SHIPPING FREIGHTS.

Press, Volume LVI, Issue 16985, 6 November 1920, Page 8

SHIPPING FREIGHTS.

OWNERS AND GOVERNMENT.

The following letter was sent by Mr James Findlay, chairman of tho Now Zealand Overseas Shipowners' Committee, Wellington, to the Prime Minister, on the 3rd instant: — Referring t-o the report of the Agricultural and Pastoral Industries. Stock, and Commerce Comnr.tteo recently presented to the House of Representath e», wherein it is stated that: "'While giving full consideration to the various causes which have operated in materially increasing the cost of running Y' ,s " vols as compared with pie-war times, the committee, after careiuliv weighing the evidence given, is of opinion that the rates now quoted for privately-owned cargo are unwarrantably high. These rates, when applied to an output ot frozen meat, dairy produce, meat sundries flax, and annual by-products, equal to that sliinped in 11)19. and an output of wool equal to that shipped in 1914, would involve the payment oi £5.143.202 in cxccss of the payments made for freight on these products during the venr 1913," I desire to point out. that" such a basis of comparison is entirelv misleading, and the A. and P. Stock 'and Commerce Committee appears to have lost the fact that it was comparing in 19^J-21, at the enhanced rates of freight ruling, quantities of cargo greatly in excess of those shipped in 1913. For instance, the A. and P. Stock nnd Commerce Committee's estimate of meat shipments in 1920-21 is about 50 per cent, in excess of shipments ip. wool and cheese being approximately 18 per cent, and 157 per cent, in excess of 1913. The onlv fair basis of comparison is, of course, the estimated quantities of cargo to bo shipped in 1920-21 at present rates, as compared with tho lower rates of freight current in 1913. This committee, adopting the quantities shown in the A. and P. Stock and Commerce Committee's report, as a basis, has made a careful calculation, with the 'following result: — £> Earnings 1920-21 season atpresent rates of ... 6,959._0i Earnings for same quantities at 1913 season's rates of freight ... -• 2,373, LSS The increased earnings in 1920-21 are .therefore £4,585,749 (and not £5,14.3,202, as mentioned in the A. and P. Stock and Commerce Committee's report). Tho increased freight charges m 1920-21 are thus shown to be 193 per cent, over 1913, while the A. and P. Stock and Commerco Committee had before it evidence that tho extra cost of running steamers (exclusive of establishment charges, depreciation, and interest on capital on steamers built at high cost durine: or since tho war) was 183 per cent. Extra charges for interest and depreciation on new steamers for your information, it may bo stated, will, together with establishment charges, increase the running cost of steamers to well over 200 per cent., as compared with increased freight charges of 193 per cent. Under the. circumstances, this committee ventures to suggest that the finding of tho A. and P. Stock and Commerce Committee is not warranted by facts. As a result of the report by tho Select Committee, overseas shipping companies have been unjustly criticised by the Press, and this committee proposes to send a copy of this communication to the Press. MENTION IN THE HOUSE. (special to "the press.") WELLINGTON, November 5. Mr I>. Jones mentioned the matter in the' House of Representatives today. He pointed out that the House A. and P. Committee had no evidence from the shipping companies, only assertions. Was the Prime Minister aware that freights for frozen meat had increased since before the war as follows: Mutton 3SO per cent., lamb 308 per cent., beef 360 per cent.? "Would the Prime Minister take this into consideration, together with Mr Findlay's statement, that running charges had increased only 183 per cent.? Would he also consider that P. and O. shares, £100 paid up, wore recently sold for over £500 j and now, despite tho coal increases, were selling at £430? Also tha/t freezing charges, though there had been approximately tho same increase in cost as for shipping, had advanced by only 100 per cent? Would the Prime Minister consider this and take action to see that tho producers of tho "Dominion got a fair deal? Tho Prime Minister said that ho had received tho letter referred to, and ho noticed that Sir Findlay stated that there were certain inaccuracies in the report. He had not yet had time to go into the figures, but he intended to do so when the'session came to an end. He was not altogether satisfied with the figures quoted, and would look into the matter closely, and he intended to do all ho possibly could to see that producers of this country were not charged unreasonable rates of freight -for the produce' they wero ablo to send away.