SHIPOWNERS' PROFITS.

Taranaki Daily News, 14 October 1918, Page 7

SHIPOWNERS' PROFITS.

- AEEAKGEMEXT WITH TWP.TniTAT; GOVEKNIIENT.; I By Telegraph.—Press Association) Wellington, Oct. 11. Ship-owners and freights were freely discussed at the recent Farmers' Union Conference, and references were made to the profits which the shipping companies -were realising. Mr. James Findlay, chairman of the Overseas' Shipowners' Committee, cal'ed the attention of the conference to the fact that, inasmuch as the Imperial Government had requisitioned all steamers trading to Australia and New Zealand, paying shipowners at Blue Book rates (about onefourth of what they were prior to the Imperial requisition at the current rate for chartering tramp steamers), freights were not fixed by ship-owners, but by the Government, who were the charterers. The shipping companies "handed over all freights collected to the Imperial Government. Mr. Findlay then suggested that if tiie conference doubted this, it could verify liis statement by cabling to the High Commissioner at the overseas' ship-owners' charges. Mr. Findlay "s statement was not wholly accepted by several members of the conference, among whom, it may bo mentioned as prominent objectors, are Messrs G. Skeat, W. Couser, W. D. Lysnar. and J. O'Neill. However, Mr. Findlay's offer was taken up, Mr Lysnar moving that the following cablegram be sunt to the High Commissioner:—"The Overseas' Committee here assert that the Imperial Government derives the benefit from the existins high rates of freight and that the shipping companies are merely agents, botli for inward and outward loading, the Government paying the ship-owners the rate of hire at Blue Book rates, which is equivalent io about one-fourth of the current rates chartering prior to the requisition in March, 1917; also, that a)' freights are collleeted and handed over to the Imperial Government. Cable precisely if the above is correct, also if the Government retains the full benefit on all freights without any disbursements: also quote freights prior to March, 1017, and present freights on wool, meat, butter, and general cargo." Sir James Wilson, president of the confererce, opposed sending the message, but the conference decided on the voices that it should go. The following is the reply:—"The companies receive hire in respect to their vessels at Blue Book rate- They operate vessels on tiie Imperial Government account, the latter being credited with the earnings and debited with all charterers' disbursements, including management and agency charges. The Ministry of Shipping does not anticipate the present scale of freights and passage money will do more than meet the cost of the scheme. The current rate of freight on wool is 2%d per pound, meat and butter £7 10s per 40 cubic feet space, general cargo £G 10s weight or me.nurement at ship's option. The rates fixed by the companies in October, 1316, were: Wool, 2 3-Sd per pound; butter, Ss 9d per box; cheese. %d per pound; general cargo. £3 59 to £lO per ton- An explanatory letter_will follow by mail. — Mackenzie.'"