MERCANTILE MARINE

New Zealand Herald, Volume LXXIII, Issue 22615, 31 December 1936, Page 5

MERCANTILE MARINE

CRITICAL TIME AHEAD SHIPPING CHAIRMAN'S VIEW PRAISE FOR NEW ZEALAND [fho.m our own corrksfondknt] LONDON, Dec. 12 A critical period for the Britisn merchant navy was foreshadowed by the Hon. Alexander Shaw, chairman of the P. and 0. Steam Navigation Company, at the annual meeting in London on December 9. He referred particularly io the menace of Japanese competition. "All Japan's doors are closed to us and all ours are open to her," he said. "There is 110 doubt of the power we have to strike a fair bargain with Japan, as with other maritime Powers who pursue a like policy. Yet nothing is done! \Ve are the trustees of a great inheritance and we stand like idle onlookers while it is being filched away. We want men who can look forward JO, 20, 30 years. Only such men can foresee tho inevitable disaster to the Knipire which must follow upon inaction now." Indian Trade Dominated Taking India as a whole it would seein, the chairman considered, that the Japanese were certainly not far wrong in their claim that to-day 73 po r cent of the tonnage employed in the trade from India, to Japan flew the Japanese ilag. Apparently, he said, Japan wanted a mercantile marine capable of carrying her trade four times over, and saw the British mercantile marine operating on a purely economic basis, with very few people in Britain troubling themselves at al! about its fato. It was no wonder that her Government, with tho-support of her people, concentrated upon its extinction so that they might step into its place. They had learned that no means would ho left untried, and that building subsidies, amounting to as much as 40 per cent of the cost of construction, were to be presented as a gift in order to press on the building of vessels of the most modern type and of high speed. The meaning of all that was that Japan would tighten her grip over the commerce of India and practically close her grip over Indian communications to the Fast.

The only way to put an end to lavish foreign subsidies with an aggressive aim was to let the world know that the Government of Britain was behind its shipping, not half-heartedly and for 1037 alone, but altogether and all the time. That was the only way to get rid of subsidies and get back to an economic basis. Price of Failure

The merchant navy was not a mere side-line of British industry which could be left to its fate with no other result than a measure of financial loss. Should it fail in time of trial, the whole mechanism of defence by land, sea. and air would be revealed as a source of futile expenditure unable to save a nation which had abandoned to foreign domination the channels of its economic life.

Mr. Shaw recalled that he had travelled round the world and did whatever he could to call attention at every British port to the subject, and had returned to London certain that even if Britain did not move to save Empire shipping, the Dominions would take such action as was open to them. They knew what had happened in New Zealand. That most remote and most gallant of the Dominions had emphatically taken her stand, and legislation had been placed upon her Statute Book, with the consent of all parties, designed to secure, at any rate in her own purely local trade, that British Empire shipping should still sail the seas. Well done, New Zealand! Australia had shown an equal interest in the problem and similar legislation had been introduced in the Senate at Canberra.

NIPPON YUSEN KAISHA INCREASE IN EARNINGS Shareholders of Nippon Yusen Kaisha Shipping Company were informed by the president, Mr. Noboru Ohtani, at the annual meeting at Tokio that earnings as a whole during the half-year ended September 30, 1936, showed an increase. The freight earnings, although somewhat beloxv those of the previous term—a regular seasonal incidence — were above those of the corresponding term of last year. With the exception of the European line, whose vessels frequently returned to Japan with much empty space, and also of the Australian line, which had been subjected to a severe blow by the economic controversy between Japan and the Commonwealth, the cargo movement by tho company's vessels to and from the other parts of tho world, including even China, showed some increase.

Passenger earnings also revealed a marked increase, due to the vast nilround improvement in the passenger service. Traditional economy had been strictly observed all round, and the directors were glad to he able to propose dividend corresponding to 5 per cent per annum.

ACCOUNTANTS AS DIRECTORS OBSCURE BALANCE-SHEETS The functions of accountants acting as directors of limited liability companies were discussed by Mr. Roger N. Carter, president of the Institute of Chartered Accountants, in a recent address in England. Although accountants -wore called upon to act in that capacity more and more, Air. Carter said that he personally had some doubts whether the appointment of an accountant to act as director to a dozen or so of companies was expedient, except perhaps where the companies were interlocked and had one undivided interest One tiling, however, which the accountant so situated could do was to see that the balance-sheet of his company was made as informative as was reasonably possible and not as obscure as figures could be made. He thought that a balance-sheet was of very little real use as indicating tho value of a business, and a profit anl loss account which simply stated a result after debiting or crediting certain items of an unstated amount gave no idea of tho real earning capacity of the company, which was, after all, the true criterion of its value.

LONDON MARKETS HEMP CONTINUES STRONG The Department of Agriculture has received the following cablegram, dated December 21, from the High Commissioner for New Zealand, London: — Hemp.— Manila: The market continues strong. "K" grade for JanuaryMarch shipments sold at £33 15s to £'3-1. Sisal: The market is firm. Fair business has been done. January-March shipment sold at £2B 10s; March-May and April-June shipments, at £2B 15s. New Zealand: Small business has been done, "Rejected," £22 10s; "Common*" oll'ered at £23 15s; buyers at £23 10s for January-March shipment. Fggs.— Firmer undertone at lower prices; outlook depends on weather, which is as yet mild and unhelpful. English, national pack, 17s to 20s; ordinary pack, 17s to 18s 6d; Danish, 9s 3d to lis 6d; Australian, Ss 3d to 12s.