THE FREIGHT REDUCTION QUESTION.

Feilding Star, Volume XIX, Issue 101, 26 October 1897, Page 2

THE FREIGHT REDUCTION QUESTION.

A circular has been issued to farmers by Mr W. C. Buchanan, of the Wairarapa, dealing with the freight redaction question and replying to the position taken up by the Shipping Companies and those

who are supporting tbeir actiou. Mr Buchanan points out, in reply to a paragraph going the rounds of the Press to the effect that tb« Shaw, SaviH and \lbion Company and the New Zealand Shipping Company were diverting some of their tonnage from the New Zealand trade on account of the action of the Freights Reduction Committee, that certain boats had been removed or disposed of prior to the existence of the Freight Reduction Committee. A table is included in the circular showing the difference in the freights for steamer and sailing vessels, from Sydney and Wellington, for wool, preserved meat and tallow, the charges being in favor of Sydney. Mr Buchanan says that " the New Zealand freight on frozen mutton ranged from to within a shade of Id per Ib, nntil the reduction in June last, as against an average of very little over id from Sydney. The New Zealand freight on dairy produce has been Jrt per lb on butter and 9-16tbs of a penny on cheese, including weight of boxes in both cases. The threat of the shipping companies to seek Australian charters is simply childish bounce because by doing so they would merely jump out of the frying-pan into the fire. They are still too well off here to think of doing anything so foolish It is true that the Freight Reduction Committee haß com* pelled them to reduce freights on meat which will mean a saving to the colony of no less than £100,000 annually, but the reduced average now charged of t ;d still leaves them a handsome margin over Australian rates. The committee has also succeeded in engaging wool freights at a reduced rate of 5«16d per lb by sailer aud -j{d by steamer, a saving per bale of 7s Id by sailor and 9s 9d by steamer as compared to the rates levied by the shipping companies last year. On the 350,000 bales produced by New Zealand tbis will mean a gain of not less than £130,000 per annum. The reduced rates on wool freights will still be much higher on the average of the year than those paid by New South Wales. The aim of the Freight Committee from the first was to combine wool, meat, and dairy produce, and, knowing full well that the Islington and Belfast Freezing Companies of Cbristcburch dealt with half the total frozen meat output of New Zealand, and therefore virtually held the key of the freight question, not only as to frozen meat but also as to dairy produce— because specially fittecUnp ships were necessary to both, while any ordinary ships would do for wool -he (Mr Buchanan) therefore at once interviewed both of the«e com panies, pointed out all these facts, and also addressed meetings at Timaru and Danedin. Unfortunately, in the mean time, the Islington Company, who«« shares it is alleged are largely held by Shipping Compauies, regardless of other interests, succumbed to the pressure put upon them by such shipping companies and accepted a five years' contract at a reduced rate, in lieu of the then old one, which had yet over a year to run. The Belfast Company being unable to fight against such a handicap as this, was also compelled to succumb, and every other company in New Zea land had practically to do the tame. If the committee had not succeeded tn all their aims they have at least shown that in our wool we have an important item of produce which can be osed as a lever against freieht monopoly until justice is done to every collateral iaterest." — ■—