THE SHIPPING MERGER.

Hawera & Normanby Star, Volume LXXII, Issue LXXII, 12 July 1917, Page 5

THE SHIPPING MERGER.

IMPERIAL GOVERNMENT 4P_ PROVE.

A deputation of members of the House waited on the Government on 1 uesday to protest against the merger of the Lmon oteam Ship Co. of New Zea. huid with the i J. ana 0. Company, and were mot h\ an announcement that the Imperial Government had given its ap proval and that therefore the transaction was completed. A cable to this effect had just been received. Strong things were said, and the Government was requested to exercise certain rio-^ts of purchase it held, but Sir Joseph Ward declared against such a proposal He said the Union Steam Snip Company s fleet was not worth three millions sterling to the country, though it might- be worth it to the P and 0 Company. As a matter of fact, if the country wanted to tackle the question of fares and freights against any combination of shipping companies in the tuture, then he would say that- for half a million of money they could provide the whole of the steamers required for the coastal trade of the Dominion; they could get all the sjeamers required for the trade between New Zealand and Australia for one million, and probably better steamers than those of the Union Company. (Hear, hear). He would far rather go m for a State line purchased at normal prices after the war, and then they would have an opportunity to make a success of it. He did not propose a State monopoly. He believed that they ought to have as many steamship lines coming to the country as they could get, but if anybody was going to. try to get exorbitant rate's after the war, the best way would be %i.}u Stai?TT to g,° in and compete with them. (Hear, hear) The Hon R H. Rhodes: "We could do it by subsidising other lines " iti!f + *f° S + eph rd: "Yes > w«' could do it m that way. I

During the interview, Hon. Mr Rus- ; sell spoke strongly on the subject of the payments made to the Union Com pany and the advantages it had rel eeived, and suggested that a Royal Commission should be set up to go into the whole question on business lines This drew from Sir Joseph Ward the •remark that it was anomalous that one member of a Ministry should make such a statement as Mr Russell had made He had taken mighty good care he might say, -to see that the Union Coni•KShJ 6? ?£ ymg their full ammmt of /taxation to this country at full rates of w" {Mi Russell= "H^r, hS ») He thought that it was probable that they were the biggest taxpayers in the country. He wanted to make his portion quite clear. He wanted to say emphatically that, until they had put through this session the * necessary amounts of money for war purposes and untol the war was over, he would not be a party to the country purchasing any steamship company or taking up any big proposition until they knew ST\i c C°T try was' Fot years: fte nad been known as an advocate of cheap fares and freights, and he was not afraid of the merger in any way whatever. If they had known that the war was going to last three years it would have been a good thing from a business point of view to buy those i steamers.

Mr Russell disclaimed any intention to criticise his colleagues; "all he desired was to show th.c business position. Air Massey added his assurance that nothing that the Government could do would be left undone to prevent the people of this country being called upon to pay more than a reasonable amount tor fares and freights.