SHIPPING LOAN.

Hokitika Guardian, 14 April 1921, Page 4

SHIPPING LOAN.

SUGGESTION TO MEET FREIGHT , DIFFICULTY. TIMARU, April 9. At a meeting of the committee of the Timaru A. and P. Association to-day Mr Bernard Tripp brought forward a proposal to get over the freight and shipping difficulty. His suggestion was that the Government should float a loan of four and a half millions in Englad ext November, to be called “A Shipping Company Loan.” The money would be handed to the Producers’ Committee in Wellington, who would ■devote it to the purchase, of twenty steamers of 10,000 tons each, the steamers to be converted into insulated

boats, with some passenger accommodation. Steamers could now be purchased at £l2 a ton, or less, and the cost of insulation would be about £BO,000 so that they would cost the company not more than £200,000 per steamer. In order to pay interest and sinking fund on the loan legislation should be passed next session imposing an import and an export tax of 2 per cent. This would bring in on an average about £600,000 a year. The importers and exporters would more than save tho tax by the reduced freights, and when the loan was repaid, the tax could ho removed. The 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 the right to appoint two nominees on the Producers’ Shipping Company until the loan was paid off. Mr Tripp added that he did not think any dividend paying company could successfully compete with a company such as he suggested. . Mr W. T, Ritchie said that tho formation of a company like the one suggested: would go a long- wav towards showing the existing, shipping companies that they could be done without, and should have a doublo attraction for producers in that it would piovide lower freights, and its London Board would see that the produce was as properly handled: at the other end. The meeting ,which was large and representative, discussed Mr Tripp’s proposal in detail, aiul finally approved of it unanimously.

It will he brought forward in Wellington on April 21st at tho meeting to bo hold tha. day of the Producers’ Committee, of which Mr Tripp is a member.