THE FREEZING COMPANY. Mr Banks in Defence.

Waikato Times, Volume XXVII, Issue 2256, 23 December 1886, Page 2

THE FREEZING COMPANY. Mr Banks in Defence.

TO THE EDITOR. Sir,— Referring to an article which ap peared in your issue under date of 27th ultimo., and which has only just come under my notice, I gather that the following charges are made against this company. Ist. Beef, alieady too low in price has been made to go lower. Although the writer does not expressly say so, yet the inference is to saddle this company with the responsibility for the fall in value. The company has, since the commencement of operations, exported 2,11 1,500 pounds of frozen meat, and thereby relieved the market to that extent, it h.is besides tinned ujeats for export in very large quantities, Of the frozen meat exported, about 1,ft37,00Q pounds belonged to tljs company, representing cash purchases from stock owneis within the radins of the Auckland market, and this export resulted mainly in the loss of £15,000 as having occurred in the past year's operations. That the share* holders of the company should complain of this loss I can understand, but any complaints on the part of producers of the ■stock appear unreasonable. The cause of the present depression in the value of stock is well known. When this company btnrted business, moat, in the London market was worth fiom sixpence to sevenpence and tallow £38 to £44 per ton, the present prices are m»»at ab mt four pence and tallow £22 to £2S. The next ground of complaint is, , "that this company mined the s.ile of winter butter, by no >ding the market with supplies stored from the proviour summer." The answer to this is on much the same lines ;<,■> in the case of meat. This company expoi ted. Mnce the commencement of bu.sin.esj about \s\ toils, of butter. Jb this proceeding favourable or the revurse to the pioducer? With regard, however, to both butter and meat, the action of the company must be considered as a whole. There can, I presume, be no doubt that if it wore more profitable to the company to confine it& opeiations. to the Auckland mar ket it would be the duty of the directors, acting in the mterots of the shareholders, t > follo'v that course; but as a matter of f.ict, th^ local *> ties bear but a small proportion to the exports, and the net results are therefore largely beneficial to the producer. Thirdly.— Thu writer indulges in a long criticism on the alleged action of the com\m\y in taUiug the piipo of i{s " compressed corned beef *' by stopping the discount of 10 per cent. It is not necessary to follow the remarks under this head, as the writer is under a delusion. Tfie price has never been raised, but steadily reduced since we started business. Our first discount, up to a year ago, was 10 per cent. The low price of stock then enablod us to make an addjtjqnaj reduction of q per pent, ancj lnsf Juno vfp Jvmep) a cjipular to alf qur pustoujers stating '* that our discount t>» preserved meals, is 2Q per cent., and otj soups 25 per cent." A. fourth cause of judiptinenfc is " that the Tongariro had to leave Auckland a few days s'uiqq without a single carcase." Tho wriber appears to labour under the idea, that space was available, but this wa>s not the case, all shipping accommodation for frozen meat up to June next having been long since engaged. We insetted advertisements in the newspapers, and sent notices round to stockowners in May last, stating that qwjng ],n tl]q demand fof «hjpp|ng ypape' if, was necessary to qngaga space, long bqforehand, and requesting btockowners to make applications accordingly, advertisements were responded to by applications for atfout 8000 caroabes only. I af once m)\e() a- njeef-jug of lny dipcto);s |i) con.sjd.ey the position, as we had only a few days to deoido, aud after full dismission it was deemed advisable, in the interests of the province, that freight should be secured for two shipments in December and March, for 300,000 pounds each (that boiog the minimum quantity for which space can be Becured), and that the risk should be taken of the company, having itself to provide the 'bece'ssary 1 stock, and 'now that it Is too late 'tttinierotis fo'r'sptfqd aVq

coitiing forward, and, no d.mht, later on we shall hear of future blundt'n of the Freezing Company in not ha\ing vnade the necessary provision. I will not encroach fuither on your spacfi heyond an expression of regret that such very inihiesidintf statement should have heen circulated among the Hettler* in your district ns art 1 contained in the article I have replied to.— l am, sir, yours faithfully, Joseph IWnks, I\r«n:ig(>r. Auckland, T)ro. lu.ih.1 u .ih.