SHIPPING PROFITS

Dominion, Volume 14, Issue 57, 1 December 1920, Page 7

SHIPPING PROFITS

ON THE DOWN GRADE GREAT INCREASE IN RUNNING / COSTS BrTelegraDh-Preaj Ajaoolatlon-Oojjyrittlit London, Novemtor 29. At tho meeting of shareholders in the Orient Steam Navigation Company, Sir Kenneth Anderson presiding, the chairman said he regretted that profits were on the down grade. lie was unable to lake a sanguine view of the future. The ratio of the advance in saloon passage, rates was Brill far short of the ratio of advance in the running costs, and far short of the mileage* chargas on otbei chief ocean routes. There would ho an unanswerable case for an increase in fares, but the reaction that would set in by checking the traffic might make bad worse. If the eight hours day at sea were imposed the result would be almost disastrous, and would cause em barrassment in the conduct of passenger business. _ Either fares must be raised to a prohibitive level, or passengers must be content to find more for themselves, and to accept a much inferior standard of service. It was estimated that on a IG,OOO-ton liner an eight hours day would involve additional running costs of about JC7COO per month. Until shipowners could effect big economies in costs they must economise in the provision facilities and in tho standard of comforts above all. The speed position, regarding tho mails was much the samo as last year. The company would continue to do its best to meet tho Commonwealth Governmeirfs wishes and to minimise inconvenience to the public—Aus.-N.Z. Cable Assn.

SHIPBUILDING INDUSTRY

GREAT INCREASE IN COST DUB TO "CA' CANNIE." (Rec. December 1, 0.5 a.m.) London, November 30. Mr Archibald Hurd, writing in tho "Daily Telegraph" discussing the shipping problem, says it no longer pays to build cargo-carrying vessels in Britain, though there is still a demand for linei-3 and oil tankers, freights have fallen so heavily, and running charges are so high. Moreover, there is much "ca* cannie" in the shipbuilding industry, some yards paying for eight hours' work tod ojnly (receiving five -find a half to six. The Cunard Company's Samaria cost an extia quarter of a million owing, to "ca' cannie." Cargo vessels now cost three or four times as much as before tho war. As seven million tons of shipping will take tho water within a year, tho immediate prospects are bad. There are still orders in hand, but new ones are not coming in — Aus.-N.Z. Cable Assn. / COMMONWEALTH SHIPPING POLICY DEFENDED BY MR. LARKIN. (Rec. Novomber 30, 5.5 p.m.) London, Novomber 29. Mr. H. B, Larkiu, general manager of the Commonwealth Shipping Line, in a letter to tho "Journal of Commerc?," replying to the prediction that the Commonwealth shipping policy will drivo tonnage away from Australia, mid alleging that the Commonwealth Line must eventually become a. charge on tho taxpayers, says: "The Commonwealth Lino is still a very profitable investment, although perhaps not so profitable as some conference lines, which, although desiring to increase rates on the plea that every voyage under existing conditions shows a heavy lass, are still able to pay 15 per cent., free of inconio 'tax, and also distribute bonus shares." Mr. Larkiu claims that tho Government line lias justified its existence, from tho view of the taxpayer and of shippers, both Australian and British, who recognise it to bo a safeguard against companies who are still anxious to increase rates. —Aus.-N.Z. Cablo Assn. -v.