PURCHASE OF SHIPS.

Taranaki Daily News, 29 June 1916, Page 7

PURCHASE OF SHIPS.

BY AUSTRALIAN GOVERNMENT. By Cable—Press Association—Copyright. Melbourne, June 27. It is stated in Ministerial circles that wliile in England Mr. Hughes completed arrangements to purchase a number of ships to institute a Commonwealth-own-ed steamship line foi the transport of the present wheat harvest. London, June 27.

It is confirmed that l wealth Government lias puiyliaseM fifteen modem cargo steamers, of . 8000 tons. The ships bought include t.lie Strathendriek, Strathavon, Strathairlv, Strathford. Ntrathdeven, Strathedc, Strathspey, Strathgarry, Str-athberg, Strath* esk, Ardangorm, Ardanmohr, Vermont, IDalton Hall and Kirkoswald. The transaction caused a flutter on file market; Many of the purchased vessel are now in Government employ, and will be sent to Australia as they become available.

The Pall Mall Gazette states that the Commonwealth has solved the shipping problem m a bold and original manner The progress of the new line 'will be watched with unusual interest. The Commonwealth has taken delivery of the ships Strathendrick, Strathairy, Strathford, Strathdec and Strathgarry, and is expected to take over some others early in July. I'lie ships are at present scattered in many waters, some on war duties, and their whereabouts cannot be disclosed, but it is announced that the first loadings will be ,in August

Official Australian views in London arc that there seems to be no reason to fear the rivalry of shipping companies, as the purchase is purely a war measure. The urgency of shifting the wheat crop is paramount, and the addition of the fifteen ships to the existing traders will help Australian and British firms to keep hold of the world's markets, which are threatened by the shortage of tonnage. Official quarters do not anticipate material alterations in outward freight rates, except that the State will prevent them rising to on extortiate level.