SHIPPING PROFITS

Dominion, Volume 11, Issue 269, 2 August 1918, Page 6

SHIPPING PROFITS

ARE THE RATES TOO HIGH ?

OWNERS PLACE VIEW BEFORE FARMERS LATTER "WON'T SWALLOW IT" At the Fanners' Union Conference yesterday the president read the following letter from Mr. James Fimllay, chairman of the New Zealand Overseas Shipowners' Com mil tee:— "This committee understands that ninny statements have been made at the JVew Zealand Farmers , Union Conference adversely criticising the present rates of height charged by overseas steamers to tho United Kingdom, and suggestions made that the over-seas sleamd-s aro leaping huge profits from New Zealand loading. Such statements are based on a misconception, and this committed j desires to point, out that Ihe Imperial I Government (not the shipping companies) s derives the benefit of existing rales of freight, the shipping companies merely acting as agents for the Imperial Government in connection with both inwnrd and outward loading. The iin].<brial Government in March, 1917, requisitioned all the steamers -trading with Australia ond New Zealand, and, in fact, practically all the tonnage on the British register, paying shipowners a rate of hire at Jjlitc Book rates, which is equivalent to about one-fourth of what was, prior to the Imperial Government jcquimtiou, tlie current rate for chartering tramp .stunners. All freights collected by shipping companies aro handed over to the imperial Government, and if the foregoing is in any way doubted by the flow Zealand Farmers; Union Conference it can obtarn confirmation, by cabling to the High Commissioner of the New Zealand Government in London. The committee will Lie pleased to defray the cost ot such a cablegram. The Minii-try of Shipping iu London, after a six months' experience of running steamers in the New Zealand triide (the most, expensive trade in thfe world owing 'to its multiplicity of ports), arrived at tho conclusion that the rates which had hitherto been charged from New Zealand by shipping companies engaged in the trade were not sufficiently remunerative, and instructions were given that freight rates from January 1 last should .be. increased by approximately 50 per cent. Jiven now, distance for distance, the rales charged to -the TJnilipd Kingdom compare most favourably with those charged on occasions to tho western side of America. For example, a New Zealand transport some few months 'igo loaded to Kan Francisco (distance about, halfway to 'the United Kingdom), charging Ji'2s per ton wfignt for hemp and a-measurement rate equivalent to about JH6 per ton for weight for tallow, ! the overseas steamers' rate to the United Kingdom being ,EIG ss. for hemp and .ElO 10s. for tallow. It may be mentioned that.the rate of freight on the Imperial Government's purchases, i.e., meat, cheese, butter, and wool, does not concern either the farmer ,or the shipowners, being earned in Imperial Government steamers at its own expense. Tho committee will bo obliged if you will read this communication, to the members of your conference, and give- it publicity." Mr. W. i). Lysnar (Gisborne): If that is correct, how is it that the White ' Star Line the other day declared a 25 per cent, divided? . . . Tho Government is not doing its duty. U'he presideut (Sir James Wilson): What Government;- , Tho Mw Zealand Government has no control! Mr. Lysuar: It has if it will escroiso it ... 1 might 'tell you that tho shipping company made IX) per cent., but they only declared 1!.) pur cent. .If that letter is true the Ministers of our Government are absolutely unworthy lo hold their positions. These ships aro malcjjig more in ono trip now than it cost to build them. A delegate: One trip from where? Mr. Lysnar: From kerf;. A delegate: Mr. Bonnr Law staled in I 'the House, of Commons that i e had -JOOO shares iu a shipping company and his dividend was 4:8000. Mx. W. Couser (Mataura Island): We arc not going lo swallow that letter. Mr. G. Skeut (Dunsandel): Swallow it, be hanged! » Mi', Lysnar: It would be \'erv interesting to'apply to 'that company for a copy of its balance-sheet.