SHRINKAGE OF TRADE

Press, Volume LXX, Issue 21320, 13 November 1934, Page 13

SHRINKAGE OF TRADE

Effect on Shipping Industry POLICY OF SUBSIDIES ATTACKED [THE PRESS Special Service.] AUCKLAND, November 12. The shrinkage in world trade as reflected in U.'j shipping industry was reviewed by Sir Alan Anderson, chairman of managers of the Orient Line and a director of the Bank of England. who arrived at Auckland from Sydney by the Niagara on a short business visit., "Owing to the shrinkage of world trade, the shipping industry of the world is in a very bad way," Sir Alan Anderson said. "A supplementary reason is that many nations are engaged in a policy of subsidies, and are encouraging people to byild ships which would not otherwise be built, and to keep in commission tonnage* which would otherwise be scrapped. This policy has been carried to such ft length in certain trades that it has entirely upset the ordinary basis of commerce.

"I do not think I need emphasise this point. You have one of the most glaring examples of subsidised shipping in the San Francisco-Auckland-Australia service. There is a similar instance in the "blue riband" trade c£ the North Atlantic, where British lines are faced with entirely artificial competition from foreign companies backed by the treasuries of foreign governments.

"British shipowners have debated this problem, and while they dislike and deprecate any extension of the system of government interference, either by subsidies or by restrictions, they feel that where legitimate British enterprises are being made impossible by deliberate and sustained, foreign attacks conducted at the expense of foreign treasuries, it is not only proper but also necessary that the British Government concerned should intervene and sustain the threatened enterprise until decent order has once more been restored to commerce. The steps to be taken must of necessity vary with each particular case. In the North Atlantic, the British Government has encouraged the Cunard and White Star lines to join together and has assisted to finance the building of the recently-launched Queen Mary. "In your own trade between Australia and New Zealand and the United States, I understand the Governments principally interested are at the moment in active debate. It is to be hoped that some solution to the present difficulty will be found.

Tramp Shipping "The question of tramp shipping is entirely separate from that of liners. At the time of my departure from London, the shipowners of England had decided to call a world conference in the hope of arriving at some scheme for the rationalising of tramp tonnage through agreements for the laying-up cr scrapping of redundant ships. Just as it is impossible to fill a sieve with water, so it is hopeless to reduce the volume of redundant tonnage if a fresh supply of unnecessary ships is constantly being brought into being by Government intervention and subsidies. The necessary corollary—perhaps even the foundation of any scheme for rationalising the world market for tramp tonnage—is either to secure an agreement of all the principal nations to abstain from creating unnecessary tonnage, or to exclude from the markets of the world the commerce of those countries which refuse to restore health to world trade." Sir Alar. Anderson said the Orient Line was interested indirectly in the trade to New Zealand. This year two of the company's liners would visit the Dominion in the course of tourist cruises from Australia.

Sir Alan is accompanied by Lady Anderson and their daughter, and they will spend a fortnight in New Zealand. They will visit the South Island, and ■will also be the guests of the Gover-nor-General (Lord Bledisloe) and Lady oledisloe at Government House, Wellington. After visiting Rotorua, they will return to Auckland and leave again for Australia by the Aorangi on ■November 26.

WAIKATO SHOW CHAMPIONSHIP AWARDS U'HESS ASSOCIATION TELEGBAMj HAMILTON, November 12. The Waikato summer show was concluded at Claudelands on' Saturday in Slonous weather, before the best attendance for a number of years, the t'lth T kmgs bdng £398 - compared tho * , • 19 last y ear > and in excess of we takings for several years. Entry «i practically all sections was a record. * «aturc of Saturday's programme was the Dominion jumping competition won by Mr H. Scale's Clinker, with Mrs T. L. Ranstead's Toby runner up. Championship awards were:— Jersey Cow—W. H. Mear's Noble's reserve, A. Moreland and •wis Bcechland's Fairy Sunray. Ayrshire Cow—P. Bremer's White "lrnrose; reserve C. Bailey's Bonny Wen Rosemary. i Jersey Yearling Heifer—A. Morcg| P" and Son's Bcechland's Double -"'ag; rescrvo, W. Thomson's Faskin «go' My Heart. Ayrshire Bull—C. Eailey's ArdBowan Kinr4 Fame; reserve, P. wemer's Wmpapa Grand Duke 11. (vJa o1 Faf Lambs—Ruakura Farm ( soid medal). , Two-tooth Southdown Ram—Rua*ui;a Farm. Ch(? niW ° l ' th "' L " K Barr >'' s Burleigh J r u mworlh Boar—H. D. Caro's WoolWgbar Banker ump.); reserve, W. A. Axon's Golden Roger V. , , la mworth Sow- L. F. Barry's BuvTo S S Ch( 'ice; reserve, R. Chilcott's *e Rapa Flapper 111. Berkshire B";ir— Ruakura Farm of instruction's Blythewood Baron VIII.; Luk 0 ' G. Jamicson's Westown Good

W hlre Sow—Ruakura Farm of instruction's Dominion Calamine; reM™?' R - Chilcott's Te Rapa Maori