INCREASES IN FREIGHTS.

New Zealand Herald, Volume LII, Issue 5883, 1 April 1915, Page 8

INCREASES IN FREIGHTS.

COMPANIES' PROFITS.

REPLY TO MR. BURNS.

[BY TELEGRAPH. —OWN CORRESPONDENT ]

Wellington, Wednesday. Inquiries regarding the statements made by Mr. R. Burns, president of the Auckland Chamber of Commerce, a few days ago, were made among the heads of shipping companies in Wellington to-day. Generally, the gentlemen approached showed a very strong disinclination to discuss publicly their own business, but they did express opinions to the effect that Mr. Burns's statement showed 4 lack of knowledge 011 his part of the subjects of which ho spoke. Mr. Burns stilted that an ordinary cargo 6teamer would carry 12,000 tons of freight, and on this he based calculations of the earning capacity of steamers. Figures were produced to show that the estimate of 12,000 tons is just about double tho quantity of cargo carried in an average full ship leaving New Zealand for any English port. Mr. C. Jl. Turrcll, of the New Zealand Shipping Company, replied to Mr. Burns in more detail. "Wo have had no advice of Increases in freight charges from Home ports yet," he said. "We have only heard of them from consignees on whom demands for extra freight have been made, but we have expected that extra freights would be charged. People, generally, do not realise how tho working cost of ships has increased of late. Coal has doubled in price and all provisions, of which very largo quantities have to be purchased for ships, have increased enormously in price The cost of building steamers has gone up at least 30 per cent, in the last few years. The extra expense entailed on shipowners by delay in loading and unloading in London is very heavy, for, when a ship is lying in port earning nothing, and the running cost is still going on, the owner's profits soon disappear. Ships ordinarily discharged in eight or nine days have lately taken as long as five or six weeks to unload. Fortunately, this does not apply so much to our ships, which have been given a degree of preference owing to such a largo part of their cargo consisting of frozen meat and other goods required urgen'ly by the authorities at Home. But 10 other New Zealand ships, carrying general cargo, have been weeks in di charging. These are some of the reasons why the companies have to charge extra freights. I have omitted to mention the heavy charges wo are called upon to pay now for war insurance.

" Mr. Burns also makes this incorrect statement —'The rates on produce shipped from New Zealand to London all bear a surcharge of 25 per ce°t.' It is quite incorrect to say that. The companies hero have not put any war surcharge on frozen products, which are all carried under contracts made before the war broke out, and on an average insulated ship about three-fifths of the space is taken up by meat and dairy produce. " Mr. Burns refers to a recent increase a3 being the third since the outbreak of the war. Ido not know that there have been increases, but I do know that there have been several increases' in freight rates at Home, of which wo have never been advised. Freights are all prepaid by shippers at Home, so that we know nothing about the rates. When the war began, owing to the difficulty we mot with in insuring our freights, we required all freights to be prepaid, but since then we have been able to make arrangements to ii.sure our freights, and shippers from here are not asked for p®payment. But we are not advised of the freights prepaid at Home, presumably because they are not established for any time-. They are at a certain level to-day, but there may be another rise or reduction to-mor-row. Rates from London are at present fluctuating."