The Waikato Times AND THAMES VALLEY GAZETTE. THURSDAY, MAY 2,1889.

Waikato Times, Volume XXXII, Issue 2622, 2 May 1889, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

THURSDAY, MAY 2,1889.

K<)i;;il mill i-i,irt pixtu'r in ;ii 1 men, 01 whatsoever slate or persi::isir>n, religious or pfjlicie.il.

Competition is the soul of trade. This axiom is proving its truth in Lite approaching entrance in the field, of a new competitor for the ocean carriage of New Zealand frozen meat to the British markets. We havo lately received the intelligence from England, and the last mail news establishes the fact, that a new and powerful combination, called the Imperial and Colonial Trading Company, lias been formed for the purpose, and is involving- a largo expenditure of capital in the construction ol steamers of the newest designs specially adapted for the trade] and in providing distributing agencies. It is owing lo the promised appearance of this new rival that some of the existing companies, acting with Messrs Nelson ]3ros., have been moved to increased activity on the basis contained in their recently published circular. The elfect of this must, to quote the words of the Herald s Loudon correspondent, " niatoriallj' benefit the New Zealand producers and, in fact, tho colony generally." That is the opinion of all sensible men who take a broad view of the subject, and aro not hyper-critical like our correspondent, " Tanner," from whom another luttor appears in our columns to-day. In our issue of (Saturday last, we ventured to think tho time was not yet ripe for additional competition in tho carrying trade. Since then we have obtained the returns of last year's frozen meat exports from this colony. During 1888 the importations into London from New Zealand alone, wore 1M5,706 carcases of mutton and lamb, equal to 'J-1,031 tons, rll addition lo the above, 2."»,858 pieces of beef were imported from the colony. In the previous year the import of mutton and lamb amounted to 7GG,-li/ carcases, weighing 19,012 tons. We thus see that in this single item of export there has been an increase in one year of nearly twenty per cent. This does not look like depression in the industry caused by oppressive freights imposed by the shipping companies. Our correspondent, however, defends himself by saying he charged the heavy freights on till produce as " one of tho causes ' of the depression. As the subject of contention was frozen meat, which forms one of the. chief portions of the ships' cargoes, it was natural to conclude " Farmer," referred particularly to that item. We will take him, however, on bis own ground and examine our exports as a whole, and, going back to 188'J, will compare the statistics of that year with 1887, selecting those articles of staple production with which the shipping companies havo most connection. 1832 1W Wool, lbs 05,322.707 88,*24,332 Tallow, cwts. ... 105.750 101,720 Sheepskins, no. ... 41.3, li 3 401,.i'J0 Rabbitskins, no. . 0,1!15.53i 12, i 13,4.>2 Wheat, bushels ... 3,1A5,1«l 0,214 Oats, bushels ... n7'l,liSl 3. IS'.I.H'JS reserved meats, cwU 25.01' i 42.0 1S Frozen meat, tons 15.214 -102.107 The sr>lo decrease, has been in wheat, which is due to a falling off in the annual production from 8,:!G0,OOi) bushels in to 6,3G8,<i1H1 bushels in I B*7, and the

amount required for colonial consumption increasing from i,ii.!t\UOl) in 188:!, to in 1 887. 'Thus, we arc unable to reconcile the depression Trilli the shipping freigliLs in the face of Lliu remarkable growth of our exports. " banner, ' therefore, has not discovered the real cause of the colony's difficulties, and he must .search elsewhere before he can sustain his charge, that the, slapping companies are responsible) for even one of his thousand causes. The statement Ihsit., when the freight on Iro/.en meat was 2.U1 per lb at (lie initiation of Liu; industi'v, one cargo paid the wnole cost of the special machinery used in the \ essel, is ver\ much open to ijuuslioii, Would " Farmer " expect the shipping company, or any other bodv, to bear the entire burden of reconstructing the interior of their vessels, fitting up expensive machinery and employing special labour to carry out a risky experiment for the sole benefit of the producers ? In reality, those acquainted witli the history of the ne<v trade are aware that it was years before it had beconio sufficiently developed by experience to promise remuneration to either producers or shipping companies, Without the facilities offered by the companies engaged in the trade, tlift producers could not cross the twelve thousand miles of ocean and put their frozen meat upon the Home markets. Without the discovery of the meat-freezing process, in what position would the flockni,asters be now ? They would be still boiling down their flocks and selling them at low prices in our own glutted markets. J he locnl price oi sheep has increased more than a hundred-fold by the withdrawals for freezing purposes and export. The present price of tat sleep in colonial market:-; is from l.'.d f-, ! per lb, mid this is about the price that flic growers w.nihl be assured all the year round under the pronosed arr.ingemenl. with M cs.-irs Nelson, Jiros. " .Karinei' :: has not given the olfcf more than a cursory study : otherwise, he would have seen the permissive clause under which the shipper is given tho privilege of discontinuing his shipments. Nor would he have made such mistake in respect to tliß division of the per centage ; the figures given lifji;"' net proceeds exclusive of ail charges. Nor, again would he have fallen intr» Hue error his fanov has

created, of supposing the eombinat ion con Id increase the freijjhls and thus deliberately defeat their own cuds and sacrifice tin; thoroughly sound and business-like arrangements " Farmer" himself praises, liv a pross breach of agreement. It would be interesting to learn how many of the farmers of Waikalo endorse " Farmer's " views. We venture to say very few, if any, will do so, for tliev must see the immense advantages that will accrue to all parties and to the, country at large by placing the frozen meat industry upon a solid and well-organised foundation. Hearing in mind how rapidly the trade, is increasing, and that there is evident room for more competition, it is as much our duty to support the legitimate investment of capital as to study the interests of producers, when one is an indispcnsible necessity to the other.

The half-yearly meeting of the Bank of New Zealand was held on Tuesday, and a satisfactory report was presented. The net. profit for the half year, ended 30t!i March, was £43,360 Is lid, to which were added premiums on new shares and balance from last half year, making an available total of £55,449 I'2s

7d. A dividend of 7 percent is declared, and a balance of £5ti,3SU 12s 7d carried forward. The transactions of the Hank represent the enormous sam of £13,7!14,057, which shows to what dimensions the business of the colony's chief monetary institution has grown, and how much careful management it requires to steer it from dangerous ground. The bank's deed of settlement has been amended to admit of the altered conditions created by the issue of new shares, ami the various clauses were readily agreed to by the shareholders present. The President, Mr George Buckley, in his address took a very hope fill view of the future, and spoke cheer ingly of the improved tone in the colony's affairs. In the course of his speech Mr Buckley said :—" It is gratifying to note that the signs of returning prosperity, to which 1 was able to refer at our last meeting, have since become more pronounced. A bountiful harvest, saved in excellent condition, is meeting remunerative prices at our own doors. The revival of the flax industry, the steady demand for our dairy produce, the improved tone of the wool market, and the development of the frozen meat trade, are amongst the factors that are working towards a better state of tilings. .Renewed attention is beiug directed towards us from outside—from Australia, where our advantages of soil and climate have recently been brought into sharp contrast with the disastrous droughts that have again atilictcd our sister colonies, as well as from London, where the marked rise in our government securities speaks of growth in confidence and favour with the investing public. The settlement of our land goes steadily on, increasing the number of producers and, in this way, the national wealth. The finances of the colony have been brought into equilibrium, if, indeed, there is not this year a surplus. There are, I think, plain indications that the habits of thrift engendered by past adversity are producing their natural fruits. Reviewing these considerations you will doubtless agree that I atn justified in taking a confident view of the future. I do not look for a " boom " — we do not want "booms" —but for a steady growth in national prosperity in which we, as a bank, as well as individually, must share. "