The Daily News. THURSDAY, JUNE 28, 1917. THE SHIPPING PROBLEM.

Taranaki Daily News, 28 June 1917, Page 4

The Daily News. THURSDAY, JUNE 28, 1917. THE SHIPPING PROBLEM.

The solution of the shipping problem does not yet appear to be within reaah. Both in Australia and New Zealand movements are on foot to secure Government assistance to private enterprise in the efforts to place the transport of produce to overseas markets on a more satisfactory basis. The Dominions being dependent so largely on sea carriage are now finding that with seventy-five per tent, of the British and Colonial shippihg commandeered for Imperial purposes. including the bulk, if not the whole, of the insulated vessels, it is obvious there must be a deplorable congestion of produce awaiting transmission to the Home and other markets, and that congestion is being very acutely felt, especially in view of the near approach of the new season's output. The matter affects the dairying industry very greatly, so it was not surprising to find that the recent meeting of the National Dairy Association at Palmerston North had given it considerable attention. Mr. Marx brought forward a proposal that the dairy industry should unite with the meat and wool producers in becoming part owners of ships carrying produce. The principle is sound, but its adoption would be difficult. If there were available ships that could be purchased it would be quite another matter, but at present all that could be done iwould be to arrange for the necessary capital, and it is extremely probable that when the dairy, meat and wool producers realised the amount of capital involved in acquiring sufficient ships to transport their produce they would be chary to embark on such a costly scheme, Mr. P. Pathan estimates the amount required at five millions sterling at least, but taking the present largely increased cost of shipbuilding, his estimate is probably very much below the mark. Another suggestion was made by the chairman of the Association, Mr. A. Morton, to make a per centage levy on all the producers of the Dominion to repay the Government all money expended in constructing or acquiring a line of shipping, less any sum the Government might sup-

plement. It is not of the slightest usa entertaining for a moment the. idea of building ocean liners in New Zealand, so tlmt any merchant, fleet that might bn got together either by State or co-opera-tive means must tie .bought. After the war that would be possible, but at present it is impossible, for the simple reason that no ships aro for sale. That the problem of State-owned vessels will have to be faced in earnest sooner or later is generally admitted, bub under far different circumstances to those

•which at present prevail. All the Allied countries have 'Undertaken great programmes of merchant ship construction, and both Britain and the United States are standardising with the view to economy and speed of construction, and these standardised ships can now be turned out in six months, but it will take probably another twelve months to get any relief of the present shipping famine, and not even then unless the rate of destruction by submarines is greatly reduced. The imperative need for the transport of food supplies to Britain must be met or disaster will follow. It is certainly a great hardship oh tile producers of the Dominion to have their output held up for want of transport facilities, and tlib -pity of it is that the position Bida fair to grow worse instead of better. The Imperial authorities are doing their best 'with the vessels' available, but it is inevitable that they cannot wave a. fairy wand and produce a fleet of insulated vessels at will. All the same it is jusf as well that the producers of the Dominion Bhould give practical consideration to the question of hecoming independent of the shipping owners who, like the producers, are out lor iroflt. The war has shown what huge dividends can be earned out of the ocean transport trade, and the producers are quite right to digest the lesson. It is in a measure the irony of fate that Mr. Morton should have suggested a levy considering that just now the dairymen cannot too strongly condemn the levy process as applied to butter-fat. However, that aspect of the question is of little importance, the main object being to get free from the bondage of the shipping combines. The solution of this roblem will probably be found to rest with the State, but even the State can be and not infrequently is, as arbitary as any combine. Most matters of diffi•ilty lend themselves to a. compromise, and a reasonable plan for adoption after the war might well be based on a cooperation between the producers and the overnment whereby the former guarantee a per centage of the cost of an adequate fleet of ocean liners to be acquired by the Government by means of a loan for the redemption of which, together with the annual interest the Government would stand pledged, but with a guarantee from the producers covering such part of the liability as may be reprcscnt--1 by the number of -vessels placed under their control. It is equally necessary for the Dominion to own its ocean liners for transport purposes as its railways for development purpose.?. There will probably be ample time to frame a workable and acceptable scheme before the war is 'brought to a close, and all concerned would be well advised to approach the matter in a reasonable and equitable spirit so that when the opportunity arrives fruition will result. Meanwhile the Government should do all in its power to relieve the congestion and facilitate the marketing of our produce.