FREEZING COMPANIES AND THE SHIPPING COMBINE.

Auckland Star, Volume XXXVII, Issue 146, 20 June 1906, Page 11

FREEZING COMPANIES AND THE SHIPPING COMBINE.

jgjegreph.—Owa Correspondent*

CHRISTCHITRCH, this day. ■viv J 1L Ritchie, representative in fifwlony of the Shaw. Savill and AISl Company, is taking up the cudgels rUui o f the dire r t Ha j? ™^ d f the shipping com Dine dispute. Ho . "As to the arrangements which "fat present in existence between the SLt liners and the various refrigera?!Companies of the colony, it is true T'c for many years, indeed, almost !lL tie limitation of the frozen meat "Ij'e ' contracts have existed between ; jirect lines and the freezing complies. The conditions of these con- ? ci 3^ c from the beginning been in the identically same terms as *ey are to-day, which, broa.ily speakare that, in consideration of the jj&l banking themselves to lift jTthe meat whent irer called upon to J; Mj and to keep the works clear, they L'to have the first offer of the whole •f ut of these works on the same Iris as may be offered by any other tgg which fulfil the same condition, •veizhts are not. and have never been '4nitely fised. The direct lines have ta subject to whatever competition '" ar ise from outside, and, in addi~i o to that, have more than once reduced freights, although. '.\0 had no competition of the same ■■-aracter to contend with. It can bs with truth that the Federal Houl- ■ s Shire line constitutes the only real imbination which has so far been conjjted with the Sew Zealand trade. sera has been no combination between U!e direct lines, except beyond a ger.e-----1 understanding to maintain modes te rates of freight, and, below that. jctive competition between the lines has -ever been absent. Tie direct lines kve been forced to take up the West Coast service, first, because of the in•snerenee by the Federal Combine with idr London trade, and. second, in r.rder (if possible) to provide a more BHCtual and rpguiar service. They • a ye done so without any expectation 0i receiving any assistance in the way 4 subsidy and" without any intention i asking for such. Commentine on Mr. Ritchie's defence if the argument between the meat and iiiippins companies, the "Times" says g communication d.sposed of the iiKTwim suggestion that the Ne-w Zeaitd shipping trade is being exploited Vγ the International Marine Company. S3 does not make quite clear that •jere is nothing in the nature of a •lombine" in the arrangement between is freezing and shipping companies. We Eierstand, of course, that it was nee£3ary for the freezing companies to sike very complete plans for the rnjiiar shipmen: of mc it. and that it is jsiy natural for tne shipping companies i demand some preference in return it: the assistance of a regular service, tet the arrangement appears to go sher further than this. Freights, acssdiii£ to Mr. B.:tchie. are not, and urerhave been, definitely fixed, but if B outside company should discover itat they are. and offer more favourvk rates, they could not be accepted :3i the present companies had had an /iJitimity to adopt them as their own. ;sens to us that an agreement of &nrt would effectually prevent any ■esb company attempting to obtain iiareof the trade. Mr. Ritchie says i'/msent companies are "subject ro sJabrei competition may arise from sate." but on bis own admission, not n outsider will be allowed to meet ia on equal tern? The quarrel be"«sii the established shipping comas and th-Mr rival s is no concern flows, b';t r is a little significant 'at Mr. Bitchie. after confessing to a pod understanding between the cornpries to maintain moderate rates of laght, admits their chief reason for racing upon :he Coast of Eng--3d service was the interference of the ■•risal combination with the London jdt If this dues not mean that the 'Federal combination is to be punished fcr venturing to interfere with the sapping companies' monopoly, Mr. atchie is extremely unfortunate in his I idee of words. As it stands, it looks ISβ a frank conSrmation of all we I fan written as to the danger of stifI legitimate competition.