SHIPPING PROBLEMS

Dominion, Volume 10, Issue 3145, 25 July 1917, Page 8

SHIPPING PROBLEMS

WHAT REMEDY?

QUESTION OP MOVE BY PRODUCERS

Shipping problems were dealt with at great length by Sir James Wilson when addressing tho I'arniers' Union Conference yesterday. In. the course of his referonco to t-ho subject Sir James Wilson said :—

"A. question of great importance is that of the shipping of our produce. Shortly after the war began the shipping combine amiounccil that freights would be raised in the aggregate by about a million pounds. 'Phis uaturaliy alarmed tho producer, especially as, the British Government provided the war risk, both on vessel and .cargo, tit n *Kv rate. Wo were calmly told that we ought not (o object, because wc could look upon this as a contribution by the New Zealand producers as a 'war tax, seeing that all additional profit that shipping companies earned was subject to a tax of GO per cent. I thought it was a piece of gratuitous; impertinence to miike the suggestion,- especially seeing, that , despite the heavy taxation one. shipping company lias paid 60 per cent, in dividends, after no doubt concealing as much profit as possible, and we have it on the evidence of Mr. Bonar Law that lie had invested .CBllO in fifteen shipping companies, and had received in iuterest J23681 and .E3547 respectively during the last ■ two years, besides .£IOOO for a. steamer which had been sunk and in which he hud .£SOO invested.. That means that the interest on the investment was do per cent/ and 17 per cent., and this after paying the l! 0 per cent, excess -profits tax. If one body of men can lay themselves out to exploit another body the first remedy' that is at hand is for the latter to find the capital and do the work themselves. This was -what gavethe impetus to the New Zealand Shipping Company when it was formed. Freights were so high that a. comnany was formed to provide competition. Most of the shareholders lost their money when going through the slough of despond mid the shares fell gradually into the hands of capitalists looking for a good investment. Strange to s_ay it was tho freezing process that causkl the greatest loss. Steamers were built, and. in the competition the Netv Zealand Shipping Company's shares fell very low. They were bought up at small cost, and when the merger took place with the P. and 0. the shares were mostly held in England. Lord Inchcape, at the general meeting of the P. atld 0., intimated that he had not much fear of .any shipping company under the control of or run by any Government, and he was probably right. The producers of New Zealand, however, xtm, with tho assistance of the Government, fight this monopoly if they combine. The combination must be complete. Not, as is usually tho case, that, some find tho money anil the rest, benefit, for that would end in failure to all. Xot only must the producer come iu, but if necessary the agents must do so too. This means, however, that Government aid must be invoked. This is nothing unusual. "Etch in conservative England, when tho Morgan Trust threatened to mop up the whole of the Atlantic shipping, Jlr. Balfour stepped in and advanced .K.fIOO.OM) to the Cunavd Line to enable them to build l the Lusitan.ia. and the liaurctania. At tho moment very much the same 'condition of things lias arisen here. The P. and O. has mopped up both our local -shipping companies just in the same way. Shares held in England enabled them lo control any body ' of colonials, and Tam told ill,it the P. and O. have got a. bargain, and that tho price should have been higher. Be lha,t. as it may, the whole of tho New Zealand shipping is governed by one man in London. Tho directors and managers hero have practically no say in the matter, and by a judicious spreading among agents and. shippers of commissions and rebates there is no one to make a fuss oxcopt tho producers. It is well known to everyone what I heir position is. Nothing short, of an Art of Parliament will bring l-hcm together, and Hdvanlngo is taken ol' them at. every turn. First of all, thero is a. combination of all shipping companies to exclude any other company coming in. The contracts aro entered into ivilh freezing companies, dairy associations, exporters of all kinds ■as to freight's. Care is taken thnt these contracts do not run out at tho same time, and this is useil as a-lever when new contracts are being fixed. The representatives here have been so long at this game that, they can play ono set against another with the art -ftf a polir tician. This will go on to the end it' the producer does not wa.ko up and tako a. hand. We .must, however, be all producers and exporters. We are up against a big concern, and probably a- bigger concern in the Meat Trust as well. The only way, if we want to start all opposition company, is lo first nobble, tho. freights. The only way to fight such a monopoly is to do as they do. They nobble the capital and 'call the tune' as to freights; but if all tho produce of New Zealand is controlled by another company then the tuno is changed. No shipping company can get on without freights in and out. Onco control that, or even a large proportion, and terms aro possible. "Mr. Vavasour has put before the public a scheme to raise the money such a. company by way of levy. This leyv has been taken up enthusiastically in ' Taranaki, where they dairy peoplo have found it an easy means of raising money for extension purposes. It requires some thought, to work out such a. seheme. and to find out how; far the Government is prepared to assist, it. A committee has been set up to make a full investigation on this point, but. it would be premature to disclose to what slago it has reached. "There is another means which requires consideration, and may be a si liitioiv. That is the one suggested 1/y the Dominion Commission. They point out that it is only by means of the employment of vessels of great length awl draught that cheap freights can be obtained, and that the. harbours should be dredged to admit of this."