Aerial Transport Merger Plan in New Guinea

Explanatory Statements by Minister and Guinea Airways

INTEREST continues in the move by the Federal Government—to which reference was made in the last issue—to bring about the creation of one aerial transport com pany in New Guinea, which would operate under a Government charter.

On page 56 of this issue there will be found a list of the aviation companies and interests operating in New Guinea. These companies and persons carry out the whole of the necessary transport between the coast of New Guinea and the Morobe gold field on the tableland in the interior. These companies—and especially the early ones— have a remarkable record for safety and efficiency in aerial transportation. Their operations furthermore are on a huge scale. In 1934, for instance, the pioneer company (Guinea Airways Limited) car ried three times more air freight than all the air companies in America.

But this field of enterprise is wide open to competition. The basis of efficiency and safety is first-class ground organisation.

Under present conditions, however, any man with a knowledge of aviation can go into New Guinea with one or two old machines and, sacrificing ground organisa tion, can cut freights to a non-profitable level. This has happened in recent years— actually more second-hand aircraft have been introduced to New Guinea than prob ably to any other country in the world with the same air traffic —and it is a source of growing anxiety to the Administration and the big companies with a sense of responsibility.

Another feature, which we explained in last issue, is that the whole of the British Empire to-day is being intensively organised for purposes of defence; and it is the policy of the Home and Dominion Governments to build up for civil transport purposes strong aviation companies whose services and equipment can be readily turned over to defence purposes in an emergency. This applies to New Guinea just as it applies to Australia.

These matters have been under con sideration for many months; and finally out of the discussions have arisen the plans for the merger of all aviation interests in New Guinea, under some system of Government supervision which would pro tect the interests of the goldfields com munity. The fear has been expressed in New Guinea that such a merger would mean the creation of a monopoly; and that such a monopoly, by means of excessive rates and other burdensome conditions, would bleed the goldfields community at its own sweet will. There are now em ployed on the Morobe goldfields at least 2,000 Europeans and 6,000 or 7,000 native labourers, and the Europeans in recent public meetings, and by other similar agita tion, have protested in no uncertain terms against the suggestion that they are to be left entirely at the mercy of a monopolistic aviation transport organisation.

Preparations for this aerial transport re organisation have been going on for some time; and in recent weeks the Minister in Charge of Territories, Sir George Pearce,

has been bombarded with protests from the alarmed New Guinea interests. Probably it was as a result of these that Sir George Pearce on February 3 made the following public statement:' Sir George explained that Cabinet had agreed in principle only to a proposal that all existing companies and interests operating in the Territories should be merged into a company holding a charter from the Government, subject to control and regu lation by the Government as to rates of fares, freight, and frequency of service; and that control should be exercised by a Board on which various interests in the chartered company, the mining and commercial interests, and the planters would be represented, with an experienced officer appointed by the Government as chairman.

The Government believed that such a scheme would be in the interests of the Territories gener ally, would maintain efficient aviation services, and would permit the company to earn reasonable profits whilst keeping ground organisation equip ment and aircraft in safe and efficient condition.

With the increase in the number of companies and individuals operating, there had developed price-cutting and a tendency to go after the pay able freights and neglect the less profitable. This tendency, if continued, would, it was feared, result in loss of efficiency and neglect of developmental lines.

This ministerial statement caused as much surprise and dismay among aviation interests as the merger proposal had caused among the people of the New Guinea goldfields. “How- in the name of wonder,” they exclaimed, “can an aerial

transport service, which calls for the highest degree of technical knowledge and efficiency in its operations, be carried on by a Government Board such as that described? The thing is ridiculous! A Government official as chairman, forsooth!

Members of the Board scattered all over the place! Why the very things we are aiming at, safety and efficiency, would be impossible! ”

But another statement, published in the Adelaide Advertiser on February 5, by Mr.

C. V. T. Wells, chairman of directors of Guinea Airways Limited, gave the Minis ter’s announcement a very different com plexion.

Mr. Wells said that the announcement was timely

and very much needed, because it would check irresponsible criticism that there would be an un controlled monopoly of air transport in the northern islands. While small concerns took the cream of the loading 1 there would not be stability in New Guinea air transport.

To persons not conversant with the business, the Minister’s announcement might give the impres sion that the Government’s latest move amounted to interference with private enterprise, added Mr.

Wells. Such was not the case. The Board which the Minister mentioned was really an advisory committee to which reference must be made before rates were altered or important changes in policy made.

It was understood that the Government would not seek to control the aircraft operations of the merger, although a Government officer would be chairman of the committee of control, on which the aviation companies and commercial interests would be represented. The Government Board would provide a protection for the men on the mining and other fields as well as for the com panies.

Rates would be fixed, and the public would be guaranteed that it would not be fleeced, added Mr.

Wells.

The timely statement by Mr. Wells should remove much misapprehension, not only from the minds of the aviation interests, but also from the goldfields com munities.

The aerial transport operations presum ably will be carried on by the board of directors and the executive management of the merger company, and thus efficiency and safety will be guaranteed. The charter under which the merger company will operate, it is presumed, will lay down cer tain conditions for the protection of all interests concerned. The committee ap pointed by the Federal Government— whereon the Federal Government, the New Guinea Administration, and the various commercial interests will be represented—will in a sense police the charter. Its pur pose will be to hold the balance fairly between the Governments, which are anxious to see a strong and efficient aerial transport organisation in being; the avia tion concerns, which desire to protect their valuable interests and to return a reason able profit to their shareholders; and the goldfields community, which requires safe and efficient transport at the least possible cost.

It looks as if the Minister has handled in a creditable manner, a situation that has bristled with many different kinds of difficulties.

The magnitude of air transport in New Guinea can be gauged from recent statistics, which show that one company has carried more than 25,000 tons of goods during the past eight years, and it has been stated often. that the goldfields of central New Guinea could not have been developed without the assistance of aircraft in carrying heavy parts for their machinery, stores, and so on. The country is so rough and precipitous in parts that road or rail transport is impossible. Four of the big planes which are used each weigh nine and a half tons fully loaded and among the loads transported have been a racehorse, four cattle in crates, in one load, a motor car, a motor truck, or 40 passengers on one trip.

At present eight air transport concerns are operating in New Guinea and Rabaul.

They possess 37 planes, 26 of which are in good condition, and 11 obsolete or in poor condition. Four of the planes are capable of carrying 7,000 lb., and four others can lift 1,800 lb. each.

The Polish yacht Zawa 11., which has been lying in Suva harbour for several months, was the subject of an action heard in an Admiralty court in Suva recently.

Josef'Pawlica sued Mr. Wagner, the owner of the yacht, for monies alleged to be due to him and he was given a verdict for $350, The judge said that apparently Wag ner had treated Pawlica very badly.