MONDAY, JULY 12, 1897. THE FREIGHT QUESTION.
The producers of the colony are at last waking up to a full appreciation of their own powers, and we see in the agitation for the reduction of shipping freights a remarkable and pleasing change. It is remarkable from the fact that in recent years we have somehow got into the habit of rushing to the Government and Parliament for help, as though the legislature were all powerful and able by the passing of a mere Act to alter economic laws ; and it is pleasing for the reason that the folly of the past is recognised. The producers have been exploited by every class of the middlemen fraternity, and the fault is entirely their own. They have submitted, albeit with a murmur, to being smothered by excessive charge>:, sometimes looking longingly to Government to come to their assistance, and wholly unconscious of the powerful weapons in their own hands. But the scene has changed. Even a worm will turn, and the producers have revolted against the imposition of the sea-carriers. Throughout the length and breadth of the colony the producers have, led by a few enthusiasts, commenced a war of reprisals against the shipping companies ; and if the producers hold to their compact we have not the least doubt about their success. This is the age of combinations, of rings, trusts, pools and syndicates, and, however much we ma,y vilipend them, after all it is only by combination that success is obtained in the world of commerce. The principle of unionism when applied to commerce is nearly always effective. What was the position prior to the formation of the combination of producers ? The shipping companies were federated, and that competition which animates trade was absent. They have been able to command their own terms, an easy matter under their combination. The producers were defencless and were therefore compelled to yield. Now, however, the producers are combining, marshalling their battalions, and with plenty of ammunition have challenged the enemy. Already the shipping companies have seen the necessity for reducing freights, and perhaps if they had done this without pressure all might have gone on as merrily as a marriage bell. But they have yielded under pressure, and the concessions they have made, though they appear satisfactory to some of the producers, are not acceptable to the greater number. The conference held in Wellington on Friday last and the combination that is expected to result from it if carefully handled must be of incalculable benefit to the colony. Our producers have to compete in the open market with the producers of other countries, and if they are to have any sort of position in the battle it is necessary that they should be as well equipped as their competitors; instead of this they have been hampered by excessive charges and by careless handling of their goods. But this must now give way to the combination, which can force the shipping companies into a recognition of its rights. We hail with delight this warlike attitude of the producers, and it has come about none to soon. The decline in the price of frozen meat and the relatively low prices ruling for our dairy produce is, we think, in a great measure due to the greed of the shipping combination. High freights may perhaps be regarded as a minor matter compared with irregular delivery, damaged cargoes, and general indifference. Our produce trade has suffered more from this than even from high freight charges. The chairman of the Conference wa3 able to produce a letter which shows the terrible neglect
of someone, and the letter is worth quoting in full. It is from Treugrouse and Co., the well-known dairy produce merchants of London, addressed to the Agent-General, and is dated Gth May, 1897, and runs as follows : —" Sir— We have, as you know, been subjected from time to time to serious delay in obtaining delivery of goods from steamers from New Zealand ports, and should like to draw your attention to what has happened in regard to the s.s. Waimate. This steamer docked on 7th April, having 218 boxes butter for us. The following are dates of delivery: 27th April, 10 boxes; 29th April, 76 boxes; 15th May 156 boxes ; and upon our remonstrating with the agents of the steamer, ,T. B. Westray and Co., we are coolly informed that they did not consider the discharge at all slow, the butter having been stored below carcases of mutton. We need scarcely point out how very disastrous such treatment as this is to New Zealand produce especially at this season of the year when a rapidly declining market has to be faced—indeed, the whole service needs prompt and material amendment, as much prejudicial delay also occurs to the colony by produce lying about indefinitely, and the high rate of freight heavily handicaps the business. From the time the Waimate docked to receipt of butter in question two steamers at a week's* interval would have crossed the Atlantic from New York, Boston, &c., and their parcels have been in buyers' warehouses. If you could kindly lend a hand again to put the matter upon a better basis, it would be much appreciated here and in New Zealand." The above letter clearly shows how very independent and arrogant long years of absolute sway have made the shipping companies. How is it possible for our produce—our dairy produce in particular—to make headway against such criminality ? /This must be brought to an end and the producers themselves, who have been urged to combine again and again, can do it, and their clear course is to give their business to some other shipping company if the companies who now enjoy the trade do not appreciate it. We hope the producers of all classes-—big and small —will help in the movement, for by doing so they will be doing themselves the best possible service. Government aasistance is all very well, but there is nothing like the logic of loss of trade to make an impression. As we have stated the agitation has already borne fruit, and we are certain that if the combination of producers is maintained not only will freights be reduced but all the other difficulties detrimental to our produce export trade will disappear. Lower freights, prompt delivery, and better accommodation is the motto of the producers' combination, and if there is cohesion success is certain.
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Bibliographic details
Hastings Standard, Issue 370, 12 July 1897, Page 2
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1,073MONDAY, JULY 12, 1897. THE FREIGHT QUESTION. Hastings Standard, Issue 370, 12 July 1897, Page 2
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