COMMONWEALTH LINE

Evening Post, Volume CXIII, Issue 131, 7 June 1927, Page 5

COMMONWEALTH LINE

FATE UNDECIDED

BOARD DIVIDED OX SALE OF • SHIPS

The fate of the Australian Commonwealth Line of steamers will not be known for at least four or five months (says the "Sydney Morning Herald"). In shipping circles the uncertainty is looked upon as detrimental to tho interests of the line.

Contrary to expectations, the report of the Federal Accounts Committee, w'.Jch inquired into the operations of the line, was not tabled when Parliament mot at Canberra on 9th May. Members therefore will not have an opportunity of debating: the question until Parliament meets in September. Ministerial supporters on the Accounts Committee, it has been stated, favour, the disposal of- the line provided a satisfactory offer is received. Labour members desire that; it should be' retained.

In May, 1925, when the line was offered for sale, certain conditions were stipulated, one being that the steamers, which then nunibered about thirtyfive, should remain in the Australian trade. All the unsatisfactory tonnage has been sold since then, and the line now consists of seven steamers, the five "Bay" steamers, and the cargo vessels Fordsdale and Ferndale. The loss on the line from its establishment in October, 1916, to 31st March last year, was £10,405,988. The seven steamers now engaged, however, are up-to-date, and are believed to be running at a profit. If the lino is to be retained, the chairman of the board (Mr. Larkin) has formulated a scheme for the extension of activities. About ten months ago the board announced that it had been decided to abandon the service to the west coast of England. It was learned .subsequently that Mr. Larkin was opposed to the decision, and since then relations between Mr. Larkiu and the other two members, Sir William Clarkson and Mr. Robert Farquhar, have been strained. In December, Mr. Larkin forwarded his resignation to the Governor-General, but withdrew it later, having been given to understand that tho question of the west coast of England service would be discussed in Parliament, and decided as soon as tho accounts committee presented its report.

In giving evidence before the committee, Mr. Larkin said that if the lino was to continue, it would ultimately bo necessary to acquire new steamers, but he would not feel justified in recommending that course while the disparity between the present, running costs and those of competitors was so great, more particularly under existing trade- conditions. The five "Bay" steamers and two "Dales" could not be colled an adequate ileet for the maintenance of services in accordance with the Government's ideals, but if used on both coasts of the United Kingdom, in accordance with a scheme which he had evolved, they would enable the board to maintain a substantial identity and sufficient influence in tho trade, and have a better opportunity to work profitably. Later, on the revival of trade, new ships could be acquired, and there would be an established connection for them. Mr. Larkin said he was disinclined to advocate a nubsidy or bonus, as many supporters of the line would regard unfavourably a subsidised Government line in competition with private enterprise.

One of the advantages of retaining the Commonwealth Line is that the steamers would be valuable in war time. On the advice of the British Admiralty the vessels were specially constructed. The bulwarks and decks were strengthened ' and platforms built for guns. It is understood that each vessel can carry five or six 4.7iu guns. The "Bay" steamers can steam up to 17 knots, while the cargo ships have a speed of about 15 knots.