GOVERNMENT AND UNION COMPANY.

Taranaki Daily News, 15 March 1918, Page 4

GOVERNMENT AND UNION COMPANY.

CHARTER OF VESSELS. \ EVIDENCE BEFORE DEFENCE EX PENDITURE COMMISSION.

By Telegraph.—Press Association.

Duncdin, Lust Night. At the Defence Expenditure Commission, Dr. Falconer, Assistant Director of Medical Services, said tho Defence Department would take control of the medical treatment of soldiers and discharged soldiers next week. It was. not to ba supposed that the Defence Department for all time would continue to look after invalids. The Pensions Department or Red Cross ought to be brought into the matter immediately in an advisory capacity. The control of civilians by the Defence Department was an anomaly, and the sooner it handed them over io someone else the better.

Mr. Aikon, general manager of the Union Steam Ship Company, said that in dealings with the Government the company gave concessions to staff officers, being limited to the ferry service. Two hospital and five passenger ships were on charter to the Government for the conveyance of troops. Five other passenger ships and five cargo ships had been on charter. The company expended money for the Government on stores, buuker coal, provisions, dock dues, labor, material for fitting ships, etc., without remuneration by way of commission or interest. The company made a charge of £75 per voyage for supervision by a trained staff. The total charge for this was a little over £SOOO for 3i years. The disbursement on Government account that tho company had outstanding averaged, at a low estimate, £70,000 or £BO,OOO. It received no recompense for this capital standing idle. The gross hire received from the Government from the beginning of the war till February, 1918, was £1,578,547, while reimbursement of money advanced to the Government on account till February was £1,300,943. The cost to the New Zealand Government under the present charter for the seven vessels was £359,460, while under an Admiralty charter party the cost would be £388,444. There was a saving to the New Zealand Government on the present charter of £28,083 per annum. Tho average net rate iper gross ton per month was 149 Id, a a against 15s 2d under Admiralty charter and 32s 3d under American transport charter. £81,719. was paid for transports employed during the Boer war. Wages had increased by an average of £3 per man per month, and this increase bad been borne iby the company and the Government in equal shares. The wages on vessels used fcy the British Government had increased from £5 to £0 per man per month: In the case of the loss of any vessel leased to the Government the loss fell on tho Government to the extent fixid iby the, charter party. Tho hires had varied, according to the employment of the ship, up to 28s per ton, tho net average rate being 19s. The British Ministry of Shipping had three companies' vessels for cargo purposes, tho rate for these being 15s 3d per ton per month. The New Zealand Government 'had the right under the charter to purchase any of the company's vessels except one. The price of purchase was' fixed in the individual charters. Statements had been made publicly that the Union Company had been paid £2,400,000 for the hire of transports. This was over-stated to the extent of £BOO,OOO, which amount was in repayment of a portion of the moneys expended on behalf of the Government in stores, coal, etc. At the outset the comprny recognised its duty to the Dominion —firstly, in furtherance of active participation in the war, for which its plant and organisation were at the Government's disposal; secondly, in catering for the trade of the Dominion as far as possible. The fixed declared value in the New Zealand charter, particularly in view of appreciation of the value of tonnage, had proved of very substantial value to the Government, as it restricted its liability for compensation in the case of loss, and placed the responsibility on the company for the difference between declared and actual value.

At a later period it was agreed that the rates should be 20s per ton, while carrying troops, and 18s on return voyage to New Zealand, and 10s while refitting to New Zealand. This reduced the average rate considerably. The company agreed to accept quarter rates during the final reconditioning, although the British Blue Book allowed full rates. The sum of £800,001) had been received in repayment of a portion of the expenditure of the company on behalf ot the Government. The company estimated the amounts recovered for ships lost would only go half way towards supplying fresh tonnage. The ships contracted for in 1914 had not yet been laid down. In the meantime the company's trades, from which the chartered ships wero taken, was at the mercy of foreign traders. In its effort to muintain trade, the company chartered tonnage at very high rates- -up to £7OO per day. In one case the replace tonnage was requisitioned by the Government.

Captain Macdonakl, marine superintendent of tin; Union Company, said that about tlie middle of 1!)15 instructions wore received to fit a \emxl for fiQO horses and 450 men. When the work was well advanced urgent instructions were received that the horse fittings would not be required. He understood instruction!) had been sent by the Imperial authorities. The fittings wero removed at a cost of about £IOOO. They were very little use for anything e!--e. In the afternoon, Mr. Aiken said th« company had sold a large number ol stores to the Government, which derived a substantial advantage, aa the company bought in large quantities. The commission will sit in Westpor' next week.