ORIENT MAIL CONTRACT.

Dominion, Volume 1, Issue 50, 22 November 1907, Page 7

ORIENT MAIL CONTRACT.

RATIFIED BY SENATE. BUTTER FREIGHTS AND SHIPPING : '■' RINGS. BY rELEGRAPIM>Ri3SB ASSOCIAfIOtf-COPrRIGnT; Melbourne, November 21. The Federal Sohato has ratified the mail contract with thd Orient Company.

In explaining the new mail contract to the Moral HotißO of Representatives, tho Prime Minister Mr. Deakin, dealt with the delay that had been caused through Victoria's objec- • 5 ii ° conne ction of the Orient Company with Hie "five lines"-a combination which, it is alleged, imposed n penal freight on butter exporters who shipped any butter by any lino outsido the five; Mr. Deakin said that until lately butter frieghts were 2s. 6d. by mail steamers and 2s. 3d. by cargo carriors belonging to the five lines combination. Against tho five linos combination another three lines combination was competing with the reduced rato of Is. 10d. a box. Under tho contract it was now proposed to have a maximum rate of a halfpenny per pound, equal to 2s. 4d. per boxfor mail steamers; 2s. per box by tho other lines of the five lines combination; This was a fair agreement, and it was proposed that theso rates should oporato in every port of the Commonwealth.

Mr. Deakin added: "The conditions upon which these concessions are proposed tire, as far as the five lines combination is concerned that shippers shall not use any line charging less than 2s. a box, and shall not support the cutting lines, which are ohargirig ]s. 10d. But beyond this it is proposed to place the three lines combmntion on the same footing as tho five lines combination, and if we are successful there will bo eight regular lines of steamships; all trading from the principal ports of the Commonwealth; and all charging the same freights for buttor—a uniform rato of freight from each port of the Commonwealth. The producer will thus bo able to send his butter trom any port, and by way steamer, and receive tho same treatment. (Renewed cheers;) It these arrangements can bo made, and I am assured by experts that it is a most reasonable and fair one, and that tho pried fixed is low, than our trado will be greater than ever before. (Hear, hear.) If the three lines stand out of this, and rely upon tho difforonco of 2d. a box to tout for custom, then a different state of tilings may. prevail. The main point is that the Orient Company has made a fair and reasonable offer, approved of by experts and has shown that it is anxious to prove itfl bona fides by withdrawing tho penal rates and by withdrawing from the present arrangement. . .

Mr. Y, ntson: Is tho abolition of penal rates' dependent upon tho Fedoral-Houldor-Shiro lino withdrawing from its present position? Tho Prime. Minister: At present, yes; but it is realised that oven in the event that these companies dp not agree, then modification may bo brought into effect as far as the others are concerned.■ Mr. Deakiri also stated that under the contract, tho contractors must withdraw- from any combine or commercial trust that may be determined to be illegal, or, in default, the contract may. bo cancelled. Mr. Watson: I don't know that that carries much, becauso bur Courts have nothing to do with combines oversea. This clause will not affect the shipping ring in London. Tho Primo Minister: That might be Sri, unless jt could bo shown that siloli a. ring jri London was detrimental to thb interests of tho Commonwealth. I believe it is possible to provide against these evils.