The Dominion. FRIDAY, MAY 19, 19116. THE FREIGHT PROBLEM

Dominion, Volume 9, Issue 2775, 19 May 1916, Page 4

The Dominion. FRIDAY, MAY 19, 19116. THE FREIGHT PROBLEM

One of the most difficult problems - Created by the war is that arising out of tho enormous rise in shipping freights. In referring to this matter in the House of Kcpresentatives yesterday afternoon, Dr. Newman drew attention to a cablegram published in yesterday's Dominion regarding the profits of the White 'Star Company. The message stated that after paying war tax a dividend of 65 per cent, was declared and huge amounts were carried to tho depreciation and reserve funds. The freight question has been receiving a great deal of attention in Britain, and the Imperial Government is being strongly urged to adopt drastic measures with the object of securing a reduction in rate's. A Committee was recently set up, with Lord Curzon as chairman, to deal with various aspects of the problem, and the, matter is being vigorously discussed in tho newspapers. It wasjrcoently announced that in view of the importance of meeting the requirements of Italy in respect of coal and foodstuffs, efforts were being made by the British Government to ascertain the amount of "free" shipping available in the United Kingdom. This work was being done by Lord Curzon's Committee, with tho object of placing the available vessels at tho disposal of the Allied Governments at Admiralty rates. Commenting on this announcement, a writer in the London Times points out that the Governments of France, Italy, and Belgium had requisition-, cd all their merchant tonnage, and suggested that the Imperial authorities should take similar action. "At tho open market rates of freight from North and South America and -.India," he stated, "English shipowners are earning 200 per cent, profit on their fleets/ and the boats vcquisitioned by the Admiralty are earning nearly 25 per cent. The writer quoted urged that the profit earned' under- the- Government 'requisition rate should satisfy owners, and stated, that by requisitioning all the'boais-no less than £50,000,000 a year would be saved on the freight for England's food alone. Somo peoplo seem to think that the problem can be solved by still heavier taxation on shipowners' war profits; but, as haa beeji, pointed out, that instead of'Kcducifig the rate of freights would, lie more likely to have the opposite result. '

. The proposal that the rates should be fixed by the ■ Government haa numerous advocates, but such a course might have serious consequences. Referring to this sug■gestion the President of tli" British Board of Trade recently pointed out that Britain is dependent to an enormous extent on the servico ol neutral shipping, and if it should be driven away by a system of low maximum rates or some similar device the country might be placed on the verge of starvation. If maximum rates were fixed below tho world level neutral shipping would go to ports where higher rates were obtain- ; able.. Another suggested solvitio/i oi the problem is that the Government should take control of all British shipping. The shipowners would not necessarily be deprived of ; the actual management of their vessels, but tho Government would have the right to decide as ,to the use to which tho boats were put, tho nature of the cargo,- and the rates to bo paid. There is a consensus of opinion that something must be done to romedy the present unsatisfactory state of affairs, but as to that something opinions differ-"very widely. As a matter of fact in many cases tho difficulty is to get sea-carriage at ariy price at' all—it is the scarcity of vessels as well as tho high rates of freight that has to be overcome. Tho urgency of the need for grappling with tHo situation is not confined to one particular interest. It. is shared by the Government,, by shipowners, by shippers, and by tho goncral public. \ Every part of tho Empire is vitally interested in the discovery of a fair and workablo solution of the freight problem. The New Zealand Government has given some attention to it, as affeotiigour exports, and it is a'continual source of anxiety to our importers aS well. It has been no .easy matter to arrange for the regular shipment of our meat, wool, flax, and dairy produce to Britain. The difficulty of getting the flax away is ijust now troubling the minds of tho millcrß and the Government, but Mr. Masses was able to make the reassuring announcement in the House of Representatives, last night that he hadgood reason to believe that, a full cargo of flax 'will bo dispatched shortly.. This will be welcome' news to flax'millers and their employees.