THE STATE STEAMSHIP SERVICE.

The West Australian, 27 November, 1915

THE STATE STEAMSHIP SERVICE.

--

A REVIEW OF ITS OPERATIONS.

THE SITUATION TO-DAY.

(By "Shipper.")

The present is a most opportune time

to review the operations of the present

Labour Government as shipowners. In

this capacity they launched out just three

years ago. Their scheme, it will be

remembered, was ostensibly designed to 

render help to the small shipper of stock

along the North-West coast. It was not

for the purpose of adding to the service

that was at the time maintained by private 

shipping firms, but, according to the

Ministerial announcement at the time the

ships were purchased, in order that the

small shipper could get space to ship to

the metropolitan markets and thus avoid

the machinations of what was regarded as

a beef ring.

A glance at the conditions of the North

West shipping service before and after the

advent of the State service is interesting,

and speaks for itself. Before 1912 there

were the four regular Singapore steamers

-the Gorgon, Paroo, Minderoo, and Charon, 

which vessels also made frequent special trips 

to North-West ports for cattle only; the Adelaide 

Company's steamers Bullarra and Allinga, which 

ran regular trips to the closer North-West ports. 

and the Ceduna and Junee, connecting 

respectively with West and East Kimberley and

Fremantle, while occasional trips for cattle

were also made by such steamers as the

Diikera, Kadina, and Tarcoola. In all, at that 

period, the service was maintained by the 

equivalent of ten steamers. 

On the advent of the State steamers, the service

was maintained by the Paroo, Minderoo,

Charon, Gorgon, Ceduna, Western Australia, 

and Kwinana, or the equivalent of nine steamers; 

the Western Australia displaced one of the 

Adelaide Company's liners and the Kwinana 

took the place of the Junee. At present the 

North-West trade is conducted by the Minderoo, 

Charon, and Paroo; the N2, Kwinana and Ceduna,

that is, by six vessels, and when the Kwinana

and Ceduna go off, as they will very soon,

there will be but four steamers.

From the reduction it is obvious that

there has always been less tonnage in the

North-West trade since the advent of the

State steamers the reason being that the

trade could not support more tonnage

than it had done prior to the experiment of

the Government. It may be put forward

that the war has been responsible for this

falling off in the general requirements or

the trade, but the fact is there that before 

the war the State steamers did no

more than displace some of the other

Australian-owned steamers. There was 

therefore no benefit to the coast, and 

it was well known at the time that the 

advent of the State service influenced 

the Adelaide Company to abandon the 

plans of a steamer that was to be built 

to replace the ill-fated Koombana.

Shooting oneself in the foot comes to mind.

In further reference to the primary object 

of the service, that of helping out the small 

stockowner, it has already been told through 

the Press how two or three such owners tried 

the experiment of shipping and burnt their 

fingers badly in the attempt. Recently, the 

manager of the State service stated publicly 

that to provide work for the steamers he had 

to make his bookings for stock a long way 

ahead, and book up those who came along 

and applied for space. This, of course, is the

regular practice of the trade. The big shipper, 

being able to estimate approximately what he 

can pledge himself to ship, is in a position to 

book his space, whereas the small stockowner 

has little or no idea of what he will be able to 

ship, and therefore cannot book far ahead. 

In any case, the small man found it very 

dangerous and risky to send down small lots

and compete in the markets with the bigger 

shippers. The result is that the cattle

trade is now conducted, as regards the

State steamers, exactly as it was before

their advent, in so tar as bookings or

space are concerned, and an inspection

of the manifests discloses the names of

such little shippers (as McDonald, J. J.

Holmes, Copley, Connor, Loherty and

Durack, Sam Mackay, Gooch, McLeod,

Davis Kimberley Pastoral Company, and

others, who naturally must look for space

where they can get it, but who certainly

cannot be catalogued as the small shipper

for whose benefit the service was inaugurated. 

In fact. some of them are known, erroneously, 

no doubt, as meat ring supporters. The small 

stockowner still sells and is glad to sell for cash

to the usual dealers at the North-West

ports, or entrusts his stock where space

can be booked by some of the larger and

more influential stock agents on consignment.

The Government, therefore, has provided

unnecessary tonnage which has resulted in

no advantage to the trade, but merely displaces 

other tonnage at a large capital expenditure or 

borrowed money, and has invested it in steamers 

which are well known in these days of modern 

improvements as a very fluctuating asset and liable 

to heavy depreciation, when without any such

State outlay and pledging of credit the trade 

was as well if not better catered for before the 

experiment started without experience to guide them, 

rushed in.

These facts are not politics, and what

ever Government had embarked on such

a scheme it is the duty of the public to

judge them by results. No State interest 

has benefited by the venture. It is true that 

fares naturally were reduced 10 percent for 

what might well be classed "B" steamers, but 

freights are quoted and are the same as those 

listed for many years by Singapore liners and 

steamers of the Adelaide Company. Now that 

the s.s. N2 has replaced the Western Australla

there is ample justification for the Government 

to charge the usual coast fares, particularly 

seeing that the vessel is losing money, and 

not to do so is merely throwing away public 

money. 

Just now the earning of the steamers has 

been bolstered up by Public Works departmental 

shipments such as the carriage of machinery,

etc.. for the Wyndham freezing works, but

these earnings do not last, and cannot be 

used in judging the trade generally, as other 

lines, no doubt, would have taken up the 

material had there been no State service.

As a result of the venture only the empty

eggshell is left to the bondholder and tax

payer. Firstly, the scheme has failed to

benefit those for whom it was set in motion. 

Secondly, the tonnage on the coast has been 

seriously reduced: and, thirdly, the venture 

has been conducted at a loss.

All that the Government possess on behalf

of the public is one old steamer, the

Kwinana, which must shortly attempt to

pass her No. 3 survey or be scrapped or

sold for what she will fetch, and another

steamer, the Kangaroo, which, according to

Mr Drew, has a dead weight capacity of

8,250 tons, and which has been bought at

a fabulous price on an inflated market.

In order to meet expenses correspondingly 

high prices must be asked for freights

by this vessel. When the war ends

freights must fall seriously, and it the

expense of those who have bought ships

at the record top values caused by the

world war.

If these interested would consult "Fair

play," a leading British shipping journal,

they would ascertain the prices of most

vessels sold and they will probably notice

that shipowners are to a large extent selling, 

and not buying, while only the speculator is 

purchasing.

Perhaps the Kangaroo will carry wheat

for the farmer to London at a specially

cheap rate, and to do this would show the

patriotism that Mr. Johnson asks the

farmer to show him. If this were done

the farmer might say that the new vessel

is some good to him. But her owners will

probably not show this unbounded 

patriotism. Doubtless an attempt will be

made to obtain as large a profit. as possible 

at the highest freight chargeable,

which her very big price (no more than

current prices) absolutely demands. The

statement that she is to be the meat carrier 

between Wyndham and Fremantle has

surely been prematurely made, for taking

Mr. Drew's figures, 8,250 tons, as per dead

weight capacity, and allowing for reduced

space taken out for oil fuel, which Mr.

Drew states will replace members of the

Seamen and Firemen's Union. and the 

absence of the necessary ballast which a

livestock carrier has to take, the Kangaroo,

if loaded to the extent of her space,

should lift, at least 6.000 carcasses of beef,

and a trip or two would swamp the

market. Mr. Drew could scarcely mean

that the Kangaroo is designed to run 

regularly with frozen meat between Wyndham

and Fremantle under these circumstances.

Fix this text

It took until late 1915 for Mr. Moxon to have the last laugh.

SS Kangaroo (courtesy photosofthepast.com.au)

courtesy Trove.