SHIPS WITHDRAWN

Hawke's Bay Tribune, Volume XXI, Issue 303, 7 December 1931, Page 10

SHIPS WITHDRAWN

CANADIAN STATE FLEET. N.Z.S. CO. TO FILL BREACH. According to the “Montreal Gazette” the Canadian Government is preparing to discontinue the services of its mercantile marine, and it is understood that the New Zealand Shipping Company is to take over its service to this country. Like all State-owned shipping, the Canadian mercantile marine has never paid, and since it began operations in 1920 its losses have amounted to over £16,000,000. At present Canadian National Steamships operate services to New r Zealand, Australia. South America, and the West Indies, and it is reported that, with the exception of tfip lastnamed, which the company is obliged to maintain until 1938, under the terms of the trade agreement, these services are to be discontinued. The Houston Line is to undertake the South American service, and the New Zealand Shipping Company the New’ Zealand, and presumably, the Australian service. Previous to Canadian National Steamships operating to New Zealand, a regular service from Montreal was maintained by the New Zealand Shipp Company, for which a small subsidy was paid by the Canadian Government. In 1920 the Canadian Government commenced services to New Zealand from both Montreal and Vancouver, in each instance via Australia. The service from Vancouver was soon discontinued, but trade between Canada and New Zealand rapidly increased, and a direct service from Montreal to New Zealand was instituted. FREIGHT WAR BEGINS. The New Zealand Shipping Company continued its service from Montreal, and in August, 1928, a freight war ensued between the two concerns. Freights were brought down to 30s a ton, and extra steamers were put on by both lines to cope with the huge increase in cargoes brought about by the absurdly low freight rates. This war continued for a few months, when an agreement was reached. At the end of 1928, however, the New Zealand Shipping Company discontinued its service from Montreal, which for the last Circe years has been maintained by Canadian National Steamships. FALLING OFF IN TRADE. Increased tariffs in both countries and the present world slump in trade have been responsible for the trade between the two countries falling almost completely away, and in recent months the Canadian steamers have been operating a joint service to New Zealand and

Australia instead of a separate one to each country, as in former years. Every country which has attempted State control of shipping has suffered ' severe financial loss, and for some years I past tho tendency has been for the / various countries operating their own fleets, gradually tn dispose of them to private owners. Canada now appears to be falling into line, nnd it seems only natural that the service which was inn for so many years by the Now Zea land Shipping Company should he again taken over by that company.—“ Dominion.”