91["State Steamers", The Western Mail (Perth, WA), Friday 09 May 1913, page 13]

STATE STEAMERS.

STATEMENT BY MR. MOXON.

When spoken to by a "West Australian" representative with regard to the State steamers on Saturday, Mr. W. E. Moxon, the manager of the Adelaide Steamship Co.'s affairs in this State, could only be induced to discuss the subject on condition that the political side of it was not referred to, but he had some remarks to make in so far as the commercial aspect was concerned. He stated that when his company lost the North-West coastal contracts, which were secured by the State service, it immediately withdrew its steamer from the North-West trade. He had at the time explained that the North-West trade was unprofitable before the s.s. Western Australia entered into it, and therefore, as s.s. Allinga could not be run at a profit, she was withdrawn, and she was now profitably employed elsewhere. The company also had the s.s. Junee running under charter last year on the coast, but more lucrative employment being available she also was transferred. As the introduction of the Government steamers took away considerable of the earnings formerly enjoyed by steamers which took cargo northwards and stock southwards; as the low rates on stock which obtains for coastwise vessels could only be quoted when there was sufficient up freight as well as down freight to make the round voyage possible, and as there was not sufficient up trade now to warrant it, obviously tonnage had had to be withdrawn. This was entirely the business aspect. His company looked upon the State steamers and any other shipping venture that attempted to force itself trade from an entirely business point of view. His long experience in the North West trade warranted him in emphatically stating that the coast did not provide sufficient revenue to warrant the introduction of a third competitor, and the result must necessarily be that the introduction of boats of the Koombana type or any improvement of the existing type of ship working the coast would be impossible under present conditions. So far from there being felt any rancorous feeling or of placing his company against the Government, Mr. Moxon said that the company did business with the State service for a part of its requirements, and it had not any fault to find in connection with its dealings.

The writer of a letter on the subject of State steamers, which was published in last Friday's issue of the "West Australian," asked: "Is it not surprising that as shipping companies keep an account of every trip as it is completed, and prepare earnings notes for the trip, at every port where earnings are made, there should be such murky obscurity regarding results, which should be apparent trip by trip? Call for the trip accounts, general public, and only take the figures from the Auditor-General?" The attention of Mr. Moxon was drawn to this. He said that such a question should surely not be necessary, for if entirely separate trip accounts were not kept the manager could have no indication as to how a particular venture had turned out, and he could not adjust his rates for future ventures, or similarly make a reduction in the event of competition, if he had sufficient margin to do so. The general manager of every shipping company was aware how each one of the ships was doing trip by trip, and there should not be any difficulty in preparing such a statement as that asked for.

In conclusion, Mr. Moxon remarked: "I do not want on any account the suggestion to be made that my company is girding at the fact that it lost the North-West and South-East mail contracts, as every ton of shipping belonging to us is busily employed, and it is perfectly true that, except under profitable conditions, any company is far better without a mail contract, as the latter carries heavy responsibilities. The contractors are liable to a fine of £5 per hour if the mail steamer should run late and a satisfactory explanation is not given."