(From Our Own Correspondent.) AUCKLAND, July 15.

Otago Witness, Issue 2784, 24 July 1907, Page 36

(From Our Own Correspondent.) AUCKLAND, July 15.

With reference to the shipping combine, so far the proposed increase in freights appears to be restricted to sailing vessels* but there is. no doubt that once th« scows put up freight rates the small steamer* engaged in the coastal trade' will follow suit. The iiscreaseo? cost of running vessels was recognised some time ago, but ocowownors did not then realise how their trade, would be affected, and as a result fxeigiis did not go up. Mr C. C. Dacre, when interviewed, said? "There are many things which have combined to emphasise the* need for coastal freights to be raised. For instance, under "the present law if * seaman, falls sick and is left ashore a sum of money has to be deposited for his maintenance at the hospital. Take as an example the auxiliary schooner Kereru. One of the crew hadf the measles, and had to be left- behind, and that meant depositing £54. The owners of small boats cannot stand much of that kind of thing. Thevarxws companies have nearly always got aven in the hospital; and it means a earn of money lying idle- to. meet possible claims. You we, if the men are sent to their homes and there are further complications, the riak is greater, so they are generally sent to the hospital." Will this affect steamer freight* in they coastal trade?— " Well, as far as the local coastal trade is concerned, I suppose the Union Company's Squall will be affected, also the smaller coastal steamers belonging . to the Northern C&tnp*ny and other companies engaged in the oojastal trade. There is increased cost in running vessels. Wa'#» are higher, for one thing. Coal will probably have to pay an increased freight of sixpence per ton. Lime, cement, and timber will all probably have to pay more freight. Another matter that adds to- the cost now is that vessels are so long delayed! They have to either discharge into truck* or wait to load from trucks. That, >£ course, is the old question of shortage of trucks over again. Another heavy expense on ecow-owners is the extra gear fequirea under the Shipping Aot to be carried for life-saving purposes. If all these things are required in the interests of life-saving, then the public must pay the extra cost to owners of vessels. Then,, too, you must not forget that at the present time thereis a big demand for vessels. We fiave kxt from the trade the Sir Henry, the Haeremai, and the Aotea. One cause of the bijr demand is the supplying of thingle foe Ferro concrete work, some eight or ninet boats being steadily engaged in that trade alone. Apart from there beinir * bijr demand for vessels, the increased freights are warranted owing to extra cost entailed in running small craft."