STEAMER COMBINE.

Motueka Star, Volume II, Issue 53, 14 February 1902, Page 4

STEAMER COMBINE.

The announctment has beemniade tha/fc the leading transatlantic: steameri,lines have agreed to minimum freight rates representing an increase of 33 1-3 : per cent, on grain .and 10 per cent, on provisions. This combine was engineered by Mr Pierpont Morgan, who recently acquired a British line. The British American freights have been finely cut owing to the enormous amount of idle tonnage. Grain has been carried pVictically as ballast, while other cargo liaAgone at remarkably cheap rates MpA of the British shipping companies have paid only fractional dividends, and as a, matter of fact it is only , the lines trading-with Australasia and the East that have shown anything like ■favourable results. The wholesale adoption on the Contingent of the system of subsidising steamship companies by the State is proving detrimental to British shipping interests, and, the United States having determined to build up a merchantile, marine on the, subsidy system, tbe position has become very serious. The British shipowners have been obliged to ,put rates to a nonprofitable point to keep the trade from going to the heayily-subsidised services. The combination arranged by Mr.Pierpont Morgan will tend .to mitigate the evils arising from a cut-throat competition .