WELSH COAL FOR NEW ZEALAND.

Press, Volume LVII, Issue 17121, 16 April 1921, Page 6

WELSH COAL FOR NEW ZEALAND.

question of freight.

(FROM OUR own CORRESPONDENT.) LONDON, March 3,

During the past week the chief subject uuder discussion in London V-hip-ying circles has been the mysterious coal contract which the New Zealand Government has placed in the hands of the new .'inn, Messrs Arthur Neaglo and Co. Two members of this firm, who will bo known in the Dominion, and who, as a matter of fact, are there at the present time, are Captain Neaclc, who was recently in command of a° certain ex-enemy vessel running under the control of the Shaw,- bavil Line, and Mr A. IX Ki.k v ; As one influential shipping inan expressed it. "the name of New Zealand has been hawked all round the niaiket." In view of the fact that tnc (Governor-General has recently .cabled complaining of an insufficiency ot refrigerated space iroin the Dominion to England, the wisdom of this latest enterprise on the part of the Government has naturally been questioned. Iho point of view of the regular New Zealand shipping firms is obvious. Refrigerated space for the ( Homeward journey, is inadequate, but the companies here are finding it difficult to get enough freight to send their vessels out to tho Dominion, one company alone having eight vessels liung up on this side of tho world for want 01 cargoes. An opportunity occurs,to provide a large number of vessels with an outward cargo, thus relieving the situation, but the authorities in New Zealand place tho disposal of tho freight in the hands! of a firm who, as it turns out, aro unable to obtain vessels except from the regular lines. As a matter of fact, every shipping firm in the country h;is £one into the matter and turned the offer down. Coal freight at 30s a'ton outward, with an Australian cargo of wheat at GOs for the return journey will not cover tho cost of the voyage, and that; is the only possible way it could be done, except by the regular services with the refrigerated space available for the return voyage. So far as the freight is ebneerried, therefore, tho regular lines have had to come to the help of the Government and take over the carting of the coal, but in# the, meantime the intermediary brokers have mado their commission, and the regular shipping linea feel they, havo not been well-treated.

The position might have been worse, however, if the New Zealand lines had decided to boycott the agents, for apparently it would then have been impossible for them to obtain freight from any other quarter. • In the general discussion in the City it is also naturally asked why should the purchase of this large amount of coal be placed in the hands of a private agent when tho New Zealand Government lias a department in London for dealing with such matters. The purchase of 150,000 tpn'3 of coal on a falling market is obviously not a sound proposition. Supposing the price drops 3s a ton, in the first month during which 12,500 tons have been shipped, according to contract, there is a loss, of £20,625 to the taxpayers, which Could have been avoided by purchasing in smaller lots, and awaiting the gradually falling prices. If the price of coal falls considerably lower before the total amount has been shipped, the loss is likely to run into very larga figures. In addition, of course, there is the commission to bo paid to the agents, who, for tlie time' being, are fortunate enough to be carrying out the duties of the Government Department ' in London. /