theroisno longer any risk of cargoes beini; forced on the market, as often happened in the early history of the trade. A committee of those interested recently examined thoroughly into the wholo qiption of storago, and selling in London, and as the result of their investigation strongly recommend shipping to Messrs Nolson Brother, who Jiavo mado a speciality of the business.' Tho Directors, without definitely endorsing tho report, attach-ureal; importance to it, and would point out to all sliippors the much greater probability of tho Joeat being dono foe their interests by a tirm who pay such special attention to the business than is likely to bo the case when it is merely consigned, liko any ordinary produce, to a London agent, who, having no special knowledge of tho trade, haa no other course but to put it into tho Smithfield as soon as he can. Onco there it has to be sold for whatovor it will bring. Havinp thus called attention to all tho most important and interesting points connected with the trade, tho Direotors have only to oxpress their earnest hope that amplo support will be given them, by applications for spaco being soot in with as little delay as passible. Should these applications be as largo as they anticipate, and should they find a willingness on the part of producers to assist them by promising to send'other produco by the saihe lino as their meat, they lmvo little doubt of being able before long to tnako arrangements by which sliippors will no-longer be subject to tho present monopoly, W. C. Buchanan, Chairman.