SUBSIDISED SHIPPING ?

Grey River Argus, 17 September 1937, Page 11

SUBSIDISED SHIPPING ?

During the war period and for some years afterwards, the shipping trusts of the world made immense profits, (says the “N.Z. Transport Worker”). They watered stock and increased their nominal capital and paid such huge dividends that Bonar Law, though a shipowner himself, thought it his duty to expose this exploitation in the House of Commons away back in 1918. An investigation into the actual capital invested in the slipping businesses operating in New Zealand and to New Zealand from other countries would be most interesting indeed. We know of some instances where the stock was watered at least three times and at the end the original £1 share was up to £5. It would be impossible to expect the industr” to pay’ a dividend on that watered stock, and, while it is true that the American Government has subsidised its mercantile marine, we see no reason why other Governments should subsidise shipping in a similar way unless the Government is allowed some control in the operations of the industry. Some years ago, W. M. Hughes established the Commonwealth Shipping Line. This Line operated for a number of years and gave excellent service to the Australian Commonwealth, and would have continued to give such service, but, according to all reports, it was sabotaged in the interests of the shipping trusts. It was I sold to a certain shipping company in 'the end, and from statements issued in the Federal Parliament the vessels have not been paid for up to the present time.