PACIFIC SUPREMACY

Hawera Star, Volume LI, 7 August 1931, Page 5

PACIFIC SUPREMACY

AMERICAN SHIPPING ACTIVITIES

FARMERS’ UNION DISCUSSION

The extension of American shipping activities in the Pacific was the subject of discussion by members of the South Taranaki Provincial Executive of the. New Zealand Farmers’ Union at the monthly meeting held in Hawera yesterday. The secretary (Mr. E. K. Cameron) referred to the cabled report of the merging of the Union Steamship Company with the Canadian Pacific Railway Company to reinforce itself against the threatened invasion announced towards the end of last month of the Matson line, and also to the leading article published in the “Hawera Star” on Wednesday. “When the Jones-White Act of the United States provided a shipbuilding fund of £50,000.000 to hi* lent at a very low rate of interest so as to encourage the building of mail-carrying ships it attracted no attention in New Zealand,” said Mr. Cameron m reviewing events leading up to the decision of the Matson line, which he considered was a hold bid for control of .the Pacific passenger and cargo trade. “At the same time Congress author'ised the Postmaster-General to grant mail subsidies on a scale that has never been approached by any other country, and again it seemed to be no concern of the Dominion. But that the policy should have claimed attention is shown i now by the establishment of this American line to New Zealand and Australia, carrying an enormous annual subsidy.’ - ’

The object of the American policy was to challenge British shipping supremacy and from that point of view the movement had an important political significance. America had placed an embargo on British ships trading between Honolulu and the Pacific coast, and on coastal trade, but the American line had the freedom of the Pacific. The theory of competition was sound enough if the competitors .-rood on sC*comparatively equal footing, but a contest, between the American company and British interests in these southern seas for trans-Pacific trade would be so obviously loaded in luvuiu of the American competitor that ships flying the British flag would soon disappear.

Appeals wore being made in the United States to travellers, manufacturers, and merchants to patronise American ships rather than those of other nations. A similar appeal should be made to the people of New Zealand and Australia, the speaker continued. America pointed to the employment consequent upon activity in shipping. Australia and the Dominion would do well to consider the additional unemployment that would follow any shortsighted policy on their part, resulting in the loss of a large share of transpacific trade. The imperative claims of self-protection demanded that measures be taken by the Governments ot New Zealand and Australia to deal with what undoubtedly was a challenge. The Union Steamship Company was the pioneer of shipping in New Zealand and the speaker felt that the new line of American steamers was coming into competition on an unfair basis. If the American line came into New Zealand waters the Union Company would stand to lose a considerable portion of the Pacific trade.

Mr. W. E. Carter: Our only hope is that the Government is watching the matter closely.

The chairman (Mr. E. ,J. Betts) concurred and moved that the matter ho referred to the Dominion executive, urging that some effort he made to protect New Zealand shipping.

This was seconded by Air. Carter. Mr. J. Cocker: Before the motion is put I would like to ask: What did the Union Steamship Company do when it had a monopoly of New Zealand trade? We have to remember the high rates charged for inter-island shipping of produce and the fact that travellers on the passenger service had to bow down and ]iay an exorbitant amount whether they slept on the deck or in the dining saloon. We have been in the hands of the Union Company too long, and it is a question whether this competition is not warranted. The motion was carried.