THE RAILWAY " CUT"

Dominion, Volume 13, Issue 8, 4 October 1919, Page 10

THE RAILWAY " CUT"

ROYAL COMMISSION

HIGH RATE OF FREIGHTS RULING

The Royal Commission set up to inquire into the cause of the curtailment in the railway services continued its sittings yesterday under the presidency of Mr. J. J'. Maxwell, associated with whom were Messrs. W. D. Hunt and J. .Marchbanks.

James Findlay, manager of the Shaw, Savill Company, ami chairman of the Overseas Shipowners' Committee, was examined by Mr. Hunt. Witness made a statement to tho effect thai a coal charter offered by his company was refused in February, 1917, by the Munitions arid Supplies Department, in the case of one «teamer. The price wan 21s. per ton, ami the boat was the Raranga, but tho grounds of its refusal he did not know. Just about that time they had two other boats handy which wniild have been available, ono of which would have; been offered to the Department but for its refusal of the previous offer.' . The.prico asked, 215., was not a very remunerative one, and the offer was simply made to he)p the Government out. hach vessel could have carried about 4000 tons of coal from Newcastle. Later, in May, 11117, the Karanga was offered to the Department at Ms. per ton freight, only to lio declined. Shipping was at this stago more acute. In if)ls and 191G boats could have been chartered, In those days there was no great ruSh on liners to bring over coal, and the freight would probably not have been higher than 21s. In 1915 and 1916 outside charters could have been obtained but only, at a very high price, Witness, however, was only interested in the liners. In 191fi if they were taking. an. outside steamer on a time charter the price would probably have Tjeen in the neighbourhood of 355., and in the following years the charter rata stipulated would most likely have been as high as 455. To Mr. Marchbanks: His company was not keen to obtain coal freights from Newcastle. There was nothing much in it for them at 375. 6d.—even at 455. The company would have a loss in the delay in loading and in tho subsequent cleaning out of the holds. At the instance of the Munitions and Supplies Department lie had communicated with .the London pffice of his company and recommended them to bring out coal from Newport News at 255. per ton freight. This was accepted and a number of cargoes brought out at this figure. It proved, however, to be absurdly low, having regard to the'loss of time, and was accordingly raised to £os. In answer to the chairmanwitness said that he felt sure that they could get no' American company to freight conl out to New Zealand from Newport News at the low rate of 10s. per ton. This concluded Mr. Findlay's evidence. The chairman referred to the written statement put in on Thursday by Mr. A. S. Collins. In describing this as somewhat controversial Mr. Maxwell intimated that the commission would prefer to call Mr. Collins in order that they might examine him in tho ordinary way. On its return from Christchurch the commission would resume its sittings ;in AVellington for the purpose of hearing. Mr. Collins. E. F;. Gillon, chief mechanical engineer, who vns recalled, stated that personally he preferred- Newcastle coal to'Westpbrt coal'for use on the railways. The former would stand far more handling than 'JVestport coal, which had to •undergo severe handling and was more liable to break than the imported variety. • Tho commission then adjourned sine die to enable it to visit Christchurch.