HIGH FREIGHT RATES.

New Zealand Herald, Volume LII, Issue 15885, 5 April 1915, Page 7

HIGH FREIGHT RATES.

POSITION EXAMINED.

SMALL STEAMER'S EARNING.

INCREASE OF £18,250 SHOWN,

The recent advances in shipping freights were further discussed on Thursday by Mr. Robert Rums, president of the Chamber of Commerce. He dealt particularly with the Criticisms of his former statements by Mr. C. M. Turrell, of the New Zealand Shipping Company.

Referring to the suggestion made by representatives of shipping companies in Wellington that his statements showed lack of information, Mr. Burns said that the freight rates which ho quoted were supplied to him by the New Zealand Shipping Company in response to his request for a statement of the rates ruling before the war and of the latest tariff. The company neglected to inform him that prior to the outbreak of war, contracts had been made for the carriage of butter and frozen meat at tho old rates, and that the surcharge of 25 per cent, was not imposed on this class of cargo. When his attention was drawn to this fact, he had made a correction of his original statement. "The inference is, however, obvious," Mr. Burns remarked " that in the absence of these contracts, the shipping companies would have levied the 25 per cent, surcharge on butter and meat. 1 am informed that the freight rates for shipments of such cargo from Australia, where similar contracts have not been made, have been materially increased." The Anglo-Brazilian's Case. Objection had been taken, Mr. Burns continued, that it was unfair to estimate the earning capacity of steamers on the basis of a vessel capable of carrying 12,000 tons of cargo. He had therefore examined the actual case of the steamer Anglo-Brazilian, a vessel of 4688 tons net register, taking the last round trip of this steamer as an illustration of the results created by the increase in freights. A vessel of that size should havo a cargo capacity of 7000 tons. He had not been able to ascertain exactly the quantity of cargo carried by the steamer on her last voyage, as a portion of it had been landed at Australian ports, and records of those consignments were not available. As the steamer had been fully loaded, her original cargo could not have been less than 6000 tons.

Mr. Burns said the Anglo-Brazilian had loaded her cargo at Montreal, but as quotations of the rates from that port could not be obtained ho had examined the vessel's case as if she had come from New York. Hie freight rates from New York had advanced by 42s 6d on the minimum rate, and 56s 6d on the maximum. Taking tho former figure as the basis, it was apparent that on her last outward voyage, the Anglo-Brazilian had earned £12,750 more than she would have clone on the July rates. Mr. Burns 6aid he had taken the figures given by tho New Zealand Trade Review for the vessel's homeward cargo, and having calculated the freights as carefully as could be done without tho actual accounts, ho had found that the value of the freight was greater by £5500 than it would havo been on tlio rates in force before the war. The earnings of the steamer for the round voyage therefore showed an aggregate increase of £18.250. That figure, he contended, was entirely disproportionate to the increase in working expenses The increase seemed startling on a vessel of the AngloBrazilian's size, and would work out at more per ton than the increase which he originally calculated for a steamer of 12,000 tons capacity. Mr. Burns "added that his calculation had been made on a most conservative basis, and his figures could be readily checked, as the steamer came to New Zealand under consignment to the New Zealand Shipping Company and made the return voyage under charter to the Shaw, Savill, and Albion Company. The Cost of Coal. Referring to the question of working expenses, Mr. Burns slid he could not understand the statement by Mr Turrell that "coal has doubled in price." He was informed by the manager for the West-port Coal Company that the statement was in fact incorrect. No advance had been made in the price of bunker coal ex collier, the only increase being 2s per ton on coal ex hulk. " If it is any consolation to the New Zealand shipping companies." Mr. Burns [added, "they can be assured that they are not the only companies who havo increased freight rates. The chairman of the London Gas, Lighting, and Coke Company, in speaking of an increase in tho price of gas of 2d per 1000 ft.stated that I when commandeering colliers, tho Imperial Government undertook to pay for them at a rate of freight equal to about 4s per ton, which was equivalent toaßout 30 per cent, rise upon the rate current before the war. Immediately, however, it became evident- that the steamers left by tho Government were unequal to conveying what vas required, 'the freight from the Tyne to the Thames was no longer 3d, but jumped to 13s per ton. 'It was natural to expect,' the chairman of the company continued, 'that tho authorities would* welcome an opportunity of lightening this burden on the community by charging approximately the cost of running the now-found ships plus a reasonable margin, and not seek to make a .profit out of the situation which they had rightfully, but surely with regret, created. That was not the view adopted. The present famine prices are regarded as the market rates, and are demanded of us. Our ships, which were paid for at a price of 4s, when lent baok again to us are valued at threo times that rate. There is a strange perversity about this action. The benefit of the high prices, apart from the surplus profit to the Government, goes to a limited number of shipowners and shareholders in shipping companies, whose profits must be enormous, and out of all relation to the cost of tho services rendered, while the sufferers who pay this Government-supported imposition are the whole community, already bearing, and bearing cheerfully, taxes of almost unexampled weight."