WOOL FREIGHTS

Wanganui Chronicle, Volume LXXXI, Issue 18822, 12 July 1923, Page 8

WOOL FREIGHTS

EFFECT OF THE SHIPPING RING. SIR WALTER BUCHANAN’S MISSION. ORGANISATION OF FARMERS. On Monday afternoon an address was delivered on wool freights at Marton by Sir Walter Buchanan, who is visiting various centres with the object of addressing producers. Sir Walter said that he was a farmer and the son of a farmer. He said that he landed some sixty-six years ago in Melbourne, and later came to New Zealand. It was not long, while living in the Wairarapa, when lie and others recognised their great disadvantage as compared with Australian woolgrowers. New Zealanders were paying nearly double the freight on wool to the. Home market. In 189 7 a committee was appointed to go into the matter. Among them was Mr John Marshall, of! Marton. Deliberations resulted in the charter of sailing vessels for transport of wool Home, Mr Scales being appointed manager. For 15 years they worked without capital. The process was simple. Ships were loaded Home and they looked only for profits to pay for management. Then it was apparent a

combine wished to gain the service. In 1912, the commitee floated a company with a capital of £lOO,OOO. But they did not canvas energetically; they obtained £BOO,OOO easily. There was great need for capital, but it was recognised that there was a great diftculty in convincing the London men that the company was a sound» concern. This company, Sir Walter assured his hearers, had never called up more than 2s in the pound. There is no company with a sounder lot of men. War put a stop (o the company’s operationsthe British Government commandeering wool and shipping. Their company was only able to commence again since the war last year, when 525,000 bales were sent ou two which were chartered. Sir Walter Quoted figures showing the Australian and New Zealand charges for the shipping of wool Home, and impressed on his audience that, notwithstanding the fact that the deterred freight system precluded the farmers’ company from getting cargoes returned from Britain, the shipping combines had been compelled. to reduce its charges. Startling figures were given by Sir Walter showing the scale of shares of different shipping companies. In one instance fully paid up shares of £lO dropped to £4, and were later sold at £32 to another company (a member of the combine) —about £2,000.000 profit made out of whom?—-the settlers of New Zealand. Freight Inward has always been higher than it ought to be—it we can get freight both boys (on tlie company’s boats) it will mean a great reduction in the charge for wool on the Home voyage. The difference between freights for wool for the Home markets is 10s a bale in favour of New Zealand. This on a shipment of 556,000 bales means that £280,000 remained in tlie pockets of New Zealanders, instead of as in Australia, in the hands of the combine. Steamers chartered were the cause of reduced freights. The Australian Government fleet of steamers were not a success. Propaganda published by the shipping combine ridiculed the idea that competition would lower freights, but, said Sir Walter: “We have done it year after year, and this year too!” The company had refused to alter charges. The shipping combine had endeavoured to get wool buyers to give all their wool to them, which meant that Mr Scales would ship no wool at all. A reduction of Ils per bale was offered. The speaker pointed out that wool buyers have nothing to do with freights, which are paid by the woolgrower. Emphasising the benefit of cheap freights the speaker instanced the case of a wool buyer who, not long ago, chartered two steamers, and outbid other buyers to the extent of buying 40,000 bales, showing that a reduction in freights reflected in increased prices from buyers. The speaker impressed upon his interested hearers that the company wants more capital—as a guarantee to the shipping world in London. Naturally, Mr Scales will be asked for a guarantee. The company ask for £15,000 increased capital. But they do not want all the money. A call will be made of 2s 6d in the pound, and very likely no more will be called up. He explained explicitly shareholders’ liabilities, and appealed to sheepowners to help themselves and keep freights down. The British Government, he said, is the only one which can do away with deferred rebates, which he explained. He referred to the impossibility, at present, of the company’s boats getting any cargoes from Home, neither can the Australian Government boats unless it is a cargo of Government material. He hoped that Mr Massey will go to the Imperial Conference (hear, hear) and that one point he will insist on is to get this iniquitous deterred rebate system abolished. Every ship trading in America is a common carrier, and if Mr Massey can induce the British .Government to enforce this we will have a much greater reduction of freight. He again appealed for applications for shares to enable the company to keep on with the good work. Answering questions, the speaker said that those who had invested in original shares had more than got their money back, the company paying out two or three times as much as the amount called up. On the motion of the chairman a hearty vote of thanks was accorded the speaker for his address and for the great amount of work he had undertaken in connection therewith. Several shares were taken up. LOCAL FARMERS ADDRESSED. A meeting of Wanganui farmers was addressed by Sir Walter at the Farmers’ Union board room yesterday afternoon. Mr. E. Parsons presided, and said i that Sir Walter was travelling about the country giving addresses in the interests of the farmers. Mr. Ewan Campbell said that years ago he’was induced to take shares

in Messrs Scales and Coy. He had been returned his principle seven times over and it was one of the best investments he ever made. Scales and Coy. bad rendered the producers great service by keeping down the freights. The farmers were greatly indebted to Sir Walter for his work in the interests of other farmers. Sir Walter’s address was on similar lines to the one given at Marton and he strongly urged the producers to organise in their own interests. He pointed out that any reduction of freights would be money in the pockets of the producers. They wanted to charge a low freight themselves. Compel the shipping combine to charge a reasonable freight. It was now practically certain that the Prime Minister wouldl go to the Imperial Conference and the matter was one that he intended to bring up. The next wool season was coming and now was the time for producers to organise in their own districts. Replying to questions Sir Walter said it did not appear possible to get insulated tonnage to carry dairy produce, but they hoped that the time would come when it would be available. The Scales Company allowed the one per cent. tare. The chairman said the proposal was that,, £5 worth of shares should be taken up for every 750 sheep. On the chairman’s motion Sir Walter was tendered a hearty vote of thanks, and it was decided that tlie secretary of the Farmers' Union (Mr. (D. Strachan) should receive applications for shares. It was also decided to set up a propaganda committee consisting of Messrs Parsons, Moore, Cameron, Currie and A. Robinson, with power to add to their number.