MELBOURNE TO BLUFF.

Press, Volume LXVI, Issue 20024, 4 September 1930, Page 12

MELBOURNE TO BLUFF.

SUITABLE VESSEL NOT

PROCURABLE.

PROTEST FROM DUNEDIN. Correspondence from the Postmas-ter-General (the Hon. J. B. Donald), and from the Dunedin Chamber of Commerce, relative to tho resumption of the Melbourne-Bluff service, was read at last night's meeting of the executive of the Canterbury Progress League. No action was taken by the executive, which decided to await developments. The Government's Attitude. The Postmaster-Geueral, under date August 15th, wrote regarding the delay in replacing the Manuka on the Blull-Melbourne service that, after being in consultation with the contractors, the Union Steam " Ship Company, ho was satisfied that a suitable vessel was not procurablo nt present. The company had assured him that it would continue its efforts to secure a vessel to replace the Manuka. The Government was very anxious that the full service by two vessels should be resumed, as soon ns possible, and an assurance was given that no question of resumption of subsidy had obstructed attempts to have the Manuka replaced. Lack of Interest Alleged.

Tbe secretary of the Dunodin Chamber of Commerce forwarded a copy of a letter forwarded by the Chamber to the Acting-Prime Minister, under date September Ist. As to the Post-tnnster-lieueral's statement that be was satisfied, after consultation with the Union Company, that a suitable vessel was not procurable, the Chamber wrote:—

"We are sorry that w© cannot concur with the Postmaster-General's conclusions, for as yet the Union Company does not appear to have shown any interest in the re-instate-ment of this service with two steamers. The unfortunate loss of the Tahiti scrvea to endorse this opinion, for, though the wreck occurred only a fortnight ago, newspaper reports stato that a modern vessel has already been purchased to take her place. Again, the Moeraki, which was diverted two years ago from the intercolonial route to the {Sydney-Fiji trade,"haa recently been laid uj> at Sydney, owing to lack of support in that run. Though we hope for a more modern steamer than the Moeraki to pwularise and build up the Melbourne-South Island trade, yet the Union Company can demonstrate their desire to assist by using this vessel, in conjunction with the Maheno, for the development of the service as toon as the summer trade commences. Wo find it difficult to reconcile the Union Company's statement with the frequent reports that there are to-day more idlo steamers in the ports of the world than for many years past. In view of the importance of a frequent; and regular passenger connexion between Australia and South Island ports, wo look for the Government's insistence upon the Union Company's fulfilment of this contract, which was temporarily suspended owing to the unfortunate loss of the Manuka."

AUSTRALIAN DISTILLERY MERGER.

Last month proposals were announced in Melbourne providing for a merger of the Federal Distilleries Pty., Ltd., and the Distillers* Corporation Pty., Ltd., by the formation of a- now company, the United Distillers Pty., Ltd. The arrangements involved also the Corio Distillery, of Oeelong, in which tbe Distillers Co., Lid., of Edinburgh, holds a controlling interest, and the latter company, which has a paid-up capital of £12,890,962, agreed to subscribe fresh capital. The reasons which prompted the huge Edinburgh company to extend its interests in Australia were put forward at the annual meeting at Edinburgh last month. The chairman of directors (Mr William H. Ross), in dealing with the company's Australian affairs, said that the stringent financial condition of the Commonwealth was partly responsible for retarding the development of their Queensland distillery. The sales of motor fuel were reported, however, to show a steady but slow progress, although they might have to wait some time longor before they could reap any financial advantage therefrom. Their general export trade in whisky and gin to Australia was also likely to be seriously affected by tbe recent heavy increase in the import duty, coupled with the limitation of imports to 50 per cent, of the quantity imported during the previous twelve months. When the directors decided to take a controlling interest in the new Corio Distillery at Geelong this step waa taken in order in part to meet the situation created by the high preference accorded to locally-produced spirits, which at that time was 9s per gallon. The distillery had now been at work for nearly 18, months. Before whisky could be cleared for consumption in Australia it must have attained a minimum age of two years, and a very much longer period must elapse before a really first-class matured article could be offered. This wag the eituation when the present Federal Labour Government came into power last year, when one of their first acts was to increase the Australian preference on spirits to 17s per gallon. This still further prejudiced the sale of imported Scotch whisky in quarters where price alone was • the consideration. They had only one competitor for Australian-made whißky, and the advantage held by them was that they hod stocks of matured whisky already in their possession. An option for purchase of a yery large interest in this company on favourable terms was obtained, and the deal had been concluded. This gave their company an interest in the whole of the present manufacture of Australian spirits.