OVER-SEA FREIGHTS.

Gisborne Times, Volume XXV, Issue 2070, 3 May 1907, Page 1

OVER-SEA FREIGHTS.

HOW TO IIEDUCE THEM. THE QUESTION OF CENTHALISATION. During tlio tour by the Minister lor Lands (lion. 11. McNub) of the Auckland province ho gave expression to views on tlio subject of reduction of oversea freights for the colony’s products which have aroused considerable interest (says the Evening Post). In an Auckland telegram ho was reported as saying:—“As trade developed it would be found that before

New Zealand could compete with other colonies, such as Victoria, New South Wales, and Queensland, where everythin}; went to one port, wo

would have to get freights between Now Zealand anil England enormously reduced. If largo steamers had to go to several lor cargo, the freights would remain high. It would pay New Zealand infinitely better to concentrate its -chief ports—that Auckland, for instance, should say to the

shipping companies—‘Bring your largest and best vessels here. We will load them from one port'.’ Then freights would come down to the lowest figure. Competition in the near future would compel Now Zealand to resort to that means of getting low freights. Then the Government of the day would not hesitate to join with merchants and shippers, so that producers would be able to concentrate trade at one port.” The. Christchurch view of the matter appeared to be, from enquiries made there, decidedly against the proposal. “It is felt in Christchurch,” saiil the Lyttelton Times, “that the Minister was speaking exclusively to the people of Auckland. ' Neither shipping 'companies nor merchants here believe that his scheme could be applied to the South island or to the colony as a whole. If it was possible to use only one port for large steamers, local jealousies would not allow the scheme to be carried out successfully, and even if that difficulty could be overcome the South would never agree to the selection of a port near the extreme end of the colony. If any port was marked out for this distinction it would be Wellington, which lias the incomparable advantage of being quite central.” On his return from the North, a Post reporter had a conversation with the Minister on the subject, and considerable light was thrown upon his views, which, so far, had not been elaborated to any appreciable extent. “It seems to have been telegraphed down South,” said Mr. McNab, “that I was referring to the centralisation of trade in one port only. I never dreamed of such a thing. The remarks wore addressed to one or two centres lying out of Auckland, and were directed against the prevailing opinion that’ the development of the province necessarily included the development of a number of small

harbors. Again, the Christchurch people seem to think I was suggesting that Lyttelton should be the sole port for the South Island. That was not so. It is true that I mentioned as an illustration the desire of the

dairy people in the South Island to 'concentrate dairy supplies at Ghrist-

church, so that it could lie loaded at one opening of the steamer’s cold storage hold. But that illustration was given just to show them that already there were forces operating in other parts of the colony to produce centralisation, and that similar forces would operate in time in the Auckland district." “What are those forces?” was the question which naturally followed. “They are,” replied the Minister, “the demand by the producer that lie shall be enabled to put bis produce into the steamer’s hold with the least possible handling and that can only In. brought about by affording the shortest route between the factory and the ship’s hold, as if one train can gathci it from the factories and run it on to tho wharf, where it is graded, and put into the cool store, it is done with a minimum of handling and disturbance, and tho refrigerating chambers of the steamer are oxioued oil the fewest possible occasions. Another operating cause is the competition amongst the shipping companies to provide freight at the lowest possible figure, and in the pressure of competition they will, naturally, offer a lower rate of freight if they can collect their cargo at one port and thus save tile trouble of steaming from port to port, jjaying harbour dues,

and so on. In such a case there would be a tendency oil the part ol producers to urge the necessity of reduced railway charges, and the Government was bound to respond. Those operating causes,” the Minister continued, “will put the colony into the way of exporting oil a level with Melbourne and Sydney, where everything is concent,rated

Mr7~MU'..iu a.uu i.l l. only mentioned that because there the - question, had already arisen. But

none of the other great ports of New Zealand were on a similar looting to Auckland. Wellington had, say, Wanganui, I’atea, and Now Plymouth as subordinate ports. But Auckland had a regular crop of them on both coasts north and south, and when he throw out the suggestion lie had the Auckland condition in mind. There was going to be a tremendous development of trade in the Auckland district during the next lew years,- and it was through constantly having the requirements ol various ports impressed upon jiim by. deputations, which desired to have them extended so as to he able to cope with oversea trade, that his idea of concentration was evolved.

It was pointed out to the Minister

that the Evening Post had for some years advocated a system of centralisation —that- the four chief ports of the colony should he provided with large cool stores, to which the prodime of the various smaller ports should be forwarded and stored. The result would he that tlm big strainers would merely require to lie alongside the wharf and fill up to their hatches. As to the producer, each cool store would be constituted a bonded warehouse, to which the grower could send his meat, and receive a bond warrant in return. The consignment would be graded by the Government, forwarded to the Government’s own store at tlm other end, and sold by the Government, which would pay the result jo thp shipper, less tjie pecessarv charges, and thus save the cost, of the middleman.

That idea, thus briefly sketched,

was not new to tho Minister, It was. lie said, generally brought under the notice of the Department- of Agriculture by men who were making a start in an industry, and were in a small way. They complained that during their years of struggling tlieir produce did not receive proper consideratiou at the hands of shippers, and they were often disappointed

s with the results. That, lie thought, ; was to sonic extent the system in ; vogue in South Australia. In New , Zealand one of the dilliculties oi ; carrying out such a system at present I was the largo number oi' export ports I existing. That difficulty, it was suggested, would he got over by having only four export, ports for the purpose. That, admitted the Minister, would got over the difficulty, but it dill not seem to him that it would get over the difficulty of the men who had the complaint to make. lie was generally a pioneer, and was away in the backblocks, out of reach of the four centres, and the question to he considered was whether such a proposal would assist settlers of that description. Something similar was done by the Government in regard to poultry, and no doubt that had been developed, at little or no cost to the colony. Hut it was a big quest on as lo whether the same system should he applied to the Home produce trade.

Turning again to tlio question of concentration, the Minister said: “j think it is hound to come. That is somewhat in the nature of a prophecy, hut I think it is inevitable. No, tin's is not a Cabinet matter,” he added, in reply to a question. “It is purely my own idea.” Some of the points raised since his remarks were first published, the Minister went on to say, appeared quite reasonable. For instance, it was said that the logical limit of the argument' was that if they could get enough cargo at one port' to load a vessel entirely, they got all the advantages claimed for his scheme, and that they could have as many ports for export as their trade would enable them to provide full loads-at. That, said the Minister, would he quite correct if the various companies would allow -their vessels to deal only with one port, but they all had loads at the different ports, and the different ports competed with one another. Then the Minister went further afield for ail argument. Ho did not see, he said, why we should be different to the eastern coast of America. A vessel sailed from Liverpool to New York or Boston, and went straigh back from Now York or Boston. They seldom found a regular

They seldom found a regular cargo between, say, Salem, or New Bedford, or Newport, or Nantucket, and Liverpool. The English trade with America was with Boston and New York, and the trade from Salem and New Bedford would go to those places to get' across to England, or else would he carried direct by comparatively small craft. But the great bulk of the trade centred at Boston and Now. York. In fact;, he added, what might bo-called, the “neglected” ports in the eastern States are large* than our New Zealand capital'will be three or four decades hence.

An interesting illustration of the rise and fall of trade followed. Nantucket was at one time the greatest whaling port in the world. It is built oy islands. When the railway was constructed in the came from New York and Boston, and passed through New Bedford, the only port that competed with Nantucket. The result was that the vessels coming in with whale oil cargoes found it more economical to sail the few extra miles from Nantucket to New Bedford, and tap the railway .system, and they did so. Thus Nantucket lost it's whaling trade, and New Bedford rose into prominence. Supposing that concentration takes

place, and trade is diverted into, say, four or five ports, would there he any certainty of a reduction of freights, the Minister was asked.

“Speaking as a layman,” lie replied “I should imagine that a decrease corresponding with the cost of these big steamers sailing from one port to another seeking cargo must inevitably take place. If it cost a couple of thousand pounds to sail about and pick up cargo tluit ampunt could, under competition, he saved on freight. What the actual amount of the reduction would he is a question that can only bo answered by tinshipping companies. There would algo be a reduction in insurance charges under the proposed system. !! SHIPPING OPINION, Enquiries made by a Post reporter among shipping circles in the city go to show that the Minister’s suggestion has not stirred up any degree of enthusiasm, nor does it appear that those interested have any hope that the project put forward by Mr. McNab can be fulfilled—in the near future, at any rate. “Wc have for a long time recognised the advisableness of such a concentration as the Minister suggested,” remarked one shipping representative. whose interests are widespread, “but the difficulty is tp .discover how it can be managed.” At present, it appears/the concentration

scheme is already carried out ill regard to butter—all the butter of the ■colony which is exported is sent from Wellington by fortnightly steamers. The real trouble is in regard to meat. At present the big vessels go to the various ports, picking up cargoes of frozen meat —at Napier, Gisborne, New Plymouth, and so on —and in

many cases they have to lie out in an open roadstead while the cargo is

vantage, hut, as ope authority pointed out, only one handling oi the cargo is involved, while, on the other haul, concentration would mean at least two handlings, which is not at all a desirable feature in the export of that produce. Besides, to concentrate meat at a few central ports v,'ould mean that the cargo would have to come either overland by rail or by coastal boat, The railage problem could, perhaps, he easily solved. out to carry the 'cargo coastwise would require the provision of vessels with refrigerating space, which yoiiUt mean a very large expenditure by the companies which eater for the coastal •tiado of file colony. Generally speaking. therefore, the companies carrying on the oversea trade would he glad to sec more concentration at the chief ports, hut are of opinion that the difficulties in the way will not he easily removed, especially iii regard to perishable produce. The peculiar feature of the question, however, is •that the Minister’s remains had excited so little attention ; those shipping people approached by our representative had read them as telegnph ed, and, so to speak, “passed by rn the other side,” not considering that the subject was one which called for immediate action.

One aspect of the matter wh’Hi was put forward by a shipping expert is worthy of remark. He pointed out that ill many cases oversea vessels arrived at, say, Wellington, with considerable quantities id cat go for rliiferent ports. Now. specially low freight charges are made by the Union Company and the Hudd-nt-Parker Company for transhipments, but if a vessel could depend on taking in a fairly large shipment for England from the port to which part of her cargo was consigned, it would pay her to carry that inward cargo to that port and take on board the return, freight for the outward journey. If, on the other hand, the port to which the cargo was consigned had nothing to • offer in return, it would pay tlie big vessel to remain at tUe

I central port, and send the inward cargo on by coastal boat. ’Kurther, Ibe asked, how could the suggested concentration be carried out unless refrigerating space was provided for perishable produce? And that would not be provided “on spec” ; companies would require a clear guarantee before going in for such a heavy expenditure as would bo thereby involved. At any rate, even if such refrigerating space was provided, meat would not be transhipped ; the probable deterioration from additional handling would be too serious.

On the whole the attitude of the shipping people in Wellington appears to be—“ Concentrate by all means, but we don’t see how it can be done at present.”