MODERN BACON FACTORY.

Manawatu Times, Volume XXVIII, Issue 426, 13 July 1905, Page 3

MODERN BACON FACTORY.

Business Men Discuss*

Mr S. W. Luxford presided at last evening's meetiog of those interested in the establishment of a modern bacon factory.

The Chairman said that the object of the meeting was the consideration of the removal of the Bacon Factory from Woodville to Palmerston. It was hardly necessary to explain the object, for the continuance of the factory at Woodvillo was undesirable for many reasons. He then traced the history of the Company. It had been said that they should desist from turning out the Mprepork brand, on which they had to pay a royalty of 3s 6d per pig, and that they should instead pay the 3s 6d to the shareholders as a dividend. This was entirely wrong. Under the old salting process tbe pigs underwent a shrinkage of 33lbs per cent. Under the Morepork process the shrinkage was only 22|lbs per cent., a saving of some 63 sd. Were the royalty deducted from this it would bo seen that tbe net saving was 2s lid per cent. Furthermore the Morepork brand fetched £d to Id per lb higher prico than the other brands in tho open market.

Mr Anderson said that in regard to the royalty the Company supplied all the curing material, and further that they only paid 3s 6d for every 15Olbs, practically three pigs. Referring to tbe shifting of the fuctory to Paluieraton North, he reminded them that within the last ten years the Christchurch Meat Company had followed tho practice of Bendiug to the North Island for pig?, shipping them to Christchurch, and then ro-shippmg the finished article at a good profit. "When ho visited this town on behalf of the Christchurch Meat Co., Mr Anderson had found insufficient support to warrant the erection of a factory here. The public were then suffering from tho disheartening effects of the failure of the Freezing Works. Arrangements were entered into with theLongburn Freezing Works for space for curing, but nothing satisfactory could be arrived at. A lease was obtained from Nelaon Bros for the Woodvillo factory for seven ycar3. The Feilding and Manawatu Companies then awoke to the possibilities of the thing, and they Jhen amalgamated with the Christchnrch Meat Co. The provisional directors found that all their available cap'tal was swallowed up at the outset, and it was only with the support of the Christchurch Meat Co they were able to get going. When their turnover was compared with their limited capital it would be found that there had been good finance. The debit balance of their balance-sheot at present wag £1095, but in the circumstance it would be seen that they had not dorfe badly. The working expenses would, in Palmerston, be much lighter than in Woodville. Railage would also be cheaper. On last year's turnover the change would mean a saving of £1200 a year. Owing_to the lack of.facilities in tho present building an amount of mopey had to be wasted in wages which otherwise it would not be necessary to incur. Moreover in their present building they bad to waste an amount of their byproducts. It had been said that they were attempting to rob Woodville of their factory, but really the faotory did not belong to Woodville. Twothirds of the shareholders were from this side of the hills. Another point to consider was that the company was not fulfilling its orders. They could not meet the demand. The company had done much for the farmers. There was a time when it was only with difficulty that raisers could sell their pigs. Furthermore, they had raised the standard of the North Island product. Such an industry would greatly benefit a city like Palmerston, for not only would it mean that a large amount of labour would be required, but also the initiation of a number of other industries.

In response to Mr Withers, Mr Anderson said tbat the Company would not lose the initial expenses which had beea incurred,' inasmuch as this amount had already been written off.

In reply to Mr Clarkson. Mr Anderson said that it had been the intention of the original provisional direotors to remove the factory from Woodville to Palmerston in the course of two years. This had not been done, however, Eesponding to Mr Lang, the Bpeaker said tbat the estimated cost of the building would be £10,000. The computed saving of waste-products would be £100, and the saving of wages by improved methods of working £250. A number of applications for shares were made.