SHIPPING FREIGHTS.

Poverty Bay Herald, Volume XLVII, Issue 15594, 10 August 1921, Page 8

SHIPPING FREIGHTS.

THE TRADE FROM PICTON

UXIOX STEAM Stilt* COMPANY EXPLAINS.

Mr. C. Ho]dswort.h. the managing director of the Union Steam Ship Company, lias written to the secretary of the Marlborough Farmers’ Union, acknowledging receipt of a leltdf- of June 16. conveying a resolution passed at a conference of icpreseiitatives of Marlbotough public bodies. The resolution stated that freights from Picton to New Zealand ports are exorbitant and detrimental, both to the producers and tlie shipping companies; aild it also called for a reduction of passenger fares, and the replacement of the steamer Mapourikii by a more modern steamer. Mr. Hdldsworth wiites that the directors oi the Union Company had given the resolution careful, consideration, and had instructed him to reply to the following effect:—

“ft was recognised. the managing director represented* that exosting rates of freight were higher than were desirable, but actual experience had proved llmt si earners operated under them left no profit, but had incurred substantial losses. It might be remembered that on October 1 last the Mapourika was running the combined Wellington-Picton and Wellingtoh-Xelsoli services. She was employed for exactly otic month in this trade, and her loss for that period was about £2OOO. From the beginning of November till the middle of May, which is looked on as a passenger season, the Araliura ran exclusively between Wellington and Picton, incuring a loss of about £2OOO. During this period the Mapourika ran exclusively between Wellington and Nelson, and showed a small gross profit. (Subsequent to May 15 the Wellington-Picton and Wellington-Nelson services were combined and worked by the Araliura, which in ten days left a loss of over £6OO. She was followed immediately by the Mapourika and for the month of June the latter left a loss .7 over £BOO. Mr. Holdswortli points nit that Ihe loss in these two trades from October 1 to June 30 was between R4OOO and £SOOO. The loss for the following three months would be in a much higher ratio. It, was clear that if it v,ere possible to replace the Mapourika by the Araliura the Joss would be further increased.” “No doubt,” Mr. Holdswortli continues, "individual members of your conference have experience of the increased Yost of production now, as compared with tire-war days, but it is unhkely they can appreciate the extraordinary in crease in the cost of operating steamers You will be interested to know that the Mapourika; a smaller and much less exnensive steamer to run, is to-day costing it the rate of £15,000- per annum more than the lhiteena in the same service in 1914. This is irrespective of victualling of passengers, and the loading and unloading cargo, each of which items has more-than doubled. "In view of the foregoiung, you will, no doubt, appreciate that, it is impossible to consider any reduction in fares, as they are still unpayable, nor u’e"our rates for freight capable of revision, so heavy are the present-day costs if running steamers, and, so far,- these show no signs of reduction. On the contrary, we may instance that we have within the last four weeks had to face ui increase in our bunker coal costs if 40 per cent., which, in the meantime, ;it all events, in view of depressed trade, we are endeavoring lo absorb rather than revise our schedules in the hope that trade may improve. Should this be not realised I think you will agree, in view of the unpayable nature of the services, that increases, rather than reductions, iii charges will be justified. We bog to assure you of our desire fully to satisfy the Marlborough trade connections, and hope, when running costs come down, to lie in a position to provide a better service on more favorable terms.”