THE TRUTH ABOUT GRAIN FREIGHTS.

Otago Witness, Issue 2363, 8 June 1899, Page 7

THE TRUTH ABOUT GRAIN FREIGHTS.

(Christchurch Press.) We feej compelled to repeat what we have Eaid on many occasions before, that it is a thousand pities that Mr Seddon with all his capacity and force of character has not learned to make more certain of his facts before giving them to the public. His latest statements made at "Wanganui and Pahialua in reference to the grain freights-, if he is reported correctly, are so absolutely at variance with fact that we cannot believe he has deliberately set himself to deceive the public — we feel sure he has been himself misled by information supplied to him by others. •Probably in these circumstances he is sufficiently public-spirited not to object to correction. The facts and data which we shall fcring forward are absolutely beyond question, and show that the claim of the Government

(to have -brought about a reduction of the Srain freights this season is without a single shred of justification. Let us take Mr Seddoa's statements in their order. .Speaking at Wanganui he is reported to have said . — The harvest would mean that there would be something like from eight to 10 million bushels pi wheat, let alone oats, to be exported. The Government had made inquiries of the shipping companies, and had received answers from ev^ry company bar one — the New Zealand Shipping Company — and they hedged by npt replying at all. The replies as to the freights were that they would be 37s 6d for oats, 35s for wheat, and 10 per cent, primage. The Government had, however, gone outside the bounds of the colony, and had arranged much better terms with the Tyser line — 32a 6d for wheat, 30s for oats [We presume the reverse is intended] and a primage .of 5 per cent. ; and the arrangement was not likely to cost the country anything, as the farmers jiad co-operated with . ihe Government in placing cargoes with this 3ine, while the only concession made by the Government was to give the company the preference of Government freights. Again at Pahiatua he* stated ",a reduction ihad been made on wheat (i.e., on the freignt of wheat) representing a -deduction of lid a bushel to the producer." In the first place Mr Seddon is altogether at sea as to the amount of wheat to be exported. Anyone conversant with the subject knows, beyond any question, that ro far from its being likely that from eight to ten million bushels of wheat will be shipped from New Zealand during 1899, it is very doubtful if anything like four million bushels will be sent. Next as to the special rates of freight alleged to have been secured, it must first of all be borne in mind that a large proportion of the wheat exported* is senc in sailing vessels .chartered by the actual shippers — in other words, by. business houses outside- of the steam shipping companies. Now ' as these charters are made by independent mercantile houses for their ' own benefit they naturally .charter at the lowest possible rates, and the competition among merchants is sufficiently keen to induce them- to pay the farmer the ' highest possible . price for wheat based upon its value in the European market. Consequently,, by virtue of this competition, the farmer reaps the benefit of whatever terms the merchant is able to make in the matter of freight. The farmer, however, ie at present asked to believe that, but for the

intervention of the Government, he would •'have had to pay this season on any wheat he wished to ship 35s a ton and primage, and that in effect the Government have saved him lid per bushel, which is practically 5s per ton. Now we publish in another column a very interesting and instructive table, which shows all the vessels which loaded grain at Lyttelton between January 12 and May 22 this year, together with the rates of freight charged or paid by each. From this "it will be seen that five sailing vessels have been chartered by private firms at from 28s 9d" to 30s, to_ load from Lyttelton " for orders," as it is technically termed — that is to say, the vessels are de-, spatched to a port of call, and the chartered • rates in such circumstances are usually about 2s 6d per ton higher than the lates to London direct. Hence these charges are practically on the bafis of 27s 6d to London direct. .Again, it will be seen that a sailing vessel called the Elbe commenced loading wheat as early as January 12 at 25s for London ;" the steamer Jtakaia commenced loading wheat on February 12 at 30s per ton ; the Norman M'Leod, sailing vessel, on March 15 at 27s 6d ; in fact, in the whole list there are only tlnee vessels which have asked as high a rate ol freight as 32s 6d, much less the 353 mentioned, by the Premier in his speech at Wanganui.

. But the Government and their organs in the Press have both had to admit that lower rates liavo been actually current than those which

the Ministry claim to have arranged with the Tyser Company. They admit, also, that the lower rates were current before the Agricultural department had advertised their so- - called "special arrangement" with the Tyser Company. Bui they now shift their ground, and say that the arrangement was made with the Tyser Company on March 17th, and announced by the Premier on March 24th, and

it was seven days after this — and impliedly in consequence of such arrangement*— that the other shipping companies announced their readiness to carry wheat at less than 35s ton. This theory is simply shattered to / atoms hy the hard facts contained in Che table to

which reference has already been made. If that list.be, once more examined it will.be "found that the lower rates were "current not only before the arrangement was made on March 17th, but also before February 20th. the date on which the Minister of Agriculture sent out his first telegram of inquiry to the shipping companies in reference to the rates of freight. As far back -as January 12th the New Zealand Shipping Company commenced loading Abe Elbe (sailer) from Lyttelton for 3jcndon at 25s per ton-. On February Ist shipments were taken :n the screw steamer Queen Louise at 27s 6d per ton; on February 12th in the Rakaia, s.s., at 30s; on March Bth in the Shaw, Savill, and Albion Company's fiailer Wellington, at 27s 6d, and on March 15th in the Tysei Company's screw steamer Indraghiri, st 30s a ton. The price fluctuated little from time to time, according to the re-

spective amount of wheat and tonnage offering, but in no case did it ever reach 35b 'a ton, mentioned by the Premier ; while even the Tyser Company, it will be seen, carried wheat in steamer at 30s a, ton before making any agreement at all with the Government. In other words, they only agreed to do for the farmer- after the "arrangement" with the JioTemmont, what they had already done for

him without any arrangement at all. Wo might make further quotations from the list, .but it is unnecessary to amplify the matter further The figures show that even befo.-o the Government had made any inquiries in the matter, the law of supply and demaud had regulated the rates of freight at Lyttelton as well as elsewhere, with the result that the average rate at the beginning of the season, when there was a rush of grain offering, was no higher than Mr Seddon claims to have obtained for the farmer at the present time, when the pressing demands of shippers are over.

We next come to the question as to the terms of the correspondence between the Gov eminent and the shipping companies. "Mr Seddon says that : —

The Government had made inquiries of the shipping companies, and had received answers from every company bar one — the New Zealand Shipping Company — and they hedged by not replying at all. The replies p.s to the freights were, that they would be 37s 6d for oats, 35s for wheat, and 10 per cent, for primage. The Government had, however, gone outside the bounds of the colony, and had arranged much better terms with the Tyser ''line — 30s for wheat, 32s 6d for oats, and a primage of 5 per cent.

The best answer to this extraordinary perversion of the facts will be to quote the correspondence which actually passed. On February 20th, we are told the Minister, for Lands addressed the following circular telegram to the various shipping companies: —

In consequence of the abundant harvest and large crops throughout New Zealand, a large portion of the grain must necessarily be shipped. Taking into consideration the low prices ruling in the markets of the world, the Government are anxious, in the interests of the producers of the colony, to ascertain what is the probable freight your company will charge for the carriage of wheat and oats to London, and also the available tonnage that you estimate you will be able to supply during the season. I am asking for similar information from the other shipping companies. An early reply will oblige. 'Reply paid.

The following is the reply of the ShawSavill and Albion Company, dated Christchurch, -February 23rd : —

Owing to shrinkage of wool for sailers at all ports this season, several Shaw, Savill's vessels, brought to New Zealand waters at considerable loss on market rates, are available for grain at current rates, probable basis 30s for wheat. If Government contemplate assisting . shippers by tonnage contribution, we shall be glad to facilitate by removal of. vessels to ports where early despatch can be assured. We also anticipate considerable steamer space for grain will be available throughout the season, contingent on wool and other produce shipments.' — (Signed) Shaw, Savill, and Albion Company, per Wra. Henderson.

The following is the answer sent on February 21<st by the -Now Zealand Sliipning Company:—

; Ycur telegram of yesterday was submitted to the board of directors of this company at its meeting to-day, and I am instructed to reply that the rate " of height on grain for London must depend on rate at which we cancharter vessels. We have never made any profit ou^of the carriage of grain, and it is our practice to put' sailing ships on the berth at the same rates at which we charter them. We have already chartered several sailing vessels, -and are negotiating for others, as we must make provision for the requirements of our ch'ents. We shall have a considerable amount of steamer tonnage during the season, but the quantity available for- grain will depend upon the space required for frozen ' meat and dairy "produce. . Several sailing vessels have been already chartered by private firms, who, we believe, aro ! negotiating for more.— (Signed) Isaac Gibbs-. How, in the face of these documents, the Premier can say that the replies received were to the effect that the freights would be ,37s 6d for oats, 35s for wheat, and 10 per cent. I primage, and that the New Zealand Shipping : Company " hedged by not ( replying at all, we are utterly at a loss to conceive. We have, however, surely said enough to show the \itter fallacy of the claims put forward by the Government in this matter. We may add that we are practically certain that not "one-fourth of the wheat shipped from Lyttelton this season will be shipped by farmers and settlers on their own account. The remaining threefourths will probably be shipped by the merchants and speculators, who have always been able to protect themselves, without Government assistance, against anything in the shape of shipping monopolies. Letters have been shqwn to us, written by mercantile houses to farmers, from which we gathc* the rates of freight offered by them to tho farmer before anything was known as to the Government inquh'ipp. In one of these, dated February 22. the writer qnotot freights by sailing ship at 23s 9d. Another, on the same date, written by a Christchurch firm of merchants, quotes freights by steam at 30s. But we need not say more. It must now be clear to every unprejudiced mind that the Government have misrepresented the nature of the negotiations in which they have engaged, and that it is incorrect to allege that any action of theirs "has resulted in the farmer obtaining any reduction whatsoever in the rate of freight on jrrain to Europe. All that the Government has done is to endeavour to divert freight from the old-established companies to what Mr Seddon himself describes as an outside line.