MARLBOROUGH AND SHIPPING

Dominion, Volume 14, Issue 281, 22 August 1921, Page 7

MARLBOROUGH AND SHIPPING

COMPLAINTS ABOUT HIGH FREIGHTS THE SHIPOWNERS’ REPLY A conference of Marlborough public bodies in June submitted to the Union t Steam Ship Company a resolution stat-' ing that freights from Picton to other New Zealand ports wore exorbitant, and detrimental both to the producers and the shipping companies. The resolution called for a reduction of passenger fares, and the replacement of the steamer Mapourika by a more modern steamer. Mr. Holdsworth', managing director, replied that the directors of tho Union Company had given the resolution careful consideration, and had instructed him to reply to tho following effect: — It was recognised that existing rates of freight were higher than was desirable, but actual experience had proved that steamers operated under them left no' profit, but had incurred substantial losses. It might bo remembered that on October 1 last the Mapourika was running tho combined Wellington-Pictou and Wellington-Nelson services. She was employed for exactly one month in this trade, and her loss for that period was about £2OOO. From tho beginning of November till tho middle of May, which is looked on as the passenger season, tho Arahura ran exclusively between Wellington and I’icton, incurring a loss of about £2OOO. During this period the Mapourika ran exclusively between Wellington and Nelson, and showed a small gross profit. Subsequent to May 15 the Wellington-Picton and Wel-lington-Nelson services were combined and worked by the Arahura, which in ten days left a loss of over £6OO. She was followed immediately by tho Mapourika, and for the month of June the latter left a loss of over £BOO. Mr. Holdsworth points out that tho loss in these two trades from October 1 to June 30 was between Ji-1000 and £5OOO. The lose for the following three months would be in a much higher ratio. It was clear that if it were possible to replace the Mapourika by the Arahura the loss would be further . increased. “No doubt" Mr. Holdsworth continued, "individual members of your conference have experience of the increased cost of production now, as compared with pre-war days, but it is unlikely they can appreciate the extraordinary increase in the cost of operating steamers. You will bo interested to Isznow that tho Mapourika, a small©r and much less expensive steamer to run, is to-day costing at the rate of £15,000 per annum more than the Pateena in the same service in 1914. This is irrespective of victualling of passengers, and of loading and discharging cargo, each of which items has more than doubled. In view of the foregoing, you will, no doubt, t appreciate that it is impossible to consider any reduction in fares, as they are still unpayable, nor - are our rates of freight capable of revision, so heavy are the present-day costs of running steamers, and, so far, these show no signs of reduction. On tho contrary, we may instance that we have within the last four weeks had to face an increase in our bunker coal ooete of 40 por cent., which, in the meantime, at all events, in view of depressed trade, we are endeavouring to absorb rather than reyise our schedules in the hope that' trade may improve. Should this bo not realised I think you will agree, in view of the unpayable nature of the services, that increases, rather than reductions, m charges will be justified. We beg to assure you of our desire fully to satisfy the Marlborough trade connections, and hope, when running costs-come down, to be in a position to pjovide a better service on more favourable terms."