STATE-OWNED SHIPPING.

Wanganui Chronicle, Volume LXVI, Issue 17572, 16 May 1919, Page 2

STATE-OWNED SHIPPING.

DISCUSSED BY PATEA COUNTY

COUNCIL

A circular letter from the Milton j Borough Council was read at the meeting of the Patea County Council on -Monday, suggesting that a fleet of Stpte-owned mercantile steamers should be established. The chairman moved that this Council is of the .opinion that some action is necessary ito improve producers' shipping freights between New Zealand and the Mother Country. About two and i a half years ago a large meeting was i held in Wellington of representative ; men and others connected with coI op. associations. The general feeling \ there was against a purely State-own-ed fleet. A suggestion put forward by Taranaki, which he (the chairjman) represented, was for a line of ! steamers largely owned by New Zea.- ---! land producers, with the Government •holding, say, a million pounds' worth I oi" interost, something on the lines of ■the Bank of New Zealand, with rei presentation on the board of directi ors. It was also then suggested that i the Government legislate in the direc- ! tion of allowing a levy to be made on j the produce exported, not in the way or' cost, but given back in the way of shares in the company. Eventually a committee, consisting of Sir James Allen, Sir Walter Buchanan, Messrß Vavasour, Lysnar, two representatives from the South Island co-op, association, and the speaker (Mr Pearce) was set up to go further into details. They met several times, and approached the Prime, Minister, who had just then returned from the war conference at Home. The Premier reported that at that conference Mr Lloyd. George moved a resolution that the Goverhnien': of the Empire should at the end of the war take action to establish cheap and quick communication between all parts of the Empire. That Was held to mean arrangements should be made either for a subsidised shipping company with a stated rate of freight or some other means of establishing cheaper and quicker communication. Under these circumstances Mr Massey declined to take any action with regard to the suggested New Zealand company until he knew definitely what was to be the result of Mr Lloyd George's suggestion. That information had not yet come to hand. The committee consequently could go no further; they realised that ships had risen to an enormous cost, and even could they have been procured the Government had the power to at once commandeer them. However, something had to be done in the near future. The big shipping companies were becoming larger still by amalgamation, and if there was no check upon them they could charge whatever freights they chose. Producers must look to it that they had some say in shipping matters, otherwise they might suffer very considerably. Directly there was further opportunity for action the committee would be called together again, and probably all the leading representative producers and business men of both islands.

Cr Belton, in seceding the motion said that the position as indicated by the chairman was a good deal better than the average man knew. He trusted the, committee would prevent the shipping company being purely State-owned. Many of the arrangements made by the Government service during the war did nbt reflect to their credit, and he would be, sprvy to see a State-owned mercantile fle?t. The company should go further merely than control shipping; they should provide storage at the other end. Tits was in the hands Of trusts also, and was as great a menace as shipping combines.

Cr Gibbs favoured a State-owned fleet, and was willing to subscribe towards a loan to procure the best ships procurable. What influenced his opinion in this direction was '.he fact that directly a privately owned company got into a big way an offer to purchase came along from an outaide concern, and this offering big profits to shareholders they sold and the process of combines went on in the case of a State-owned fleet the Parliament of New Zealand would at least see that the ships would be held for the benefit of the people of New Zealand.

Cr Dickie considered thru during the war period the Oover?im'ents themselves seemed to have been, largely controlled by the soi-ca!ie;l trnst3 and combines, and the New Zealand producer had been, very badly treated under the commandeer system. New Zealand meat had been cut down in price, and sold at a much higher price in London to help the Government recoup them for the bad bargain they had made with the American trusts.

In reply, the chairman said that there was something in Mr Gibbs' lear that a privately-owned company might sell out to a combine or a big organisation. But if out of a live million capital the Government finned one million pounds' worth cfj shares it was possible to give the Government the power of veto or make it exceedingly difficult to sell the company. Tho great objection to a State-owned fleet was that the control would eventually get into the hands of a Government ofnoial, and no matter how capable he mißhc be he would get into a steoeotyped redtaped manner that was fatal ti progress. With a board of directors who could be removed from time to time there was a better chance of th<? enterprise being a good commercial proposition. The motion was carried.

UNIQUE IN THEIR RESPECTIVE QUALITIES