THE WOOL-GROWER'S BURDEN

Dominion, Volume 8, Issue 2309, 17 November 1914, Page 9

THE WOOL-GROWER'S BURDEN

ALLEGATIONS AGAINST SHIP OWNERS

PREPAID FREIGHTS

The question of prepaid shipping freights was discussed by the Wellington Central Chamber of Commerce yesterday. Mr. H. G. Hill introduced the subject, and described it as being of vital importance. Under the present conditions, although freight might be paid in England, the shipping companies could demand payment again here. Even though a Tefund was made it seemed, a bad thing that the shipping companies should have such power. It seemed wrong that they could make at this end a demand for freight charges which, if paid here, would have to be passed on to the public. Mr. Hill dealt with tho increased cost to New Zealand woolgrowers through the action pf the shipping companies in fixing a surcharge of 25 per cent, and demanding prepayment of freight. Hβ said that freight on one bale of wool of 3801b. at 11-16 d. per, Ib., plus 10 per cent., was 245. per bale; the surcharge of 25 per cent, equalled 65., so that the freight at present' was

30s. per bale. In the past the shipping companies carried the risk of freight in the event of loss of vessel. Owing to prepayment now demanded the shipper must take that risk ; . which means he has to pay marine insurance and war risk on the freight, and exchange or interest for, eay ; sixty days on the freight plus marine and war insurance nnd exchanges. This worked out as follows:— . PerBale. Marine insurance at 10s. 3d. per . . cent, on freight 1.84 .War risk at 425. per cent, onfreight 7.56 Sixty-day exchange, at 30s. per cent. 5.51 '....' .. : 14.91 ' Tiiis, said Mr. Hill, amounted to approximately Is. 3d. per bale, an increase of 5.2 per. cent., so that instead of h. 25 per cent, increase there was- actually 30.2 per cent, of additional cost of freight. . . Taking New Zealand's exports of wool at 500,000 bales, it would be found lhat the increase meant what the following table disclosed :— £ ■ 25 per 'cent, increase of 6s. per bale 150,000 %.2 per cent, increase of Is. 3d: per bale 31,250 Making a total of .£181,250

The £31,250 above referred to was an additional impost over and above the extra or war increase of 25 per cent., and it should unquestionably be borne by the shipping companies, whose extra working expenses should have been more than covered by the 25 per cent, increase on freight. (Hear, hear.) Mr. Hill said that while ho had only dealt with the position regarding wool shipments, hides, skine, tallow; and other things also were affected.

A member: Butter? Mr. Hill: No; butter freight is always paid at this eiid. '■ _. Continuing, Mr. Hill said that the 25 pur cent, war risk, it was understood at the time, was to cover all contingencies. Ho thought it would be found that between £300,000 and £400,000 was the extra amount \vhich the shipping companies were getting out of Now Zealand. He did not blame tho shipping companies, but blamed the peoplo of New Zealand for allowing the shipping companies to run all over therm This action of the companies had caused a wave of indignation " to sweep over New Zealand. At the time of the big Strike the farmers of New Zealand had come into the cities and helped to put the produce aboard tho Bhips. This action had primarily assisted the shipping companies, and what kind of.a return was this on tbe part of the shipping companies ? . ■ • .-. Mr. Robert Hall expressed the opinion that if the matter was put to the shipping companies in a proper light they would probably rectify the matter. Mr. A. Leigh Hunt thought it-mon-' strous that such things cculd be, and a matter which needed immediate regulation. Parliament should look carefully into the matter of the enormous privileges which shipping companies enjoyed, and it plight not bo out of the ■ range of possibilities to suggest that •shipping companies should be made to pay a considerable sum for the upkeep of tho Navy, which was maintained largely for the protection of snipping. The shipping companies were in a different category to other, monopolies, and their interests were so closely bound up with the interests of the whole of the'people that particular care Bhould be exercised in the matter of their privileges. Ninety-nine- per cent, of tho people of New Zealand were of the opinion that the shipping companies were.not treating them fairly, and the [matter should be.fully.inquired into. J The Chamber then arrived at the following resolution, moved by Mr. Hill: "That the whole question of overseas shipping .be referred to the_ Shipping and Insurance Committee, with" power, to call a special meeting of the Chamber if they think it necessary to discuss their report, but in the meantime a deputation from this Chamber wait upon the Prime Minister and endeavour to impress him with the necessity of the Government taking action regarding the unfair attitude adopted by the shipping ■companies in the question of demanding pre-payment of freight."'