SALE OF CANADIANOWNED SHIPS

Dominion, Volume 29, Issue 182, 30 April 1936, Page 11

SALE OF CANADIANOWNED SHIPS

Reported Negotiations AUSTRALIAN & DOMINION INTERESTS By Telegraph—Press Assn.—Copyright. (Received April 29, 5.5 p.m.) New York, April 28. The Ottawa correspondent of the “New York Time®” says that the Canadian Government, it is learned, is negotiating with Australian and New Zealand interests for the sale of the last 10 vessels of the Government merchant marine, which originally numbered 63 vessels and into which Canada sank over 150,000,000 dollars Although this would lessen Canadian competition with American shipowners the new Canadian Shipping Act, becoming effective on August 1, will greatly increase the Dominion’s share of the Great Lakes trade, principally in transportation of Canadian grain eastward. The Canadian merchant marine was built during the war at an original cost of 80,000.000 dollars, but has since suffered operating deficits of another 80,000,000 dollars. No information was available at Wellington yesterday regarding the reported negotiations for the sale of Canadian National Steamships. As a matter of fact, the Wellington office of the line only this week has - received a revised freight sailing list for the Australian and New Zealand services as well as for the West Indies service, covering sailings up to the end of September of this year. As long ago as December, 1931, the “Montreal Gazette” stated that the Canadian Government was preparing to discontinue tlie services of its mercantile marine and that the New Zealand Shipping Co., Ltd., was to take over the service between Eastern Canada and New Zealand. The Canadian Government steamships, most of which were built in 1919-21, began operations in 1921, since which year they have been regular traders to New Zealand and Australian ports. The ships so employed include the Canadian Britisher. Canadian Challenger, Canadian Conqueror. Canadian Constructor, Canadian Cruiser, Canadian Highlander, Canadian Leader, Canadian Planter, Canadian Scottish, Canadian Victor, and occasionally the Cornwallis. They are mostly ships of about 5400 tons gross register, but two. the Constructor and Cruiser, measure 7180 tons gross register. The ships load at Eastern Canadian ports with general cargo for New Zealand and Australia, returning with wool, tallow, pelts and other products. The first service between Eastern Canada and New Zealand was started some years before the war by the New Zealand Shipping Company. It was discontinued during the war but was. subsequently resumed in competition with the Canadian national service. The New Zealand Shipping Company finally discontinued its service from Montreal in 1928, since when Canadian National Steamships has carried on alone.