SHIPPING RINGS.

Dominion, Volume 1, Issue 209, 28 May 1908, Page 7

SHIPPING RINGS.

A BAR TO TRADE.

OUR REBATE-RIDDEN MERCHANTS.

JUGGLING WITH FREIGHTS. • / .' (BY' TELEGHAPn. —SPECIAL CORRESPONDENT.) Christcfcuroh, May 30. '■ It Is a scandalous fact tliat. at tho present time German and American «oods are introduced into New Zealand via London arid other ports '.-of the United Kingdom at freight i oliarges lower than are imposed uponBritish goods from such ports direct ... to this market." . ' Ttis statoment was made by Mr. Ben. H. jtforgan,'British Trade Commissioner, in conversation with a l . '■ Lyttelton • /limes " reporter yesterday. Mr. Morgan has como to Now-.Zealand 011 behalf"of the Manufacturers Association of Great: Britain, an organisation'that' most of the leading manufacturing .linns of the Motherland. Hp to.'; make inquiries as to openings l for British trade in the younger > countries of '.tho and to ascertain ■ whether any particular items will be, affected . new tariffs, and what 'opportunities there are for tho establishment of factories . insido those tariffs. . Tho Association .recognises! that tho colonics have large supplies of raw material of various .kinds, and where the/duties' are -high and tho demand sufiiciently large, tho Home manufacturers are coming to beliovo that, it.woild pay thein to establish branch factories. : Mr. Morgan has already.- visited Canada and Australia, and;is now on his way through New Zealand. MUST DEAL WITH RING OR FORFEIT REBATES. : -'.' A special feature of my inquiries here," , said Mr. Morgan, "has been a study of iJie effect on British trade of the shipping ring that controls the ovorseas trade between ' Great Britain and New Zealand; I have already found a number of cases in which the . excessive charges of this'shipping ring are ■ driving the trade into American and German* channels.- It is absolutely a. fact that goods are brought to' New Zealand' from Gormany via London at less cost than.British goods are carried direct to your market. ■ This shipping ring is also carrying, goods frpm'' f New York' to Liverpool, transhipping thorn' 1 and conveying them to New Zealajid ' at rates lower than those imposed on British goods 1 - earned from Liverpool. direct. Theshipping, compaijies are practically subsidising foreign trade with/this Dominion at the expense 'of tho Homo trade. As you are ■ doubtless' aware, it is at present impossible for-any other shipping concern to enter this trade, .as the whole ,of the; market is controlled through the: rebate system, .which Das been m- operation for some yearß. >'!,Un'der. this system New, Zealand importing firms are . charged an: additional 10 per cont. 'on the ordinary freight charges. This 10 per cent, is retained by tho shipping companies for • from six to twelve months, and is', then returned to the shipper provided that he has;not meanwhile shipped goods by any . other company outside tho ring. If he should have done so, lie forfeits his rebates, which in many cases amount to a considerable J. sum, of, money,. .. Ir, therefore, a new shipping enterprise 'wished to enter; into this trado; it could not get any regular, freight, bacause'lthe importing . houses, are., firmly, .tied up-by. having, large sums of money in-the hands-of tho existing companies liable to forteiture." DISGUSSED WITH THE PREMIER, ■ ".iMiave .discussed the matter with.'Sir ' Joseph Ward, and it is possible that some-thing-may be dono in the way of legislation to alter,, the oxistmg condition of things. On my return to Groat Bntam I shall report to the British Manufacturers' Association on the condition of tilings prevailing, and shall I submit evidence to the Royal. Commissipn 011 S&ipping Rings,' which is now sitting in Great : Britain :and inquiring into matters connected with' British shipping;. but it is probable that'no action will .follow until the ' ; large.'importing houses, in. New Zealand take up the .matter themselves and co-operate in bringing about an" improved system. • '.' The volume of' trade between Great ' Britain and New/Zealand is sufficiently large : to justify the provision of further shipping - facilities. Yolir export trade is growing enormously,' and you have in Great Britain a market that will absorb twenty times the amount of foodstuffs you aro now sending. That • export trado can only be properly developed if you have tho shipping facilities. If, through the rebate system and the.consequent .excessive charges on British goods, your. import : trade. is driven to America and Germany,-you will have to pay still higher : charge's W. the. goods you send to thoMotherlandi..i'Vovr mutton.and wool will be charged . with:the cost of bringing half-empty steamers to-New, 1 .Zealand. If your imports .from • Britain are allowed to suffer, "it is therefore to tho/interests of New* Zealand, quite apart from-any feeling, of, sentiment to the Mother Country, to import as large a quantity of British goo'ds as possible, instead' of.' goods from Germany and America^"