EARNINGS OF SHIPS.

New Zealand Herald, Volume LXI, Issue 18890, 12 December 1924, Page 11

EARNINGS OF SHIPS.

P. AND 0. COMPANY, i LESS THAN DISBURSEMENTS. COMPETING GOVERNMENTS. By Telegraph—Press Association—Copyright. (Received 8.5 p.m.) A. and N.Z. LONDON. Dec. 10. At the annual meeting of the P. and 0. Steam Navigation Company, the chairman, Lord Inchcapo, referred to the competition of State-owned ships. He said that with few exceptions the earnings every voyage were less than the disbursements. He feared it would be somo years before the conditions which existed prior to the great war were restored. Lord Inchcape went on to say that the results which had enabled the company to maintain the payment of dividends were not derived from profits on the working of its steamers, but from the company's investments and other sources of revenue, such as dividends from tho allied lines. Regarding State-ownod ships, the chairman said that in most casos it would have paid the countries which retained their ships after the war to have sunk them in tho Atlantic or Pacific rather

than to have kept them running. In a great many cases theso vessels wore more than half-empty during the last four years.

Governments ought to leave business to the business community, and avoid attempting to compete against private enterprise. Governments would be far better off by taking a share of business profits by means of the income tax and having nothing to do with business losses. The Governments of America, Australia, and Canada, which had retained Stateowned steamers after the war, were now attempting to dispose of their ships, but the vessels would not realise a quarter of their cost. Ho had recently bought for about £60,000, two steamers which had cost a certain Government £600,000 four years ago, and heaven only knew how mueh since.

Lord Ir.dicapo also referred to a proposal to build six 20-knot steamers to carry passengers, mails, meat, and fruit between England and Australia. In this service, ho said, the Commonwealth Government had been invited to assist financially. Application had also beon made for trade facilities. A committee estimated the cost of this proposed venture at £9,000,000.

The chairman said that if he had been rightly informed, the Government would have nothing to do with such a wildcat scheme. He bolieved the whole idea was doomed to failure.

Referring to the waterside strike in Australia, Lord Inchcape said law and order in Australian ports apparently did not exist at present. He, however, had implicit faith in the Prime Minister of the Commonwealth, Mr. S. M. Bruce', and felt sure he would protect the country from what was more or less Bolshevism, and save her trade from the existing paralysis.

Lord Inchcape predicted a reduction in Suez Canal dues at. francs, compared with 6£ francs in 1914.