COMMONWEALTH SHIPS.

New Zealand Herald, Volume LIII, Issue 16268, 29 June 1916, Page 6

COMMONWEALTH SHIPS.

. » I MR. HUGHES' ARRANGEMENTS PURELY A WAR MEASURE. Australian, and N.Z. Cable Association. LONDON. JUNE 27. Ihe Common authorities have taken delivery of five of the " Strath " steamers, which have been purchased by Mr. Hughes on behalf of the Australian Government, and expect •to take over some of the others early in July. Tho ships are at present scattered in many waters. Some are engaged on war duties, and their whereabouts cannot be disclosed, but it is announced that the first cargoes will be loaded in August. In the opinion of Australian officials in London, there is. no reason to fear rivalry on the part of the shipping companies, as the purchase is purely a war measure. The urgent need tor moving the wheat crop is paramount, and in addition the 15 ships will help Australian and British ?rms to keep their hold on the world's market, which was threatened by the shortage of tonnage.

In official quarters it is not anticipated that there will be material alterations in the outward freight rates, except in so far as to prevent them from rising to an extortionate level. It is believed that the shipping companies will accept the new move amicably. It is impossible to say how the Government's share of the outward freight will develop. Trie important thing is to move the wheat.

Shipping circles are extremely reticent. It is felt that tile Commonwealth's entry into the shipowning business cannot be criticised on ordinary lines, and must be regarded as a' war measure at present. Shipping men decline to discuss what may happen after the war.

Some authorities estimate that the purchase price of the vessels is two millions at least, three times their value before the war, but they are not disposed to dispute the Commonwealth view that the price is not exorbitant under existing conditions.

The Pall Mall Gazette says: "The Commonwealth has solved the shipping problem in a bold and original manner. The progress of the new line will be watched with unusual interest." MR. MASSEY SCEPTICAL. DOUBTS'* WISDOM OF PURCHASE. [BY TELEGRAPHSPECIAL CORRESPONDENT.] Wellington*, Wednesday. Comment was made by Mr. Massey today upon the reported purchase by the Prime Minister of the Commonwealth of 15 steamers. Mr. Massey was speaking when Mr. Webb made an interjection about the purchase. Mr. Massey: I have grave doubts its to the accuracy of the statement. I bad the opportunity of speaking to Mr. Hughes when he passed through New Zealand, and Mr. Hughes seemed to me to be a very shrewd man, and I cannot understand any shrewd business' man buying ships at the present time. As soon as the end of the war appears to be in sight and it is not in sight yet, although the indications are better than they have been since the beginning of the war, the best indications of all being the rise in the price of Imperial stocksthe value of shipping will come down by 50 per cent. I cannot understand a man of Mr. Hughes's shrewdness making a purchase at such a time. If it should provfc to be a fact that Mr. Hughes has made the purchase, then doubtless he had good reason for doing so.