SHIPPERS AND IMPORTERS

Otago Daily Times, Issue 20472, 28 July 1928, Page 19

SHIPPERS AND IMPORTERS

ANNUAL MEETING OF ASSOCIATION. RAILWAY PROBLEMS DISCUSSED.

ADDRESS BY MR STERLING. The annual meeting of the Shippers and Importers’ Association was held in the Somerset Lounge, Savoy Building, last night. Air A. H. Allen (chairman of executive) presided, and there were about 50 members present. In moving the adoption of the annual report and balance sheet, the chairman said he desired to congratulate members on the completion of another very success- , ful year. Regular meetings of the execu- ; tive were held, and were always well attended. The many matters dealt with proved interesting, and each member of | the executive was equally anxious to do all in his power to solve or minimise the difficulty of his fellow importers, and ! also to give of his best towards the ad- ' vancement of Dunedin and Otago geuer- | ally. It was gratifying to be able to , report that not only had the membership been fully maintained, but that foi toe incoming vear 20 new members had already been secured. It was desirable that all importers and shippers should ; join the association, for numerical as well | as financial strength was imperative if i the association was to function as it | should. Financially the association was ■ in a much better position than hitherto, j and was steadily building up a substan- j tial reserve fund for possible contin- i gencies. The improved financial position . justified the executive in recommending | to members that the annual subscription . on the higher scale should now be reduced j from five guineas to three guineas, and | proposals to amend the rules in that | direction would be submitted later in the > evening. Very early in the year ad- , vances were made by the Chamber of I Commerce suggesting that such bodies as ; the Expansion League, the Alanufacturers’ Association, the Otago Importers and Shippers’ Association and others should sink their identity and become sub-com-mittees of the chamber. This proposal had for its object—first, the saving of expense by having a combined secretary, and resultant saving in such items as office rents and administration expenses, and secondly, co-ordinating the work at pre- i sent performed by these separate bodies. Very careful consideration was given to the proposal by each of the interested bodies, but after several meetings both separately and conjointly, each association found the idea impracticable, and nothing eventuated. Whilst the executive realised that unity was strength, in common with the other bodies concerned it maintained that where each executive was devoting its whole time to the special study of its members’ problems if all combined when a common difficulty threatened them, their combined strength would be even greater than that of a body operating under one head. Chief amongst the objections raised by the executive to the proposal was the fact that, whereas at present it was free to contest any legal difficulty that might threaten any ot its members, such freedom would be lost to it under absorption by the Chamber of Commerce, owing to its membership embracing all classes of the commercial community. Obviously, the chamber could not take legal action against one section of its members tor the benefit of another. For several years the executive had urged a more frequent and regular passenger service between Australia and South Island ports, via Bluff. For a time an-improvement was made by the Union Steam Ship Company in placing a second steamer (the Moeraki) in the service, but, unfortunately, this vessel was withdrawn after a comparatively short trial, since when only by the Alanuka had the South Island been directly connected with Australia. Lufortunately, owing to the temporary withdrawal for annual overhaul of this steamer, the position had become worse than ever, for no passenger vessel had been trading between here and Australia for some weeks now. This was a condition which had aroused feeling along the whole of the east coast of the South Island, and steps were now being taken to bring together importers’ associations, | chambers of commerce, expansion leagues, and others, with a view of bringing pressure to bear on the Governments of New Zealand, Tasmania, Victoria, and the Union Steam Ship Company for a more frequent and regular service. Whilst the Union Steam Ship Company could not be blamed for refusing to carry on an unremunerative service indefinitely with two passenger steamers, he felt tnat had the company given regular service and also arranged with Continental and other shipping services to Australia to discharge their transhipments for South Island ports at rAlelbourne instead of at Sydney, the cargo trade via Bluff would not have fallen off to anything like the same extent as had happened. With regular passenger steamers in the service he was sure that much greater support would be extended to it, both as regards passengers and cargo, but the service must be advertised, r or instance, through passengers to New Zealand by the Peninsular and Orient vessels heard nothing of the voyage relating to a steamer via Blull until the vessel touched at Fremantle, and pi’obs-bly Adelaid6, by which time they had made their arrangements via Sydney and Wellington. He understood that the Alanuka would be re-commis-sioned for this run next month, and whilst this was evidence that the company intended to maintain the limited service, one vessel was altogetuer inadequate. It did not appear as if the Union Steam Ship Company was over desirous to maintain this service with even one boat, otherwise it would have arranged that the Aloeraki would have first been.overhauled and placed in the Alanuka’s running during the temporary withdrawal of, that vessel. He understood that the Aloeraki had been lying idle for some months, and that the two vessels were being re-conditioned at the one time — the Aloeraki for some other service. It was hoped that the movement now being organised would be able to tender some constructive suggestions for an improved service, and if it was along the lines of a subsidy to the Union Steam Ship Company, by our own and other Governments, he hoped our Government would consent to assist. Reasons for such help on its part were:—(l) Increase in use of South Island railway routes by tourists and other passengers; (2) increase in revenue from tourists for all State departments, notably the Post and Telegraph and also Tourist Resorts: (3) quicker mail service from Victoria, South anci West Australia, also Tasmania: (4) development of the South Island generally; (5) as a set off to subsidies paid to two North Island services. Even from the Government’s point of view it was very desirable that visitors from abroad should enter at one end of the Dominion and leave by the other, instead of confining their visits to the North Island, as the majority now did. For too long now the people in this part of the Dominion had felt that the Government of the day had boosted the North Island with its many natural advantages to the detriment of the South Island, and the feeling was growing that further preference must be arrested. This might be difficult, for the North Island, with its preponderance in numbers, seemed able to claim greater consideration from the Government. If, however, this drift continued, there was a tendency that the South Island might become an appendage to the North Island, instead of being an equally important half of the Dominion. Since * the withdrawal of the Manuka, with the exception of one or two London boats bringing on a few passengers after calling at the North Island, there was not a boat bringing overseas people to the ports in the vast territory of the South Island. If passenger steamers, especially from United Kingdom ports, but also from Australia, disembarked their passengers in the South Island, many would remain here as they did at present in the North Island, as a consequence of being landed there. For their part they must use ever endeavour —(1) To induce closer internal settlement of this island in order that every suitable portion of it wna used for the greater productidn of our primary industries; (2) to stimulate Buch economic manufacturing as was essential for our own needs, and more particularly for the more densely-populated parts •£ the Dominion and, where- possible, foi

Australia; (3) to open out our scenic resorts, particularly the Fiord Land of Otago and Southland; (4) to urge upon the Australian Government relief from the great impediment to intercolonial trade caused by the Australian Naviga tion Act, as regards boats calling at Tasmania en route to and from New Zealand Along these lines he believed that a development of intercolonial trading with the South Island was possible and that greater shipping facilities would result. In spite of vigorous protests from trade organisations all over the Dominion, the Government remained obdurate to all appeals to discontinue the interference with legitimate trade caused by the cash-on-delivery system. The profit accruing to the Post Office, which transacted the business, was at the rate of 4d per invoice for collecting the value of the parcel and remitting the amount to the sender. Even this small profit to the Government must be offset by loss of income and other taxes which would be payable by New Zealand retailers if the extra business were handled by them. Assuming the average value of a parcel to be £5, it was worth noting in passing that if the public wished to remit this amount Home the poundage would Vie Is 3d, yet the Government facilitated the business for outsiders at a charge of 4d. On parcels of higher value the charge of 4d remained, but the poundage on a money order increased according to value. The extent of business done had not been divulged, but at a conservative estimate it would probably bo not less than £IOO,OOO per annum, and was still growing. If this were distributed amongst the trading community it would be a not unimportant factor in reducing unemployment, Again, harbour boards would receive the dues on the importation of the goods as they passed over their wharves, whereas under the C.O.D. system no dues or charges were leviable. Buying goods from catalogues must often result in disappointment to the purchaser, for with most articles it was impossible to decide quality and value from a descriptive illustration. As the goods were paid for before an examination could be made, the system was open to grave abuse and loss for the buyer. Undoubtedly the principal gainer was the large wealthy retailer in Great Britain, and it seemed most unjust that the Government should sanction a continuance of such a pernicious practice. Another objection to it was that, it required a further increase in the numerical strength of our already unduly lai civil service. If our public wished to make its purchases abroad no one could reasonably object, but there were strong grounds for objection to our own Government acting as the agents for overseas traders, to the detriment of our own traders and taxpayers. These, amongst other equally important matters, continued to exercise the attention of the executive. Much that the association was created for had been accomplished, but much remained to be done. Whilst much had been accomplished it would be fatal to become lulled into a false sense of security. They received from the shipping companies every courtesy and reasonable consideration of matters placed before them, but this was the day of unionism, and as the companies were united for the protection of their great wealth and power, it was necessary that importers and shippers should unite, too, for the protection of their own interests. Mr James Taylor seconded the motion. He congratulated the executive on the comprehensive report it had submitted and the chairman on the able speech be had made that night. The report was evidence of the good and solid work ot the executive, and the thanks of all importers and shippers, whether members of the association or not, were due to the executive. It was pleasing to note that the funds were so satisfactory that the executive was prepared to recommend that the time was ripe for a reduction of the annual subscription. If they could get another 50 or 60 members the funds, at the end of the coming year, would be in as satisfactory position as they were to-day. Importers and shippers who were getting the benefit of the work of the executive should be approached with a view to duplicating the membership. He had to acknowledge the friendly co-operation that had always existed between the association and the Chamber of Commerce. During the past 12 months the chamber had held many important conferences with members of Parliament, and others on tariff, shipping, and other matters, and the executive of the association had always been represented on those conferences. Valuable help had been given to the chamber by Mr Allen during the year —indeed, so useful had be been that he had been nominated for the important position of vice-president of the chamber for the coming year, and it was possible that in the following year he would rise to the position of president.—(Applause.) With regard to the matter of amalgamation, although the overtures made had been rejected, he hoped that something would yet eventuate in that direction. He knew the argument was advanced that there would be conflict of interests among shippers, importers, and others. But he believed that no one body would be other than desirous that all parties should have a square deal, and that being so there would be no conflict of interest, because any matter under dispute would be the subject of arbitration. He was looking forward to the time when the chamber would be so functioning as to focus ail the commercial interests of the city. At that time the secretary of the chamber would also be the secretary of the association, with Mr Gow as amicus curiae, or the friend of the court, which was one of the most important offices any member could fill. With regard tS> overseas shipping, the chamber had endeavoured to obtain equal treatment with the North Island in the matter of steamers from the west coast of England and the east coast of America, but they had been informed by the Shipowners’ Allotment Committee that, for various reasons, it was not possible to comply with the request. That being so, he would ask shippers to make their drafts payable on arrival. With respect to the Harbour Board, while he gave the members credit for sincerity and singleness of purpose, trying to do their best for the board, he maintained that popular election was not the ideal way of electing members of the board. He remembered that a year or two back a gentleman well known in the city, who had qualifications second to none in board matters, was not elected; he referred to Mr J. B. Waters. It seemed to him that some change in the constitution and personnel of harbour boards was due, but whether in the nature of commissioners or not he was not prepared to say. The chamber had recently set up a committee to report on the position, and its report would be presented at an early meeting of the executive.

Mr S. B. Alacdonald said he recently nad the privilege of meeting a gentleman from England, a man who had spent a considerable time among the manufacturers of Great Britain. This gentleman had investigated the C.O.D. system as far as New Zealand was concerned, and his opinion on the matter was that the Dominion was the laughing-stock of Great Britain in connection with that particular question. This gentleman had made the suggestion that the shopkeepers in New Zealand should give an ocular demonstration, quality for quality, because it would prove conclusively that those people buying C.O.D. from England were being gulled, not only in quality for quality, but they were buying largely German manufactures. Mr R. Cuddie asked, What happened to the C.O.D. parcel if the consignee refused to take delivery or to pay? The chairman said it was sent back at the expense of the original sender from the Old Country. The motion was agreed to. The retiring members of the executive— Alessrs R. Cuddie and H. C. Campbell—were re-elected. The rules, which had been slightly amended, were adopted. ADDRESS BY AIR STERLING. After the formal business had been transacted, an address was given by Air H. H. Sterling (general manager of railways). Mr Sterling was introduced by the chairman, who stated that the desire ot the people of the South Island was that there should be a proper connection from one end of New Zealand to the other. If the Union Company, with the aid of the Government, could be induced to give services to both ends of New Zealand, the railways would have great opportunities, which were at present lying dormant. Seeing the North Island was not seeing New Zealand, and every effort must be made to induce overseas passengers to travel from one end of the country to the other. The tourist traffic was steadily developing, and it must hold great possibilities in the future;

Mr Sterling, who said it was with a great deal of diffidence that he had agreed to address the meeting, expressed thanks for the invitation extended to him. Owing to the pressure on his time the temptation to say “No ” was strong, but his personal feelings got the best of him, and he had decided that he must come to Dunedin, where he had spent 11 of the best years of his life. While he was here he had served under railwaymeu of the first quality, including Mr Grant, Mr Hiper, Air Waite, Air Bowles, and, above all. Air Beviu, who was, to the speaker, a wonderful man. He felt that wlien he had come through with Air Bevin he had his foot on the first rung of the ladder. He desired to pay his tribute to the worth of Air Bevin and to say how much he was indebted to him in the matter of his education as a railway man. He also wished to say how much ho appreciated the privilege of being able to attend the Otago University, which was undoubtedly a great institution. While there he had the good fortune to study under the benign influence of men such as Professor Adams. Air Sterling said he realised to the full the responsibility that had been cast upon him. He was glad, apart from the personal aspect, that the great responsiblity had fallen to the lot of a New Zealander, for he believed that there were just as good men in this country as there were out of it. He was proud of the men who were associated with him. His was not a job for one man. It was a job for a lot of men, including those present, and he believed they could face the railway problem like one man and solve it just as well as the next man. This was a problem everywhere, for the question of transportation was in a state of flux. The railways must continue to do their job, and the country would see the matter through. There were many problems to be faced, but the great difficulty he had seen so far was to get them clearly stated. Alany new factors had entered into this question. He realised how much the standard of comfort had advanced, and the greater demands being made on the railways. The people wanted this and that, and, though it was easy to want a thing, it was not always so easy to satisfy that want. He believed that the railways of this country had risen, and would rise, to the occasion just as well as those of any other country in the world, all things considered. The position was that the demand must meet the supply. They were proud of the fact that the average wealth of New Zealand was higher than that of any other country in the world, and, taking everything into consideration, thi New Zealand railways need not blush m the company of other railways. He agreed that he had a hard job ahead ot him, but he beleived that much of the difficulty that had arisen was the result of obscure thinking in regard to the transport problem as it affected this country. He had not said that he would make the railways pay. They were not built as a profit-making institution, but as a service institution to meet the requirements of the country. The department had to put the railways as an asset in the national balance sheet, and in that respect they would be made to pay, as they would give service that would be worth while to the country', which would not be able to do without that service. It was the duty of the department to give the people the transport facilities upon which their existence depended at the lowest posible cost. Ihe solution of the railway problems was a job for the community, and they had to be met in the principle of co-operation. He and the staff had to co-operate internally, and the departmental officers and the customers had to co-operate externally. He believed the solution lay in a more adequate understanding of the in* tricacies of the transport problem. He hoped to discuss with them problems ot mutual interest. _He thought everyone would admit that the railways ‘ had done yeoman service. He hoped that in the course of the development of the spirit of co-operation which was the solution of many problems to-day it would be his endeavour, so far as one man could do anything, to come into contact with the people as much as possible. He trusted he would never settle any major question by correspondence. (“Hear, hear.”) It would be his endeavour on every occasion to do as he had been able to do that day—to come into immediate contact with those who used the railways. Their aspirations of all parties being the same they had only to get together in order to secure that fruitfulness of ideas that resulted from an exchange of opinions, and in that way fewer difficulties would arise in the future. To the best of his ability he would give the most careful consideration to every problem put to him. He hoped to do his work impersonally and without any feeling against any person who might find it necessary to represent strongly any matter on which that person might feel strongly. It would be his endeavour to give sympathetic consideration to everything that was placed before' him. There were always two sides to a question—(applause)—and he had had the opportunity to realise, in his own personal experience, the other side of the question. When he went out of the railway service he became the head of the biggest customer the railways had in New Zealand—the New Zealand Co-operative Dairy Association. That association had a turnover which this year would approximate £6,000,000. It owned its own coal mines, saved its own bush, made its own boxes, and so on. Therefore, he was particularly fortunate in having come into contact with the railways on the other side of the fence, and to have got the customers’ point of view on the railway problem. — (Applause.) That fact, he trusted, would be of value to the Government in the office he now held.

Taking up another theme Mr Sterling said he was proud of the railway men. Their loyalty to their work was unbounded. Loyalty was almost a tradition among railway men, and the people, he believed, would secure from them as good a service as the people in any other part of the world.— (Applause.) He had pledged the men to do their work, and he was confident they would honour that pledge. Mr Sterling went on to say that he was in agreement with the association in respect to an adequate transport service overseas for the Dominion, and he did not hesitate to say that so far as,the Railways Department could co-operate in securing such a service the association could count 100 per cent, on its co-opera-tion. — (Applause.) In his remarks that night he had only skimmed over some of the main points of the railways, and at another time he might discuss with them some of the cardinal principles underlying the operation of their railways. In closing his address, he said: “ To summarise my jposition, I say that I am assured of the co-operation of the great body of railway men in our country. I ask your co-operation as business men. You have a definite responsibility as shareholders in this institution, because that is what you are. Every man, woman, and child in New Zealand has nearly 50 fully paid up £ shares invested in the railways, and I ask you, as the shareholders, to join with me from now forward to regard the railways as a great co-operative institution, in which you have a share and a responsibility, and in that way we will use to the best purpose the railways of New Zealand, and give satisfaction not only to the users of those railways but to the general publie, who own them I ask for your assistance and for your constructive criticism, because I do not desire to burk criticism on any occasion on which you may wish to bring it forward. I thank you for asking me to address you, and I thank you for the patient hearing you have given to me.— (Applause.) Mr E. H. Moller paid a tribute to Mr Sterling for the prompt and business-like manner in which he had arrived at a settlement of the difficulties which had arisen in connection with the taking over of the Port Chalmers wharves. If one could always meet such a man, he said, it would be a pleasure to those participating in public life. Mr J. B. Shacklock said he had no grouch whatever against the Railways Department. He had travelled very considerably, and he had come to the conclusion that there was not much to find fault with in connection with the New Zealand railways, considering the age of the country. They were managed better than some of the lines in Great Britain, and he thought that, on the whole, they compared very favourably with those of the older countries. Mr T. Somerville congratulated Mr Sterling on the position to which he had been appointed, and said he believed that I after his experience with the New Zealand Co-operative Dairy Company he would be better able to grapple with the problems that confronted him than he would have been had he remained in the railway service all the time. The com | munity generally had a particular interest i in the tremendous problems of transport, j and unless the service which the depart- ; ment provided was working harmoniously I and constructively the users would suffer, j There was to-day a striving for a better ' understanding and more co-operation, and

he believed that Mr Sterling had struck the right note in his address that night. The problems could only be solved by more friendly co-operation and a better mutual understanding than had prevailed in the past. They could do anything provided there was a spirit of co-operation and the discussion was in friendship. Mr C. Todd said he agreed that the service could only be in accordance with the needs of the population. They could not expect a service here such as they had in the United States or in England. Seeing that motor traffic had come in, he would like to ask Mr Sterling if he intended to feed the lines at the railheads and ask the Government to assist him in putting down good roads and see that a legitimate charge was made on the vehicles running in opposition to the railway. Let buses and trucks feed the railways, and let them pay a fair charge of the upkeep of the roads. Mr Taylor thanked Mr Sterling for the through night service from Christchurch to Invercargill. Mr H. C. Campbell, who proposed a vote of thanks to Mr Sterling, said he came into contact with the railway officials daily, and any request within reason bad never been refused. The lime taken up in railway travelling here compared very favourably with that in nauy other countries. In recent years they had had substantial additions to the services in the way of facilities for the interchange of commodities.

In acknowledging the vote, Mr Sterling said there was no question that motor traffic had come to stay, and unquestionably it had a proper place in the transport system of the community, '.i'h department frankly recognised that tact, and Was anxious to co-operate with the motor people who would give services to the community in their proper place. There had been too mush uneconomic competition in the past, which had rendered the department’s task particularly difficult, The department was anxious to develop motor traffic as a feeder to what he believed would be the backbone of the railway system for many ye«us. At the same time there were some districts which could not be adequately developed by motor traffic. He hoped, as he developed the transport business in connection witlj, the railways, to make motors of greater use to this country.

Votes of thanks were accorded the executive; Mr Gow, for his services as secretary; and the press.