SHIPPING PROSPECTS

Dominion, Volume 13, Issue 19, 17 October 1919, Page 7

SHIPPING PROSPECTS

FARMERS INTERVIEW PRIME

MINISTER

THE REDUCTION OF FREIGHTS

PLANS FOR THE FUTURE

■■ ' SALE OF HIDES, A deputation, representing the Council of Agriculture interviewed the Prime Minister ,(Right Hon., W. F. Massey)' yesterday,' and placed before him tne resolutions of the conference held this week in- Wellington. The deputation was headed by the, president, Mr. O. Hunter, M.'P.,.who explained that toe council ■wished to bring certain 'matters of importance beforo the Government. Sir James Wilson urged the importance of giving effcct to 'the'recommendation of a Parliamentary 'committee that the shipping companies should be made common carriers under the law, He uiiought everybody agreed .with .that proposal. Another.point was the practice of the shipping companies in demanding a, clause in contracts prohibiting the shipper from dealing with any other companies. 'JTiat was a very unfair thing, and would-pre- ' judiee Hie chances of any new shipping organisation tliAt might bq.created. He was not sure if it could be recorded in law as restraint of trade.' Mr. Massey: Is it not a matter for the producers themselves? Sir Walter Buchanan: You cannot get them to combine.. ■Sir James Wilson said if the errangement was not restraint of trade under the present law it should be made so by legislation. It was very unfair that a shipping combine, far stronger than anything of the kind that had existed liefore, should be able to control these matters. It wak quili) possible that another shipping company would be smiled in New Zealand, ana the practice he had mentioned would materially militate against its chances of success. 'Then the council wanted information about future shipping Arrangements, The present system of control by the Imperial Government would bo running out very tren. What was going to be done then? "i'lie shipping companies were in a very strong position. The farmers were being told the national interests demanded increased production, but what was the use of increasing production, if the shipping companies got all the benefit? The council felt that the Government must take some hand in the matter. The first step seemed to be to.find out what tho Imperial Government was going to do, or if it was going to do anything in the matter of transport. The Imperial authorities had s.iiit they were going to do but they had done nothing. Mi'- -Massey: 1 would not liko to say that.

Sir James Wilson: "Nothing visible. We have seen nothing. Sir Auckland Geddes has put a Bill through the House oi..Commons regarding internal transport, but has not dealt with overseas trans-iicj-t, which to us is the important mutter. It is important, also, to the people of Britain, since high charges will increase the price of produce. It is a time for action now, not for negotiation and talk." The first thing to be (lone, sa;d Sir James Wilson, was to find out what the Imperial, Government intended to Failing action in that quarter, the ?>ew Zealand Government should open negotiations with the shipping companies and see what they were prepared to do. Tho producers were not opposed to the. shipping 'companies, -which had done the work well to a great extent, but they wanted reasonable rates of freight. The objection, to the. shipping monopoly was that, it was able to charge more than was reasonable. If the companies would not negotiate, or if the .negotiations were unduly protracted, the only course remaining would be for [he Producers and the Government in combination, or failing that, the Government alone, to adopt a policy of 'chartering ships. That should be a last resource. The conference had agreed that the matter w-as exceedingly important., and that the Government ought to take it in hand fit. once. . ...

Sir Walter Buchanan drew the PrimeMinister's attention to the.fact that the shares of the P. and 0. Company were Quoted from London at .£624 for the £m share. "There is no need to comment on that." he said. "You have to-day in England profiteering of the kind indicated by those.figures and; revolution, oi next door to revolution, side bv side Yet we expect action from the Imperial Government when this is coihg on under their very noses. Mr. Jlassey himseli received a letter from, the Shipping Controller. a member of the British Goyerninent, which in a month's time was absolutely put on 'oiie side andi treated as of no avail at all. There is no hope except ■under pressure of "etting anything from t,"> Imperial Government." .

sj,Sir James AYilson mentioned also the gentlemen who had Heeded to go to London and make inquiries and re presentations on behalf of the producers. The council felt that this commission should have nil the assistance the Government could give. • Mr. Hunter Paid that the deputation represented the Farmers' Distributing Company and the farmers' freezing companies, as well as the A. and P. Conference. It wished to mention some other matters. ' . Mr. ,7. P. Morcnm referred to the sals of hides.' He said that under the present arrangement the tanners were taking the pick of the hides at the-Govern-ment schedule prices, while inferior hides, lxmght for export, brought higher prices. The producer whose hides were taken by the tanners not a lower price than the man whose hides were not wanted' by the tanners. The position was most unfair. One suggestion that had been made was that the difference jshould bo Made up from tho Consolidated Fund, as in the case of butter and wheat. Sir Walter Buchanan: Is it true that New South Wales boots, imported into New Zealand and paying tho duty, are 6old at a, lower pjico than the New Zealand boots, made from hides on which a special ooncession has been given? Mr. llorctim: I believe that is so. . Mr. Massoy: I would like to have evidence on that point. If that is so, then the whole thing is a failure. Mr. Morcum: I can get evidence. ■ Sir Walter BuchanaJi: 'Another question is whether these tanners, who are getting the best hides at such an advantage, are not exporting. Mr. Maijiey: There is a regulation prohibiting tanners, or anyone to whom the tanners may sell, from exporting such hides. Mr. Morcum: But they'arc allowed to export leather. Mr. Massejr: I believe that is so.' Mr. A. S. Orbell said there was strong feeling in the South Island regarding tho hides. The brokers did not trouble to classify the-hides under present conditions and there was dissatisfaction all round. The scheme was unworkable. Many hides were being withheld from Bale altogether in tho south by duccrs, butchers and speculators, and this was causing a shortage. Mr'. \V. Powdrell said that speculators had cut hides in order to bring hides below the'schedulo weight, and had then niade an extra profit at the expense of the producers.

Mr. Orbell questioned if the country had got any advantage at all from allowing the tanners to buy hides below the market rates. Thete was no doubt that Australian boots were sold here cheaper than New Zealand boots. The tanners appeared to be profiteering. Sir Walter Buchanan: • Cannot the Board of Trade stop it? Mr. Orbell: Ton described the Board of Trade yesterday ns a shoemaker, a bonk clerk, and si merchant. T would not like to place any confidence in them in tho position they are in. Mr. Masscy in Reply. The Prime Minister,'in reply, said he realised the'importance of the shipping trouble. There was nothing seriously wrong at present on account of the commandeer. The Imperial Government had been getting the produce awny at an improved rate. But it was necessary to look to tho future, and to avoid anything. in the nature of exploitation. Tho producers wanted sufficient shipping at reasonable rates. He would communicate with tho Imperial Government at once to sec if the proposal decided upon at one of the Imperial Conferences and confirmed later by Imperial Ministers, for the control ot shipping between the Mother .Country and

tha Dominions was going to be proceeded with. The intention had been to control freights and to see that the shippint; in each case was adequate, even if it beeamo necessary to subsidise shipping lines for that purpose. Ho did not know if it had been mtonded that tho dominions should contributo. Ho thought there would nut bo much objection to tho payment of a subsidy if the freights and tho services were reasonable. If the Imperial Government was not (toing to act, then the next thing would be to get. into touch with liie shipping companies, and seo what they proposed, lie agreed that shipping companies ought to have the legal status of common carriers, but did not think the legislation could be undertaken this session. He could see lie would probably have to (irop a largo part of tho programme of work _ already in hand, unless the Hpuse got into u working humour. There was a great deal to do. and tho sftssjon could not continuo much more than a to|lni||hl longer. Turning again to the shipping position, Mr Miussey said there wrte at present thirteen ships load ng produce in New HeoJand water*, and eight more wore duo to arrive up to the end of November. It was expected that throe -ships would lift 1,527,f1t)0 earrnssfs. If this estimate was real't-cd it would be very satisfactory. It pointed to the possib lity of clearing tho stores early next year. The number of carciiases in stove was bcinx reduced at a. very satisfactory rate.' The Government would five nl. possible assisl.inro to the commission that was bang sent to England by the farmer*. He thought. the\ would do useful wovk. He iliil not know if S'r Walter Buchanan agreed with him.

Sir Walter Buchanan:. T don't nt all. Von have a good man in Dr. Rrnkes, Give him plenty of money and he can get the services of a detective force t.hnt will got moro information in a month than anybody you send from New Zrnlarnl can get in s«'x months. I have been there and J. know my helplessness.

Mr. Misspy said he proposed to send Dr. «Rm,W with the driegntes.

Sir Walter Buchanan: Leave the others nt home.

Mr. Massey: That is a matter for the dols»nit«. If the farmers want to send thm I will do everything 'possible lo assist them.

Sir Waiter Buchanan: You will advertiso the whole concc-rn and g : ve tho mcst 'pubic warning to the culprits you wish to discover.

'Jlip Prime Minister, referring In hides, said tlio posit : on was very difficult;. lie unfortunately kul not time t> go into it, and lie fenred that he would not huvo t'me after the session. The Board of Trade had informed him that under the Jion' arrangements half the hides wore being (t'lowod to go for export, and the other half wore being kept for local purines. Ho was told that this arrangement was working satisfactorily. and that there had been some good local sale, 1 ;. lie would admit he dui not. like the arrangement. It hod been suggested that a olmrge should be made on the Consolidated Fund. That d'<l not 6eem practicable. Tlie chargcs against tlie Consolidated Fund had mounted up during the last six months in a very wious manner, and the position had just aliout been readied where no more expenditure con'.d In; undertaken without "inerenFcd taxat'on: He could not promise a [;rant from the Consolidated Fund, and he hoped to find a rernedv that would be moro satisfactory than that. He proposed to go into the matter at the earliest possible moment, but tho opportunity was not yet in aght. Sir James W<l«on: Cut it altogether. Thut is the remedy. Mr. Jlas'py: "1 know more than T can fay regarding what has been going on in the disposal of hides. I have' had what is going 011 watched very cureful'v. I don't know all the details, but I will try to bring about a bettor system than obtains'at nrr«cnt." He added that tho Board of Trade worked well with him, and did theiV.best lo bring about satisfactory arrangements. But he did not think it was possible to have a fai-'sfac-tory .arrangement regarding hitles on the lines that were being followed nt present. The Government would do everything possible to promote the interest of the producers, knowing that in doing that they wou'M be promoting the interests of the Dominion and its people.