U.S.S. COMPANY.

Otago Witness, Issue 3513, 12 July 1921, Page 38

U.S.S. COMPANY.

HEAVY INCREASE IX EXPENDITURE. Attention having been drawn to the increases in freights on coal fnun Westport, and Grey-mouth, a Daily Times reporter laA u eek asked Air O. Idoldsworth, managing director of the Union Steam Ship C ompany, whether- he would like to pass any comment on the matter. Air Holdswortli «r;d that ihe necessity for the increases l ad been fully explained to the coalmining companies for- whom ti ey carried, -luring the course of .-go-unions. It would, however, be - only fair if tbe reasons for the advances were also placed before the public. Air Holdswortli stated that the rates of freight charged up to ; he end of last month were not nearly sufficient to meet the exponses of steamers employed on the West Coast-. Their operations for last year left a heavy loss on actual running expenses, \vj<iiout making prevision lor depreciation of the Steamers, and the next six motohs resulted m an oven larger deficit. Unfortunately _ expenses had not yet reached the “peak. ’ and bunker coal supplied in New Zealand had within (ho last few weeks increased about 40 per cent, according to description and quality of the coal. The cosi. of provisions was die only hern showing a tendency to fall, but wages, labour ashore, overhauls, etc., and, as staled above. 1 linker coal, -bowed no signs of coming down. In these circumstances increases were absolutely necessary, and for the next 12 months the coal companies had agreed to advances varying from 2s 9d per ton to Wellington and .Lytielfoii to a maximum of 5s a ton to a roadstead port where despatch continued very poor, iiie rates varying with Ihe mileage and despatch obtainable. Tho directors vei.T-tted such increases were necessary, end would reduce the rates when the cost of operating steamers came down. To demonstrate how the multifarious costs connected with the running of steamers had incrivi -k! since 1914, Air Holdswortli showed our reporter figures which had been taken out- relative io the expenditure required to keep them in comftiission. Kix vessels running on ihe West Coast wore tabulated to show the comparative costs in 1914 and 1921. Ihe figures proved rather alarming. The increases in overhauls alone showed an advance of approximately 3CO j per cent, as compared with 1914. The cost of working cargo on the six vessels had increased roughly by 140 per cent, in comparison with 1914. The oilier many expenses have also increased in a relative ratio.