Unfair Competition.

Star (Christchurch), Volume XLIV, Issue 642, 21 December 1932, Page 8

Unfair Competition.

Shipping Evils

Strong British Criticism of Subsidies. United Press Assn.—By Electric Telegraph—Copyright. (Received December 21, 8.30 am.) LONDON, December 20. THE MEETING of the Orient Line, Sir Alan Anderson, who presided, said: “ We have been guided in the decision not to pay a dividend not so much by the cash which would enable payment of the dividend, as by the prospects of trade. The Australian passenger trade does not yet show those clear signs of an improvement, which would alone justify the payment of a dividend from reserves. “ We have reason to be thankful in this year of collapse that we not only have avoided an actual loss, but have realised a cash profit of £IOO,OOO on holiday cruises, which have helped to solve the unemployment problem. “ Among the world causes of our depression is the fact 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 Fran-cisco-New Zealand-Australian run three new vessels, w’hose capital cost and running expenses 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 had found 25,000,000 dollars themselves and were charged normal rates of interest on it, or were in any serious risk of having to pay an eventual loss, we might blame them for gambling, but as a grateful nation is taking the risk we must congratulate them on being safe men and not gamblers.”