FARES AND FREIGHTS.

Dominion, Volume 5, Issue 1367, 19 February 1912, Page 4

FARES AND FREIGHTS.

WHAT MKUCHANTS THINK. The increase in freights and passenger faies recently decided upon by the Union Steamship Company came into force on Thursday, so lar as tho New Zealand services are concerned. New Zealand coastal cargo rates havo been increased by 3d. to is. per lon, the intercolonial rales from Is. 3d. to Is. (id. per ton, and an addition of five per cent, has been made to all passage rates. "Of course," one leading merchant remarked to an Auckland "Herald" reporter, "we have, in the circumstances, no alternative but to submit, ft is no good complaining, the company havo to pay higher wages, and they make us pay higher freights. They pass on thoir increase to us, but we arc not able to pass on nn increaso to our customers. Tho coastal freights havo gone up one shilling per ton. Although in the aggregate this will be a considerable item, tiie increase, when calculated upon tho parcels as distributed, would l>o but fractional and insufficient to justify any. increased charges. For instance, if I get 20 tons of goods from tho south, I will have to pay il more in freight, and ai I cannot distribute this sum in fractious over tho divided consignment, I will have to pay tho whole amount. We are already paying higher wages ourselves _ and bearing increased charges in other directions, aud our profits are thus being gradually cut down. 1 do not think that the retailers will feel it, as tho merchants will havo to stand the whole brunt of it."

The merchant pointed out that soma time ago the freights had been raised from 10s. to 12s. Oil. a ton on account of tho Noweasllo coal trouble, but this additional impost had not been takou off, and now it was receiving a further addition of -Is. a ton. "It is all part of the ono largo industrial problem of the day," he added. "How long these increases are going on, and when the limit of endurance will bo reached, it is hard to say. _ At present (here seems to bo no finality in view."

Another merchant, who expressed similar views, said, "But what can we dof Tho Union Company says one must pay the higher rates, and pay wo must. That is the result of tho monopoly enjoyeil by this company." A gentleman with soint experience of shipping, who was present, staled that the increased rates charged by tho company would bo largely in excess of tho extra cost entailed by the recent advances in the wages of seamen ■ and waterside workers.

Against the opinions expressed by ths importers there is to bo placed the 'stntomont made by the directors of tho Union Company when (he increases were announced. It was then staled that the company was not seeking to recoup itself for tho full additional charges, but that it was itself absorbing one-third of the extra expenses and passing on the remaining two-thirds to the public. It is also claimed by the company that the retention of the previous increase of half-a-crown in the freights was fully justified by the increase in tho price of coal and other expenses prior to tho recent advanci in wages.