1.—7.

120

[B. A. KNIGHT.

74. If the Amerioan Meat Trust wanted to buy them right up you could block the transfer? —Yes, we retain that, power in our own hands. There has been very little transferring up to the present. With the new taxation there may be a difference, but we reserve to ourselves the power to refuse a transfer. 75. Your company has lately started business in the North Island?— Yes. 76. A complaint has been made that, in the North Island your Company has been paying prices in excess of those which would .be warranted by-Government prices: is it correct that you are buying stock at more than what the Government price would warrant?—lf we are, every one else is doing the same. 77. But your company is to some extent?— Where there is competition, and this is our first year of operations, that must necessarily follow. 78. You admit that your company is paying above'the prices offered by the Government? — In some cases. So we are down South. That is a matter of judgment with the buyer. In some cases we have had to dismiss the buyers. 79. Would that be general with all your buying business, that the prices were higher than the Government prices warranted? —I think the answer is that if we were doing that we could not. have built the Wanganui works from debentures and from money from internal resources. 80 Then it is only occasional?— Yes. 81. That has been particularly so in the North Island since the inception of your business there? —Yes, it has been natural, with all the companies out, against us. 82. With regard to rebates, do the shipping companies make any special rebates to your company which are not open to the smaller shippers?— The freezing companies have contracts with the shipping companies, and we have nothing to do with the smaller shippers. 83. Do you know if the price your company pays under your contract is lower than that to the general public?—l do not know where the smaller shipper comes in. We have a contract, with the shipping companies, and all the meat in our works is bound by that contract. 84. Ts exactly the same price paid to shipping companies by the freezing companies, large oi-.small? —That, I could not tell you. You must make your own contracts with certain companies. 85. You just make a contract, on your own—you know nothing about the contracts with other freezing companies and the shipping companies?—No, that is not exactly so. That, would be a foolish thing to do. It would be foolish for us if we did not, gel the best terms we can — that is what we are out for. 86. Are all the freezing companies on the same basis as yourselves with the shipping companies? —I do not know. There is one point, that the shipping companies cannot, carry at a lesser rate for any one. All are entitled to come in. I think it is called the "favoured nation" clause. What T mean is this: we have a, contract with the shipping company at a fixed rate. Supposing another company came in and agreed to carry our or any other company's meat at a lower rate, our contract with the shipping companies would compel them to carry our meat at that lower rate. 87. But I want to know whether the shipping companies would make a greater or lesser rebate to other companies than to your company?—l do not know. 88. I want to know whether the shipping companies offer any financial assistance in your case, or do you know of their doing so in other cases? —I do not know; but before my time that was how they started some freezing-works. Money was lent to us by two shipping companies secured by debentures. T think after T came on the board we paid off the last of these debentures. 89. You are financially independent of the shipping companies?— Yes, we have been for the last ten years. 90. Your company is not at present dependent, upon the shipping companies?— No. I am not referring to any shipping company —I mean the New Zealand Shipping Company. 91. Mr. Reed.] You said, that, the difference between the conditions in New Zealand and the Argentine was that in New Zealand there was a great number of small freezing-works, whereas in the Argentine there were only a few large companies?— Yes, there are only a as I said. 92. T understand from what you say that you look upon the number of freezing-works we have in New Zealand as a safeguard against the American Meat Trust or any meat, trust getting control in New Zealand? —The number and geographical position as well. 93. The number and the distribution of them?— Yes. 94. These small works scattered throughout. New Zealand were primarily erected for the purpose of bringing better prices to the farmers?— Yes, _ I suppose so. There is another point, that the farmers, as you know, like everything close to their doors. 95. There is a big saving in being able to get the stock into the freezing-works as soon as possible, instead of railing it or driving it over a long distance?— Yes, an apparent saving. 96. Sims. Cooper, and Co. put all their freezing in the North Island through your works at Wanganui last vear?—T could not tell you that. 97. Can you name any other company that put their stuff through?—No, T cannot. _Mind you, Tarn not so well up in Sims, Cooper,'and Co.'s business—T have not gone into it, sufficiently to be able to answer that question. But. have you not looked at the other aspect? 98. What is that? —That, the other companies may have refused to freeze for Sims, Cooper, and Co. 99. It is a fact that other companies in the North Island have refused to freeze for them, is it not?—l believe so. 100. The Wellington Meat Export, Company, the Gear Company, the Wellington Farmers Meat Company have all refused to freeze for them?—T believe so, but I do not know it as a fact. 101. But. you heard that, is so, have you not?— Yes.