SHIPPING PROFITS.

Northern Advocate, 21 July 1917, Page 1

SHIPPING PROFITS.

TAX OF 80 PER CENT

LONDON, July 3

There was a remarkable debate in tho House of Commons on the Finance Bill. Representatives of the shipowners warmly objected to the clause taking 80 per cent, instead of the former 60 per cent, of excess profits. They said the proposal pilloried the shipowners as profiteers.

Mr R. P. Houston protested that the-action was the result of popular tslk of fabulous shipping profits. He denied that the shipowners were responsible for the increased prices of foodstuffs. The Government was largely responsible for the increased freights, by indulging in side shows like the Dardanelles, by not providing sufficient light cruisers and using merchantmen to guard the trade routes. It was unjust that the shipowners should be singled out for special taxa-

Mr Leslie Scott said that it was necessary that shipowners, after the war, should have abundant capital to maintain the supremacy of the mercantile marine. Mr Bonar Law said the moanings of the shipowners had arisen simply because the Government, in the interests of the country, had decided to deal with the shipping trade in a particular way, but with the utmost fairness. He considered it disgraceful that there should be such iprofits while others were suffering privations. Mr Bonar Law added that he had personally invested £8100 in 15 shipping companies, running tramp steamers. At 5 per cent, the interest would be £405. He had actually received £3625 in dividends in 1915, and he received £3847 in dividends in 1916 —and that after paying excess profits. (Interjections of amazement.) Moreover, prudent managers had not divided the whole of the profits. Hβ did not blame the shipowners; ho blamed the Government for permitting inordinate profits. Mr W. M. R. Prmgle (Liberal) caused a storm by declaring that the clause was the result of a bargain upon a celebrated day in December, when the Labour Party was bought. Tho Labour Party's support was essential to the present Government. Mr Will Thome (Labour) indignantly repudiated this. He denied that the Government could come to terms with the Labour Party. The clause was carried.