THE P. AND 0. REPORT.

Auckland Star, Volume LVII, Issue 18, 22 January 1926, Page 4

THE P. AND 0. REPORT.

DIVIDEND DOWN TO TEN. LOSSES THROUGH LABOUR TROUBLE. (From Our Own Correspondent.) LONDON, December '2. The report of the P. and O. Ptram Navigation Company for the twelve months ending September 30 was issued yrsterday, and in view of the fact that the New Zealand Shipping Company is n subsidiary, it is important to μ-ive. tho farts available from it. AYe subjoin the table showing the figures of t!it» ])M>t three yonrn. The credit balance shown in this table is arrived at after allowing for debenture interest mi.l depreciation. .The total cost of dividends for the year covered by the report—this cost of dividend rsprcenls the amount paid in May of each year, and tho final dividends declared at the animal meetings—shows a reduction of £71,8.')1. This reduction is, of course, tho result of the decision of the board to recommend a reduction from 12 to 10 per cent of thu dividend on deferred stock. The sum of £40.000 is, however, applied to the proficient fund, while the amount carried forward is seen to be an increase of £41.000 on the amount so allocated last year. The insurance fund is shown to be at £3.278.279, that is to say, £00,197 greater than last year. Naturally the report takes note of tlu> recent labour troubles, which Lave Lad the effect of dimming its lustre. The losses thus incurred were, of course, the predominating feature in the minds of the directors when they recommended a lower dividend to be paid. It is hardly to be expected that the financial results of this credit mnritimo struggle ■will not seriously alTect future reports. We quote from the report the directors' statement: — "The directors can repeat what they said this time last year as to trade conditions in all the company's spheres of operation; things Lave been very difficult during the past twelve months, and it is well known that until the exports of the country increase this state of affairs must continue. The company and other British shipowners trading to Australasia and the Cape Lave lately been involved in a serious shipping strike of an unc'fTicial charactor, with lawlessness and breaches of agreements. This strike has involved • the company in very serious loss. In China the outstanding feature is tho continual quarrels between the various Chinese politicians, together with the influence of Russia in South China, and tTie anti-foreign movement due to the strike which started in Shanghai in a local Japanese cotton mill. Until' things settle down the directors can look for no improvement in our trade ■with China. The homeward trade from India has been active, but rates have teen unremunerative. As regards the passenger traffic, this continues satisfactory, and with the new and larger steamers put on .the varioiis lines, together with the considerable activity in short sea traffic to the Mediterranean and Egypt, there has been an increase in passenger traffic in the past year. No efforts are being epared to make passengers comfortable and the steamers attractive." 1025. 1024. 1923. Credit balance on year _.., £055,002 £1,072,907 5>23.733 To dividends., 511,231 553,102 583,102 To reserve for redemption of deb. stock... 261,607 240,150 123,000 To discount and charges on ~ deb. stock... ►—• 139,711 ■—i To insurance fund t-i — 105,758 To provident pood service fund 40,000 ■— 10,000 To amount carried forword 142,143 101,034 101,873 Total „.„ £055,002 £1,072,00T £923,733