COMMONWEALTH LINE.

New Zealand Herald, Volume LXIV, Issue 19626, 3 May 1927, Page 9

COMMONWEALTH LINE.

SALE OF WHOLE CONCERN. OFFERED TO BRITISH OWNERS. A. and N.Z. SYDNEY. May 1. The Commonwealth Government has decided to sell the Commonwealth Steamship Line as a going concern to a private company which operates from London. An unsuccesful effoft was made in June, 1925, to sell the fleet of the Australian Commonwealth Line. Tenders were called, but only one was received and this was refused. Since then a few of the line's 32 vessels havo been disposed of privately. The original fleet represented a total of well over 200,000 tons and included the four well-known turbine steamers of the Bay class of 13,850 tons each. These and a fair number of smaller vessels forming the fleet are les:3 than seven years old. The Commonwealth Line runs a series of passenger and cargo services between Australian and British ports as well as Australian coastwise services and a line to Java and Singapore. It is under the management of the Commonwealth Shipping Board, and |has its London headquarters at Australia House. It originated during the war period from the purchase by Mr. W. M. Hughes of seventeen " tramp" steamers for the purpose of carrying wheat to Europe. After the conclusion of the war it was kept in being and extended by the building of numerous large vessels and was turned over to the Commonwealth Shipping Board for management. The ships composing the original fleet were paid for out of the profits of the first two yea v s, but since then the line, which has been chiefly used for taking Australian produce to England and transporting British migrants at the cheapest rates to Australia, has been consistently run at a loss. The terms on which the steamers were offered for sale in London in 1925 were that their purchase should be subject to the purchaser (1) Maintaining regular, effective services between Australia and Great Britain and the Continent; (2) Not increasing freights or passage rates, except subject to certain stipulated conditions; and (3) Not entering into arrangement with a shipping ring or combine. The successful tender was to be subject to acceptance by Parliament. These terms were not well received in shipping circles. When it was found that there was no prospect of selling the steamers it was decided to continue the services under the control of the Shipping Board.