THE WEST OF ENGLAND SERVICE.

Evening Post, Volume LXVIII, Issue 100, 25 October 1904, Page 4

THE WEST OF ENGLAND SERVICE.

I * Mr. Dufchie was very much in bis element when discussing the report of th^i (Extension of Commerce Committee on the contract with the Federal Steamship Company for the West of England service last week. No member of the House has greater authority on any questions relating to commerce, for on all of them he speaks with a mastery born of a thorough familiarity with the subject, and the Government's management of the West of England service afforded him an excellent opening. The report of the Committee was favourable to the Govern- | ment on all points, and on some the country will be gladi to accept its conclusions. Tb> shortness of the time allowed for tendering and the connection of the Colonial Secretary's firm with the company that secured the contract gave l-lie business an unpleasant appearance which must be regretted even by those least inclined to suspect any substantial harm in it. There does not seem to be any evidence that Sir Joseph Ward unduly influenced the contract, and he can hardly be expected as a business man to ask his firm to refuse a shipping agency because the line is drawing a subsidy from the Government. It would certainly have been better for our public life if neither the Premier nor the Colonial Secretary had been interested either personally or through their relatives in any of these shipping contracts, but the law allows it, and public opinion is not yet sufficiently jealous on the subject to establish a binding unwritten law. The Committee, while conceding that "the time given for tendering was not long," finds nevertheless that the tenders were sufficiently notified by advertisement and' circular, "so that all who desired to tender had an opportunity to do so,"' that "the best tender was accepted," and that the contract was in the best interests of the colony. It was further stated by Mr. T. Mackenzie, the Chairman of the Committee, that ."there was not a tittle of evidence to show that there was anything improper in arranging the contract." There is really not a great amount of difference between the Committee's admission that the time allowed for tendering was short, and Mr. Dutbie's conten tion that "the contract was entered into without .reasonable publicity," but whatever view be taken on this subsidiary question, he will be generally conceded to have made good his main point, viz., that the contract was entered into "without due consideration of public requirements." The facts cannot be denied that freights have risen, and that no reasonable precautions were taken by the Government to prevent it. The only finding of the Committee that touches this point has a somewhat comical air : — "That in regard to complaints about freight, in the case of that of rabbits the company, when the matter was brought' under their notice, agreed to reduce the freight to the amount charged by the competing companies, although their original rate was within the terms of the contract." The magnanimous liberality of the company in the matter of rabbits is worthy of all praise, but unfortunately rabbits do not exhaust the subjects of trade between this colony and the Old Country, and the Committee is silent as to the others. Mr.. Duthie, taking a more extended view of our commercial relations, was able to frame a very serious indictment against the Government for its neglect of them, and a dispassionate perusal of his argument must create a very uneasy feeling among all who have any concern for the welfare of the colony. He sketched the operations of the combination of companies which controls our oversea carrying trade, and he showed that the Govern•ment which has passed the Coastwise Trade Act and is toying with a Trade i Monopolies Bill has by its action with regard to the West of England contract strengthened the hands of this monopoly, and tightened its grip upon the colony. "The importers and exporters of New Zealand were practically helpless," said Mr. Duthie, "and had to obey the behests of the combination, and pay whatever rates were charged." The outward freights, he pointed out, were even more arbitrary than bbc inward, and shippers who went outside the shipping ring were penalised by the forfeiture of a year's rebates, which would otherwise come to them. In 1895 the rates in London for outward cargo were, he said, 30s, " and since then they had increased to 40s, the rates by measurement had increased from 40s to 60s, and freights by weight had increased 2s 6d. The Department of Industries and Commerce plunged into this contract with very little knowledge of the surrounding circumstances, and admitted that they gave no thought at al' to the question of outward "freight. So contract could be carried out without having cargo both ways, and to enter into a contract of this sort without considering the question of return freight showed ineptitude and lack of business perception to a degree that was scarcely credible." The result of this inexcusable oversight is that the Federal Company has had a free hand in the matter of the outward freights, and by means of the colony's subsidy has been able to gain admittance to the shipping ring and raise the rates at the expense of tre colonial producer. The last state of our producers is therefore worse than the first, and the expenditure of our money has brought the West of England ports, which were previously free, and a shipping company which was previously free, within the scope of a monopoly which is the producers' natural enemy. Another very unsatisfactory feature is the relation of this contract to the South African contract, with which indeed it is practically identified. The- same steamers go the round voyage, and, culling at Australian ports, they need seventy-one days for the trip, instead of the fortyeight taken by our direct services, and besides they cany more produce from Australia than from New Zealand, while this colony pays £30,000 a year for the privilege of helping our competitors to | underbid us. The significant admission was made by the Chairman of the Extension of Commerce Committee that " if the present service was to be renewed, be

did not t,hink the Government would be justified in continuing it by the present route via Australia and South Africa,'" and it is to be hoped that the Government will take the hint. The moral of the whole business seems to be that whenever Parliament is asked for a subsidy of any kind its first care should be the interests of those who find the money, and it must look all round befor» committing itself.