SHIPPING FREIGHTS

Dominion, Volume 8, Issue 2422, 30 March 1915, Page 7

INCREASES DISCUSSED

BY CHAMBER OP COMMERCE PRESIDENT

(By IWeeraDh.—Press Association,) Auckland, March 29. Exhaustive inquiries regarding the increase in freight rates on cargo carried to and from New Zealand are being made by the president of the Chamber of Commerce, Mr.' 11. Burns, with a. view to consideration of the matter by the council of thei chamber.

Tlie latest increase ill the freights from England 'is the third since the beginning of the war. Mr. Burns remarked that the shipping companies explained that these increases had been necessitated by the cost of extra insurance against war risks by. loss. involved by delays in loading cargo, and the increased cost incurred owing to the war in such items as coal, wages, and provisions; They stated that they would not be able to meet these additional expenses unless some corresponding increases were made in- freights. Interesting Comparisons. The following comparison between the rates ruling in July and the lat-est tariffs', was made. by Mr. Burns. Freights to New Zealand from London first-class, dead-weight, July, 1914, 225. (id.; March, 1915, 38s. 9d.; rough measurement, 455. and 625. 6d. An addition of ten per cent, primage is made to all freights from London from New (York. Dead-weight, 765. and 765.; 'first-class measurement, 625. 6d. ana '10os.

. The rates on produce shipped from /New' Zealand to London all Bear a sur- ' charge of 25 per cent. Mr. Burns remarked that the rate for 'dead-weight cargo showed a much larger increase than : that for measurement c.rgo, no doubt because there was a .very'large quantity of cargo of the former class offering for shipment.

The Increases and ships' Earning Capacity. Mr. Burns said he had analysed the increases from the point of view of the earning capacity of a 6teamer of average capacity. He was informed that the carrying capaoity of such a steamer was approximately 12,000 tons of general cargo. An average increase in the freights paid from London would be about 17s. per ton, to which must be added the primage of 10 per cent.j making a total of £11,220 increase over the amount that would have 'been paid in freight on such a cargo in. July. The average value of a Homeward freight is approximately £40,000, and an increase of •25 per cent, on that amount without •considering the inorease in the rates j-for beef and mutton would be £10,000. It therefore appeared that the average I steamer would now earn £21,220 more 'on. the round voyage than before the war. These figures are. subject to re('vision, Mr. Bums added, but they are V approximately correct. In face of them |it looks , as if some explanation should sbe given by the shipping companies to ("justify the imposition of such large increases.

}n.ow Holders of Shipping Shares Stand. The present position was also review'ed by Sir. Burns from the point of view ■of holders of shipping shares. He said tbat the only company trading to England whose shares were much dealt with on the New Zealand market was the •Now Zealand Shipping Company. In 1910 the value of the shares was approximately £10. It was £12 in 1911, !£l'4 in 1912, and: from £15 2s. 6d. at jthe beginning of 1913 the shares rose •to between-£l7 10s. and £18 Is. in December of that year. Subsequently the 'share capital of the company was reorganised, and solely as a result of the method adopted in reorganising the capital account the value of the shares in Jthily of last year was £16, and it is now £15 10s. It is therefore apparent," !filr. Burns remarked, "that the shareholders have no reason to regret that their capital, is invested in a shaping 'company, for the war has not affected 'the value of their shares. The position of the "Union 'Steamship Company is analogous, and. a similar examination will snow that the shareholders in that ' company have as good reason to be satisfied."