CALF TRADE

Manawatu Standard, Volume LVII, Issue 193, 16 July 1937, Page 7

CALF TRADE

RATES FOR TRANSPORT. AUTHORITY’S SITTING. Representations as to the prices to bo charged for the carriage of bobby calves this season were heard at a sitting of the No. 2 Transport Licensing Authority in Palmerston North today. iMr P. J. Skoglund, who presided, had announced previously that until the prices had been fixed carriers should cart calves at the existing races and any adjustments could later be made on the hasis of the prices arrived at. On the completion of the representations at tins centre. Air Skoglund is to proceed to Auckland where lie will confer with Mr E. J. Phelan, the No. 1 Transport Licensing Authority, to set cartage prices which will apply for the whole of the North Island. In the past charges had varied in different districts, said Air Skoglund, to-day, the prices varying evidently on the basis of the number of calves available and the distance they had to bo transported. The prices had varied from 9d to Is dd a head. Air S. McDowall, tor the Feilding branch of the Road Transport Alliance, said the bobby calf question was rather a vexed matter. Various buying interests were seeking calves, and on some occasions the lorries collecting on the same clay followed each other. The price varied in some cases on one day in different parts of one district. There had been quadruplication of the collecting lorries and only in the very height of the season were the lorries lull. He submitted figures of calves collected and mileage travelled, saying that in one case on an average 21 miles had to be travelled for each call, mud in another over two miles for each calf. The prices had been Is and Is 3d, and in a lew eases Is 6d a head. In one instance the earnings over the season (on iour-ton trucks) had been 6.48 d per vehicle mile, and in another case the revenue per vehicle mile had been 7.28 d. In one instance he knew of the operator had lost £9O and the speaker said that in the season the carriers had “presented the bobby call business with a subsidy of £1000.” Neither the farmers nor the exporting interests wished the industry to have to he subsidised bv the transport industry. fck>me change had to be made ; the system was fundamentally wrong. Any scheme for betterment'' would cause some of the exporting interests to look at it .crosswise, saying they were entitled to do this or do that. Air Skoglund said he wished to hear representations on that point at a later stage. It was too late to undertake a. reorganisation of the manner of collection and disposal of calves, but it was hoped to bring down a scheme to apply next season. At this hearing he wished to hear representations as to why the price for cartage should be raised.

AIILEAGE RATE SUGGESTED. Air AlcDowall said it appeared that there was no other means of paying for the business except on so much per mile. It cost Is 2d to Is 3d a mile to operate a vehicle. Air Skoglund e.aid he had a numl>er of figures, from financial returns sent in by the carriers themselves. The averages were as follow: 4-41 tons vehicle, 8.92 d per mile; 4*-5 ton, 9.68 d ; 6-51 ton, 10.17 d; 51-6 ton, 10.06 d ; 6-6 J ton, 10.16 d; 61-7 ton, 10.67 d. Ho believed none of those figures was correct but that was the statement suppfind Ivr the carriers themselves. Air McDowall said that there had been increases in petrol, tvrc nncl lahour costs, which amounted in all to an increase of about 25 per cent., nhich increased the 61-tern lorry charge to the figure he had quoted, Is 2d to Is del. The only possible basis was on an absolute minimum to meet costs of Is 3d per mile. When payments were made bv tlie carrier at tlie gsite, the farmer being paid in cash, the carrier should receive something more. That meant loss of time. He read representations from the Hastings carriers m which it was stated that it was considered Is 6d a head should he the absolute in illinium. There were only two companies operating there. ’-RUINDUS COMPETITION.’ ’

If there were fewer carriers, remarked Mr Skoglund there would be more calves collected by each. V\ ould the cost be less? “Exactly,” said Mr McDowall. “We see a lot about the good effect of competition, in the papers,” said Mr Skoglund. “That does not appear to be so here. . „ ~ ~ “It is ruinous, said Mr McDowell. For the North Taranaki operators. Mr W 'l' Stanton said he endorsed all that had been said. The operating cost in his firm’s case had been lOid a mile but that had gone up now by 20 or 25 per cent. . tI Mr K. W. F. Gohns. representing the Wanganui branch of the Transport Alliance, generally endorsed tho statements made by Mr McDowall. Owing to short notice it had been difficult to take out any costs, be said. The Wanganui district was mostly sheep country and one set of figures showed that in a season 1987 calves had been collected in 4600 miles of running, showing a return of less than 6d pef head per mile. A number of carriers had said that if the price was not raised they would riot cart at all. f J lie “pirate or price-cutting carrier had now just about disappeared. The competition for calves (five firms operating) was so keen that one firm was offering beneino free. Another firm had offered Is 6d a head, but when they had heard of the sitting of the Authority they had withdrawn that in favour of ‘the rate which is fixed.” That showed that Is Gd could be set at least. In Taranaki there were many calves, in Wanganui a few, so that a realty good price in Taranaki might be a starvation one in Wanganui. It was a pity that the island bad not been zoned Mr 'Thomas (Wairarapa) said that the original price in his district had been Is but that bad been reduced. He understood it was now to be advanced. Eighteenpence was not too high a price per head. A conference between the interested parties might he able to so improve methods that Is a head would be enough. In the South Wairarapa. where there was efficient organisation with up-to-date methods of carriage, 1, would be enough. In the North Wairarapa, about Ekotaliuna, Is bd would he required. EXPORTER’S VIEWS.

]\lr N W. Hastings, representing the Tig Marketing Association, said there were many influencing factors Some firms had a better connection and coil d operate at Is whereas others would require Is 6d or 2s. Carriers doing the hobby calf business secured a connection and pig and lamb cartage resulted in making up the loss on calves. H.s firm had tried to keep the camels on the road all the year. The carriers did not often change from one firm to another. showing that they valued then connection. Tt was possible foi t o borne to defeat its own ends, ft the coSt,rose too high the farmers would prefer to skin their own calves and sell the skins which were the most valuable part of the young calves. Many

of the carriers had started running too early and as a result they picked up only a few calves. The Authority should also fix the first day on which the collecting season should commence. If the season commenced at a definite date all calves born before that time would be lulled and the skins sold. It was necessary to have the calves paid for at the gate in order to reduce the costs of the business. There bad been evidence as to tlie extra cost placed on the carrier because he had to pay cash at the gate. A lot of that delay was due to farmers acting as “auctioneers” and the carriers bidding for the calves. Thus they lost time. Mr Robinson (for Currie Bros.) said the carriers did not go out until they were told to do so. Air Hastings said his firm did not set a date.

Air Pettigrew (for the Patea Freezing Company) said that his firm had found that the average cost in its cartage, per mile, was lOd, and the payment made was Is a head. Air AV. Wilson (for a local organisation in the South AVairarapa controlling the collection of veal) said there was no overlapping there, no cash being paid at the gale, and the costs had been B.Bod a mile. VARYING DISTRICTS.

For Messrs J. C. Hutton and Coy., Air G. AV. Powdrell suggested that every district be reviewed on its merits. The basic rate of Is of last year could be taken as the common denominator and the extra costs added to it.

Mr Knight, for Alessrs W. and B. Fletcher, said in Auckland the exporters had considered an advance of 25 per cent, on last year’s payment of Is was equitable. Mr Hastings said that m the Waikato 60 per cent, of his firm’s carters had contracted to operate at Is 3d. Air Skoglund said that the figures for 1935 showed that in that year 19 per cent, of the calves had been carted at 9d a head, 3 per cent, at lOd, li per cent, at lid, 58 per cent, at 12d, .62 per cent, at 13d, 6.04 per cent, at 14d, 7.46 per cent, at 15d, .24 per cent, at 16d, and 4.08 per cent, at 18d.

Air Matthews (Pahiatua), a carter, said the increased competition had advanced the price of collection. Air AlcDowall said that nothing the exporters had said had substantiated any argument for the carriage oi calves at an uneconomic price. 11 was admitted that calf cartage gave the operator a chance to canvass for other business. At all times the carrier was at the mercy of the exporting interests. The hobby calf industry should stand on its own feet and pay its way. I lie greatest evil was the difference in the prices paid. A universal cartage price was not the solution of tlie problem. A variable price to suit different districts was essential. THE AUTHORITY’S VIEW. That point had been provided by tlie difference in the payments made so far, said Mr Skoglund. As far as lie was concerned lie thought the only way to approach the subject was to grant a percentage over and above tlie price paid last year. At the close of tlie morning s session Mr Skoglund asked that a discussion he held this afternoon on the better collection and disposal of the calves. Tlie business was not conducted on tiie best lines and could be improved, lie added. It was not lift job, but since the Transport Department had taken the matter up he would like to have “something to go hack to Wellington with.”