THE SHIPPING WAR.

Evening Post, Volume LXXI, Issue 144, 19 June 1906, Page 2

THE SHIPPING WAR.

COMBINES AND FREIGHTS. OFFICIAL REPLY TO RECENT STATEMENTS. Mr. J. M. Ritohie, the representative irx the colony of the . Sbaw Savill and Albion Company, has forwarded to the Otago Daily Times a lengthy statement in-wb,ich he aay* s-^ "The late Mr. Seddon was entirely misinformed as regard* the opinions expressed about the ,' American qombintf and the positfion of the direct liners towards the trade to *tqe United Kingdom from New Zealand. I am, very res4y to give every credit to Mr. Seddon's 'intentions as being in the interest of fhe colony, ' but' there i« no" doubt to a great extent Jiia renwrkß were based unon misapprehensions. Whatever may im the case aa regards the working of the trade witih AustraHiv and from New York, it is beyond question that, so far as the New Zealand trade js concerned, the International Marine Company and the/White. Star line have no control whatsoever. More than 30 years ago tho White Star line provided 1 tonnage for the. New Zealand trade, first in connection witfh the New Zealand Shipping Company find afterwards the Shaw,, Savill, and Albion Company. It did this. at a time when sudden and large expansion of frozen meat shipments from the colony made it) impossible to procure refrigerated tonnage in time otherwise, and there is no doubt that the White Star line, iv the mere matter of providing tonpage, has | served an important purpose in connection with our trade. It, however, has never had any conflrol over it. Long before the nrrangement made with the International Marine Company the White Star line entered 1 into an agreement with tihe Shaw, Savill, and Albion Company for a lengthened period of years, nnder which it agreed to provide a certain portion of tonnage, but also under which the control of the trade remained in the hands of the Shaw, Savill, and Albion Company absolutely, as it has been so, as f,ar as itb fahare is concerned, for between 40 and 50 years. That agreement is still in existence, and has a number of yeara still to run. "I make this statement not only from my personal knowledge of the agreement in question, but from many personal interviews with both the late Mr. Ismay and the present management of 4,hn White Star line for years pasti and up to my last visit Home two years ago. They always made it perfectly clear that they could in no way interfere with the Shaw, Savill, and Albion Company in the, conduct of the tfade, and as regards tha detoils of that could only discuss them generally as outsiders. There is therefore no foundation whatever for, assuming that the White Star line or tjhc International Marine Company has any control or influence whatsoever in the conduct of the New Zealand shipping trade. FROZEN MEAT CONTRACTS. "As to ttbe arrangements which are at present in existence between the direct linens and the various refrigerating companies of the colony, it is true that for many years — indeed, almost! from the initiation of the frozen meat trade — contracts have existed between the direct lines and the freezing companies. The conditions of tJhese contracts have from the beginning been in almost the identically game terms as they are to-day, whioh, broadly speaking, are that in considera-. tion of the direct lines binding tftiemselves to lift all the meat whenever called) upon to do so an 4to keep the, works clear, they are to have the first) offer of the' whole output of these works on the same terms as may be offered by any other lines which fulfil the same conditions. Freights. ar» not, and have never been, definitely fixed ; the direct lines have been subject to whatever competition way arise from .outside, and in addition to that have more than once voluntarily reduced freights, although they had no competition of the came character to contend with. STEAMER SERVICES. In order to fulfil one of the chief conditions the direct lines have had to furnish what -has frequently amounted to a weekly service from the larger ports and a fortnightly service from many of the others ; recently, indeed, it has been necessary to ■provide practioally a weekly service in order tq keep the workjs at the port of Timaru clear, and it has also been necessary in the puat to bring in outside tonnage in fulfilment of this onerous commitment. The same remarks apply to the dairy produce trade) The direct lines ore bound by agreement to despatch a fortnightly service from Wellington punctually to the day, and' have also had to provide learners of a certain speed, so tfiat the produce may be delivered at proper intervals in London. They have had. ti> take whatever quantity of dairy produce offered, and adjust the rest of their cargo acpordingly In connection with the rate of freight on dairy produce, they have alto paid the coastal freight on o. large part of it, sp as to facilitate the concentration in Wellington in what has been consistently urged, by the shippers as the interests of the trade. COMBINATION OR COMPETITION! It can be mid with truth that tie Federal-HouldeV'Shire line constitutes the only roal "combination" whioh has io far been conneoted with the New Zealand trade. There has been no combination between the direot lines except beyond a general understanding to maintain moderate rates of freight, and below that active competition between the lines lias never been absent. I think, also, it may be said that there ia ample proof that these rates of freight havo been moderate, inasmuch as the dividend? publicly declared by those in the trade have never been more than 6 pep cent.* as iar ac I remember, and sometimes they have been under that, The direot lines have been forced to I take up the West Coast service — first, because of the interference by tho "Federal combine with their London trade ; and, eecond, in order (if possible) to provide a more punotual and rogular Borvice, They have done so without any expectation of receiving any assistance in the way of subsidy, and without any intention of asking for euch.