FROZEN MEAT CONFERENCE

Gisborne Times, Volume XXVIII, Issue 2578, 5 February 1910, Page 7

FROZEN MEAT CONFERENCE

FURTHER DETAILS BY MAIL. PROPOSED ADVISORY BOARD AND BOARD OF CONTROL.* Mr H. D. Vavasour (Marlborough) moved:—“That in the opinion of this conference it is advisable that an Advisory Board should be formed in London and a Board of Control in New Zealand.” He said that he knew from his own experience that New Zealand inoat, when put upon the market, compared most unfavorably with 'American meat and Argentine mutton that was under constant supervision from the producer to the consumer. The appointment of two such bodio? as he proposed would secure .the proper regulation of the supply from the Dominion. He was satisfied that such a scheme would be productive of immense benefit. Mr R. D. D. M‘l.-ean (Napier) seconded the motion. Mr W. S. Hampson (Nelson Freezing Company) said that something on the lines suggested would he the only way of effectually solving the problem. Outside competition could 'not be faced, but internal competition might ho reduced to a minimum. He did not see why there should not be clearing houses in New Zealand and London, controlled bv a New Zealand Advisory Board, the London house to make the price daily. C.i.f. buying created difficulties, hut producers and ’companies would have to (put their heads together, and possibly make little concessions, to overcome these difficulties. The aclv.'sorv hoard would receive complaints, and make investigations regarding damage, insurance, and so on, and supervise the supply generally. Mr W. Murray (Christchurch 'Meat Company) said that he did not understand what powers the Board of Control in New Zealand was to have. The idea seemed to be that it should act as a board of trustees with the power of proprietorship for the whole of New Zealand. ±ney must consider first the growers, then the buyers, and so on, and it was not likely that these varied interests would .place all their property in the hands of the board without

control over it. Ho would also like to know whether Bouth Island conditions at the same time would coincide with North Island conditions. It was a question also whether they had the right to hand over private interests in the way proposed. The .proposal would entirely upset the conditions of the meat trade, although they might not he perfect, and they could not expect to do more in one year than had been done in twenty v ears. Mr J. ft. Wilson (Wellington) did

Mr W. D. Lysnar, on behalf of the Gisborne and Nelson Farmers’ Union moved: —“That steps should bo taken to concentrate our export of meat to a depot dn London, so far as 'possible. He said that Mr Way mouth’s remarks had shown that such, a depot was required. There was no prospect of putting the whole of the meat through one channel, but they wanted an opportunity of sending Home moat 60 that it could be dealt with fairly, and not send through £ firm which .was a buyer as well as a seller, and which tested tlie .market with clients’ meat before they offered their own. He suggested that the motion be made a recommendation to the committee. Messrs A. Burnett and J. Barugh spoke to the motion, and the latter said that during the last three years tlie Auckland Farmers’ Freezing Companies pooled both sheep, wool, and pelts, and .had liacl no complaints. The motion was .put and lost. A MINORITY REPORT. On the second day of the conference, Messrs J. D. Hall and W. D. Lysnar presented the following minority report on Remit No. 1 (Scargill Farmers’ Union), in addition to the committee’s main report (published on Saturday): —“That frozen meat should be consigned through an organisation of producers, or a farmers’ co-operative distributing association, in order to bring the producer and the consumer into closer touch, and that a company should bo formed for that purpose if necessary. The minority disagreed that the present facilities for the disposal of frozen meat were sufficient, but considered that there were grave defects in the methods of sale a'nd claims for damages, as well as storage in London, as well as defects in grading and storage in New Zealand, which urgently required immediate consideration, iii order to protect the interests of the producer in securing for him a fair price for his produce. They considered that this could best be done in the following manner:—(a) By arranging with an institution carrying on its business on co-operative lines, whose intresets could not come in conflict with those of the producers for the sale of the produce in England on a more equitable basis than at present, (b) Arrangements should he made for proper and sufficient storage accommodation in England, (e) It was essential that stringent measures should be adopted by the institution to prevent improper ciaims for damage being allowed, and so obtain the benefits of more favorable rates of insurance, (d) That stops should he taken by a committee authorised to make the necessary arrangements. for carrying out the suggestions named. A discussion took place on the committee's report, which, as stated on Saturday last, was eventually agreed to. In the course of the discussion, Mr R. B. Bennett said that Southfield Market was not dirty, as had been alleged ; and the barges were all now insulated. ' Mir M. C. Grbell said that Ihe shipping interest loomed largely in the trade, and without the assistance of th e . shipping companies the trade could not be regulated. Mr F. de C. Malet (Christchurch Meat Company) said that the London office established by his company had been entirely successful in controlling its sale.

THE MINISTER’S REMARKS. The Hon. T. Mackenzie, Minister for Agriculture, addressing the conference, said he wished to alluue particularly to the remarks that the ordinary laws ol supply and demand obtained regarding the position of meat in tlie Ixmdon market, or in the markets of Europe. That was just what did not obtain. Did not the commission which sat in Great Britain to inquire into the meat trade there, and which was presided over by Lord Hugh Cecil, declare that the combinations in America inlluenced prices in the provinces of England ? Was it the law of supply and demand that excluded New Zealand’s meat from France and German countries, and which in the meantime had consumed three-quarters of. their own flock, \et, on account of their tariffs and regulations, they prevented a single ounce of New Zealand’s meat entering their countries, where the demand lor meat was so great. _ Was it the law of supply and demar.u that enabled unjust claims to be. made and granted on perfectly sound meat to the interference of ho.-iest trade and to the robbery of the Dominion’s fanners who sent their meat into the Home market? Was it just that absence or supply and demand which people here complained about? From the initiation of the trade until now, the demand had been made for some .centum authority at Home, either in the shape 'of a board or in an individual, to ad’vLse regarding the disposal cf New Zealand’s output. That, of course, wa 5 la very large order. The operation of 'Home meat firms, buying extensively sheep and lambs on the hoof in the Dominion, for freezing and shipment, 'formed an clement -which must be given 'due consideration in connection with any scheme for concentration. Those shipments, generally speaking, might 'be said to lie outside any action that 'might be taken towards concentration. To what extent that class of business was carried on it was impossible for him to say, but it would be known to ‘freezing companies.

CENTRAL MARKET ESSENTIAL. He might say from his own experience when in London that it seemed, to him at one time that the only possible thing for New Zealand to do as a colony was to establish one central market through which the whole of the 'Dominion’s meat could go. It might he as well to give the reasons which led him to come to that important con'clusion. His first experiences in the sale of New Zealand meat werejnot satisfactory. The system of disposing of importations then prevailing was to place the shipments in the hands of 'meat salesmen, who charged 2 per cent, commission on the sales. That system, however, was unsatisfactory in many ways, chiefly because, whilst there was a fairish price for some of the meat, it took a long time to dispose of iparcels, ’and the price resulting from the sale of much of it was far below what was really considered its true market value. Indeed, there ivere those who declared that the price realised by some of the salesmen was not duly accounted for. He did but little trading on those lines, and in place of that method adopted the c.i.f. principle, which nor minally secured for his farmer clients the market value of the meat. He used the term “nominally” advisedly, as claims were made for damages on nearly every parcel sold, and occasionally a second claim was made on the same meat for “not up to quality.” In the latter case it meant two allowances on, the same meat. The system of assessment also had been unsatisfactory in the extreme, and still was so.

AN ADVANTAGEOUS PROPOSAL. After those experiences it struck him that the only way to combat the existing methods was that they should secure, if possible, a site handy to iSmithfield upon which a market for New Zealand meat could be erected, and where the goods could be sold. He was able to obtain the option over a

piece of land within fifty yards of the Smithfield market, comprising 18,000 superficial feet, and connected by railway with the docks where the frozen meat was discharged. The idea was to have cold stores erected there, and a market where meat could be inspected and bought. One of the advantages of that proposal would have been that, instead of paying the rates of insurance then prevailing, anything from 50s. to .0-j. per £IOO, it would have been necessary to have insured only against total loss. The scheme was carefully worked out, and the proposal seemed to him to promise to give effect absolutely to what, was required in order to place New Zealand’s meat on a firm foundation, and to bring to. the producers here the full market value. Part of the policy in connection with the establishment of those eokl stores was to obtain a Government .guarantee in order that the financial operations in connection with them might he earned on subject to a very low rate of interest. It might be pointed out that the same proposal was now made to the Canadian Government. A recent cablegram bearing on tlie subject contained the, statement that it was proposed to form a company with a capital of 8,000,000 dollars (£1,600,000), the Government to guarantee 4 per cent, upon three-quarters of the capital. He need not go into the details of the proposal. He felt persuaded, however, that had effect been given to .it it would, from an investment point alone, have been a great success, and would at the same time Tiave brought benefit to the producers of New Zealand .meat. A great deal of thought was .given to the matter, and every detail was carefully nvorked out on what wore considered to he sound economic lines.

PROBLEMS FOR CONSIDERATION

The problem New Zealanders had to consider was how they could improve the present conditions. The delegates would have submitted to them tlie question of pooling farmers’ lots and grading up to a recognised standard. In that connection they should insist on a provision being inserted in all conditions of sale requiring the acceptance of grade certificates, and no London arbitration, as, unfortunately, the Home people had succeeded in having inserted in connection with the sale of New Zealand dairy produce. There was also the question of centralisation in London, which was perhaps one of the most difficult problems to be considered. The success of the frozen mv.Cton and lamb industry called for careful thought and handling in face of the increasing quantities that were being placed on the Home market. The marked increase of last year would have been greater if it had not been for the drought in the Argentine, which, together with other causes, was responsible for a lessening shipment from that country of 400.000 carcases to London. Had that quantity gone forward the quantity of stock upon the market would have been beyond the normal consuming ability of the British .people. They must therefore agree that the United Kingdom must see an abnormal development of her industrial output and trade if she was to increase her power of consumption. Happily, there were signs of trade recovery, and the effects of the crisis of 1907 in New York were passing away. Mr 4Y. J). Lysnar moved the adoption of the minority report, as an amendment, and said that while they had a grievance against the frozen meat companies, it was not in regard to the way in which they dealt: with farmers’ stock at the works. It was at the other end where the trouble was, and he complained that the representatives of the freezing companies and mercantile interests had not only opposed efforts to make improvements, hut had not made any alternative suggestions to those made by producers. In regard to claiming for damage, he held documents to show that these claims were as numerous in regard to Canterbury meat as in the North. He was proceeding to quote an instance, when Sir George Clifford rose and objected to names of companies being mentioned, as it was unfair to quote isolated cases.

Mr Lysnar said he would not mention any further names, and proceeded to show that- the damage ranged from 6 per cent, to 20 per cent. In Gisborne ho had found that claims for damage had amounted to from 9 to 13 per cent. He was sorry to say that fjir George Clifford had denied that there were claims for damage in Canterbury. Sir George Clifford : 1 do deny it. Mr Lysnar went on to say that they were paying 50 per cent, more for shipping their meat than in Australia, where they did not ship so much meat as New Zealand. The sheep farmers paid the freight, and ho was sorry that the freezing companies had tied themselves up with long freight contracts. He urged that there was real cause of complaint, which must be dealt with in a i>roper way. Mr J. 1). Hall (Canterbury A. and P. Association) seconded the amendment. . Mr J. G. Wilson (Wellington) said that the original report was certainly passed under a misapprehension so far as ho was concerned, for he had interpreted the proposal to mean that a new company should he started. He could not support that. In order to preserve their interests, the people engaged in the butter industry had. subscribed to a fund to send a man to England to rc'present them. Every, year or two the agent returned to New Zealand, and made a confidential report to the subscribers to the fund, and by this means the butter-producers were in a position to know in wliat manner their produce was being disposed 01. He thought it would bo a very good result of the conference if the' farmers agreed to put their hands in their pockets and arranged to send a man Home on their own account to watch their interests in the position of a confidential adviser. If this were done many of the misunderstandings that had arisen would be disabused altogether. The amendment was lost by 12 votes to 25, and the committee’s report was adopted. A COMMITTEE APPOINTED.

The following committee was appointed to confer with a committee appointed by the freezing companies to consider the federation of the meat trade, questions of forms of hills of lading, policies of insurance, c.i.f., and e contracts, etc., in accordance with Clause 2 of the committee’s report:—North Island—Messrs J. G. Wilson, N. Kettle, J. A. Macfarlane, J. Reynolds, A. H. Russell, and Isaac Gray. South Island —Messrs I). D. Macfarlane, J. D. Hall, J. Talbot, A. H. Turnbull, R. Evans, and F. Waymouth: Sir George Clifford said that lie had to report that without a single dissentient vote or argument the representatives of the freezing companies had decided to hold a. meeting for the purpose of considering the request of the conference. (Hear, hear.) The Canterbury Frozen Meat Company had been appointed convener, and as soon as the boards of the companies had, time to consider the problem tlie meeting would be held. It would require some little time, but he could assure the conference that no time would he lost unnecessarily. (Applause.)