Nelson Evening Mail. FRIDAY, MAY 29, 1914. NEW ZEALAND AND GERMAN SHIPPING ACTIVITY.

Nelson Evening Mail, Volume XLVIII, Issue XLVIII, 29 May 1914, Page 4

Nelson Evening Mail. FRIDAY, MAY 29, 1914. NEW ZEALAND AND GERMAN SHIPPING ACTIVITY.

'FOR some time past the extension of the Norddeutcher service to New Zealand "has been discussed and it is considered ill certain circles, which appear to be in the know, that the German steamers will call regularly at our four main ports. The question of German shipping" activity has also been care-* fully discussed in Sydney. But until a new phase of the question came into prominence, it was thought that the Australian service of the company, which has been in existence for some time, would be discontinued, tor it was understood that between the years 1898 and 1912 the average annual loss on the service, despite the subsidy, was £4O, 000. Two or three years ago -the company with a view to securing a larger share in the passenger traffic made a considerable "cut" in rates. T is step, apparently, failed to yield the des:red results, and the lower rates were increased, but still to a figure lower than that of competitors. It was reported on March 6, in; the annual report of the company, that the main Australian line, which had been conducted at a loss, would be abandoned at the expiry of existing contracts jn September. It was also unofficially stated that the company would carry on the service until January. The company, in fact, made it perfectly clear that without a largelyincreased subvention the would* stop, tout it- would now appear as if its intentions in x this direction are to be changed, in the only possible way—that of expanding the grant.

The view taken by German merchants was that while it was very desirable in the interests of commerce and the navy to maintain a line, of Germanowned steamers to Australia, such a service was scarcely of sufficient importance to warrant a further expenditure, measured by millions of, marks. A week later "hopes -were expressed that withdrawal from Australia would not be permanent," and that '"a Government subvention of £500,000 is necessary to permit of continuance." A ¥3yduey reporter interviewed several (shipping men last week respecting the reported proposals to extend the operations of the Norddeutscher-Xilovd line to New Zealand. They pointed to the fact that since the company was only able with a subsidy of a quarter of a million to carry on a monthly service between Australia and ' Europe at considerable loss, it seemed obvious that the extension of activity -to New Zealand, already well catered for by steamer* trading via Cape Horn and conversely by way oi South Africa, was not a commercial proposition. The charges the company would become involved in for this exiension must necessarily be very heavy, for the trade was limited, and would more than counterbalance the added volume of subsidy. * * * The interviewer, however, put this to ono manager: Supposing that the German Government made that change in fiscal policy demanded' by a great mass of people ill Germany, and decided to remove the duties on meat and other produce, would not the Norddeutcher .steamers immediately liave their hand' an immense trade, in which, by reason of this great subsidy, they would be j able Io successfully compete with the

exiting services? "Yes, of course they wouid,'* was the answer, ''and if this movement towards New Zealand is going to be part oC a. public policy direct-1 ed in the way you surest to the development- '»f the deep-sea tarrying trade then, naturally, the new service would be in a singularly favourable position. Hut if it is not this—:f it is to 'bo merely an extension of the old bonus system of trying by means of cash payments to counteract the effect of placing economic obstacles in the way of trade already strangled by liscal restriction, then a widening- of the company's operating will simply give the results we are already familiad with."' The "Otago Daily Times" recently stated that though a certain amount -of secrecy was being observed, "there was not the slightest- doubt" about, such a st'rviio commencing. Hitherto the bulk of German manufactures destined for New Zealand- have been conveyed to London, and there transhipped to the steamers oi' the Shaw, Savill. and Albion. Company, and the New Zealand Shipping Company. Yet, it is pointed out. it is a little difficult- to see where the advantage to shippers and consignees would be in eliminating this transhipment at London, except that there might be less risk of damage. Lower freights than now prevail would not be likely for the reason that under existing arrangements German' goods trailshipped at London for New Zealand ports are carried at a cheaper .rate than English goods loaded' on the same vessel.