The Waikato Times With which is incorporated The Waikato Argus. FRIDAY, JULY 19, 1918. BRITISH SHIPPING

Waikato Times, Volume 89, Issue 13814, 19 July 1918, Page 4

The Waikato Times With which is incorporated The Waikato Argus. FRIDAY, JULY 19, 1918. BRITISH SHIPPING

Although we do not hear so frequently as we did about, tin' depredations of the submarines, and have reason to believe that these pests are being gradually overcome, the losses which they occasion has by no means ceased, and the world is suffering from the effects of their action. It must be remembered that the evil they cause is not limited to the sinking 0!' vessels. The convoy system, which has proved effective in limiting the losses, leads to a great waste of time in the voyages. Steamers after loading 1 ive constantly to wait for their convoy, : I are liniited to the speed of the si- ~ st vessel in the party. These are , Acuities which we cannot avoid, and are In any case muoli betier than the loss of the vessel. There are, however, other causes operating to decrease the amount of shipping available, which cannot be rectified during war, but deserve consideration in order to enable us to form some opinion on the best course to pursue when war is over. From the commencement the demands on shipping have been abnormal, owing to the requirements of Governments British, French and, later, Italian. Six months after our entry the Admiralty I, :<! commandeered 20 per cent, of British tonnage, equal approximately to 10 per cent, of the world's tonnage; German and Austrian tonnage, together li per cent, of the world's total, were lying idle. Thus one-fourth of the world's tonnage was not available. At the same time war conditions had affected the earning capacity of the vessels still running. Certain ports were closed, and the steamers which habitually traded to them had to go elsewhere. Dockyard workers had enlisted to an extent which seriously depleted the labour required for unloading vessels. The shortage of outward cargo led to many voyages being made in ballast in order to procure imports, while the late harvest at the Plate, the partial failure of the Australian wheat crop, and the closing of the Dardanelles forced many vessels into the North Atlantic trade, and increased the congestion at the ports they frequented. The various causes all intensified the conditions arising from a supply of tonnage much smaller than the demand, and led to an abnormal rise of freights and to a great deal of bilter feeling against shipowners, of which a good deal was not justified. In the first place a certain proportion of each company's shipping was commandeered by (lovernment at prices fixed shortly after war broke out, at rates which have in many cases not paid for the increased expense of running the vessels. The profits had to be made upon a portion of the l!eet, and were then subject to an excess profits tax which began at GO per cent, and is now ><o per cent. In spite of these difficulties the great rise in freights led to great profits, and this in turn led to the commandeering of all vessels, which was done under rates drawn up\ by committees of shipowners and business men, and known as Blue Book rates. The result of this was to guarantee the ship-owner a fixed sum for the use of his vessel, whether it did much work or little, and thereby removed the hope of making a profit, which in an imperfect world such as we inhabit has hitherto been found to be the strongest incentive to effective work. It is contended that if steps had been taken directly war commenced to guarantee that Ihe utmost use possible should have been got out of shipping, if the requisite labour bad been maintained at the ports and on the railways to provide for speedy loading and unloading of vessels, ami if the Government had definitely prohibited the importation of luxuries, that the. available stock of shipping could have met requirements without any undue rise in freights. There can be no question that these steps would have helped, but the fact that freights between neutral ports were even higher than those to the United Kingdom shows that the trouble was more deep-seated. Jn any case, the appetite for State control grew with what it fed on, and beginning with 20 per cent the (iovernnient ended by taking charge of the whole. If this were a war measure only we might put it down as one of the minor calamities and include it in the big bill that must be paid, t'nfortunately there are many people who look forward to the (iovernnient continuing their control when war is over, while Australia has already entered upon the business of ship-owning, and New, Zealand is urged to do the same. The arguments against Government control of shipping are somewhat stronger than those against most forms of State interference. p.ritish shipowners never had (iovernmenl assisl-

anee. ye| iirilisii shipping .mil lirilish s 11i]-1 >11i!i ; i!!u were successful In an ahsolulely wonderful decree when eotti--1 ir» il willi llr ir rivals id' other nabonalilies who one an.l all <ci>>y. i Shfe sub-ddii s id' varying >iy.es, and yel |e|'| Ureal Urilain In I mid half I lie s!; ; ; • > and do hail' Hie ea;r>inu Ir.n'e of Hie World. The Inrnr eXpel\ellci of the iaisin s>. I he ir:!11• ri!■ ■»| rapacity for -ea--11 and (he inreniive of 1.e..U: • | • Willi the World Were iiie i" n:• i:I• it ;, causes jo |hi> s'av a:: : i ; , -?:«>»• i> wiiel!.. :• 11..- s.nite r • id' !i..|iol| (lised -dlippii.'J. ( in II:.s J.oinl

we are li I; ■!> t, j, , v .. some frc.sii ! j -1, f lillowu by life experience of OUT IlH'll Will) have gone to the front. It will he interesting to hear their opinion about the relative efficiency of the railway service, in Kiigland and in New Zealand, under private control and under Hint of the state. The question is one that must he decided at. an early date, for shipbuilding on a large scale will he required when war K over, in spite of what is now be am' done, and if the (iovernnient is to continue control the ship-owner will not order new vessels. A guarantee of dividend will present small attractions if accompanied hv regulations that prevent him doing what he thinks most likely to prove profitable. The extent to which the world-famous lines of steamers fills the public eye makes us forget that twothirds of British shipping consists of tramp steamers, which provide for the world's requirements by their readiness to go wherever freight offers. Their business would inevitably languish and die uneer the red tape of permanent officials. .'•> far as shipbuilding is concerned, the aversion to Government interference is common to both masters and men; with shipowners it is equally emphatic, though we do not know the opinion of the officers and sailors. It is to be hoped, however, that this peculiarly British industry will escape the epidemic of State control that has been so prevalent of late. We all know that much it was unavoidable, but that :'s no reason why we should cherish our misfortunes as if they were blessings.