MAIL SUBSIDIES.

Wairarapa Age, Volume XXVIII, Issue 7944, 19 January 1906, Page 5

MAIL SUBSIDIES.

THE CONFERENCE AT SYDNEY. INTERESTING EVIDENCE. Received January 18, 11.41 p.m. SYDNEY, January 18. Before the Royal Commission of Enquiry regarding mail subsidies, Mr Kenneth Anderson, Chairman of the Orient Company, said that there was an impression that a mail contract was a mere make weight, and the subsidy all found money, whereas the contract was the first and last determining factor in the cost and all without regard to economio or commercial considerations. While a cargo steamer cost about £9 a ton, ' building a mail steamer cost nearly £4O. The contract conditions precluded competition on level terms with cargo boats. In recent years there had been oenstant full freights, while the mail contract conditions became more' exacting. The Commonwealth had reason for congratulation in that for seventeen years aioce 1888 it had secured the mail service at a figure representing about half the actual cost. He suggested this as a reason for sympatheic consideration to future contractors. His Company had no objection to the Government running their own ships, if they decided to take such a step, but be was prepared to talk business to them. Having to employ white labour necessitated an additional cost of about £9OOO yearly. The advantages of employing white labour were only sentimental. Beyond sentiment he was sorry to say that there was not much ho knew of, whilst on the other side of the account was a debit figure, Mr Anderson denied the existence of a shipping ring. The origin of the legend, for it /was no more than a legend, was, he supposed, the existence in London, for many years past, of a Freights Conference. Its objects were to prevent violent fluctuations in freights and to keep the trade adequately and regularly supplied with tonnage. Its funotions were no more in the interests of the owners than of shippers, but the trade generally, without whose concurrence it could not continue.

CABLE NEWS,

By Telegraph—Press Association—Copyiight.