WHALE-HUNTING TO STOP.

Auckland Star, Volume LXIV, Issue 29, 4 February 1933, Page 12 (Supplement)

WHALE-HUNTING TO STOP.

DUE TO OVER-PRODUCTION.

11,000 MEN OUT OP WORK.

In order to prevent the overproduction of Whale oil, most of the Norwegian whale-hunting companies have decided not to hunt during the coming season, stated tlic Oslo correspondent of tho London "Observer" recently. This decision means that ships and equipment to the value of £10,000,000 will be lying idle for a year, and that 11,000 men will be thrown out of work. But the decision has been well received in Norway. During the past few months it has become clear that the world's market for oil was depressed because of over-production; the shares of some of the wliale-hunting companies were quoted at prices which gave no idea of their real value. When the first rumours of a limitation of the hunting began to circulate, the shares at once began to recover.

Whale-hunting has become a very important industry in Norway. In the early days the hunting was conducted from a station ashore, but the method now is to send out ships which do not put into harbour during the cruise, except to take new bunkers and provisions. These ships, which might be described as floating factories, are accompanied by a flotilla of smaller Steamers. The men hunt the whales in tho smaller boats, which are also used to tow the bodies to the floating "factory," where the oil is stored in tanks.

When this method first came into use many people thought it would lead to a great reduction of the whale stock. But there is little p-oof that this has happened. The new method has, of course, led to a far greater output of oil, and when the results of the first expedition became known peoplo flocked to buy shares in the existing companies. The rise in the shares was quite justified, for dividends have averaged 20 per cent in latter years. Forty-two floating factories with 230 hunting boats were used this winter, thirty floating factories with 155 boats being registered in Norway and the rest under foreign flags, chiefly English. Prices were as high' as £30 during the season 1928-1929, but they sank to £25' when the result of this season's hunt was sold last year. Practically the whole output of the present season was sold last autumn, but as tli3 output has been far greater than expected, the purchasers —so it is said in Norway—tried to cancel their buying orders beeausc of heavy reduction in prices following j the great over-production of oil.

There is no doubt that a catastrophe would have happened had tlie eomj-anics decided to hunt next season. Prices would have fallen to next to nothing. As it is prices will he maintained and the companies will be able to get an adequate return for the stocks of oil on their hands. Most of the men who have been thrown out of work have their farms, which ought to keep,, them going during the season.