SHIPPING DIFFICULTIES

Taranaki Daily News, 22 December 1932, Page 5

SHIPPING DIFFICULTIES

PASSENGER TRADE SLOW ORIENT LINE’S EXPERIENCE “DUMPING” OF SERVICES COMPLAINT OF SUBSIDIES By Telegraph—Press Assn. —Copyright. London, Dec. 20. “We have been guided in the decision not to pay a dividend, not so much by the cash which would enable the payment of a dividend as by the prospects of trade,” said Sir Alan Anderson, presiding at the meeting of the Orient Shipping Line. “The Australian passenger trade does not yet show those clear signs of improvement which would alone justify the payment of a dividend from the reserves. . “We have reason to be thankful m this year of collapse that we have not only avoided actual loss but also realised a cash profit' of £lOO,OOO on holiday cruises, which have helped to solve the unemployment problem. “Among the world causes of our depression is that one nation after another is giving enormous subsidies and ‘dumping’ shipping services on the world with the apparent object of ruining shipowners who try to make ends meet. The Matson Line, by placing on the San Francisco-New Zealand-Australian run three new vessels whose capital cost and running expenseses are much greater than, judged by past experience, the trade will repay, is competing with a British line which cannot dip into the public purse and is unable to offer the public such costly vessels. "If the Matson Line found £5,000,600 itself and was charged the normal rates of interest on it or was in any serious risk of having to pay the eventual loss, we would perhaps blame it for gambling, but as a grateful nation is taking the risk we must congratulate the Matson directors on being safe men and not gamblers.”