THE P. AND O. COMPANY

Evening Star, Issue 14187, 12 October 1909, Page 4

THE P. AND O. COMPANY

INVASION- OF NEW ZEALAND.

[Per United Press Association.] AUCKLAND, October 12. Mr R. Angus, New Zealand manager for Messrs Thomas Cook and Sons, on being interviewed, said the P. and 0. Company's extension of service would be of very considerable value to Auckland. Although all the four Suez lines were running on°a fixed tariff of fares, there was naturally considerable competition for Australasian business. The Norddeotscher Lloyd were getting an increased hold on the oversea traffio between Australia and Europe as in other parts of the world, and then the Orient Company, with their magnificent new 12,000-ton steamers just introduced, were catering well for passenger bookings. Comparatively recently this company extended their .service "from Sydney on to Brisbane, and probably the proposal on the part of the P. and 6. Company was for experimental bwiness purposes." If this through service from England were permanently established, the advantage to the tourist traffic of the Dominion would be great. A very large nroportion of passengers via Suez come no further than, Australia, and extend their route from Sydney onwards via China, Japan, America, etc., without coming on to New Zealand. The transhipment into smaller intercolonial steamers was naturally a disadvantage compared with the comfoTt of coming right on to Auckland by a P. and .0. liner to visit Nr:w Zealand's famous tliermal districts and other resorts. Of comse, from a mail service view this extension would be of no value ; but from the tourist traffic point alone it was sincerely to be hoped that the experiment would turn out successfully, although Mr Angus feared it would prove otherwise from the company's point of view unless supplemented to some extent by Government subsidy. The local agents for the P. and 0. Line (Messrs Russell and Somers) are in receipt of cable advices from the company's Sydney office confirming the Press cable. * The February steamer will be the new s.s. Malwa (10,500 tone), the March steamer the s.s. Mongolia (9,505 tons), and the April steamer the new s.s. Morea (10,500 tons). The vessels woukl pick up passengers and possibly cargo at Auckland, thereby saving transhipment rates. By their enterprise the P. and 0. Company* would, no doubt, get a greater share of the patronage of the general public than in the past, for the necessity of transhipment was a great annoyance to most travellers. According to Mr Russell, the various lines trading to Australia have given serious consideration to the question of extending their lines to New Zealand, but something alwavs stood in the way until now, when the P" and 0. Company have taken the initiative. "It is hoped," continued Mr Russell, "that this will be the forerunner of a regular connection."

PROBABLY NOT SERIOUSLY AFFECT THE DIRECT LINES.

A LEGITIMATE CUT INTO A BIG TRADE.

Inquiries made to-day in shipping circles in Dunedin seem to show that, tlie coming of the P. and 0. boats is nob a arid is not likely to cause a sensational upheaval. Some of the direct liners to New Zealand have for awhile past called at Hobart, and used that port as a point of contact with Australia. By that means Australian passengers are landed at Hobart on the outward voyages, and on the homeward trips passengers aro booked from Australia at a rate which is slightly an advance on the rates from New Zealand to London direct, the extra charge covering the extra distance, and compensating for the price that passengers who choose the direct ronto via New Zealand would have to pay the intercolonial liners for bringing them over the Tasman Sea. So that oi: the face of it there is no breach of agreement or understanding with the direct companies in the P. and 0. cutting in to this side trade, 6eeing that the direct boats already cut into tho Australian trade. More than likely, this new departure by the P. and 0. is in the nature of a set-oif to the action of the Orient Company in extending the troyages of their vessels "to Brisbane. That may be one of the reasons. It is noted} '• also, that the P. and 0. vessels are so far coming oidy in three moritlis of tho year. This indicates that the change is to some extent merely an experiment. Tho passenger traffic "between New Zealand and England in February, 'March, and April is very large, and it •■'• no surprise to find an influential company thus looking out for a share of the business. There is not likely to bo much done by the P. and 0. in the "matter of freight. They do not cater 'much for freight. So far, we do not know exactly what has liappened in London, but the information to hand is not such as to cause serious uneasiness as to any shipping upheaval or the beginning of a tariff war." Some of our business men regard the coming of the P. and 0. as significant if a much greater appreciation of New Zealand by tho commercial leaders of the Old Country. The Dominion is something more in their estimation than a. mere outpost when the P. and 0. boats include it in theiT voyages.

Possibly, also, if ihc new step is in any way an answer to (lie Orient Company, the Orient Company may follow, and perhaps fix on Wellington ;is their port of call. These extended shipping facilities would tend to cheapen the grain freights to the Old Country, though the direct cargo boats would always keep the- bulk of that trade on account of their being cheaper to work than the expensive liners.

Another possibility is that the coming of the P. and 0. may delay tho appearance of the North German vessels.

Prom meet points of view the prospects of the new sendee seem to s be hopeful. The one thing that causes a, little apprehension with respect to New Zealand interests is as to how far tho P. and 0. will cat into the revenues of our own company by competing for intercolonial traffic This 'is a subject on which nothing can be said for a few days.

HOW SYDNEY REGARDS IT.

Press Associati6n—By Telegraph- Copyright

SYDNEY, October 12. (Received October 12, at 9.50 a.m.) The 'Herald' commends the P. and 0. Company's extension. The paper does not suppose that, even when the new enterprise has gone beyond the experimental stage, it will to any extent interfere with the work of the passenger steamers. Sydney will suffer but very little by the good fortune of Brisbane and New Zealand, and she can well afford it. THE ERA OF BIG SHIPS. Press Association—By Telegraph—Copyright SYDNEY, October 12. (Received October 12, at 11.35 a.m.) The 'Telegraph,' referring to the P. and 0. Company's- extension, says that other companies have given an excellent service between Australia and New Zealand, and their splendid pioneer work should be gratefully acknowledged.; but the era of the bjg ship has arrived, and it cannot be denied admission to the highways of the ocean wherever there is trade, to be done.