WOOL FREIGHTS.

Sun (Christchurch), Volume III, Issue 826, 3 October 1916, Page 10

WOOL FREIGHTS.

SHIPPING COMPANIES' PROFITS. ARE INCREASES JUSTIFIED? In discussing the increases in wool freights recently decided upon at the annual conference of deep-sea lines' representatives, shippers' estimates of the profits earned !by Ihe charterers of the wool J carrying vessels Berwick Law and I Century were referred to. By an j error in computation the amounts set down as chartering charges for I four months at 18A were given at j£7641 and £7173 respectively, where!as the totals should have been [£10,580 and £9932. The correction is published in fairness to the shipping company concerned, although the error was obvious to anyone interested who took the trouble to make the calculations for himself. As the matter is one of great im- ! portance to the producers of this I Dominion, the estimated expenditure land profits in connection with these j two vessels may again be set out as i follow: S.S. BFRWICK LAW. 'r.,„,,.,,r,. r^-or.

It must be remembered that these figures are computed on last year's rates, which were £2 2/8 per bale for scoured wool and £2 2/4 for greasy wool. As the respective freight rates have been increased to £3 :.')/3 and £3 13/2, it is contended that the profits on chartered ships must be enormously increased, even though chartering rates have jumped from 15/- and 18/- to 30/- and 35/a ton per month. The estimated outgoings for coal and other expenses are, of course, merely approximate, but even though they be doubled or trebled it is alleged that last year's profits were more than substantial. A DIFFERENT STORY. THE SHIPPING COMPANY'S SIDE. LOSS ON THE CENTURY. The above figures, with reference to the profits which were, as alleged by shippers, forthcoming from the chartering of the Century and the Berwick Law for wool-carrying purposes, were referred to Mr A. W. Bennett, general manager of the New Zealand Shipping Coy. Those who supplied the information, said Mr Bennett, had fallen into error in assessing chartering charges on registered tonnage. It was true that the Century and the Berwick

Law were of 2759 and 2939 tons register. But, chartering rates were computed on dead-weight capacity, which, in the case of the Century was 7434 tons—or nearly three times the registered tonnage. The same tiling applied to the Berwick Law. As a matter of fact, continued Mr Bennett, the actual price paid for the charter of the Century was £2(5,764, while coal for that vessel cost, not £2OOO, but £4039. The difference between the expenses and the receipts in connection with the chartering of the Century was £174, which represented the company's prolits. It would be accepted, he thought, that 5 per cent, was a reasonable profit to expect. Five per cent, on an outlay of £30,000 was £1500; therefore his company's loss on the chartering of the Century was, roughly, £I3OO. On the chartering of the Berwick Law his company had made only a fair profit.

i or inn ge. 1 .;ir:; 0. e s. d. £ s. d. |2<).'!9 tons at 18/i per month for 4 1 months (72/-).. 10,580 8 0 i Coaling .. 2.000 0 0 i Harbour dues, storage, dumping, & stowing 5,000 0 0 Balance profit .. 20,878 1 I 19,004 bales wool 10,225 2 8 General cargo (say, equalling 2000 hales wool) 4,233 6 8 £14,458 9 4 £44,458 9 4 S.S. CEXTUR'V £ s. d. £ s. d. 27.-,!) tons at 18/per month for 4 *■ months (72/-).. 9,932 8 0 Coaling .. 2,000 0 0 Harbour dues. storage, dumping, & stowing 5,000 0 0 Balance profit .. 15,209 :; 8 14,185 bales wool at £2 2/1 .. .. 30.024 IS 1 (jeneral cargo (say, equalling 1000 hales wool l 2,110 13 4 £,'12,111 11 8 £;i2,141 It 8