HIGH SHIPPING RATES.

New Zealand Herald, Volume LVI, Issue 17275, 26 September 1919, Page 8

HIGH SHIPPING RATES.

EFFECT ON FLAX INDUSTRY.

"THREATENED WITH RUIN."

REDUCTIONS NOT LIKELY.

A very serious position ha s arisen in the flax industry as the result of the high freight rates on oversea shipments. This fact was disclosed in correspondence read at yesterday's meeting of the council of the Chamber of Commerce.

John Burns and Company, Ltd., wrote i urging that pressure should be brought | to bear on the Prime Minister in regard I to reducing the freight on hemp and tow : to London. They > stated that sirnul- ; taneous action in this direction was being \ taken by the merchants and millers in Auckland, Wellington, and Dunedin, and the assistance of Christchurch had been asked. The industry was in a serious position owing to the excess rates being charged. The pre-war freight rate on hemp was £3 8s 3d a ton, whereas the present rate was £15 15s, an increase of £12 6s 9d a ton. The pre-war freight rate on tow was £4 4s a ton, as against a present rate of £25 4s, an increase of £21 a ton. Flax was quoted at present in London at £45 a ton, c.i.f.e., and it was impossible to pay the present freight, rates and make it pay in the Dominion. Tow was quoted in. London at £27 a ton, which did not pay Freight and charges. , The grain people in the South, continued the writers, were making a struggle to get the freight oh grain reduced, and if the chamber brought pressure to bear at the same time in regard to flax and tow, they might secure a reduction. Immediate action -was ceces-

sary. The secretary, Mr. H. C. Tewaley, stated that on receipt of this communication the president, Mr. M. M. McCallum, had written to Mr. Massey, pointing out the serious handicap under -which the industry was struggling. He had urged upon the Prime Minister that unless the Government would seriously grapple with the situation, and leave no stone unturned to bring about a reasonable reduction in freight, the effect would be that the industry would be ruined, and New Zealand would suffer in consequence.

In reply, Mr. Massey had written stating that the question had already received the attention of the Government, and representations had been made to the New Zealand Overseas Shipowners' Committee on the subject. The chairman of the committee had replied to the effect that the rates of freight were reduced at the end of November, and no*w represented a freight rate in a steamer's hold of £6 a ton measurement. Representations were made to London with a view to ascertaining whether any further reduction on these rates could be considered, and a reply was received to the effect that no reduction was possible, either at present or in the near future. It was stated that Mr. McCallum had recently formed one of a deputation that had waited upon Mr. Massey in Wellington on this subject. That being so, further action was deferred until Mr. McCa'lum's return.

The complaint was also made bv Burns and Company that the freights on copra shipments to England were excessive. They stated that the pre-war rate was £2 a ton, and the present rate £12 a ton. This having been referred to the Prime Minister, together with the matter of hemp freights. Mr. Massey replied that it had been considered by the Overseas Shipowners' Committee. He would communicate with the chamber when he had received further information on the subject. In the meantime he was hopeful a reduction would be possible.