SHIPPING COMBINES AND FREIGHTS.

Otago Witness, Issue 2727, 20 June 1906, Page 20

SHIPPING COMBINES AND FREIGHTS.

A REPLY TO RECENT STATEMENTS.

Mr J. M. Ritohie, the representative in the colony of the Shaw, Savill, and Albion Company, has forwarded ua the following communication : — With reference to your paragraph in Friday's paper under the heading of "The Shipping Combine," I shall feel obliged if you will allow me to say that I think the late Mr Seddon was entirely misinformea as regards the opinions he expressed about tho "American combine" and the! position of the direct liners towards the tra<!« to the United KiflS&W frojm, Jfea

Zealand. I am very ready to give everj] credit to Mr Seddon's intentions as being) in the interests of the colony, but there is no doubt to a great extent his remarks were based upon misapprehensions. Whatever may be the case as regards the working of the trade with Australia and front New York, it is beyond question that, so far as the New Zealand trade is concerned 1 , the International Marine Company and the White Star line have no control whatsoever. More than 20 years ago the Whita Star line provided tonnage for the New Zealand trade, first in oonnection with the New Zealand Shipping Company and afterwards the Shaw, Savill, and Albion Company. It did this at a time when the" sudden and large expansion of frozen meat shipments ■'from the colony made it impossible to procure refrigerated tonnage ia : time otherwise, and there is no doubt that, the White Star line, in the mere matter; : of providing tonnage, has served an im- . port-ant purpose in connection with ovm S trade. It, however, has never ! any control over it. Long before tho ' arrangement made with the International 1 Marine Company the White Star line eni tcred into an agreement with the Shaw> ■ Savill, and Albion Company for a length-* ! ened period of years, under which Iti ' agreed to provide a certain) portion, of tonnage, but also under which the control of the trade rema<ned> in the hands of the Shaw, ' Savill, add Albion Company absolutely, as it has been so, as far as it* share is concerned, for between 40 and 50 years. 'That agreement is still in existence, and has a number of years still to run. I make this statement °nofc only . from_ my personal - knowledge of the agreement in; question, but from many personal interviews with boib. the late Mr lemav and the present management of the White Star line for years past an 3up to my last visit Home two years ago. They clways made it perfectly clear that tihey could in no way interfere with the Shaw. Savill. and Albion Company in the conduct of the trade, ami as regards the details of j that could o'i!t di-o;-5s thpvn generally as ! outsiders. Thar© is therefore no foundation I whatever for assuming that the White Star ! line or the International Marine Company lias any control or influence whatsoever : in the conduct of th© New Zealand skip- ; ping trade. As to the arrangements wlrch are ati in existence between the direct liners and the various refrigerating companies of the colony, it is true- that for many years — indeed, almosib from tiho initiation of the frozen meat trade — con- - tracts have existed between the direct linea and the freezing companies. T'lc coudiKons of these contracts have from the beginning bfen in almost the identically same terms as they are to-day, which, 1 hroadly sp-e-ilrirsr arc that in consideration J of the cHrt-K-t linos binding themselves to I lift all the moat whenever called upon to rlo so and to ke»p the works clear, they ar« to have tho first offer of the whole output of they? works on the same terms as > mar be offered by any other lines which fulfil tiie same conditions. Freltfbf* are "not, and Havo nc-ver been, definitely fired; the direct H'vos 1.-O2iil .-O2ii subject to what- ' ever competit'on roav an-o^from 6>rtside, and ift a<d<lii:»on _(o( o t.'oai l;.av« mor-e Than • one© voluntarily 'redwood freights, although- ' they " had no * conip&ritiou of rbp same i ohax&ql&Y to contend with. TJmssb contracts. [if they may be so called, have bf- e n <»nferad' i into by erery fl•'•€^^^c: company in fcho •colony, and vrlwa it is fcnsiJcstd thai: j the«e comp-tr 'V? '-.rr< fof.trollrxl at a'! points by some of the best business talenr. avail- ! abfe, and hevo lv»pn ; ri no wißc nc.'W any i compulsion. 7 think it- is fair to ainum© ! that the conditions asrw? to hsvn been » found to be quite a. 1 * much in tho iistcresia ! of the freezing cc m~j^ n ica ad of tho direct • lines. ; In order to fulfil one of tho chi^C ! conditions t* 1 ." direct linps have hal to i furnish what rt's frequently amotinted to ! a weekly service from i-he larger port* anc? a fortnightly service from iar.y of +he others; recently indet-d. it has h»t?n necessary to provide practice I'y a w^eJclv service in order to keep Hv works ar ¥ ho port o? Timaru c'eir. and it ha.« nho b*»M neoes=ary in th^ p?-.-fc to brinp in "rvihv'-fo ! topnacre m fulf>'rr> o nt of this orfrcus commitment. The 6ame remark* *ppl. r ro "he daim"nroduce trade. Thp diroct ' line* are hoy.nd hv aTreem^n^ tp despatch a fpr'-n^Mly ssrviop from Wel'ina+on nunc+wi'ly (o the 'lay. and have also h.irl to provide «+«n.mers of a certain sr.eed <=o th.-.t tho rsroduoe may be delivered at rrorjcr intervals in London. They have had to "t?ko whatever quantity of dairy produce offered, and adjust fcfc-o

rest' of their cargo accordingly. In connection with, the rate of freight on dairy produce* they have also paid the coastal freight on a large part of it, ao as to facilitate, the- concentration in Wellington in what has been consistently urged by the shippers as the •interests of the trade. It can be said wi<2i truth that the 3Ted.feral-Houidor-Sb.ire line constitutes the only real " combination " which has so far been connected .with the New Zealand trade. There has been- no combination between the direct lines except beyond a general itnderstandinjr to maintain moderate rates of freight, and below that active competition Jjetween the line 3 has never been absent. I think, also, it may be said that there is ample proof that these rates of freight have been moderate, inasmuch as the dividends publicly declared by those in the trade have never been more than 5 per cent., as far as I remember, and sometimes they have been under that.

The direct lines have been forced to tako up the West Coast service — first, because of ttie interference by the Federal combine with their London traded and, second, in order (if possible) to provide a more punctual and regular service. They have done so without any expectation of receiving any assistance in the way of subsidy, and without any intention of asking for such. '