REDUCTION IN BUTTER FREIGHTS.

Otago Witness, Issue 2734, 8 August 1906, Page 22

REDUCTION IN BUTTER FREIGHTS.

We understand that the National Dairy Association has obtained a further reduction in freights on butter to be shipped during the forthcoming, season amounting to 4d per box on butter ioingto London, and a proportionate reduction on butter shipped to West of England ports. This reduction came into effect upon the Ist of the present month, and will continue in force until June 30, 1907* The reduced rates are as follow: —

Butter to London to be 2s 2d per box, shipping companies paying coastal freight.

Butter for the West Coast ports to be 1» 9d per box, shippers paying coastal freight. This reduction will be allowed and payable contingent on the following provisions being observed : — 1. That shippers loyally abide by the terms of the contract dated June 20. 1905, shipping thoir total output for London Or; West Coast ports> per contract steamer. 2. That the provision contained in the contract with the association that produce' be shipped according to those condition*', whether consigned for sale or sold outright, bo observed.

3. The reduction will l>o> made in full and payable by the association throughout the season on December 1. 1906, March 1, 1907, and July 1, 1907.* Tho freight paid last season to London worked out at 2s 6d per box, and tho reduction is evidently the outcome of an attempt on the part of the contract steamers to &eeuvo the entire output for the coming season.

Tin's reduction in freight is In part the jixplanation of the high prices already paid for factory outputs,. As reported last week, several of the North Island factories have sold at lOJd, whilbt others are holding out for lid f.o.b.