THE MOTOR SITUATION

Otago Daily Times, Issue 16666, 11 April 1916, Page 6

THE MOTOR SITUATION

EFFECTS OP RISING FREIGHTS. In an -interview by our representative with the managing director of the Colonial Motor Company (1/imited) some interesting information was obtained concerning the influence of the- freight problem in regard to the importation ot motor cars into Sew Zealand:— " Froiri what I can see," said Mr C. C Larmoux, " it is highly probable that in the near future the prohibitive cost of freight will debar the importation of motor oars altogether. Notwithstanding the fact that the Ford takes less bulk than the average car, the shipping charges are now almost boyond reason. And this despite the fact that owing to our volume ot business we are able to contract for large reservations. To show you the position, read this letter which has just arrived from the Ford Motor Company of Canada (Limited), whence we obtain all our supplies." A few excerpte from the commujnioation in question will give readers some idea of the position. " .- • Writing on February 29, the Ford Motor Company of Canada (Limited) state: — "As you possibly know, our contract with the shipping company expired on December 31 last. Confronted with , the neoes; sity of going frito the open market for space, we immediately got to work. We commenced to bid for space on steamers out of the Pacific Coast ports of Vancouver, Seattle, Tacoma, and San Francisco, and on the Atlantic Coast out of the ports of New York, Philadelphia, Portland, Montreal, Halifax, and St! John. Naturally, these,inquiries took time, to bear fruit, but we developed l Eome spletndid connections. "Right from the start rates jumped from quotation to quotation. At the outset we were able to 6hip to New Yofk and ship through cargoes for the steamers Arahien, Dongarra, and Canargo. The quotation for the first was' 75 cents per cubic foot, for the second Idol 3 cents, for the. last Idol per cuibio foot. Formerly the rate, was about 25 cents per cubic foot. "The next difficulty; "was ' the ■'absolute embargo placedi'on .all' 'shipments' 'to' "New York for export, due to congestion in that .port. It will interest you to know that at present there are about 40,000 railroad' cars tied up in and around New York. Munitions of war' consigned to the Allied Gor vernments have congested terminal facilities to an almost unbelievable extent. Tho railway companies are helpless in the matter. To crown all; the lighterage, service from pier , to shipeide'in New York has proved inadequate, and cargoes are not able to be loaded .with sufficient facility to relieve the congestion. " Thie explains why some of your cargoes that we had arranged left short-shipped. It was impossible to get oars to shipeide. We consider ourselvee extremely fortunate, comparing the number of cars we got out of the port of Now York under conditions such as they were, with the few shipped by other concerns. As the British Government ,has. requisitioned about 75' per cent, of all space there is no oertointy of any cargo until the boat hks actually left. As a matter of fact, there is 'practically nothing offering out of the port of New York, for New Zealand or 'Australian shipments. " As , there was no space available out of the Canadian Atlantic ports, we were forced to turn to the Pacific Coast, but the sailings out of the port of Vancouver are extremely limited. The lack of railroad equipment lias not eased the situation in any way. Wo obtained space for a few oars by Wenbee for Sydney alone, and we had , to pay 18 dollars a ton. Our next engagement for a limited number for Sydney and Wellington jumped to 384 dollars per ton. Outside of this very email number wo -have bean absolutely unable to obtain any further. spaes out of Vancouver. " Out of San Francisco a limited number of caia were shipped at 20 dollars per ton. The quotations for the steamers Kurow and Waikawa then jumped to 35 dollars, and we only obtained these by emgaging well in advance. The prospects for Maroh and succeeding months are not bright, and we think we have dono well to secure a contract out of San Francisco for April and May, sailing at 47s dollars. Almost over•night'the freight jumped to 52j dollars, and we know of one concern offering 57i dollars, but there was no extra spaco available even at this figure. One of our shipping connections goes so far as to say that the next quotations will 'bo between 75 ahid 100 dollars per cubic ton. "Boiled down, the position is that freights have more than trebled, and there is every prospect that the cost will be increased fourfold, with a good chance of no space being available at oily price." "Fortunately," intimated Mr Larmour, "we anticipated this situation to some extent, and wo now have in New Zealand and on the water 729 Ford cars. While theso wore shipped at high rates—we had to pay railage from Ford, Ontario, to San Francisco in addition, —we are still aiblo to sell at a low price. Aβ long- as the present stocks last we offer the fiv.e-seater touring car at. £230, and the two-seater runabout at £205, both f.o.b. _ Wellington. But it certainly seems as if we- shall not bo able to obtain supplies at all if the present conditions oontinue f " —11/4H.6.