SHIPPING PROFITS

Rotorua Morning Post, Volume 2, Issue 412, 22 December 1932, Page 5

SHIPPING PROFITS

(Press Ass"

ADVANTAGE OF SUBSIDIES TO THE MATSON LINE TIIE ORIENT LINE

— By Telegraph — Copyright*

London, Deeember 20. Sir Alan G. Anderson, manager of the company, in presiding at the annual meeting of the Orient Line, said: "We have been guided in oui deeision not to pay a dividend not so j niuch by the paueity of casli, for the amount available would have enabled j the payment of a dividend, as by the prospect?, of trade. The Australian passenger trade loes not yet show those clear signs of improvement which would alone justify the payment of a dividend from the reserves. We have reason to be thankful in this year of collapse that we have not only r.voided an actual loss, but realised a cash profit of £100,000 on holiday cruises, which has helped to solve the unemployment problem. "Among the world causes for our depression is that one nation after anotlier is giving enormous subsidies, dumping shipping services on the world with the apparent object of ruining those shipowners who try to make ends meet. "The Matson Line, by placing on the Sun Francisco-New Zealand-Aus-tralian run three new vessels, whose capital cost and running expenses are much greater than, judged by past experienee, the trade will repay, is competing with a British line which cannot dip into the public purse and is unable to offer the public such eostly vessels"If the Matson Line had found the 25,000,000 dollars (£5,000,000) them selves, and were charged normal rates of interest on it, or were in any serious risk of having to pay.an eventual loss, we might blame them for gambling, but as a grateful nation is taking the risk we must congratulate them on being safe nien and not gamblers."