SHIPPING COMPETITION

Otago Daily Times, Issue 22755, 16 December 1935, Page 12

SHIPPING COMPETITION

SAN FRANCISCO SERVICE HINT OF GOVERNMENT’S ATTITUDE (Per United Press Association) WELLINGTON, December 14. Interviewed on Mr Alexander Shaw’s statement regarding the withdrawal of the San Francisco steamers the Prime Minister (Mr Savage) to-day said that in conjunction with the other dominions affected he thought something should be done. “We are prepared to pull our weight,” he said. He referred to the fact that certain conversations had taken, place between the past Government and the Australian Government on the question. Mr Savage stressed the point that it was the Government’s aim to maintain the standard of living in New Zealand and indicated that this might have to be done by Government preference to British lines as against other lines manned by foreign crews. MR LYONS SEEKS INFORMATION SYDNEY, December 15. (Received Dec. 15, at 10 p.m.) To discover all the facts behind the announcement that the British shipping service between Australia and San Francisco will be withdrawn if more support is not given, Mr Lyons cabled to Mr Bruce in London for further information. Mr Lyons will later cable to Mr Savage for Ills Government’s opinion. Mr Lyons is also giving consideration to a report that the Canada-Australia-New Zealand shipping service may be withdrawn. HISTORY OF THE SERVICE The history of the Union Steam Ship Company’s service to America, which is now to bo discontinued because of the effect of subsidised competition, goes back to 1885, when the company took a contract, in conjunction with the Oceanic Steam Ship Company, of San Francisco, for the carriage of English mails, via San Francisco. The first trip of the service from the New Zealand end was made by the Mararoa (2598 tons), which had then just come from the builders’ hands, and which was for some years the Union Company’s largest and best-appointed vessel. In 1900 the company’s connection with the San Francisco mail service temporarily ceased. The Hawaiian group had lately been annexed to the United States of America, and under the shipping law of the United States foreign vessels were debarred from plying, between ports of the country, while legislation also confined mail subsidies to vessels owned in the United States. The traffic between Honolulu and San Francisco, and the mail subsidy which was being received from the United States, were at that time essential to the profitable running of the mail service, so that the Union Company was forced to withdraw and leave the service to the Oceanic Steam Ship Company, which, as an American concern, was not subject to the same disabilities. But it 1909 the company inaugurated, under subsidy from the New Zealand Government, a monthly service between Wellington, Rarotonga and Tahiti. This service connected with the Oceanic Company’s steamer then running between Tahiti and San Francisco. The following year it was arranged that the Union Company’s service should he run with bigger and faster steamers, and carried right through to San Franciscg. It is this service which is now to be discontinued.

For this service the first vessel purchased was the Port Kingston (7583 tons), which was later• renamed the Tahiti, which sank in 1931. Various other steamers were run with her in the service, a notable addition being the Makura (8075 tons). The Makura and the Maunganui are the two vessels at present engaged on the run, and they provide a monthly service to America, from Sydney to San Francisco, via New Zealand. Actually a fortnightly service" to America or Canada is given by this service, and the alternative route to Canada, given by the Niagara and Aorangi on the run to Vancouver.

The difficulty with the service given by the Maunganui and the Makura, and by the other vessels on the same run, has been the American shipping regulation, which rules that no foreign vessel can take either cargo or passengers from Honolulu to San Francisco, or vice versa. The unfairness of this, it is claimed bv the British shipping companies, is that American vessels are at liberty to trade in British ports, and between British ports, while the same privilege is denied British vessels in American territory.