The Daily News. TUESDAY, APRIL 20, 1920. SHIPPING DOMINION PRODUCE.

Taranaki Daily News, 20 April 1920, Page 4

The Daily News. TUESDAY, APRIL 20, 1920. SHIPPING DOMINION PRODUCE.

Since the outbreak of the Great War the producers of the Dominion have been relieved of all worry relative to shipping their produce, as the Imperial Government took over this responsibility as part of the terms of the commandeer. If, as is probable, the commandeer will end on July 1 next, the producers will be faced with a position such as will cause them very grave concern unless they take time by the forelock and prepare accordingly. During the period from August, 1914, up to the present time much has happened with regard to shipping. Many vessels were sunk by the enemy and others put out of action by mishaps, but the main trouble the producers have to meet is the formation of combines and the abnormal increase in freights as the result of joint action by shipowners. A monopoly has been created so that freights can be raised to unprecedented heights, anil, what may even be still worse, shipping may be diverted to otfier pieces, leaving the produce of the Dominion in store without any remedy on the part of the producers. The banks are quite alive to the position, and it may be they will decline to make advances, so that the producers may be compelled to sell to representatives of* overseas buyers at whatever price they may offer for the goods in store. In a recent interview with a Hawera Star reporter, Mr. 0. J. Hawken, M.P., reviewed the situation at some length, at the same time remarking that a meeting of those concerned would shortly be held. It happens that diiect efforts have been made to ascertain what freights for produce arc likely to be after the end of June, but without success. The significance of this should not be missed by the producers, as it certainly indicates that freights will be exceedingly high, it being a matter of certainty there will be no competition. Mr. Hawken stressed the fact that the war had clearly demonstrated that the country which owns the shipping can tax, to an unlimited extent, those countries which have none of their own, as is the case with New Zealand, so that the shipping companies ean, if they please, make the Dominion exporters pay all the taxation for which the companies are liable, while allowing the British exporters to go free. It is not so- much the shortage of shipping which has to be feared (for that is speedily being made up), but the effect of the shipping combines. Another factor in high freights is the greatly inflated price of shipping shares, impelling the companies to earn

larger revenue wherewith to pay dividends on these inflated prices, and it is easy to forecast in such case that frozen meat will be severely handicapped. The outlook is so serious that the producers should lose no time in taking joint action for their own protection, for it is improbable any help will be available from other sources. The only possible remedy is for the Dominion exporters to acquire their own ships and to loyally support such ships so that the powerful shipping companies may be defied. By this means all the profits earned could be utilised in lowering freights and a reserve fund could be built up for further purchases. Mr. Hawken considers it is absolutely necessary the 1 freight payers should at least hold the majority of the shares, though the Government could rightly have an interest in the venture, also the public, and he advocates that there must be wholehearted action by the exporters, though he considers it will be some time yet before the purchase of ships at anything like normal prices 'will be possible. He proposes, therefore, that the producers shall allocate three per cent, of the value of all their exportable produce for five years in order to provide funds. This he considers would be little more than a commission, . amounting to about five | millions sterling if all the producers joined in, and with help from other sources, including the Government, should give the company a fair start. He rightly contends that any effort in this direction should be national, for it is evident that unless the Dominion acquires a fleet of insulated merchantmen capable of dealing with its imports and exports, it will be heavily penalised in the future, and have no security for placing on the markets of the world the increasing volume of exports on which the present and future producers depend for a living. Taking into consideration the volume and value of the Dominion's exports at the present time, it would seem that every effort should be made to obtain at least three suitable steamers as soon as possible, even though the price may be high. The sooner the producers can obtain freedom from the grip of the shipping companies the better will be their position. There is ample money available for the project, and if the producers only show a united front they will reap a rich reward for their unity and enterprise. The matter is in their hands entirely, for it is they who will be the sufferers so long as they are dependent on the shipping companies, and it is they who will benefit materially by extending the present remunerative system of co-operation in order that it may comprise the ownership of the means of overseas transport.