OUR OVERSEA TRADE.

Otago Witness, Issue 2686, 6 September 1905, Page 14

OUR OVERSEA TRADE.

THE QUESTION OF FREIGHTS. \ NEGOTIATIONS FOR NEW MARKETS. j (Fs.ou. Otra Own Cosß.sspoimr.NTJ ' WELLINGTON, August 25. \ In his annual report on the industries \ and commerce of the colony, Sir Joseph i Ward writes at considerable length on J shipping matters. He details the arrange- ' ments that led up to the recent reduced ; freights on produce for England. In regard \ to freights, he says: — "Further -develop- s merits- have taken place this year, with the "< result that Australian shippers have entered into two contracts— one with the ; White Star. Lunds, ana the Aberdeen linos -, of steamers at £3 10s per ton, and the ' ( other with the Peninsular and Oriental and ( the Orient Pacific mail lines at £3 13s 4d ] per ton. Immediately these contracts were , "accomplished facts I again communicated j with the shipping companies interested in t the oversea transport of the colony, and * asked them to reconsider the question of j freight on dairy produce. lam glad to , say that the present; contract, which has ] two years to run] is to be determined, and I a new contract is being negotiated at j reduced rates of freight. a I hope the ( reduced rate will be satisfactory and con- ] sistent with the rates obtaining from Aus- ? tralia, as in these days of keen competition j the colony cannot afford to let its com- ( petitor3 have any advantage in the matter ] of freight, if such can possibly be avoided. , The question of oversea freight on produce is very important to the well-being of the r producers— so mud? so that, in my opinion, j the most careful supervision should be kept J by this department over all developments, ] and when the interests of the colony's pro- . dueers are being inimically affected it ( should speak with no uncertain sound, and, ( if necessary, the colony should step in to X ensure that freights from Now Zealand be < maintained at reasonable rates. The sub- , sidised service to South Africa has been , carried en regularly during~the past year, ] shipments of produce to a considerable £ extent having been made. The present < contract terminates during October next, ] and I have no intimation in the meantime from the contractors as to whether it is •( their intention to continue the service after ■, the termination of the present contract. ( I have always hoped that with the assist- j ance o£ the three years' contract and sub- , sidy that the colony's trade with South \ Africa would have developed to such an < extent that the steamship company would j have been warranted in continuing the ( service, without any further assistance from \ the colony. The discontinuation of the -J service would be a heavy loss to the produeers of the colony, and to those enter- i prising traders who have built up trade -, with South Africa by this opportunity, as { it has- given them the advantages a new s market. In these days of keen * competi- a tion we cannot afford to neglect any avail- c able market, however small, and it should c lie our policy to encourage and promote . j steam services in every, possible direction. ' 6 One must remember that any diversion of s the colony's produce, into new markets is i followed by a general appi'eciation of the ' <; whole. Compared with our,. Australian f neighbours we are at. a great 'disadvantage \ in the matter of oversea freights on produce. We are paying in almost every instance from 25 to 50 per _ cent, more | freight, and the reason of it is that their , business is competed for by a number of ; J different steamship lines. As showing j ' what the results of competitive oversea ; ; freights are one has only to note the growth of the trade from tho United j « States of America to New Zealand during , ' the past five years, which is undoubtedly , [ due to tho competitive rates of freights ( > that have prevailed during that period. , 1 New York freights have ruled at about , 12s 6d per ton for all classes of carso, j ( while rates en similar from Loftdon j j to this colony have ranged from 23s to 60s • per ton. This presents a most undesirable j | condition of affairs, and militates, against , "j the benefits that should be derived under j ! the preferential tariff. The whole ques- j s tion of the rates of freight ruling from j New Zealand to London oh wool, frozen s meats, and dairy produce is of the utmost ' importance to the colony. The steam ser- ( j vices to and from the West Coast ports j i of the United -Kingdom have developed ( < trado both " ways in a most satisfactory , ; manner, and some very large shipments ' 1 of this colony's produce have been made j 1 to inorWifca that have hitherto not been [ <

available to New Zealand except by indirect means. As far as one can judge, the time is not far off when the trade promoted by this steam service will assume such dimensions as will warrant the- contractors supplying a direct service, and not, as at present, via South Africa. Should that possibility become an accomplished fact, I look forward with confidence to a still greater increase in the volume of business now being done. Tha contractors for this service, in response to a representation from me to consider the question of freight on butter to the West Coast ports of England, signified their intention to reduce the present rate of freight from ?d per pound to |d t>er pound. If, in addition to this reduction in freight, direct sailings to the West Coast ports are provided there eeems every probability of a very large share of the export of dairy produce finding its way out of the colony at greater reduced rates than hitherto prevailed. Should this reduction in freight on butter from the colony to the West Coast ports of the United Kingdom become general it wi 1 ! mean a saving of freight of the colony's output of btifcte? to the extent of £60,000 per annum, and it means placing this colony on the same footing regarding freight on butter as pnjoyed by our Australian neighbours. This is as it should be. as there v. not. valid reason why this colony should pay any higher rate? of freight on pioduce than those obtaining in Australia. T am again forced to draw attention to the slowness of- the development of our trade with the Far East, the principal drawback to progress being the fact that all the steamship lines trading to and from that part of the world do not e\-fr?nd their services beyond Australia, and with tliis disadvantage we are livable to compete with Australia and partic-i-fate in the trade. There are now several lines of well-equipped steam-ers running regularly between Australia and Japan, calliDg at Manila and Hongkong, and, in my opinion, as soon as the present excitement "in the East is over and business resumes its normal channels we must make overtures to one or more of the shipping companies to esf-end their services to this colony. Ones we have a line of steamers connect : ng with tbs markets of Japan, China and Mp.nila, T am convinced we shall find a satisfactory outlet for a port-ion of almost everything this colony produces. I had hoped to be alVc in making this report to mak" a satisfactory announcement of the establishment of a steam cargo service to and from the western ports of Canada, -but although both Cknada and New Zealand have expw»«od their willingness to contribute £10,000 per pnnurn each for one year towards the establishment of such a =ervioe. nothing of a satisfactory nature has so far been #ranged. I am of opinion that some visorous policy should bo adopted with th-e object of promoting trade and interchange with Canada. At the prffant time our annual imports from the United States of America amount in vain© to ±!1.528.000. while from Canada and British Columbia our annual imports amount to only £113,000. This discrepancy should not exist, because the manufacturing conditions are much the same in both counlr-'es: but the United States of America ha« the advantage of direct sip-am service to this colony from bofh its eastern and wfstern coasts. I have no hesitation in stating that, with a direct steam car«o service to and from Canada and rcaionablf freights, a vevy large increase of trade both v.-av-s could be ■pffnctrv'l. SOUTH AFRICAN STEAM SERVICE The Acting Secretary of the Department of Industries and Commoroe, m his report to 4he Minister, states that "the subsidised steam service to. South Africa has been satisfactorily carried oub during the yeaa 1 . The- shipments for the year ended on the 31st March. 1905, were as follows: 3430 carcases lamb, 26,969 carcases mutton, 142 cases frozen sundries, 28,731 boxes btrtfcer, 3303 crates poultry, 135 crates frozen rabbits, 93 cases frozen fish, 16 oases frozen fish, 16 casos bacon, 461 boxes boned beef, 614- cases che-ese, 932 cases preserved meats, 100 ca,roases frozen pork, 23,204- sacks bran, 51,243 sacks oats, 70 sacks oatmeal, 60 casks tallow, 1965 cases potatoes, 500 sacks potatoes, 313 sacks peas, 28 sacks grass seed, 87 sacks cocksfoot, 692 sacks barley, 20 sacks rye. 2 sacks beans, 32 oases preserved miLk, 6 bales hemp, 40 cases nails, 1223 superficial feet timber, 54 pieces timber, 965 live sheep, 21 rams, and a quantity of general merchandise. Shipments of frozea mutton to Fremantle have continued of considerable magnitude, and those of timber have increased ; but in other directions trade has not developed owing to th^ operations of the Shipping Association, which controls the coastal trade of the Common-

wealth, and which has made shipping by tha contract steamers an act of disloyalty to theassociation, involving forfeiture and discontinuance of rebates. The volume of business with South Africa has not reached the figures of the preceding year, but, notwithstanding the adverse influences at work, a considerable extent of trade has been carried on, with undoubted benefit to the producers and traders of tho colony. While on the subject of the subsidised steam services I should like to draw attention to the fact that since the inception of the subsidised steam service to South Africa tbo steamers of the New Zealand and African Steamship Company have carried from the colony produce to the value of £1 381,631 to markets which were- previously not directly available to the colony, and that during the same period the steamship company referred to has disbursed the sum of £85,028 at different ports within the. colony for port dues, pilotage, light dues, labour, stevedoring, cargo charges, and' ships' stores." Mr Gow, the trade commissioner in South Africa, reports that there are signs of comjnerciai improvement thea - e. Mr Gow states that cold storage which at one time promised to be an El Dorado, and into which many New Zealanders wei'e anxious to put their money, is in by no means a flourishwig condition. Many of the best plants are lying, idle, and the shares are worth W little that in some cases shareholders would l:e <,glad to give them away. Huge sums have been sunk in these- ventures. No more need be said to prove that the Now Zealand Government is to be commended for its caution ' in connection with thi3 matter at a time when almost pressure was tried to induce it to secure cold storage in South Africa. As to the improvement in the country, the Commissioner w rites: — " During my firsj; journeys in this country one might gt> for many miles along the railway and not see a beast, but now the uplands seem to be well stocked with cattle. In the matter of mutton, however, things are different. Sheep do not for some roason seem.- to do w«JI in many parts. I would urge upon ' New Zealander.s the importance of keeping to the best quality in all clas-es of exports, and to he satisfied with a fair margin of profit. In this way they may find a good and constant market. The general aspect of things is said to be improving slowly, though in. many parts there is an excess of whitelabour and frequent meetings of the " unemployed " — many of them ex-irregulars, who stayed in the country in hope of work. Although 18 months ago there was said to be little -Kaffir labour available for the* mines, every month reporte a large increase. On the Rand things are kept merry Try the constant and serious riots of th» Chinese. It is 1 hoped that matters will scon assume more of tba normal form, and that all parts will share in the prosperity which all need."

WEST OF ENGLAND SERVICE. "The following regarding the steam service to and from the West Coast ports of * the United Kingdom appears in the annual report of the Department of Industries and Commerce: — "There can be no doubt that the existing service is serving a useful purpose, and introducing the products of the colony to markets hitherto untouched. To demonstrate this it is only necessary to subjoin the following particulars of shipments for the year ended on March 31. 1905:— 205,369 carcases lamb, 44,646carcases mutton, 3720 boxes butter, 59:633 crates frozen rabbits, 204 packages casings. 1501 quartsrs beef, 2548 boxes frozen boned' beef, 12 crates poultry. 24 cases preserved milk, 5 cases^ i chrefie, 6039 cases preserved moats, 25 cases dripping, 182 caslcs tallow, 352 tins ash, 345,559' superficial feet timber, m dumps tow, 2355 bale 3 'hemp, 113 cask=j fruit pulp, 85 paclcasea sheep dipj, 68 bundles sbeeoskin*, 520 pieces timber, 86 bars steel, 79;260 sacks oats, ''2675 sacks bran, 18.304 sacks wheat., 1975 sacks beans. 2497 sacks barley. 5163 sacks peae, 7632 sacks grass seed, 466 saeks-'''fescue ' seed, 6 sacks rye, 490 sacks, pollard; 620 sacks floury and a quantity of general* "merchandise."