British Shipping Slump

Hokitika Guardian, 21 December 1921, Page 1

British Shipping Slump

COMPLAINT OF ORIENT CHAIRMAN. LONDON. December 18. At the annual meeting of the Orient Steam Navigation Company, Ltd.. Sir Kenneth Anderson, who presided, said that excluding mail steamers and the tonnage dispatched to Australia in bal last, the cargo available during the mist year represented no more than one-third to one-quart er of the carrying capacity of steamers placed upon berth. During the last few months the outward trade had gone from bad to worse. Reductions in the freight had been made in order to facilitate business. but no reduction in the power of shipowners to make would have a rle cisivo effect until there was a general scaling down of all costs of production and handling.

The company's expulsion from the Australian coastal trade involved a very serious decline of revenue. The company was prepared to incur large expenditure to meet the additional ri|uiremcnts of the Australian Navi gation Act. hut the labour conditions imposed would have either dislocated the domestic economy of the company’s ships on the coast or put them out of business in the carriage of oversea business. It was.” said Sir Kenneth. “Hobson’s choice for us.”

Tbe running costs were still more than ottble tbe pre-war figures. Failing a quite phenomenal development in traffic or an equally phenomenal economy in the ( .nst of construction and running it would be impossible for tbe company to restore tbe fortnightly-pre-war mail service without an extremely heavy subsidy. Personally ho doubled whether, from tlie point of view either of Australia or Britain tbe game was worth the candle. ‘Regarding tbe monthly service to be inaugurated by tbe Commonwealth Government lines.” said (sir Kenneth, “we are assured that there is no intention to damage the shipping interests, but tbi' blow will be none tbe less severe because it is not intended Even if it eventually does not result iu driving British shipping interests out of the Australian trade, it must immediately- and inevitably act, as a strong deterrent to their development. Capital and effort will not lie as ready to adventure themselves where success or failure rests upon the ine«lcnlablo attitude of a competitor dictated by political considerations, with a public purse to pay its losses and able to invoke tbe powers of Government to penalise ship-owners and secure for itself an artificial preference. Already there are disturbing evidences of such tendencies manifesting themselves.”