83["State Steamship Service", The West Australian, Friday 27 February 1914, page 4]

STATE STEAMSHIP SERVICE.

COLONIAL SECRETARY IN SYDNEY.

In our issue of February 16 we published a telegram from our Sydney correspondent on the subject of the State steamship service. The "Sydney Morning Herald" of the same date contains the following on the question:--According to Mr. J. M. Drew, the Colonial Secretary of the Western Australian Government, the losses incurred by his Government in the establishment of a State-owned line of steamships are not so bad as pessimists would try to make out. Mr. Drew is on a visit to Sydney.

"Four vessels are owned by the Government," said Mr. Drew, "the Kwinana, the Western Australia, the Eucla, and the Una. The Kwinana and the Western Australia were purchased with a two-fold object--first, to assist the producers in the north west of the State; and, second, to reduce the price of meat to the consumers in the metropolitan area. Both objects have been attained. "Before the State steamers entered into competition the small cattle-owners in the Kimberley district were at the mercy of the shipping combine and the meat ring. The latter chartered steamers from the former, and 'cornered' the space. They then bought the cattle from the small owners at their own price. The Government itself felt the effects of this combination. We had cattle to sell from the Government station established in the interests of the aborigines. Because we would not sell to the charterers of the ships for 5s. a head less than was offered by another intending purchaser they refused to bring down the stock from Wyndham for less than £4 a head, although £3 had been the charge previously.

"When we bought the steamers we brought down the freight to £2 10s. a head. The steamers provided facilities for all the small owners to send their stock to market, and in consequence the price of cattle at Wyndham went up 10s. a head. It brought down the freight £1 10s. a head from the figure it had reached immedately before we entered into competition. Thus, with 30s. saving in freight and 10s. better price, the producer benefited to the extent of £1,200 on each shipment of 600 head of cattle. As the steamers have carried about 15,000 head to date, the gain to the producer represents something like £30,000.

"One certain effect must be the advancement of the pastoral industry, and the utilisation in the near future of vast areas of grazing land not now taken up. The consumer has also benefited materially. The Government opened cash meat stalls at Perth, Fremantle, and Subiaco, reducing the price of meat on the average 3d. per pound. These stalls have been extensively patronised, and have shown a good profit. They have had a wonderful effect in steadying and regulating the price of meat. More than this it is not the desire of the Government to do.

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