The Dominion. FRIDAY, OCTOBER 29, 1920. SHIPPING FREIGHTS

Dominion, Volume 14, Issue 29, 29 October 1920, Page 6

The Dominion. FRIDAY, OCTOBER 29, 1920. SHIPPING FREIGHTS

The report of the Stock Committee of.the House of Representatives touches questions which are 01 serious importance not only to producers, but to the Dominion as a whole. The committee finds that after due allowance has been made for materially-increased working costs in tho shipping industry, the rates now quoted for the carnage of privately-owned export produce are unwarrantably high. . This opinion is supported unreservedly by the Prime Minister, who declared, in the course of 'debate, that the pre sent rates, if they continued, were going, to crush the meat industry. The facts and figures upon which these conclusions are basod, published as appendices to the committee's report, 'are. sufficiently striking.' The following table of present and pre-war freight charges on produce exports to tlie United Kingdom is self-explanatory:—

Totals .... 1,726,035 .6,869,237 5,143,202 It affects the comparison, however, that the anticipated volume of the principal produce exports for 1921 (on which the estimate, of freight expenses for -that year is based) is considerably greater than that of the corresponding exports in 1913. In "the case of frozen meat there, is an estimated ■ increase of 1,228,197 cwt., or nearly fifty per cent, on the 1913 export. The estimated increase in wool exports is 33,939,862 lb., more than 12 per cent. A small reduction in butter exports is anticipated, but the estimated export of cheese in 1921 is 1,572,311cwt., as compared with 611,663cwt. in 1913. Giving evidence before the' committee, §ir Walter Buchanan gavo the following'details of rates recently quoted by the oversea shipping companies:—On' an 8001b. bullock, £6 Bs. 4d.—excess above pre-war rate, 360 per cent.; on a 60lb. sheep, 10s. 9d.—-excess above pre-war rate, 318 per cent.; on a 351b. lamb, 6s. sd.—exccss above prewar rate, 308 per cent..; on a 400lb. bale of wool, £2 14s. 2d.— excels above pre-war rate, 280 per cent.; on a box of butter, ss. 7d—excess above pre-war rate, 223 per cent.; on a pound of cheese, !}d.—excess above prewar rate, 250' per cent. Sir Walter Buchanan added that he would not attempt to define what would be fair rates of freight under the present high cost of ships, of labouij of coal, and 'other material. '

Hi lance-sheots indicating shipping rates of profit' arc in very few cases obtain-1 able (he went on to remark), as we were toil by the shipping representative, Mr. Findlay, last week. But tho quotations of 'the London Stock Exchange as to shipping shares afford ample and reliable proof that their profits during tho war have been simply enormous. No further evidence of this fact is necessary than that ,£IOO paid-up shares of tlio I'. and 0. Company stood not long I'go at over .£ooo—although they have recently suffered a fall to <£400, chielly through coal and labour troubles The grave tact which "this Dominion is up against is that combination in recent'. yea is by the shipping companies lias given t hem such ab>cluto power i\s lo rntos mid conditions nf import and export freights that ell entire steps should wi'jh as little, delay as ..possible be taken lo put an end to that I power.

These and other details of e

icncc which us yet. we have been able only to hastily scan, certainly suKficst that n strong ease is ituul® out for early and decided action with a view to securing a redue tion in freights. It is fairly apparent, however, that! a lasting remedy and a lasting guarantee ui satisfactory shipping facilities and equitable ireights must be sought rather in Imperial than in local action. The establishment, in terms of the Stock Committee's suggestion, of a local shipping line, partly owned or guaranteed by the Government, would be at best a somewhat doubtful experiment. On the other hand, the British Government and the various Dominion Governments acting _in concert might well succeed in inducing tho shipping companies to enter into and adhere to an equitable arrangement where shipping services and freights arc concerned. The companies obviously would not bo consulting their own interests in raising any needless impediments to an

understanding on these lines. Conditions are now developing which make distinctly for a fall in freights—a fall which seems inevitable, in ( spite of the fact that capital and' working charges are now so much above the pre-war _ level. Owing to the universal decline in production occasioned-by the war, the total amount of cargo offering is very much less than it was in the pre-war period. Yet the world's steam tonnage at the end of last June aggregated 63,905,000 tons — that is to say, it exceeded the corresponding figure in 1914 by 8,500,000 tons. Although United Kingdom tonnage at the end of June was still short of the prewar volume by 781,000 tons, construction is still proceeding apace, and the employment offering for British ship's is, of course, governed by the total amount of tonnage afloat. In these oircumstances, and all the more since a period of trade

lepression is in prospect, it ought lot to be difficult to induce ship)ing companies to_ maintain and leyelop inter-Imperial services on lairer terms than are at present icing granted to New Zealand.

Total 'l'oihl <§, freight froiglit In'cronse expenses oxpeuses 6inco Export. ' 1913. 1921 1913. <£ vC Frozen meat 769,156 3,492,525 2,723,369 Wool i.. 497,6*5 1,545,161 1,047,519 Butter 93,065 193,658 106,593 Cheeso 160,561 963,041 802,480 Other produce 205,608 674,849 469,241