COMMONWEALTH SHIPS

New Zealand Times, Volume XLIV, Issue 10324, 5 July 1919, Page 7

COMMONWEALTH SHIPS

THE FUTURE OF THE LINE. A MANAGERIAL STATEMENT. Australian and N.Z. Cable Association. LONDON, July 3. Mr Larkin, manager of the Commonwealth Government Line, informed the Australasian- Merchants’ Association that the Commonwealth Lino intends to supplement, afid ultimately to replace, the present fleet with fast and up-to-date steamers. Moreover, in the .event df a breach with the Conference Lines, which he sincerely hopes will not arise, and which he is instructed to take every reasonable precautipn to avoid, a regular and frequent service, between the United Kingdom and Australia. wilThe stable rates of freight will bo maintained, and shippers will bo guaranteed against loss by the forfeiture of rebates, provided they in turn promise the # Commonwealth Line the first offer of 'their business. VENTURE CONSIDERED HARMFUL. LONDON, July 3. ' A lending Anglo-Australian mer« chant, in an interview, stages that the prevailing opinion among Anglo-Aus-tral inn merchants is against the Commonwealth Government shipping line, on the fundamental ground that a Government trust is undesirable. But they also believe that the venture is harmful because . of its unsettling effect upon Anglo-Australian trade. Two of the principal needs are the lowest possible rates,_and stable rates. Merchants do not believe that- the 1 Government has much prospect! of competing with established lines, because the existing fleet is quite unsuitable, and a large loan would bo necessary to build a fleet. London financiers w,ero unlikely to assist the Australian Government against private enterprise. It is not yet known whether Air Larkin’s offer will modify the merchants’ attitude.

Tho inauguration of the Australian Commonwealth Government’s State fleet of steamers was with tho purchase of thirteen steamers aggregating 55,000 tons. It was supplemented by acquisition of eighteen enemy ships aggregating 89,000 tons; also by. building vessels in Australia and in tho United States, . although contracts made with builders in, the latter country were not all proceeded •.with in consequence of the improvement in the Allied tonnage' position and the, signing of tho Armistice. The building programme has been extended in Australia, and the building of new vessels of up to 10,009 tons, with a 121-knot speed, is now proceeding in Victoria and New South Wales. The Commonwealth Government line in its first year made a profit of £936,332. To December 16th,’ 1918, it had made sufficient profits to pay foi itself, viz., £2,070,000, and leave a credit balance of £15,000. This was only two years after their purchase by Sir W. M. Hughes.