CO129-443 - Governor Sir May - 1917 [7-9] — Page 41

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$200,000, as the records of the Harbour Department will show. of the loan, $130,000still remains unliquidated.

The two ships were purchased at a large price, namely $400,000, and over $50,000 has been spend in repairs to them. They have so far returned onlyl0% on the

Capital a profit by no means excessive in these times when steamers have been and are earning profite of 100 to 300 %.

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It may have been reasoned that as these steamers

were acquired after the outbreak of the war, they should

be the first to be commandeered, as they must have been purchased for the sole purpose of "profiteering", This reasoning would have been just, were it borne out by facts. Proof can easily be produced that at the time the two

boats were bought by us, shipping companies were not earn-

ing anything like they are at present; nor could even the

most optimistic have foreseen the large profits which covere

destined to be made. That we acquired the steamers for

the ordinary purpose of trade is evidenced by their charter

for only $15,000 a month each, which, as has been stated

has given only 10 %% on our capital, after the deduction of

interest and expenses. In any case, steamship companies

already existent before August, 1914, are enjoying equally

large,

and in certain cases considerably larger profits. I

submit, with all deference, that the Naval Authorities,

in exercising their unfettered powers, should be guided

not so much by the dates of the formation of steamship

companies as by considerations based on equity.