COMMONWEALTH SHIP PURCHASE

Dominion, Volume 9, Issue 2809, 29 June 1916, Page 5

COMMONWEALTH SHIP PURCHASE

' MR. HUGHES'S BOLD STROKE OPINION IN LONDON By Telegraph-Press Associatiou-Coprrisrit. London, June 27. The Commonwealth has taken delivery of the Stiathcndrick, Strathairly, Strathord, Strathdee, and Strathgarry, and is expected to take over some of the others early in July. The ships are at present scattered in many waters, some on war duties, whoso whereabouts cannot bo disclosed,_ but it is announced that the first loadhgs .will be made in August. The official Australian: view" in London seems to be that there is no reason to' fear a rivalry with the shipping companies, as the purchaso is purely a'war measure, the urgency of shifting the wheat crop being paramount; and in. addition to fifteen ships, the existing traders will help the Australian and British firms to keep a hold on the world's market, which was threatened by the shortago of tonnage. Offioial quarters do not anticipate any material alterations in. outward freight rates, except preventing them rising to an extortionate level. They-believe that' the shipping companies-will accept the new move amicably, git is impossible to say how the Government's share .of ontwprd freight will develop. An important thing is to move tlio wheat. • Shipping circles are .extremely Tctiennt. 'It is felt that the Commonwealth's entry into the ship-owning business cannot bo criticised on .ordinary lines. It must bo regarded as a war measnre. For the present at least they decline to discuss what may happen after the war. Some authorities.estimate..the purchase price at two millions, at- least threefold tho pre-war value, but are pot. disposed . to dispute the Commonwealth view tliat tho price is not exorbitant under existing conditions. EASTERN AND AUSTRALIAN COMPANY. A SALE TO HOME BUYERS. Sydney, June 28. Another Eastern and Australian Company's steamer, ■ th'e Empire, -4436 tons, Ms been sold to Home buyers. It is proposed to replace lier by a now' and larger steamer. Mitt MASSEY'S COMMENTS. A little was said by the Prime Minister in the House yesterday about the reported purchase by Mr. Hughes, Prime Minister of the. Commonwealth, of a fleet of fifteen steamors. .Mr. Massey was '.speaking at the time when tko r.iomber for Grey made an interjection about the news of tho purchase.-- • Mr. Massey: I have grave doubts as to the accuracy of the statement. I had tho opportunity of meeting Mr. Hughes when ho passed through New Zealand, and I wish to say that Mr. Hughes seemed to me to be a very shrewd man. And I can't understand"any shrewd business man buying ships at the present time. As soon, as the end of the war appears to bo in sight—and it is not in sight yet, although the indications are better than they have been since the beginning of the war, the best indication of all being the Tise in the price of Imperial steels— the value of ships will come down by 50 per cent. (Hear, hear.) I say again that I can't understand a man of Mr. Hughes'? shrewdness making a purchase at such a time. He added that if it should prove to be a factthat Mr. Hughes had rtade tbe purchase, then doubtless Mr. Hughes had good reasons for doing so. '