N4(ir rx' "<:■•:- iu»».'tVi*?«jr: oV-> ■< r>^, ■! » irr. Great arit«iln# Tynr>.^ri< committee , Report ,,, on ratea of freight In the "^^^-^ ' ."^ o T n r^ 1-1 +• >T-. /■! i • ■■!, .1 IMPERIAL SHIPPING COMMITTEE. I J i: POUT OF TItK IirEKIAL Sllirj'ING COMMITTEE KATES OF FHEKIMT IN THE NEW ZEALAND TKADi:, Presented to Parliament by Command of His Majesty. LONDON : TRINTEI) ANIl Pl'BI ISHED BV ins .M\Ji;STY'S STATIONERY OFlTlE. To be purchased through any Bookseller or directly from U.M. STATIONKRY OllIfK at the followinit .id.lrcsscs : Imperial Hoise, Kincsway, Lonoon, \V.C.2, and 28, Abingdon Street, London, S.W.I; 37, Peter Street, Manchester; 1, St. Andrew's Crescent, CARDiFt', 23, Forth Street, Kdinbi'rgh; or from EASON & SON, Ltd , 40 & 41, Lower Sackville Sprbet. Dibiin. 1921. [Crad. 1564.] Price in/. Net. CONTENTS. PAGE. MINUTE OF APPOINTMENT 3 REPORT ., 5 APPENDICES— I. Letter from the High Commissiouer for New Zealand to the Imperial Shipping Committee of February 18th, 1921 ... 11 II. Summary of Evidence ... ... ... ... ... ... 13 III. Prices paid for Produce by the Imperial Government to the New Zealand Producer during 1920 ... ... ... ... ... 19 IV. Statements from Shipping Companies as to Conditions in the New Zealand Trade 21 [This is the Fourth Report made by the Imperial Shipping Committee. The first, dated February, 1921, and published as Cmd. 1205, was on the Limitation of Shipowners' Liability by Clauses in Bills of Lading and on certain other matters relating to Bills of Lading. The second, dated June, 1921, and published as Cmd. 1483, was on the Functions and Constitution of a Permanent Imperial Body for Shipping Questions. The third, dated August, 1921, and published as Cmd. 148B, was an Interim Report on the Deferred Rebate System as obtaining in the Trade between the United Kingdom and Australia.] [Note. — The expenses of the Committee in connection with the enquiry into the freights in the New Zealand Trade amount to £16 Is. id. In addition, the cost of printing and publishing this Report is £17 15s. Od.] HE INSTRUMENT OF APPOINTMENT OF THE IMPERIAL SHIPPING COMMITTEE. WHEEEAS the Imperial War Conference, 1918, passed on the '26th July, 1918, the following resolution : — 1. That in order to maintain satisfactorily the connections, and at the same time encourage commercial and industrial relations, between the different countries of the British Empire, this Conference is of opinion that shipping on the principal routes, especially be- tween the heart of the Empire and the Overseas Dominions, including India, should be brought under review by an Inter-Imperial Board on which the United Kingdom and the British Dominions and Dependencies should be represented. 2 That for this purpose an Imperial Investigation Board, representing the various parts of the J']mpire, be ap- pointed, with power to enquire into and report on all matters connected with ocean freights and facilities, and on all matters connected with the development and improvement of the sea communications between the different parts of the Empire, with special refer- ence to the size and type of ships, and the capacities of harbours ; the Board to include, in addition to representatives of the Governments concerned, persons with expert knowledge of the problems involved, including representatives of the shipping and trading interests ; And WHKEiEAS it has been represented to me, the liiglit Honour- able David Lloyd George, Prime Minister and First Lord of the Treasury, by the Secretary of State for the Colonies after consultation with the Governments of the Dominion of Canada, of the Commonwealth of Australia, of the Dominion of New Zealand, of the Union of South Africa and of Newfoundland, by the Secretary of State for India and by the President of the Board of Trade that it is now desirable that a Committee should be appointed under the title of the Inijierial Shipping Committee, with the following functions, viz. : — (i) To enquire into complaints from persons and bodies interested with regard to ocean freights, facilities and conditions in the inter-Imperial trade or questions of a similar nature referred to them by any of the nominating authorities, and to report tlieir conclusions to the Governments concerned. (ii) To survey the facilities for maritime transport on such routes as appear to them to be necessary for trade within the Empire, and to make recommendations to the proper authority for the co-ordination and improvement of such facilities with regard to the type, size and speed of ships, depth of water in docks and channels, construction of harbour works and similar matters. Now, I, therefore, do hereby appoint the following persons to form the Imperial Shipping Committee and to exercise the functions hereinbefore set forth : — SirH. J. Mackinder, M.P. {Chairman). Sir A. H. D. Kamsay Steel-Maitland, Bart., M.P., nominated by the Secretary of State for the Colonies.* Sir W. S. Meyer, G-.C.I.E., K.C.S.I., nominated by the Secretary of State for India in Council. Sir Hubert Llewellyn Smith, G.C.B., nominated by the Board of Trade. Hon. Sir George H. Perley, K.C.M.G., nominated by the Government of the Dominion of Canada. Mr. H. B. G. Larkin, nominated by the Government of the Commonwealth of Australia. The High Commissioner for New Zealand, nominated by the Government of the Dominion of New Zealand. Captain G. Bowden, M.C., nominated by the Government of the Union of South Africa. Hon. Sir Edgar K. Bowring, nominated by the Government of Newfoundland. Sir Kenneth Anderson, Bart., K.C.M.G., Sir Alfred Booth, Bart.,f Mr. W. Lionel Hichens, Mr. Kenneth Lee, Mr. J. W. Murray, being persons experienced in shipping and commerce. I further appoint Mr. E. J. Elliot of the Board of Trade to be Secretary to the said Committee. (Signed) D. LLOYD GEOKGE. June 15, 1920. * On October 2nd, 1920, Sir Frederick G. A. Butler, K.C.M.G., C.B., was appointed a member of the Committee in the room of Sir A. H. D. Steel- Maitland, who had resigned on the ground of ill-health, f On May 9th, 1921, Mr. T. Harrison Hughes was appointed a member of the Committee in the room of Sir Alfred Booth, who had resigned on the ground of ill-health. KEPOET. To thd Eight Honourable DAVID LLOYD GEOEGE, O.M., Prime Minister and First Lord of the Treasury ; To the Eight HoNouRABUEi W. E. MASSE Y, K.C., Prime Minister of the Dominion of New Zealand. Sirs, We, The Imperial Shipping Committee, acting under tlie first part of our terms of reference, have enquired into a complaint received from the Government of New Zealand as to the level of freights on produce exported from New Zealand to the United Kingdom. Having regard to the terms of our appointment, we beg leave to report om* conclusions on jthis subject to the Governments of New Zealand and of the United Kingdom . 1. On the 18th February, 1921, the Government of New Zealand through their High Commissioner in London asked the Committee to investigate the following questions : — (a) Whether the current freights charged by the Lines trading to New Zealand are reasonable or otherwise ; and (fc») If they are not reasonable, to what extent are they excessive ? A copy of the High Commissioner's letter is annexed (Appendix I). 2. The New Zealand Government at the same time put in as evidence the Eeport of, and Minutes of the Evidence taken by, the Agricultural and Pastoral Industries, Stock and Commerce Committee, a Select Committee appointed by the New Zealand House of Eepresentatives on July 14th, 1920, which reported on 27th October, 1920, A summary of these documents is printed in x\ppendix II. 3. Oral evidence was also taken by us from the following witnesses : — (1) Messrs. J. E. Makgill and D. Long, Chairman and Secretaiy respectively of the Auckland Farmers' Freezing Company, on June 3rd, 1921, on behalf of the New Zealand Government. 34559 A 2 6 (2) The Rt flon. Lord Inchcape, G.C.M.G., K.C.S.I., Iv.C.I.E., Managing-Director of the Peninsular and Oriental Steam Navigation Company, Limited, on May 27th, 1921, on behalf of the shipowners. 4. In addition, specific financial information respecting the results of recent voyages in the New Zealand trade has been received from certain shipowners. This is more particularly referred to in paragraph 16 below. We have not dealt with the financial results to the shipowners prior to 1921. 5. We have not thought it necessary to reproduce at length the oral evidence w^hich has been taken but a summary of it is annexed [Appendix II]. It should be mentioned that the evi- dence given by Lord Inchcape was in connection not only with the level of freights in the New Zealand trade but also with the application of the deferred rebate system to the Australian trade outwards from the United Kingdom. 6. In order that the main factors in the New^ Zealand trade may be understood the following brief account of the recent history and present conditions of the trade is given. 7. The New Zealand trade has only recently emerged from a period of complete control by the Imperial authorities who, acting through the Board of Trade, requisitioned the refrigerated space in all the steamships in the trade in March, 1915, and, through the Ministry of Shipping, in March, 1917, the entire control and use of the vessels. Release from this more compre- hensive requisition was progressively granted by the Ministry of Shipping as from February, 1919, but requisition of the re- frigerated space was coincidently revived by the Board of Trade and continued down to April, 1921. 8. During this period of control neither the New Zealand pro- ducer nor the shipowner were in the open market ; both were dealing with Governments. With the discontinuance of control both prices and freights again became a matter of vital concern to the producer. We give here a table showing the movement of average wholesale prices in London : Average Wholesale Prices.* New Zealand produce. 1913. 1920 (see footnote). VJ'2\ (seven months, January to July). Mutton Lamb Beef : Fores per lb. 6ld. 3\d. Beef : Hinds Wool : Fine Cross- bred. Wool : Medium Crossbred. Wool : Coarse Crossbred. Butter Cheese id. 10f/.toL«.2k/. 9bl. to Is. 9rZ. to Uid. per cwt. [season 1913- 14] IKjs. 3d. [season 1913- 14] 66s. per lb. Jan. to middle March — lOid. Middle March to end Dec. — 9(/. (with lower prices from ^lay onwards for Ewes and cut Wethers). Jan. to middle March — lOiJ. Middle March to end Dec. — Is. Id. To end January — lOitZ. End January to April — 8id. April to October — M. (N.B. — Govt, stocks sold in October to private trader, who marketed at about 7i(/. for Fores and lOfJ. for Hinds). To End Apri 2s. Id. to 3.«. per lb. y ud. U. Hd. y Sid. imasj. . \j ) end January — l.s. l^d. ... \ "1 id January to April— 11 irf. ' > Dril to October — Is. ... ) 5i(/. l.s. 6d. to 2.S. Id. Is. 2d. to Is. 5d. per cwt. [season 1919-20] 271s. Ud. do. 154s. nd.to ls.2d. Sd. to Hid. bd. to sy. per cwt. [season 1920- 21] 2M]s. [season 1920- 21] 138s. * The figures given in this Table are ex-store selling prices for Meat, Butter and Cheese, and London auction prices in the case of Wool. They all include freight, insurance, landing expenses, selling and storage charges. During the whole or greater part of 1920, New Zealand Mutton, Lamb, Beef, Woo:, Butter and Cheese were controlled by the Imperial Govern- ment, and the Merit, Butter and Cheese were sold at this end on Govern- ment account at hxed maximum prices. These prices are given in the middle column of the Table, but, as is the case with the other price figures also, they do not in any way indicate the return to the New Zealand producer. The prices paid to the latter are set out in Appendix III. In the case of Wool, no maximum prices were in force. Coming to 1921, it should be noted that Butter and Cheese were de- controlled only in March, up to which time they were sold at maximum prices fixed by the Ministry of Food. vSincc March the latter have been disposing of their remaining stocks, and more recently these have come into competition with supplies of " un-controUed " Butter and Cheese shipped by the producers on their own account. Up to tlio end of July only a few shipments of " un-controlled " Cheese, and no Butter had been received in the United Kingdom from New Zealand. In the case of Meat, which was not " controlled " during 1921, the shipments made on producers' account have been much smaller than normally, and they have had to meet the competition of the remaining stocks of Government- owned Meat, fair supplies of which still await disposal. Similar remarks apply in the case of Wool. 34559 A3 9. It will be seen from the above figures that the wholesale market has fallen away rapidly in the case of beef from the high prices of 1920, but it must be borne in mind that beef, especially cow beef, is of secondary importance to dairy produce as is shown by the following figures : — Value of products iuijjorted into Great Britain from New Zealand during the first 7 months of 1921 — Frozen beef .-£1,239,690 Butter ... £7,115,619 Cheese £'6,385,561 In the case of mutton the prices have not fallen so seriously, and in the case of lamb they are slightly better but the price of wool has fallen at least to pre-war value. 10. The following table gives the pre-war, post-war, current and future rates of freight : — Rates Rates under Agreement between the Board of Trade Rates under Xew Contract, of Rates under same Contract from 1st September, 1921, to 31st August, iq9-? * in 1913. and Owners of Insulated Steam- ships of April 7th, May. 1921, up to 31st August, 1921.* 1919. ±£7^.^. Per lb. Per lb. Per lb. Per lb. Mutton frf. l\^d. plus 5% l|(i. plus 5% l^d. plus 2i% Lamb Hd. UH „ 5% 2d. „ bo/c 2d. „ 2^% Beef T%rf. IHd. „ bo/o lid. „ 5% lid. „ 2i% Wool (Greasy) id. plus 10% Hd. „ 10% (to end Sept., 1921). Ihl. „ 10% (Oct., 1921). » May, 1921. August, 1921. Cheese id. lid. IfgfZ. plus 10% Urf. plusl0% Butter 2s. "id. (per box.) 5s. Ad. (per box) 6s. „ 10% 6s. * The freights are applicable in each case to meat killed before or between the dates given. 11. It will be seen from this table that the percentage of freight paid to the price received, c.i.f.e., has risen in the case of beef from 15' 5 per cent, in 1913 to 42 per cent, in the summer of 1921 ; in the case of lamb the proportion is still low, 15 '5 per cent, in 1921 as compared with 11'2 in 1914, w^hile in the case of mutton the pre-war proportion of 13' 2 per cent, compares with a present percentage of 26'8. 12. This rise in percentage of freight is no doubt largely respon- sible for the feeling among the producers that freights have been maintained at unduly high levels during the present depression. Freights are undoubtedly high, but it must be emphasised that the prices realised depend on market conditions in the United Kingdom which are only remotely connected with the cost of running ships. The evidence before the Committee tended to show that shipping costs had risen by 1920 to about three times the pre-war level. Since 1920 these costs have fallen to some extent but very much less than prices generally. 13. To apply another test we have examined the current freights for frozen beef from the Eiver Plate. The two trades are in direct competition in the same market. The latest quotations for freights on Argentine frozen beef are l^d. per lb. correspond- ing with Iff/, plus 5 per cent, for the same commodity from New Zealand; the distances involved are approximately 6,300 and 11,400 miles respectively so that the rates on mileage basis are '44d. per ton mile for the Plate trade as compared with 'd5d. per ton mile for New Zealand. A closer comparison is afforded if we take into account the time occupied on the respective round voyages including coastwise itinerary. In the case of the Eiver Plate trade we understand this is about 90 days while owing to various causes to which we shall have occasion to refer below the round voyage to New Zealand now occupies in nearly every case well over six months* ; the result is that while a Plate vessel can earn under present conditions during the year on each pound of meat for which she has room about 5d. as a maximum, the New Zealand vessel can only earn about 3^d. 14. Thus whether we consider the costs of the shipowner relatively to the freights charged or the comparison with the Eiver Plate trade, the argument thus far tends to show that though the present freights are undoubtedly a heavier burden upon the New Zealand producer than the pre-war freights or than the Plate freight may be on the producers in that region they cannot be regarded as unreasonable when compared with either. 15. As a third and final test we have made direct investigation into the question of profits derived from the New Zealand freights. The general evidence given to us by Lord Inchcape was to the effect that while the shipping companies concerned were making profits in 1920 the whole of those profits would be wiped out this year and there was no prospect of any recovery in sight. In his judgment the big Lines would be in a w^orse position at the end of 1921 than they were at the end of 1913. 16. We have had before us, however, more specific evidence. Through the courtesy of certain shipowners engaged in the New Zealand trade, definite audited information as to the out-goings and in-comings for a continuous series of round voyages in that trade during the first half of the present year was made available in confidence and the results were submitted to the Committee. We are of opinion that these show, even if we attach relatively low capital values to the ships in question, that the freights earned were not unreasonable. 17. It will have been observed from the particulars given in paragraph 13 that the unusually prolonged round voyage in the New Zealand trade intensifies the disadvantage at which that trade is placed as compared with the Plate trade. We have accordingly made careful enquiries into the general conditions of the New Zealand trade and have obtained statements from * Actual figures supplied to the Committee give tor two Companies an average of 1"G voyages per annum only (1'8 for five passenger steamers) : and for a third Company an average of 222 days for the round voyages of ten steamers. In the case of a fourth Company two direct voyages to New Zealand and back took 185 and 202 days respectively : (others included calls in Australia or United States and the periods were from 196 to 277 days). 10 the Shipping Companies concerned, copies of which are annexed (Appendix IV). From these statements i,t appears clear that the prolongation of the voyage is largely due to the practice of collecting the cargo of the same ship at many different and widely distant ports and to the multiplicity of parcels and of marks, sub-marks and grades, the sorting of which on discharge involves loss of time and extra labour. Undoubtedly the earning capacity of the ship would be considerably increased or in other words the costs of transport would be reduced if some practical steps could be taken to simplify these practices. With this object in view the Shipping Companies and the shippers might advan- tageously co-operate. 18. A further factor of much importance has to be kept in mind. At present outward cargo to New Zealand is very scarce and consequently the homeward cargo has to bear a dispropor- tionate share of the cost of the round voyage. In 1913 the total weight of iron and steel products exported from the United Kingdom to New Zealand as recorded in the Board of Trade (U.K.) Keturns, was 114,000 tons; but during 1920 it was only 54,500 tons and during the first 7 months of 1921 it was 18,000 tons. The figures for all the United Kingdom exports to New Zealand are roughly 160,000 tons in 1913, 89,000 tons in 1920 and 39,000 tons during the first 7 months of 1921. 19. Our general conclusion is that under existing conditions the current freights charged by the Lines trading with New Zealand are not unreasonable. 20. We understand that at a meeting of New Zealand producers and of the shipowners in the New^ Zealand trade held in London on the 19th July last it was agreed, despite the existence of a contract extending to August 31, 1922, that the question of freights should be review^ed in New Zealand not later than the first w^eek in January, 1922, with reference to any reduction in the working cost of steamers. 21. We hope that by the further decline in the level of shipping costs the position will have been eased by the end of the year and that it may also be found possible to effect sub- stantial economies in the directions indicated in paragraph 17. H. J. Mackinder (Chairman). F. G. A. Butler. W. S. Meyer. H. Llewellyn Smith. George H. Perley. H. Larkin. J. Allen. Geo. Bowden. Edgar E. Bowring. Kenneth S. Anderson. W. L. HiCHENS. T. H.\RRTSON Hughes. E. J. Elliot, Kenneth Lee. Secretanj. James W. Murray. 11 APPENDIX I. Letteh from the High Cosimissioneu for the Dominion of New Zealand TO THE Imperial SnirriNG Committee. New Zealand Goveiiiinont Offices, 415, Strand, London, W.C.2. 18th Fiihruanj, 1921. Dear Sir, With reference to the letter from this Department of the 10th November, enquiring whether the Imperial Shipping Committee had power to take evidence with a view to securing from the Shipping Companies information to show whether or not there is any justifica- tion for high freights : and to your reply of the 23rd idem, in the fourth paragraph of which the opinion is expressed that the Committee believe they oan obtain from the Shipping Companies concerned, and from otJier sources, sufficient certified statements to enable them to deal with the question, I have to advise you, for the information of the Committee, that I have now received from the Dominion a print of the evidence taken by the New Zealand Parliam.entary Committee set up to consider various shipping questions — together with the Committee's Report.* I enclose copy herewith, for the use of the Imperial Shipping Committee. The present appears to be a suitable opportunity for me to bring up the whole question of the high level of freight rates in the New Zealand trade, and I accordingly submit the following representations on behalf of my Government. I. The New Zealand Government, on behalf of the producers, are very much concerjied at the great increase that has taken place since the outbreak of war, in freight rates on all classes of New Zealand produce shipped to this country — both ordinary and refrigerated cargo. II. They accordingly would be glad if the Imperial Shipping Com- mittee would cause full enquiry to be made with the view to eliciting such information as will enable a decision on the following points to be reached : — (a) Whether the current freight rates charged by the Lines trading to New Zealand are reasonable or otherwise. (b) If they are not, to what extent are they excessive. I observe that at the preliminary discussion which ensued at the Twelfth meeting of the Committee on 19th November last, the suggestion was made that for the purpose of the enquiry the rate of profit made by the Com- panies concerned prior to 1913 should be assumed to be not unreasonable. With this assumption I cannot agree; and whilst, on the other hand, I do not wish to assert that the reverse is true, it would, I consider, be of advantage to all concerned if information were placed before the Committee which would enable them to arrive at a reliable conclusion. On behalf of the New Zealand Government I would prefer to express no opinion on the point until the full facts are elicited. In all our recent negotiations with the Shipping Companies, an assumption of this character has been the foundation of thoir case for the continuance of the present high rates of freight. They have found it convenient to refer to the fact that the Ministry of Shipping and the Ministry of Food, having compared costs cTf running, &c., with similar costs in pre-war days, have agreed to such and such charges as being *Not printed— .S<'(' Summarj' in Appenili.x TI. 12 reasonable. The point of the New Zealand Government is that the com- parison of costs is only one of the many factors to be taken into con- sideration — it does not go far enovigh, and only deals in half-truths. In order to reach a sound conclusion on the freight question, it is necessary to take account of many other relevant facts, and on behalf of my Govern- ment I submit the desirability of requesting the Steamship Companies to put in certified copies of their Profit and Loss Accounts and Balance Sheets for the past few years, and to arrange for their representatives to attend with such accounts and papers as may be required to support and explain the figures contained in those documents. Thus, in addition to particulars as to relative costs and earnings, I suggest the Committee will find it advisable to enquire into : — i. The original constitution of the various Companies and the alterations that have since occurred — whether by way of absorption, amalgamation or otherwise. ii. The capital of the Companies, and its variations — distinguishing carefully between accretions by way of (a) new subscriptions, and (b) bonus shares or similar additions. iii. Reserves and Reserve Funds — their growth, increase or decrease, and the causes and effects of their variations. iv. The extent to which capital expenditure is being, or has been, provided out of profits. V. The methods that have been followed in connection with the periodi-cal valuation of the fleets for Balance Sheet purposes, and the consequences of any such re-adjustment of values. vi. The estimated values of the present fleets, at present rates of purchase or replacement by new construction — and the differ- ence between these values and the book values. vii. The costs of running, pre-war and now, with particular reference to (a) bunkers ; (h) wages ; (c) insurance ; (d) depreciation : and and with general reference to other items. viii. Freight charges pre-war, and now on : — («) refrigerated cargo : (b) ordinary cargo. ix. Profits earned, and how distributed — whether to shareholders, reserve or other funds : total amount yearly, and rate per cent. In addition to this " Balance Sheet " information, the following will also be of great assistance to the Committee in arriving at a conclusion : — X. The experience of the Companies — pre-war, during the war, and now, in respect of the number of voyages completed by each vessel during the twelve-monthly period. At the same time the Companies could be asked to submit obser- vations as to the causes of any delays that have taken place, and to furnish suggestions for their avoidance or reduction in future. xi. The experiences of the Companies in regard to the amount of cargoes — outward and inward- — pre-war and now. The headings suggested will be sufficient to give the Committee a clear indication as to what, in the opinion of my Government, would be the most fruitful lines of investigation, and I trust the Imperial Shipping Com- mittee will be able to undertake the enquiry accordingly. In addition to the freight question, I should also like to ask the Com- panies for some information as to their attitude towards rival shipping lines — e.g., the Commonwealth Government Line, the Shire Line, &c. As the Committee may perhaps be aware, one of the New Zealand Frozen Meat Companies some time ago decided to purchase and refrigerate a 13 steamer to assist in relieving tlie congestion at their works. 1 may like to put to the Companies a question or two as to tlieir attiUule in re- gard to the allocation of other tonnage to the freezing works in question. I am sending you this letter by hand, marked " Urgent '' and shall be glad if you will kindly arrange for it to be brought up for consideration at to-day's meeting. I hope to be present, and shall lie pleased to furnish the Committee with any further information or explanation they may require. T am, Dear Sir, Yours faithfully, (Sgd.) J. Allen, High Commissioner for New Zealand. The Secretary, Imperial Shipping Committee, Great George Street, S.W.I. APPENDIX II. SUMMARY OF EVIDENCE. A. The Select Committee of the New Zealand House of Rei'kesent.\- TIVES appointed TO INQUIRE INTO CERTAIN MATTERS RELATING TO Freights on New Zealand Produce. Sumtnary of Evidence taken in August and October, 1920. 1. Evidence was supplied to the Committee in the form of a memor- andum from the New Zealand Director-General of Agriculture showing the rates of freight obtaining in 1913, 1917 and estimated for 1921, wliich generally showed a rise of about 200 per cent, from 1913 to 1917 witli, in most cases, a further rise anticipated for 1921. 2. Captain G. T. Hull, a shipping agent, informed the Committee in evidence of calculations he had made as to the cost of carrying wool from New Zealand to London via Panama. He took a vessel of the smallest size suitable for the voj'age, viz., of 2,000 tons net or 5,000 tons dead weight, carryiiig 10,500 bales of wool. The chief items in his estimate of this cost are as follows, including the cost of bringing a cargo of coal from Newcastle, New South Wales, to Wellington, which is regarded as part of the voyage: — £ Charter hire for 3J months at £1 per dead weight ton... 17,500 2,150 tons of coal 3,600 Dues, including Panama Canal dues, expenses in connec- tion with the wool, loading, storage and discharge 3,400 Total disbursements, including 5 per cent, for con- tingencies ... ... ... ... ... ... ... 28,567 Against this the receipts would be freight on coal £5,000, freight on wool at Ifd. per lb. £27,870, or less brokerage of 5 per cent, a total of £31,226, leaving an approximate profit of £2,659 for the ship broker for the voyage. With a larger steamer carrying (say) 20,000 bales the cost would be reduced proportionately by about 25 per cent., i)ut there is a great delay attendant upon loading and discharging, and this very sei'iously interferes with the receipts from the ship. 3. The General Manager of the New Zealand Farmers' Co-operative Society, giving evidence in August, 1920, was of opinion that though serious at the moment, the position was likely to become easier. He 14 said that there was no proper co-ordination in combined effort among the farmers but that considerable progress had been made in the move- ment towards greater co-operation. He would like to see the produce shipped in vessels OAvned by the producers but he did not see any prospect of this coming. 4. Evidence was given by Mr. James Findlay, the Chairman of the New Zealand Overseas Committee, a Sub-Committee of the Australasian Imperial Government Tonnage Committee of London. He explained to the Committee that the rates on meat, butter and cheese are fixed by the Imperial Government which requisitioned the space under arrange- ments which were to come to an end on April 30th, 1921. The general cargo rates are fixed by the shipping companies themselves and as regards the relations between the individual companies he stated: "There is keen competition individually amongst companies to get as much cargo as they can. We certainly do agree season by season what rates of freight are going to be charged ; but as to an agreement to keep rates unnecessarily high, to that extent the general public is wrong, and it is extremely ignorant as to the relative rates charged in other parts of the world." He went on to point out -that when reference was made to large profits made by shipping companies these were not made by the companies trading to New Zealand. As regards the rates on general cargo, these were designed to return £6 a ton measurement to the ship^ and hence the rates per ton weight varied Avith the nature of the goods. Attention having been called to the fact that whereas the rate on oats was now £10 per ton weight as compared with the pre-war rate of from 25s. to 35s., it was explained that the low pre-war rate was due to the general freight situation at the end of the season when freights was very scarce. The current rate was on the same basis of the others, viz., £6 per ton measurement. The general increase in freights was attributed to the increased cost of running the ship, and a telegram from the London Tonnage Committee was put in in evidence which gave particulars of the increases in expenses as follows : — " Running expenses — that is, stores, upkeep, insurance, wages — " for year ended March last as compared with year ended March, " 1914, show average increase of 258 per cent., which is three and a " half times. For same period total voyage disbursements, excluding " depreciation, interest, and establishment charges, increased 183 " per cent. Loading and discharging increased 275 per cent., port " charges 139 per cent., coal 113 per cent. Coal to-day, London — " Hampton Roads — New Zealand, increased 280 per cent. A new " insulated steamer for New Zealand trade is just being delivered, " costing £590,000. Naval architects advise officially that similar " steamer delivered 1914 would have cost £159,000. Interest and " depreciation on increased cost of steamers has to be provided in " addition to disbursements mentioned above, also increased estab- " lishment charges. Prices and wages are still rising; each steamer as she arrives shows greater expenses over previous voyage, and " voyages completed this year show increase of disbursements 50 per " cent, over 1919, and we cannot see that we have reached the limit." Part of the increased cost was also attributed by Mr. Findlay to the expensive and slow working at the wharves. 5. The Committee pressed Mr. Findlay considerably in regard to the rebate system, particularly in regard to its operation against the Common- wealth Government Line, which they represented as crippling their operations by the competition of privately owned lines supported by the conference system to which Mr. Findlay replied that if the shipping companies could not rely on sufficient cargo for their ships from the United Kingdom, New Zealand exporters might suffer from their inability 15 to get the steamers out to New Zealand at all. It was put to hini that the Government might have to seek for channels for the distribution of New Zealand produce, to which he replied that it would be difficult for a State line to compete " at the low rates which are being charged." A State line would have to employ steamers produced at a very high cost. He added: "I should not entirely regret a small State line built or embarked upon, as 1 have soon suggested, with an idea of having a lower- ing effect on rates, because I think the experience of a year or two's running would mean there would be a greater security for the existing companies, as the moderation of our rates would be realised. I prophesy that a State line could not run at a profit at the present rates; and the only way of keeping it alive would be to make the Consolidated Fund bear the loss (which would be economically unsound) or, alternatively, to raise rates of freight.'' He further represented that the winter trade with New Zealand was unprofitable and that the profit made in the summer had to be used to equalise the position. There were moie remunerative trades than those with New Zealand, and to these the shipping companies would have to look if the producers took drastic action. 6. The Honourable Sir W. Buchanan, M.L.C., who gave the final evidence before the Committee, called their attention to the freight reduction movement of 1897. At that time the producers in New Zealand had found it very difficult to get what they considered reason- able rates of freight or sufficient insiilated space. Wool freights were in some cases double the Australian rates. In order to remedy the position the producers combined apparently to charter sailing vessels and were about to take their own measures in regard to the carriage of refrigerated produce when the shipping companies hurriedly entered into a contract with the freezing companies which gave the producers no chance. How- eA^er, the result of this action had been to place the control of the unrefrigerated freights in the hands of the producers which lasted until 1914, and even in the case of refrigerated produce the action of the shipping companies was accompanied by a substantial reduction of freight. 7. In addition to referring to the possibility of similar action to that taken in 1897, Sir Walter Buchanan who stated that the combination of liners had a complete monopoly of outward freights, and that even Australia could not get anything outward except Government cargo, said that all that was required to remedy this state of affairs was to pass a short Act on the lines of Section 14 of the American Shipping Act, 1916, which declares shipping rebates illegal. But on the whole, however, he appears to have considered that if the New Zealand Government were to take action in the shape of chartering or purchasing half a dozen first-class steamers this and possibly the mere threat of it would have the result of securing a considerable reduction in the freights now ruling as a result of the " complete monopoly " enjoyed by the liners. 8. The only evidence bearing on the subject of the profits of the steam- ship companies concerned which was given before the New Zealand Committee other than what may be gathered from calculations of working costs, such as that referred to in 2 above, was certain partictilars taken from the Stock Exchange Official Intelligence. This consisted of state- ments of the dividends paid by the chief shipping companies concerned, of the main facts in regard to their capital, and other particulars which are public property. Nearly all the shipping companies in question have their finances closely involved with tliosc of larger companies, for example, the New Zealand Shipping Company and the Union Steamship Company are both merged with the P. & O. Company, and Messrs. Shaw, Saville & Albion are in close relations with the International Mercantile Marine Company. 16 The Commonwealth and Dominion Line, which is stated to be con- trolled by the Cunaid Steamship Company, apparently paid dividends as follows : — 1914-1915 ... ... 8 per cent, and bonuses of 2 per cent. 1916-1917 20 per cent. 1917-1918 ,, 1918-1919 ,, As regards Messrs. Shaw, Saville & Albion's dividends it is stated that the information as to the dividends paid on ordinary B shares is withheld ; the preferred shares get a regular cumulative dividend of 5 per cent. Apparently there is no definite information regarding the dividends of the New Zealand Shipping Company. Meport. The chief conclusions arrived at by the Select Committee, as stated in their Report of October 27th, 1920, were as follows: — 1. The refrigerated tonnage engaged in the services of the companies in the New Zealand trade is sufficient for normal requirements at the present time. 2. While giving full consideration to the various causes which have operated in materially increasing the cost or running vessels as com- pared with pre-war times, the Committee, after carefully weighing the evidence given, is of the opinion that the rates now quoted for privately owned produce are unwarrantably high. These rates are in excess of those ruling during the actual war period. 3. The evidence obtained as to combinations among shipping companies gives cause for grave concern, especially when the dependence of the Dominion upon refrigerated tonnage is realised and consideration given to the relatively small total amount of refrigerated tonnage existing in the world as compared with ordinary cargo-vessels. Thus the existence of these combinations of shipping companies owning refrigerated tonnage constitutes a position which has in it possibilities of creating trading conditions calculated to operate to the disadvantage of the community generally. 4. Notwithstanding the fact that sufficient refrigerated tonnage for present-day normal requirements is owned by the companies now in the New Zealand trade, the Committee is of the opinion that, consequent upon the possibilities latent in the combinations existing, it is desirable, in the best interests of the Dominion, that a shipping line be established which will be entirely independent of any combination, and that the Government should assist in the establishment of such a line by guarantee, financial assistance, or otherwise. 5. Among the most important features of the evidence obtained was the information given to the Committee regarding the methods adopted by shipping companies or combines in preventing opposing independent lines securing outward cargo from Great Britain, among which methods the granting of freight rebates constituted an important feature. In order to combat this, the Committee recommends that legislation based on that contained in the United States Shipping Act, 1915, be introduced. B. Summary of Lord Inchcape's Evidence on Conditions in the Australasian Tr.vde as given before the Imperial Shipping Com- mittee ON Friday, May 27th, 1921, so far as it is relevant to THE question UNDER EXAMINATION IN THIS RePORT. Question whether the Freights Charged by the Conference Lines were Unduly High. (a) As compared with Continental -freights. It was stated with reference to the examples furnished of lower rates of freight to Australia from the Continent than from England that that was a state of affairs which might occur in any trade for a short 17 time. When tlie English shipowner realised tliat ho was losing cargo he would probably reduce his rates to same level or oven lower than those on the Continent. (6) As compared with pre-war freights. Lord Inchcape thought that the rate on mutton of about 2d. whicli had been fixed under the recent agreement between freezing companies and the steamship companies to be in force until the end of August, 1922, was not very high. It compared with a pre-war freight of 65 of a penny and the ship at the 2d. rate made little or nothing. He stated that in order to get freights down expenses must come down. He sug- gested that the current rates should be compared with those obtaining in the Plate trade. (c) As evidenced by the actual profits and financial position of the shipping companies concerned. Lord Inchcape stated that their policy was the conservative and careful one of not distributing all their profits; they paid very small dividends. In his view if new capital had been raised by public subscription for fresh vessels higher freights would have been necessary to pay increased dividend, interest and depreciation charges. During the war the Govern- ment took all the profits as the ships were cliartered to the Government at blue book rates and at present the outlook is very bad as every ship now going out to Australia, is coming back with a large debit balance. His Lordship explained that in shipping you have a few good years, then a few bad years and if you distributed the profits earned during the good years you would be in serious difficulties for the bad years. In his judgment the great shipping companies would be at the end of 1921 in a worse position than they were at the end of 1913. The prices of new ships had reached very high figures in 1920 and though there had been some fall lately it was not more than about 15 per cent. Miscellaneous. Lord Inchcape said it would be very hard if there was any Act compelling the Shipping Companies to disclose their profits to the Imperial Shipping Committee; at the same time he regarded complaints as based on "mis- conception and imperfect information." Delays in discharge at present add greatly to the cost of freightage and these are due to inadequacy of storage accommodation and the remedy is greater warehouse capacity all over the country. The formation of Shippei"s' Associations is welcomed by the shipowners and in Lord Inchcape' s opinion there should be no greater difficulty for the shippers to do this than for the shipowners to form their Con- ferences ; the fact that there is so little combination shows that the shippers are satisfied. C. SuMM.4RY OP Evidence given by Messrs. Makgill and Long, Director AND Secretary respectively, of the Auckland Farmers' Freezing Company on June 3, 1921. Mr. Makgill explained that he was a Director of the Auckland Farmers' Freezing Company and also a farmer and that Mr. Long, though not a farmer, knew the conditions of the farming community in New Zealand. In the Auckland district (North Island) the beef question was the important one (especially cow-beef) as there was a large dairying industry in that area and means must be found to dispose of cows which did not prove remunerative. In the South Island, beef was a negligible question as attention was mainly concentrated on mutton and lamb. The frozen mutton and lamb trade was very much larger than the beef trade. The witnesses agreed that even in the North Island, sheep farming was on a larger scale than dairying. 18 (1) Freights. Comparing with the rates in force in 1914 and those in force under the new contract, freights had risen over the 1914 summer rate, 201 per cent, in the case of mutton, 194 per cent, in the case of kxmb and 244 per cent, in the case of beef while compared with the winter rate, the increases had been 278 per cent., 263 per cent., and 29-7 per cent, respectively. Freights were highest on lamb and lowest on beef, which required less space for the same weight than mutton or lamb. The witnesses did not appear to think that they were at any disadvantage as regards freight as compared with the Argentine; in fact on a mileage basis they might possibly be at an advantage, but this was probably neutralised by the heavier costs of loading in New Zealand, where the ships visited many different ports. (2) Prices of Meat. The gross return to the farmer at present day prices on prime cow-beef was l-44tJ. per lb. or £3 for an average animal; on prime ox it was £7 5s. 9d. but was less in both cases for poorer grades. The pre-war return on lamb was £1 as against £1 8s. Id. obtained now and the witnesses considered that this was " a very good price." Mutton pre-war returned approximately the same price as now — £1 4s. 5d., while prime ox which returned £11 7s. 6d. before the war now only returned £7 5s. 9(7. — a drop of one-third and cow-beef (prime) was reduced from £6 10s. to £3 Os. 2d. Those figures were based on the freezing charges of the Auckland works which were the lowest in New Zealand and the return to the farmer would be smaller from meat sent to other freezing works. (3) Cost of Production. The farmer's costs had increased greatly. The wages of general farm labourers had risen from 6s. to 10s. per day; wire, which was a very important item, had advanced from £16 to £86 per ton though it had fallen considerably recently ; manure was up quite 300 per cent, and grass seed which was 5s. per bushel pre-war had fetched as much as £2 a bushel. The price of land had gone up 200 per cent. Some costs had already fallen considerably. The freezing charges of the Auckland Company had advanced some 50 per cent, but other works were charging double their prices. (4) lieturn on Farmer's Capitcd. The percentage obtained by the farmer on his capital depended to a large extent on the price at which he got the land. The profits in pre-war days were quite good. There was a profit to-day on lamb but seeing that the return to the farmer on mutton was only the same as before the war profits had come down to vanishing point on that article however. As regards sheep farming as a whole, taking into account the low price of wool, the position Avas not satis- factory; it was still giving a profit but not nearly so much as in pre-war days. The witnesses contended that the decline in the return on beef meant that the farmer could not carry on with beef. Beef, however, was a by-product of the dairy-farming industry and few farmers were engaged in raising beef alone. Dairy farming was still showing a profit; butter fat was fetching a very high price at present but the price would no doubt fall next season. The dairying industry was also a small-holder's industry and the small-holders did much of their own work. On the whole, the witnesses agreed that though the farmer's profits had diminished, he was not in danger of bankruptcy. They further agreed that some of the complaints against the shipowners arose from the fact that the large profits made by the farmers during the war had been reduced and that they were carrying stock which is falling in value. It was also pointed out to them that gradually the farmer's costs (including the price of stock) would fall but they did not agree that as regards beef a fall would lead to putting the industry in a satisfactory position. II 19 (5) Comparison of Freights ttnd Prices. The percentages of freight to price received c.i.f.e. in 1914 were 16-4 for beef, 18-6 for mutton and 12-6 for lamb; at present they are from 38 to 56 for different qualities of beef, 25 to 39 for different qualities of mutton and 16-4 for himb. (6) Method of Fixiiuj Freight Rates on Refrigerated Produce. The rates on refrigerated produce are hxed by negotiations between shipping companies and freezing works, the last contract (prior to the new one just fixed) being in 1913. The Auckland Company's old contract was with the Shaw, Savill and Albion Company and New Zealand Shipping Company under which they confined their cargoes to these companies and the companies undertook to lift their meat. The position ajjparently was that in 1913 about three-quarters of the freezing works made a joint contract with the two companies above while the Tyser Company (now Commonwealth and Dominion Line) made contracts with other works but at the same rates. The witnesses thought it probable that the new agreement was between all the shipping companies and all the works — in fact, a national contract, except for the Poverty Bay Farmer's Company, who had purchased a steamer of their own — the " Admiral Codrington." (7) Question of Monopoly. The witnesses stated that in the old contract there was a clause to the effect that if another company came into the trade during the period of the contract and offered a lower rate, the contracting companies agreed to take the same rate and the works still to confine their cargo to them at that rate. They thought that this clause covered general cargo also. There was no actual competition at the time of the 1913 contract in re- frigerated tonnage nor was any threatened ; no foreign lines offered to provide services. The witnesses thought that if the 1913 terms had not been acceptable they had a possibility of getting other refrigerated space though the question did not really arise. Other lines might have been willing to bviild steamers and would have had time as the noAV contract was discussed a considerable time before the old contract expired. In 1920, however, owing to the merging of shipping companies, it would have been very difficult to get other tonnage and the freezing companies practically had to come to terms with the present shipping companies. (8) Producers^ Steamship Company. The witnesses said that there had been much agitation for the forma- tion of a steamship company to be run by a Producers' organisation, possibly with Government backing. They did not favour the idea recognising that shipowning and running was a technical business. The agitation was purely economic and not political in character. The witnesses were of opinion that the pre-war rates of freight were quite fair and reasonable. They were not prepared to say whether the present rates were unreasonable as they did not know the position of the shipping companies. They pointed out however that the shipping companies had built up their reserves to carry them over bad times from freights and were of opinion that during the present depression, the burden should be shared amongst all the interested parties. APPENDIX III. Prices Paid i-or Produce by the Imperial Government to the New Zealand Producer during 1920. The following extracts are from the Review of Operations by tlie New Zealand Department of Imperial Government Supplies covering the period from 1st April, 1918, to the 31st March, 1919, including an 20 Appendix showing Results to 23rd August, 1919. The prices paid in respect of each chiss of produce by the Imperial Government to the New Zealand producer during the period in question continued to apply during 1920, except in the case of butter. Meat. Description. Prices operating from 20th October, 1916. Per lb. d. Wethers, first quality, 72 lb. and under ... ... ... 5| ,, ,, ,, over 72 lb. and up to 85 lb. ... 5g ,, ,, ,, over 85 lb. and up to 98 lb. (subject to special approval by Inspector) 4| ,, second quality ... ... ... ... ... 5 J Ewes, first quality, 72 lb. and under ... ... ... ... 4| ,, ,, ,, over 72 lb. and up to 85 lb 4f ,, second quality ... ... ... ... ... ... 4| Lamb, special prime and Canterbury quality, 421b. and under ... ... ... ... ... ... 6^ ,, first quality, 42 lb. and under ... ... ... 6| „ ' over 42 lb 6i ,, second quality ... ... ... ... ... ... 6| Beef, prime ox ... ... ... ... ... ... ... 5 ,, second and heifer ... ... ... ... ... ... 4| ,, boning in quarters ... ... ... ... ... 4 J ,, cow, prime ... ... ... ... ... ... 4| ,, ,, second ... ... ... ... ... ... 4 J ,, boneless ... ... ... ... ... ... ... 5 J Mutton, legs 6| ,, shoulders ... ... ... ... ... ... 5f ,, loins ... ... ... 5| These prices continued in force during 1920. Wool. " The purchase of the 1917-18 greasy-wool clip on behalf of the Imperial Government was made on the same basis as the purchase of the previous clip, viz., 55 per cent, advance on the average prices realised during the 1913-14 season, which were estimated to be as follows: — Description of Wool. Superior merino combings . Medium to good merino Inferior merino Superior half-bred Medium to good half-bred . Inferior half-bred Superior cross-bred Medium to good cross-bred. Inferior cross-bred Lincoln and Leicester Lambs, good Lambs, medium and all wool received into store and accepted was paid for on the above scale, plus the 55 per cent, mentioned. Range of Values per Pound according to Quality. d. d. From 12 t T l^ , 114 > 84 , , 02 12 , , 14 91 , , 12 9 , , 10 , lOJ , , 12 9 , , 11 71 , , 9 8| , , 104 11 , , 13 9 , , 101 21 " In ad'ditioii, tlio imperial (iovernnient undertook to return to New Zealand wool-jirowers halt the profits made on wool solil for other than military purposes.' The purchase of the 1918-19 and 1919-20 wool flips of New Zealand, on behalf of the Imperial Government, was made on the same basis as al)ove. Cheese. " During the present (1918-19) season the prices (have been) fixed at 10f(/., 10i(/., and lOd. (per lb.) for first, second, ami tliird jj;rade factory chees respectively." These prices continued to apply in the 1919-20 season. Butter. The price paid to the factories lor first grade creamery butter for 1919-20 was 280s. per cwt. f.o.b. APPENDIX IV. Statements as to Conditions in the New Zealand Trade. (a) Shaw, Savill ct Albion Company, Limited. The difficulties which have to be contended with and which cause much direct and indirect expense to the shipowner are chiefly the following: — (a) The numerous freezing works whose output has to be lifted and the number of ports which have to be visited. (b) The multiplicity of bills of lading required by shippers from each freezing work, the multiplicity of separate marks on most of the bills of lading, the number of consignees and the splitting up of the deliveries by the consignees. (c) The inadequacy at times of the storage accommodation here lead- ing to excessive delays in discharge. (d) The go-slow policy here and in New Zealand of the workmen. In regard to (a) there are thirty-nine freezing companies or works in New Zealand each with a separate output. There are eighteen ports each of which the steamers are required to visit to lift the meat at least once a month during the season. Many of the works have limited storage accommodation and all desire the promptest clearance of their prepared output. These works occur from Whangarei at nearly the extreme north of New Zealand to the works at the Bluff in the extreme south ; most are situated on the east coast but some are on the west. In regard to (b) probably the case of the " Matatua " now discharging here will give some idea of the conditions. This vessel is not exceptional except that she does not carry as much meat as some of the other steamers in the trade, and the details of marks, etc., are rather better than the average; moreover, she only loaded meat at two ports: — Number of carcases shipped ... ... ... ... 116,002 ,, ,, separate bills of lading ... ... ... 181 ,, ,, ,, marks ... ... 701 „ ,, ,, ,, each of 10 carcases or less 158 ,, ,, consignees ... ... ... ... ... 32 ,, ,, deliveries ... ... ... ... ... 196 Under such conditions mis-deliveries are inevitable and cargo left on hand never realises the amount claimed and paid for short deliveries. 22 The position in regard to (c) is doubtless well known to your Committee. Discharge has had frequently to be delayed in commencement and later stopped for want of accommodation for the meat; this holds up the steamer and increases the cost of the discharge. In regard to (d) the following are a few instances of the time occupied in New Zealand in loading (a portion of the time of course being occupied in changing ports) and here in discharging the steamers: — Arrival in London Steamer. In New Zealand, until discharged. "Waiwera" .. 41 days. 30 days. (e) " Zealandic" .. 46 25 „ (e) " Maimoa " .. 54 44 „ (e) " Corinthic" .. 40 30 „ " Raranga " ... .. 64 55 ,, (e) " Waimana " .. 33 36 „ " Mahana " .. 48 40 „ "Tainui" .. 24 (Arrived 23rd June — not yet discharged.) "Matatua" .. 42 ) ) (Arrived 20th July— not yet discharged.) the above-mentioned vessels those marked (e) arrived in New (Of Zealand empty.) In our view (a) is not likely to be remedied materially, the New Zealand desire for localisation being so strong; that, however, is beyond the ship- owners' influence or control. We believe (b) might be materially im- proved without disadvantage to individual shippers but this again, lies outside of the shipowners' province. Undoubtedly (c) can be remedied and we trust (d) will gradually be improved as the general disruption during and following the war is replaced by a more moderate attitude on the part of the workmen and an approach to normal conditions ensues. Manifestly any diminution in the number of ports visited, any reduc- tion in the work of sorting and delivering with resulting claims, any more rapid discharge and any better work done will, separately or in com- bination, result in diminished expenses and so enable the shipowner to carry the cargo at lower rates of freight. August 11th, 1921. (b) Commonwealth and Dominion Line, Limited. It is a fact that in order to relieve pressure in Freezing Works in various districts in New Zealand, it is sometimes necessary for one ship to call at many and widely distant ports. The matter is however receiving our earnest attention, and we hope our efforts will result in a reduction of the loading ports in future. With regard to the multiplicity of marks and numbers on Bills of Lading, we cannot do better than give you the following figures of cargo loaded from different ports in the Dominion by our most recently arrived steamers : — - Carcases. Number of Bills of Lading. Number of Marks or Grades. Maximum number of Grades on 1 Bill of Lading. 2G,543 52 290 11 81,593 91 795 165 22,000 32 130 14 18,224 16 87 15 17,080 19 68 16 18,503 35 38 3 70,753 107 331 81 48,307 69 446 156 i 23 A steamer now discharging has Bills of Lading with iiuuks ol 23 single carcases and 50 lots of from 2 to 9 each, it is difficult to givo correct delivery of such small quantities, the expense of sorting is heavy and the carcases are liable to get damaged. As the whole sliii)n)('iit has to be landed for sorting the discharge is slow. One steamer recently had a shipment of 4,968 legs of mutton graded into three lots. Separate delivery was required for each grade, so that every leg had to be turned over to get the exact mark. Further great delay is caused through receivers not applying for delivery orders immediately on a steamer's arrival to enable cargo to bo delivered as fast as the vessel can discharge. Steamers are in fact turned into stores for the benefit of the importers. In a recent case after the vessel had been 10 days in London 30,009 carcases were still not released. Arrangements had to be made to restow the unclaimed meat into an empty chamber, causing great delay and expense to the ship. Remonstrances and claims for demurrage invariably met with the reply that the meat had only just been purchased, or that Bills of Lading had only just arrived by mail. August nth, 1921. (31559-1) Wt. 15131-7978 20O0 1/22 U.St G. 6 283092 UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE UNIVERSITY LIBRARY '"-^- i>nok is DUE on tlip i^'^t datp ^tamr^^-' • AT LOS A>TGELES LIBRARY ^J^ ^