SUBSIDISED SEA SERVICES

Timaru Herald, Volume CXXXVII, Issue 19667, 8 December 1933, Page 9

SUBSIDISED SEA SERVICES

BRITISH CABINET’S NEW POLICY ; MODEST FORM OF GRANT FORECASTED Urmed Press Association—By Electrlo Telegraph—Copyright (Received December 7, 8.15 p.m.) LONDON, December 7. "The Daily Mail” has disclosed that the Tramp Shipping Committee’s report recommends that every British tramp in international trade, be subsidised 10/- per ton annually, besides a laying-up subsidy of 5/- per ton gross, costing the State £3,000,000. Goods receiving Imperial preference should be imported in British ships and British coastal trade confined to British vessels, failing which foreign ships should be charged discriminating port dues, and their cargoes taxed. “The Daily Herald’’ says: “The Imperial Treasury and the Board of Trade are giving serious consideration to the proposal of financially assisting British shipping.” Merger of Big Lines. “The Daily Express" reports that the negotiations for a merger between the White Star Line and the Cunard Line have been successfully concluded. A new company, controlling both lines will be formed to operate the North Atlantic services, the other routes continuing to operate independently. The Government will thus be enabled to assist in completing two giant Cunarders at Clydebank. It is likely that the Mauretania and other older ships will be scrapped.

PROTESTS BY BRITISH SHIPOWNERS

UNEQUAL STRUGGLE ON THE SEAS United Press Association—By Electrlo Telegraph—Copyright LONDON, December 6. At the annual meeting of the Peninsular and Orient Navigation Company, Ltd., the Hon. Alexander Shaw (chairman of directors), who presided, said: "We are still confronted with uneconomic competition from subsidised foreign lines." He cited a concrete illustration of the sea-carry-ing trade between Australia and New Zealand, including Fiji. This was purely British trade, created and built up by British shipping, but one of the great subsidising Powers, not content with lavishing millions upon ships for its own traders now on the route, was operating highly subsidised vessels in what is purely British trade voyages, with the result that British ships are faced with uneconomic competition, which made lamentable reading. Loss follows loss, apparently unending. These ships were the property of a company controlled and managed most admirably in New Zealand, but the Peninsular and Orient Company has a large investment therein. "You cannot be surprised that we have received no dividend from the company. It is difficult to resist the conclusion that British shipping may be gradually driven out ol that purely British trade, simply because its slender resources cannot compete against the unbounded wealth ol foreign taxpayers. I venture again to call attention to the fact that this uneconomic competition is by ships of a Power, which while sending its British trade between British Dominions, will not allow British ships to carry a single passenger or ton of cargo between her own ports, and her own overseas ports, and her own overseas possessions on the route in question, and this lias already deprived a British company of what was formerly a profitable trade." Unfair Laws. Mr Shaw referred to the preposterous situation caused by the White-Jones legislation of the United States, which conferred upon any American line power to force Its way into any shipping conference in any part of the world. The Peninsular and Orient Line had a recent experience of this Act, and in order to save trade from extinction, three subsidiaries which run voyages between Australia and elsewhere and the United States, had to admit a certain American line into the conference, which, on merits alone, It was in nowise entitled to enter. If Britain’s voice In the councils of Europe is of less account than prewar, Mr Shaw linked it to the fact that the shrewd eye of foreign statesmen see our commanding position on the oceans of the world gradually fading away. He did not favour a general policy of the reservation of all Empire trade for British ships only, but he did not believe that subsidies could provide a permanent basis for the maintenance of our sea power, although they might be administered to save its life. He would not shut out any country which runs ships on fair economic lines, and treats British shipping fairly. Remedy at Hand. "Where In any particular area of the Empire an attack Is launched against us which is uneconomic and potentially dangerous to Inter-Imperial communication,” Mr Shaw said by way of conclusion, "I suggest that the remedy Is at hand. The situation might be referred to some expert authority, such as the Imperial Shipping Board, which U representative of the w hole Empire. To follow' its report ought to be within the power of the Governments of the parts of the Empire concerned, which could provide, by Orders-in-Coimcil,

that trade between them shall not be carried in vessels of the particular Power from which danger proceeds. A remedy on these lines could be applied without undue difficulty. It would not be aggressive, but purely defensive, and mild Indeed compared with the shipping laws of a number of foreign countries. The British Dominion Governments might go a step further, and announce that they will consider whether their ports can remain open for external trade on equal terms to vessels of countries which treat British shipping unfairly." MAIL CONTRACT SCANDALS. REVELATIONS IN UNITED STATES INQUIRY. United Press Association—By Electric Telegrupb—Copyright (Received December 7, 7.15 p.m.) WASHINGTON, December 6. The re-opening of the Senate Investigation into ocean mail contracts, revealed further lax methods. One company received over 1,500,000 dollars for carrying mails to the West Indies, which on the £1 per ton basis would cost 1903 dollars. It was disclosed that Shipping Board vessels, sold to private concerns during the last few weeks of the Hoover Administration, had been held up by President Roosevelt. Furthermore, no deliveries will be made until the shipping situation has been thoroughly Investigated. Something of a sensation developed when the testimony Indicated that some of the same type of political and financial "pressure” that had been brought to bear on the officials of the Hoover Administration had been exerted upon the Post Office Department, since the Democrats came into power. In one case, efforts were made to advance a post official to become under-secretary to Mr Farley, because he was sympathetic to ocean mail bounties. ENGLISH NEWSPAPER COMMENT GROTESQUE HARDSHIPS OF | BRITISH SHIPPING United Press Association—By Electric Telegraph—Copyright • Received December 8, 12.17 a m.) LONDON, December 7. Commenting on the Hon. Alexander Shaw’s speech at the P. and O. meeting “The Daily Telegraph” says: “We cannot shut our eyes to the restrictions placed upon British ships by certain Dominions, or to the encouragement given foreign ships by the South Africa Union. The harmonlajmg of policy will not be reached I quickly in such circumstances." "The Financial News’* says: "Mr * Shaw gave all the illustrative detail anybody required regarding the grotesque hardships imposed on British shipping by the policies of other I nations. There should be no great | difficulty in agreeing with the Dominions on an appropriate course.” [