THE NEW SHIPPING CONTRACT FOR BUTTER AND CHEESE.

Otago Witness, Issue 2674, 14 June 1905, Page 8

THE NEW SHIPPING CONTRACT FOR BUTTER AND CHEESE.

A SAVING TN FREIGHT OF £25,000

PER ANNUM

We are pleased to be able to announce that the negotiations which have been proceeding for some months pa c t between tha New Zealand Shipping Company, tho Shaw, Savill, and Albion Company, and tho^ National Dairy Association for a reduction,' in the freights on butter and cheese haio' co far been brought to a successful issue that a five years' contract lias been signed)* on behalf ot Hio North Ivland Dairy Association, and it ;s; s confidently anticipate^ that the South Island Association will followjj: suit. The present contract, providing fou a rate of freight of three farthings per lb» '. on butter and ninc-s'xteontha of a pennyy* per ib on ehc^o was entered into on l-f» ' October, 1902, for a period of five years,V and: has therefore still two years to run.v In consideration of the cancellation of tba balance of fche> present contract the shipping) companies stipulated for a new eo-nfcractf"* extending- over a period of seven years ;'£ this, however, tho Daivy Association refused! • to entertain, and named five years as the*, limit for which it was prepared to conti'aci. It is satisfactory to learn that after considerable discu=i«ion the companies have at Icp&th gUen \tay, and the ncv> coa-

tract is for a term of five years, commencing on October 1 next.

The exaot terms of the new agreement as between the Dairy Association and the shipping companies run as follow: — "It is hereby mutually agreed that the existing contracts for the carnage of dairy produce from New Zealand be extended on the following conditions, the contracts to terminate on Ist October, 1910:— For the first two years the rate of freight on butter to be: Five-eighths of a penny per lb for butter in toxes, eleven-sixteenths of a penny per lb for butter in kegs. For the remaining thiee yeara the freight to be: Nine-six-teenths of a penny per lb for butter in boxes, five-edghths of a penny per lb for butter in kegs. Net weight, without primage, if freight paid in the colony; if freight paid in London, plus 2 per cent. The rate of freight on cheese for ihe whole term to be: One-halfpenny per lb, net weight, without primage, if freight paid in the colony; if freight paid in London, plus 2 per oent. The temperature of the butter not to exceed 15deg., and cheese to be carried at a temrierature of 45deg. to 50deg." As compared with the existing contract the concessions granted by the shipping companies are : — On butter, tor the first two years, one-eighth of a penny per lb, and for the remaining three years three-six-teenths of a penny per lb; on cheesec, a reduction of one-sixteenth of a penny per lb, calculated on net weight instead of' gross, or equivalent to a reduction of oneeighth of a penny per lb. The saving to nhe dairy industry under the new rates of freight amounts to close on £25,000 per annum for the first two years, and an additional £10,000 for the remaining three- years, calculate on last seasons, export. That is .-to say, the Dairy Association, by arranging for Uie cancellation •of the two years of the present contract, has effected a saving in freights of clo.se upon £50,000, which sunn the shipping companies have consented to forgo in consideration of an extension of the contraot.