SHIPPING LOAN.

Press, Volume LVII, Issue 17116, 11 April 1921, Page 6

SHIPPING LOAN.

SUGGESTION TO MEET FREIGHT DIFFICULTY. (special to "xnr. raKS.") TIMARU, April 9. At a meeting of th© committee of th* Timimi A. and P. Association to-day Mr Bernard Tripp brought forward * proposal to get over the freight and shipping difficulty. His suggestion wu that the Government should float a loan of four and a half millions in England next November, to be ealled "A.Shipping Company Loan." The money would be handed to the Producers' Committee iu Wellington, who would devot© it to the purchase of twenty steamer* of 10,000 tons each, the steamers to bo converted into insulated boats, with some passenger accommodation. Steamers could now be purchased at £l2 a ton, or less, and th© cost of Insulation -would bo about £BO,OOO, so that they would cost the company not more than .CLW.OOO per steamer. It order to pay interest and sinking fund oil the loan legislation should be, pawed next session imposing an import and at - export tax of 2 per cent. This would bring in on an average about £600,003 a year. The importers and exporters would moro than save the tax by the reduced freights, and when the loan was repaid, the tax could be removed. Tho Producers' Shipping Company, after providing for a renewal and depreciation fund, should put all profits towards reducing freights and passenger fares, instead of paying dividends. The Government would have th* right to appoint two nominees on the Producers' Shipping Company until tho loan was \ma off. Mr "Tripp added that ho did not think any dividend paying company could successfully compete with a company such ns ho suarested. Mr AY. T. Ritchie said that tho formation of a company like tho ono sttggested would go a long way towards showing the existing shipping companies that they could be done without, and should have a double attraction for producers in that it. would provide lower freights, and its London Board of Directors would seo that tho produce was properly handled at the other end. The meeting, which wn* large and .representative, discussed Mr Tripp's proposal in detail, and finally approved of it unanimously. It will be iironeht forward in Wellington on April 21st, at th© meetincc to be held that day of the Producers' Committee, of which Mr Tripn is a member. (PRESS ASSOCIATION TELMRAM.) GISBORNE. April 9. The local Farmers' Union is making , enquiries concerning the charter of % sailing vessel to carry .wool Homo on r the basis of freight at ono penny per lb.