BIG SUBSIDIES.

Auckland Star, Volume LXIII, Issue 302, 21 December 1932, Page 7

BIG SUBSIDIES.

SHIPPING PROBLEM.

State-Aided Services Cause Concern. BRITISH OWNER'S VIEWS. (United T.A.—Electric Telegraph—Copyright) ; (Received .11 a.m.) LONDON, December 20. Sir Alan Anderson, presiding at a meeting of the Orient Line, said: "We have been guided in our decision not to pay a dividend, not so much by the cash which would enable the payment to be made,, as by the prospects of trade. The Australian passenger trade docs not yet show those clear signs of improvement whicli would alone justify payment of dividend from reserves. "We have reason to be thankful in this year of collapse that we have not only avoided actual loss, but have realised a cash profit of £100,000 on holiday cruises, which also helped to solve the unemployment problem. "Among the world causes of our depression is that one nation after another is giving enormous subsidies and dumping shipping services on the world with the Apparent object of ruining shipowners who try to make ends meet. "The Matson Line, by placing on the San Francisco-New Zealand-Australian run three new vessels whose capital cost and running expenses are much greater than, judged by past experience, the trade will repay, is competing with a British line \hich cannot dip into the public purse and is unable to offer the public such cosily vessels. "If the Matson Line had found 25,000,000 dollars and themselves were charged the normal rates of interest on that sum, or were in any serious risk of having to pay the eventual loss, we might blame them for gambling, but as a grateful nation is taking the risk we must congratulate them on being safe men, not gamblers."