THE SHIPPING WAR.

Otago Daily Times, 27 April 1906, Page 3 (Supplement)

THE SHIPPING WAR.

Tf;E FKDaRAL IJ.VE TAKES ACTION. WELI,IX(ITOX T , April 10. The first' shot in the shipping war between the New Zealand-Shaw-SaviH-While Star combination and the Pederal-Houlder-Shire hue has been fired, and the latter combination now announces the establishment of a direct line of cargo aid passenger steamers hoiwecn Xew Zealand and London. Sieamers will run at short and regular intervals. The Dorset, now discharging eargo in Auckland, will be Ihe first steamer to enl°r the trade, and she will leave from Wellington. The stecmere will take frozen meat, buller, cheese, wool, and genera! cargo at "groat reductions in freight," and through hills of lading will he given to all inland towns in the United Kingdom, America, and the Continent. Tt i? 'understood that very substantial reduction? in existing freight will he made. Largo reductions in passenger fares are also announced, the saloon fare to London being reduced to 25 guineas and the steerage fare to £12.

The Federal Company alleges that the war is the result of an attempt on tho part of the Xew Zealand and Shaw-Savill Companies to "jockey" it out of the West of Kngland trade. The other companies, I understand, state that there has been no such attempt, but no definite information on the subject can be obtained here, tho principal agents of the two New Zealand companies being located in Duncdin and Christchnrch.

THE NEW 7,F..\T.\XP SHIPPING COM- • PAXY'S GENERAL MANAGER. CHRISTCHURCII, April 10. A\hei sern this afternoon cor-certiing lha action of Ihe Federal Conipinv in reducing fares and freights hr-lwee.n New Zealand and London. Mr Isaac Gilihs. genera' manager of the N.Z. Shipping Company', said: — "The situation is quile clear. These people have been pin-pricking us for w>mo time; now they are attacking us If. gors without saying that we shall take ihe newsw; steps to protect our interests and cur clients may rest assured that they will receive as favourable treatment fiom 'ii« its from anv other lice. The action of ths Federal.Jloul.ler hue necessarily entails allround reduction o f freights and fares. Whether this will he permanent or only temporary remains to be •.•ecu. Beyond this I havs nothing lo nijv' IHE MANAGER OF THE FEDERAL LINK. WELLINGTON', April 10. _ Mr Owen Cox, manager in Aeelralia for the Fecl?ral line, declines lo make a. stat.lnjciit about the sltipning tariff war. From inquiries made in oMior directions it seems unlikely that lh* company will advertise a. fixed tariff of freights, hilt will deal with simmers individually. The result of this will probably be the rreaticn of on open market for freights. The rates quoted by all the companies are likely to be governed by the circumstances of the moment. A DUNEDIX OPINION. A gentleman prominently connecied wi'li shipping .naiters. seen on the subject of the cutting of rates, said that Ihe announcement by the Federal Company did' not indicate that that company proposed to offer any ronces-ions in frckltl; other tlian it had li:cn known to be giving for some, time past. But if the great reductions in licights did represent anything move than the company's agents had already been offering, it wai strange that the announcement should have been made at the present time, seeing that it was. reported that two of its vessels, thi Essex and the. Do«ct, shortly to lie plared on the loading berth, were assured of full cargoes at nominally current rates, which will presumably have to be sacrificed now for the reduced rate. In reply to questions respecting the probable action of the lines with which the Federal Company is competing, the opinion was expressed that so long as they could fill their steamers at full rates these com-

panies would probably continue to do so. With reference to the announcement of a reduction in passenger fares, the comment which was made was that the steamers at present innning in the interest of Iho Federal Company have only a limited amount of saloon accommodation, and that, if it is proposed to cater for first-class passengers on these vessels, it will be necessary lor the company- to make provision of various kinds that is not offered in existing circumstances. LOCAL IMPRESSIONS. The principal topic of conversation in shipping and commercial circles has been the cutting of oversea passenger rates by the Federal Shipping Company, and the probable effect of a similar reduction in outward freight rates. Tho Fodoral-Ifoulder-Shire Line, after a little preliminary orchestral music, opened the ball, so to speak, by reducing Iho saloon fare to London to £25 and (lie steerage fare to £12. The programme Further announced that there would l>e great reductions in freights on butter, cheese, frozen meat, wool, and general cargo, but so far the efforts made to discover what the latter reductions amount to in terms of an arithmetical expression have been futile. The local representative of one of the companies most intimately concerned absolutely disclaimed all knowledge of future arrangements, beyond what, has already appeared in our advertising columns. Meanwhile matters in connection therewith are being adjusted 'oetween the London headquarters and the Wellington branch office, and until these have been effected nothing of a definite nature can be made public. Nothing further could he gleaned in this direction yesterday beyond the fact that a number of applications for berths and inquiries for cargo space have lieen made at Messrs Turnbull. Martin, and Co.'s office, but it could be seen that, notwithstanding a frank disavowal of any further knowledge concerning immediate developments there was something in tho 'background ■ liich would only be disclosed when official reticence Jiccamo impolitic. Whatever this may bo can only be conjectured at. [.resent. Agents have no difficulty in filling cargo and passenger space, but a couple o; months hence the slack -easnn begins, and by that time the freight war will be in full swing, and. judging by present indications, the si niggle will be ; 'oily severe while it lnsis. So fur as passengers are concerned, the Shaw. Savill Company and the New Zealand Shipping Company have an advantage in many respects, hut in the matter of cargo the quosiion resolves itself largely into one of cheap freight. 'Hie farming community is directly interested in this phase of (lie question, and it, is anticipated will use its influence in favour of and give support to the company which carries its produce at the cheapest rates. On being questioned upon ibis point, e. representative of the Shaw. Savill. and Albion Line remarked—" All wo can say at the present time is that our ships are full in the meantime, and we can do nothing even if we so desired. We shall use. every endeavour to keep om- clients, and e.lso their patronage, and, whilst determined to protect their interests and our own. Mill we can only iWI with enniingeneies as ihey arise from lime to lime, and thou v:e shall more than meet them. Wo will simplv do what any other 'business firm would do under similar circumstances. Beyond this we have no further announcement- to make." In putting the same nuestion to a representative of the New Zealand Shipping Company the only reply vouchsafed was, "Toll me what rales (brother side are going to charge for freight.. I and then I may be able to tell you some- | thine." Here the pressman was- at a I decided disadvantage, but in an endeavour to extract a little more definite information sundry artless questions were asked, but misdit as well have been addressed to tho sphinx. The general impression appears to be that, whilst freight and passengers aro offering freely, as at present. tt"-'re is a, possibility of a osinpraini-c being effected.