THE WAR OF FREIGHTS.

Poverty Bay Herald, Volume XXXIII, Issue 10640, 18 April 1906, Page 3

THE WAR OF FREIGHTS.

-» — . Mr W. D. Lysnar, chairman of the Gisborne Farmers' Union, a director of the Gisborne Frozen Meat Company, and proprietor of a dairy factory in the district, who is at present on u visit to Dunedin (says the Otago Daily Times), is strongly of opinion that the present freight war is likely to benefit the farming community. * "Our produce," he told a representative of the Otago Daily Times, "should bo carried to the London market on at least as favorable terms as those which at present obtain for Auhtrulian produce. For u considerable time now the producers of this colony have been seriously handicapped in tliis respect. Over in the Commonwealth there is _ practically free competition lor freights, exporters confining themselves more or less to yearly contract.**." Mr Lysnar i.s of opinion that freezing and daiiyity coiupanhs in New Zealand made a mistake in making contracts ahead fur the next five or six years. The company of wliich he is a director did not renew its contract, and whe'n the prevent one expires, 12 months hence, he believes it will be in a position to secure better terms than before. Fortunately for producers, there is a clause in the present contracts made with shipping companies by which, if the shipping companies refuse to lower their freight charges to the level of those charged by any other line, then the contracting freezing and dairying companies can ship their produce by the opposition line. It was in the intcrcst t s of the shipping companies to keep, out opposition, while it was in the interests of the farming community to have free and open competition. Mr Lysnar admits that the present steamer service is a really good one, and that it would not be advisable to have cut throat competition, but it was csf-ential that tho freight rates from New Zealand should be reduced to the level of those charged on -produce from the Commonwealth ports. Australia liad 10 lines of steamers to carry produce to London. The Commonwealth exported equal to about oue million carcases of mutton per annum. New Zealand has only three lines of steamers, currying between tliom cipvil to four million* carcases of mutton, in addition to which New Zealand exported annually just about as much butter and cheese as the whole of Australia put together. For these reason.. Mr Lysnar believes producers here have a 'right to be placed at least on equal terms with Australia as regards shipping freights. As tlie result of some calculations made some timo ago, he ascertained that if the Gisbomo Frozen Meat Company had paid on the basis of Australian "freights instead of those charged in this colony, tho company would have saved about £13.000 on the year's shipments to London, and on the actual meal shipments on his own account over the same period ho would have saved £485 for the year. He ventured, to say that if tho* rates were the same its those 'ruling in Australia 'tlie losses shown on the year's operations by some freezing works in tho colonv wouid be turned into a profit. If tho difference amounted to £13,000 on the year's transactions of a comparatively small concern like the Gisborne Meat Co.'s works, what would it amount to mi the year's output of a largo concern, like the Canterbury Frozen Meat Co.? In fairness to tlie shipping companies, ho pointed out that since the above figures were arrived at the freights hero were reduced onc-sixtccnth of a -penny per lb. which made n saving of over £1300 to the Gisbome Freezing Co., but still'the rales there were higher than in Australia. A reduction to the Australian basis might mean the difference between u profit and a loss on the freezing transactions of a hu\gc film. New Zealand producers had to compete in the open market against the world's produce, and it was essential, therefore, thiit they should not be handicapped by higher freight charges than were paid by those competing against them. Such are eome of the rcisons given by Mr Lysnar why producers should welcome the advent of the Federal line