REDUCED P. AND O. DIVIDEND.

Auckland Star, Volume LVI, Issue 290, 8 December 1925, Page 4

REDUCED P. AND O. DIVIDEND.

CHINESE TROUBLES AND SHIPPING STRIKE. (From Our Own Correspondent.) LONDON, November 3, The directors of tlie rciiitisular and. (Mental Steam Navigation Company, recommend a final dividend on the deferred gtock of 4 per cent, free of tax. This payment will make, with the interim dividend of 6 per. dent in May lastj a total distribution of 10 per cent for the year, comparing With 12 per cent for the last four years, , The news did not come as a Surprise, but even though it had been anticipated, the price of P. ahd O. Btock fell on the announcement being made from 255 to 250. Lord Irtclicape virtually anticipated the reduction in his speech to shareholders at the annual general meeting a year ago. The profits of £971,123, earned in 1924, was by no means derived from the Working of the company's steamers, but mainly from the company's investments and other sources of revenue, and but> for the conservative policy adopted in the past it would not have been possible to propose the 12 per cent dividend. Lord Inchcapc intimated then, too, that the directors had misgivings as to operations of the current year, and pointed out that some of the voyages Were not covering expenses. He added that if the company had to recommend a lower dividend lie hoped that the stockholders would accept the decision philosophically. Many of the steamers' voyages during the past year must still have failed to oover the expenses owing to the high cost of working and to poor freight. The position must also have been adversely affected by the shipping boycott in Chinese ports, so that in all probability there lias- been a still further decline rather than a recovery of the company's normal source of revenue.