STATE SHIPPING LOSSES

Taranaki Daily News, 9 July 1930, Page 7

STATE SHIPPING LOSSES

CANADIAN MERCHANT SHIPS. YEAR’S DEFICIT OF £1,409,000. Full accounts of the Canadian Government Merchant Marine, Limited, and ■subsidiary companies have been issued, and are given separately from those of the Canadian National' West-Indies Steamships, Limited, and subsidiary companies, all of which represent the Canadian Government’s shipping enterprises. The annual report of the Canadian Government Merchant Marine shows a total revenue for the year ended December 31 last of 8,371,441 dollars, and total operating expenses of 9,250,348 dollars, leaving an operating loss for the year of 878,907 dollars, which compares with an operating loss for 1938

of 1,209,083 dollars. The charge for depreciation on vessels was 1,861,925 dollars, as against 2,431,315 dollars in 1928, and interest on Government notes and advances amounted, to 3,187,926 dollars, as compared with 3,905,126 dollars. The total loss was thus 5,928,758 dollars (£1,185.751), as against 7,545,525 dollars (£1,509,105) in the previous year. The report states that “on account of the impossibility ot operating the Lon-don-Antwerp and Cardiff-Swansea services with the obsolete tonnage at our disposal in competition with the up-to-date tonnage of other lines, the above services had to be cancelled, with a resultant reduction in operating revenue. Such revenue was further reduced because in 1923 there were included the West Indies services, which now form the subject of a separate report." Seven vessels were sold during the year and the fleet now consists of 31 ships. Operating revenue of the Canadian National West-Indies Steamships, Limited, and subsidiary companies amounted to 3,332,683 dollars, and • operating

expenses were 3,780,524 dollars, leaving a net operating loss of 447,841 dollars. After debiting 227,315 dollars for depreciation and 442,739 dollars, representing interest on notes and advances, the total book loss for the. year was 1,117,896 dollars (£223,550). It is added that on account of the unsettled condition of the sugar trade in the West Indies less revenue resulted from that source than was expected. This condition, together' with the heavy expenses necessary in inaugurating a new service, were mainly responsible for the deficit. Competition from services operated from United States ports has been somewhat heavier than was anticipated. The amount of bananas carried to Montreal during the summer months is reported to have come up to expectations, and it is anticipated that, after the completion of one year’s operations, the banana-carrying steamers will have landed in Canada approximately 2,000,000 bunches. Such a result would bo achieved “notwithstanding strong competition by water and rail.”