U.S.A. SHIPPING

Hawke's Bay Tribune, Volume XXIII, Issue 17, 31 December 1932, Page 6

U.S.A. SHIPPING

POLICY OF SUBSIDIES REPLY TO SIR A. ANDERSON "STUDIED PROPAGANDA” New York, Dec. 29. Th’e "New York Times” Washington correspondent says that Mr O’Connor, chairman of the United Stateil Shipping Board, has issued an answer to Sir Alan Anderson, Mr O’Connor indicating various particulars in the lattir’s recent statement, especially that the three new American vessels built for service between San Francisco and Australia were much more expensive than the trade would justify and "that the competing British line, which cannot dip into the public purse is unable to offer the public such costlv vessels.”

He said that this contained much in error and misrepresentation. He denied that three billion dollars had been spent on American subsidies and declared that American vessels since 1921 in foreign and non-contiguous operations have earned approximately three billion dollars. “It is evident that the Orient Line is unable or unwilling to provide its patrons with ships equal to those of its American competitor.”

He calls the statement “studied propaganda.”

Speaking at the annual meeting of the Orient Line, Sir Alan Anderson said: —“Among the world causes of our depression is that one nation after another is giving enormous subsidies to “dumping” shipping services on the world with the apparent obj of ruining shipowners who try to make ends meet. The Matson Line, by placing on the San Francisco-New Zealand-Austra-lia run three new vessels whose capital cost and running expenses are much greater than, judged by past experience, the trade will repay, is competing with a British line which cannot dip into the public purse, and is unable to offer the public such costly vessels. If the Matson Line had found 25 million dollars, and if they themselves were charged normal rates of interest on that amount, or were in any serious risk of having to pay for the eventual loss, we might blame them for gambling, but &s a grateful nation is taking that risk, we must congratulate them on being safe men, not gamblers.’’