COASTAL TRADERS.

Auckland Star, Volume XXXVIII, Issue 167, 15 July 1907, Page 5

COASTAL TRADERS.

SUPPOSED POWERFUL COMBINE.

RECENT LEGISLATION NECESSITATES INCREASED FREIGHTS.

(By Telegraph.— Press Association.)

WELLINGTON, this day.

A rumour is prevalent concerning the development of a powerful shipping combine among the owners of smaller craft in New Zealand. ■

The expected increase in freights on coastal vessels trading out of Auckland is attributed to the New Zealand Shipowners' Federation which was formed last year. The combination has been gradually extending over the rest of the colony, and in November its membership represented 16,000 tons.

It is understood that since November the Federation has extended its operations to Lyttelton, N-elson and JJunedin.

It is stated that an agent of the Association will visit the southern cities in order to stiffen them up to the Auckland standard and declare uniform freights.

. The combination justifies the increased freights on the ground that .recent legislation has increased the efficiency and cost of services, and increased charges on the public are imperative, because the improved standard insisted on has deterred building and adding to fleets or replacing losses, and thus compelled the agents to pay higher sums fur chartered vessels.

It is pointed out that a hund.red.-ton vessel on a 300-mile run in New Zealand must carry two officers, while in Australia only one mate is stipulated and in England none. In addition, the cook is forbidden to take the wheel or do any seaman's, work, even though he may be an. A.8., in spite of the shortage of ships, the scarcity of men and the great increase in the traffic

Although substantial steamship owners are included in the movement, it apparently does not extend to the Union Company, which contemplates no increase at present.

So fax, the proposed increase in. freights appears to be restricted to sailing vessels, but there is no doubt that, once the scows put up freight rates, small steamers engaged in the coastal trade will follow suit. The increased cost of running vessels vras recognised some time ago, but scow owners did rot then realise how tb.eir trade would be affected, and, as a result, freights did not go up.

Mr C. C. Dacre, when interviewed this morning by a representative of the "Aaekland Star," said: "There are many things which have combined to emphasise the need for coastal freights to be raieed. For instance, under the. present law, if a seaman falls sick and is left ashore, a sum of money has to be deposited for his maintenance at the hospital. Take as an example the auxiliary schooner Tvereru. One of the crew had the measles, and had to be left behind, and that meant depositing £54. Owners of small boats cannot stand much of that kind of thing. The various companies have nearly always got men in the hospital, and it means a sum of money lying idle to meet possible claims. You see, if the men are sent to their homes, and there are further complications, the risk is greater, so they are generally sent to the hospital.

I suppose this must affect steamer freights in the coastal trade?

Well, as far as the local coastal trade, I suppose the Union Company's Squall will be affected, and the smaller coastal steamers belonging to the Northern S.S. Company, and other companies engaged in the coastal trade.

Then this means an increased cost of goods?

Yes! There is increased cost of running vessels. Wages are higher for one thing, coal will probably have to pay increased freight of sixpence per ton. Lime, cement, timber, will all probably have j to pay more freight. Another matter that adds to cost now is that vessels are so long delayed they have to either discharge into trucks or wait to load from trucks. That, of course, is the old question of shortage of trucks over again. Another heavy expense on scow owners is the extra gear required under the Shipping Act to be carried for life-saving purposes. If all these things are required in the interest of life-saving, then the public must pay the extra cost to owners of vessels. Then, too, you must not forget that at the present time there is a big demand for vessels. We have lost from the trade the Sir Henry, Haeremai, and Aotea. Then the Ferry Company purchased four large scows for their own trade, and are now off the market. One cause of the big demand is for supplying shingle for ferro-concrete works, some eight or nine boats being steadily engaged in that trade alone.

As I understand it, apart from there being a big demand for vessels, the increased freights are warranted owing to extra cost entailed in running small craft ?

That is the case, and, of course, when things are brisk, is the best time to raise freights.