The Hawera Star. WEDNESDAY, DECEMBER 21, 1927. STATE SHIPPING LINE.

Hawera Star, Volume XLVII, 21 December 1927, Page 4

The Hawera Star.

WEDNESDAY, DECEMBER 21, 1927. STATE SHIPPING LINE.

Delivered every evening by 5 o’olock in Hawera. Manaia, Normanby, Okaiawa. Eltham, Mangatoki, Kaponga, Alton. Hurjeyville, Patea, Waverley, Mokoia, Whakamara, Ohangai, Heremere. Fraser Road and Ararata

The, Commonwealth Government, In 1916, established a State shipping line by purchasing fifteen second-hand cargo steamers. The first year’s operations resulted in a profit of £426,000, and, while high freights ruled and the •losses of war reduced the Empire’s mercantile marine, the State venture was a decided success. Rapid expansion followed, for eighteen enemy vessels seized' in Australian waters were added to the fleet, and between 1919 and 1922 nineteen vessels were built in Australian yards. But the slump in 1921-22 completely altered the position, and heavy losses have marked the operations of the last few years. In 1923 the line was placed under the control of a shipping board, which promptly sold most of the ships, on the ground that .they were not suitable for the Australian trade, and' to-day there are only seven vessels belonging to the Commonwealth’s shipping line. The total capital expenditure has been over £15,000,000, but sales and depreciation have reduced the value of the assets to £3,000,000. Apart from capital losses, it has been stated that the loss under ■the old system of control amounted to £1,225,000, and the Federal AuditorGeneral has made pointed reference to the difficulties encountered in ascertaining particulars of former transactions. The fate of the line has been the subject of discussion in the Federal House on many occasions, and some time ago an attempt was made to sell the ships, but the conditions laid down, such as the retention of the vessels on the Australian register, were not acceptable to shipping and commercial interests. Last year the Joint. Committee of Public Accounts, in an extensive report, recommended that the vessels should be sold, and the Government has decided, subject to Parliament’s sanction, to adopt that, course. The financial results of the operations for the past six months, resulting in a further of nearly £250,000, will confirm that decision, and it would not be surprising if, within a year or two, the flag of the Australian State line had disappeared from the seas. If so, then another chapter in the long list of unsuccessful State enterprises will have closed.