SHIPPING COMPETITION

Otago Daily Times, Issue 21976, 10 June 1933, Page 14

SHIPPING COMPETITION

TO THE EDITOR. Sxb, —I have noticed various comments in your journal concerning the proposed establishment between this country and Great Britain of a new shipping service which promises lower freight rates as well as lower passenger fares. As a farmer who has seen wool go out of this country saddled with .ridiculously high freight charges, it is certainly gratifying to observe that at last some action will be taken in the matter. I have heard various statements, originated no doubt by interested parties, against the idea of allowing new shipping interests into the New Zealand trade,'but there is nothing like healthy competition to bring prices down to a sane level, and, after all, what have we, as producers of the Dominion’s primary products, to lose? Have we not everything to gain by having our cargoes landed in England at less cost? ( It is all extra money in our pocket. I, for my part, would sincerely like to see our Dairy Control Board, and our Meat Control Board, grant to this new shipping company a fair share of the cargo allotments when considering the new contracts, and I feel-sure that most of the various farmers' unions will heartily agree.—l am, etc., Penny Saved. Dunedin, June 7.

TO THE EDITOR Sir, —According to an announcement in your columns the other day from a shipping company it seems that some urgent investigation is wanted into the matter of freight charges between here and the Old Country. Surely the position is not ■ as this shipping company states, namely, that the contracts are limited to three companies and have, live-year periods. This is not fair competition and comes very near to being a monopoly. It is this sort of thing that helps to keep up the high purchase price of imported goods. Why arc not other shipping companies allowed to compete for this business? At, the moment this group makes competition impossible and the farmer has to pay the three shipping companies just what they care to charge. I am surprised to learn that this is the true state of affairs, and think that it is high time that a change was made and that our Dairy Control Board and our Meat Control Board give the various shipping companies a fair 'chance to compete. To my mind the present arrangement is most unfair and certainly is not framed in the best interests of the business and farming community.— I am, etc., Fair Play. Dunedin, June 8.

TO THE EDITOR. SIR— I was interested to see an announcement in your columns the other day from a shipping company soliciting a share of the cargo allotments handled by the Dairy Control Board and Moat Control Board. The request seems a reasonable one, especially in view of the present arrangement whereby the cargo is limited to three favoured lines. I would like, however, to sound a note of warning. In the announcement this company states that it is British owned and controlled. ! ( If this is so, all right; because this is a most important point these times, particularly when American boats, subsidised by the United States Government, are cutting in on our passenger trade. We require to stick to British-owned lines and ships every time. Our interests are so closely interwoven with those of the Old Country that it behoves every New Zealander to travel on British-owned boats whenever he can. If, however, this new line can give ns lower freight charges between here and the Old Country. T consider it should have a chance of competing for the cargoes that are offering. It is time we woke up over here and broke up many of the trusts and monopolies which exist. The present arrangement which the

Dairy Control Board and the Meat Control Board have almost amounts t 6 a monopoly. Why do they not throw the contracts open and let the various shipping firms compete? Straightforward competition is the life blood of business and never hurts anyone. ' I trust that the present state of affairs will not be continued on and that others with a sound knowledge of the subject ■will interest themselves in the matter so that we can get lower freight charges.— I am, etc., New Zealand First. The New Zealand Overseas Shipowners’ Committee has forwarded us a statement in the course of which it says:—“The Blue. Star Line is owned and controlled by Messrs Yestey Bros. Prior to the Ottawa Conference, Sir Edmund Yestey made determined efforts to prevent Empire preference being j achieved and did, his utmost to favour Argentine producers. Having failed in thij, and owing_ to a reduction in exports from Argentine to the United Kingdom on account of the quota, Messrs Yestry Brothers now seek to take away the carriage of v Empire cargo from those who have hitherto provided ail of the tonnage required for this purpose, and are ready to continue doing so. New Zealand producers can safely be left to draw their own conclusions us to the motives of the Blue Star Line and their owners, Yestey Brothers, who combine the roles of producers, owners of freezing works, salesmen, and distributors with that of shipowners and carriers —which combination of operations is entirely contrary to the general understanding which has always existed between shipowners and shippers. The statements made in a cable circulated to dairy factories, soliciting support for the Blue Star Line, are incorrect in most details. For instance, in its reference to the comparative rates of* freight from Australia and New Zealand, the statement was made that rates from Australia on refrigerated cargo are about the same as from New Zealand, whilst on wool and other cargo Australian rates are lower, and that these better rates had been obtained without the assistance of control boards. We wish to point out that freights from Australia to the United Kingdom are higher than from hew Zealand, particularly in respect of butter, cheese, lamb, and wool, the difference in favour of New Zealand in these commodities being 21s 6d, 25s Od, 32s 4d, and 8s in sterling respectively per net ton >vcight. In view of the above facts, the contracting overseas lines, with their up-to-date and adequate tonnage, feel confident that the interests of the Dominion would be best served by a continuance of the present relationships.” [This correspondence is closed. — Ed,, O.D.T.]