SUBSIDISED SHIPPING

Taranaki Daily News, 22 December 1930, Page 9

SUBSIDISED SHIPPING

UNITED STATES POLICY.

- ANOTHER LOAN APPROVED.

In pursuance of the United States policy of developing its merchant marine by a policy of subsidies and loans the Shipping Board last October granted a loan of £1,177,000 to the Oceanic Steamship Company, a subsidiary of the Matson Navigation Corporation of San Francisco. This loan-is to cover three-fourths of the construction cost of a passengercargo liner to.be.built-at.the Bethlehem Shipbuildng Company’s yard. Fore River, Massaclnissetts. The total cost of the vessel will be £1,440,000, in addition to a. cost of £130,000 for equipment, furnishings and fixtures. The new Matson liner when completed will be placed on the California-Austra-lia route to strengthen the service maintained there by the'eompapy. She wil. bp of approximately 11,300 tons deadweight, and will be capable of a speed oi 20 kriots. ” Powerful Government assistance such as this is given as a result of the JonesWhite Act passed in May, 1928, to make possible “the greatest expansion programme for the American merchant marine yet undertaken.” The measure provided for a fund of £50,000,000 to be used for loans to shipowners desiring to build new.-vessels. A loan can be up to 75 per cent, of the value of the vessel and her equipment, and bears interest at only 3 per cent. The same Act also authorised the payment of mail subsidies on a mileage basis without regard to the amount of mail carried. Under this arrangement the Oceanic Company’s “Golden” steamers receive £2BOO a trip for carrying mail from the Pacific to New Zealand. As the mails are sometimes, very small tliis worked out on one occasion at a subsidy of £1433 a bag and on another at about £9OO a'bag-