The Hawaiian gazette., 1916-07-25
Commonwealth Pays Nearly $40,
100000, Or Three Times
Pre-War Value
URGENT NEED FOR MOVING
BIG CROP FORCED ACTION
Other Steps Taken To Save Rec
ord Breaking Grain Produc-
ton and Farmers

HHFH&AtNtthNh"i VI Inv BulShhoN vi
fifteen cargo carriers by che Australia
government and of the urgent necessity
that brought about the purchase were
received here by mail from Australia
Friday.
As previously published here, Pre-,
.mier Hughes of Australia bought these
vessels from the Strath line, paying
according to London reports, f2, 900, 600
approximately $1O,0OO,OOO, which is
estimated at three times the pre-war
value. Immediate possession was taken
of five late last month and others were
TO be turned over this month. They will
be used principally for the transporta,
ition of Australian wheat, most of
which is going to Europe. First load
ing will begin next month. The farmers
of the Commonwealth had been in a
precariOus situation for some time, be.
cause their wheat was not being NOV.
ed, and one step to remedy this had
been the communicating Of British ton.
mage In Australian ports, and the limit
ing Of coal exports from Newcastle in
neutral bottoms, which was relied upon
TO force those vessels to take grain
with the alternative of departing in
ballast.
Feared Crop Would Rot
A month ago the Commonwealth gov.
ernment placed 100000 tons of wheat
with the French government, but es,
Inmates were made that the export.
able surplus AZ the beginning of the
year was $4,000, 900 bushels, whereas
only 100000 had been shipped by the
end of May. Some of the crop was be.
ginning TO rot in the bags.
80 much for the immediate neces.
sity; as TO the entrance Of the govern,
ment into the shipping business, public
opinion, both in Australia and the Uni
, ted Kingdom, recognized the funda,
mental soeialistic Importance Of the
sction. While the United States has
been considering government ownership
and operation and while congress has
defeated the bin once, but with pros,
prets for its passage this session, Aus.
tralia, facing a graver war necessity
than that of the States, moved quick.
~.
Wsr Forced the Move
The prime cause was the war; be.
hind this, however, was an old plank
Of the labor party for government
ownership. Twice the royal commits.
sions had recommended to the federal
parliament purchase of feet for over.
seas trade. Neither led to action.
Labor politicians see in the purchase
the first step toward a great goven.
7 ment fleet which would compete with
privately-owned lines.
II They go so far as to hope that gov.
ernment vessels will carry mails, now
handled by the Orient company for
tlIO,OOO year. Dispatches from Lon
don to Sydney said that the feeling
IN England was one of apprehension.
owing to future uncertainty, for, al.
though II was recognized that there
was mo- immediate intention to cut
rates, as there was plenty Of business
Tor all bottoms, there was anxiety as
TO what was to follow the war.
Fairplay, the important London ship.
ping journal, said
zone must admire Mr. Hughes g
courage in acquiring feet at a time
Of unprecedented values, but it ought
to show fair profit if the high freight
rates continued for two years. The dan.
ger is misma nagement by the state. The
danger from the shipowners' stand
point is that if the registry of the
vessels is transferred TO Australia, and
they are not subjected to excess pro.
dts and income taxes, they will make
Aich profits that labor members will
be encouraged to buy ships Wholesale
and British shipowners will be driven
out of the trade by unfair competi
fion, The British government ought to
disallow the transference of registry. -
Steamers Known Here
/ Several steamers of the Strath line
have called at Honolulu.
Prior to the state purchase the naval
department of Australia had begun 70
take over complete control of all ship
ping. A regulation was passed by the
executive council, under the war regu.
lations act, comforting power upon tn,
minister to requiston any vessel re
quired to transport cargo between the
ECONOMICALLY and any British domin
ion or allied country. Compe nsation
was to be determined by a board of
three appointed or approved by the
minister, who has the last word. Coast
wise shipping also was liable to reaui.
aition. Although this regulation was
passed month ago adviees received in
Honolulu long before said that the gov.
eminent was exercising control over
British vessels for the transportation of
wheat.
On june 30 the government was con.
sidering limiting ports of call of vessels
arriving. at Australia to one; that is
not permitting one vessel to call at, say,
Freemantle, Adelaide, Melbourne and
Sydney, which was regarded as waste,
full Since the authorities had estab.
lished unified control and had assumed
power to fix all rates and to decide
where vessel should 90 and what IL
should carry, competition and the con.
sequent necessity of calling at more
than one port were held to be non-ex,
istent. The plan would save fourteen
days for each vessel calling at Austria
liza, Il was said, and the Herald went in.