SHIPPING TRADE

Dominion, Volume 18, Issue 149, 18 March 1924, Page 8

SHIPPING TRADE

COAIBINATION OF GROUPS.

In an interesting account of the trust movement in British industry, the London “Statist” of January 12 last shows how ' certain financially powerful shipping groups dominate the Australian overseas shipping tlradfe. This enterprise, though formed as early as 1340, did not start its career ns a combine until 1911, when, partly as a defensive measure against the inroads of German lines, it acquired, at a cost of about £3,000.000, all tho share capital of the British-India Steam Navigation Company, thereby securing control of a fleet of over 700,000 tons gross, in addition to its own fleet of 550,000 tons. Determined to establish the same predominance in the Australasian trade as had alreadybeen obtained in the Indian and Chinese routes, the company acquired, in 1916, practically all the ordinary shares of the New Zealand Shipping Company, which, with its subsidiary—the Federal Steam Navigation Company’ —owned a gross tonnage of over 320,000 tons. Tho advantage thereby obtained was followed up in 1917 by the purchase of the ordinary capital of the Union Steam Ship Company- of New Zealand, which owned a fleet of 252.600 tons gross,and carried on, in addition to its local Australasian trade, an extensive passenger and cargo service between Great Britain and New Zealand and India and Now Zealand. Following immediately on this important acquisitions tho company, in conjunction with. the. British-India, purchased the shares of Iho Hain Tramp Steamship Line of 109.000 tons, and the Nonrse Line of 24,000 tons, the former of which was specially designed for tho South American trade. Again, in 1919, the company established itself in the Eastern Mediterranean service by taking over the Khodivial Mail Steamship Company, and also obtained a predominant interest in the Orient Lino, which latter undertaking owned a fleet of first-class liners (72,000 tons gross}, plying bc- , tween Great Britain and Australia. Tn 1920 control was acquired, of tho Continental passenger and cargo business of tho General Steam Navigation Comnanv. 3’he fleet of the company itself, which only amounted to 32.3.000 tens in 1900, has increased since 1914 from 545,000 tons to 652.000 tons and (ho toiinae-c owned through subsidiaries from a'’negligible amount to 1,944 - 000 tons. The Cunard Lme in 1916 purchased all the shares <f the Commonwealth and Dominion Lino, thereby becoming very largely interested in the Australian and New Zealand eai-o trade. Alfred Holt and Co. of tlie"Blno Funnel Line, conduct.. extensive passenger and cargo services to nnd from the Dutch East Innes, China Japan, and Australia, ;thc fleet being’operated through subsidiaries.