BRITISH TRADE.

Press, Volume LXIII, Issue 19132, 15 October 1927, Page 18

BRITISH TRADE.

SHIPBUILDING AND MARINE INSURANCE. (WRITTEN FOB THE PBES3.) (By the Commercial Expert of the "Economist.") The Economist Freight Index Number. The average level of "tramp" shipping freights, as measured by the "Economist" Index Number, fell during July by 4.63 per cent., this decline succeeding a fall of 4.37 in the previous month, the number for July was 118.21 and for June 123.95. British Shipbuilding Prospects. A month ago wo dealt with the position of British shipbuilding as disclosed by Lloyd's returns. "Whether shipbuilding has attained a level which can be considered satisfactory," we stated, "is open to doubt." In the interval the position of the British-ship-building industry has been the subject of considerable enquiry. - What, therefore is the present position, and what are the future prospects? The general conclusion appears to be that British shipbuilding has by no means- emerged from the depression which has been its lot for the past six or seven years. This depression is traced' to three factors: first, the decrease" in naval shipbuilding, which is considered much greater than the reduced tonnage basis suggests; second, the increasing tendency of foreign countries to build their own ships; and third, the reduced demand from British shipowners owing to the trade depression. Naturally, British shipowners are anxiously ./scanning the horizon for signs of avenues of escape from these depressing influences. But these signs are not abundant. Mr W. L. Hitchens, who, as chairman of Cammell, Laird, and Company, speaks with great authority, asks: Is there ' any tendency for tlie shipbuilding barometer to J rise? "The indications on the whole," he answers, "seem against it. . . T'io indications certainly are that the shipyards in this country will continue to be under-employed." Discussing the measures necessary to end this unsatisr factory, state of affairs, he continues: "If we are to secure a fair share of the orders that are placed we must reduce .our, costs to the lowest possible point, or -much of the new work will be placed in foreign shipyards.'.' In order to attain this.end he urges that it is of the greatest importance that _ "employers and employed should combine to "introduce all possible economies in manufacture." ' . , British Marine Insurance; In recent weeks British marine insurance circles have _ been particularly active in .exploring the possibilities .of improving the. conditions of marine insurance. A representative committee has beer appointed and it will report, what action is considered, necessary. The plight of British marine insurance in recent years is a commonplace. This like many of the world's troubles, is traceable'to the war. .During the-wai the market expanded to several tiriies its normal size in order to cope with the pressure of war business and the large war values. With the end of the war, the war business, and . the wai values disappeared, but the market re maineel as large as ever.' Thus ship owner)* and merchants found themselves with all the bargaining, power on theii side and the heavy losses that the mar ket has sustained indicate that . thej have.gained the benefit of it. The report of the investigating .com-mittee-is awaited with-the; greatest interest. .It is, pf course, .impossible to ; 'forecast; its -contents,| 'but it iB instructive to note the lines on which the market is seeking more prosperous : condifirst hopes Vere set. upon rate'"agreements, but it was discovered that L th'o pre-war rate agreement-was exceptionally difficult to work under conditions. Consequently , the time market is working, with some prospect of success, what is described.as '-'a. kind of; gentleman's agreement, which consists in respecting last year's.lead and backing up y6ur competitor when he quotes a pate more adequate than last year's to the quality of the risk." The .measure of success which has attended ■',' this arrangement has given rise to talk of a similar arrangement for cargo. That is to say, underwriters are discussirfg ; the possibility of treating, cargo fleets are treated, thereby making or the assuredV ; when' a; new cover is offered ' 'to an underwriterj/disclose its pasts history and :?tfio /name o£' ; -tlie' cpmpany or underwriter Who led the "coyer at its last renewal. /It'isrecdgnisl, however, that this is' -aT difficult proposition and the view. ia r expressed that - greater success will Result -from exercising greater and dropping the habit of writing to re'irisure.'/;.;'.-'" .".■;.: i • /~• . ,- ; ', Compulsory Insurance of Passengers. ! r A few weeks ago reference was made to the comp/ulsory insurance of passengers at sea::" The subject, it was pointed: out, was to be discussed at the forthcoming meeting of the International Maritime Committee at Amsterdam. : We were, unable, to take an'optimistic view" and .the lines pn which the discussion proceeded justified our attitude. The scheme laid before the conference hadv.certain.obvious defects. There was no indication, for instance, of the scale '■ of compensation payable or the prem- | ium which.would be paid. It may be admitted that, a high degree of exactness was impossible, but it would have ' been useful—to, put it at the very lowest —to have,even the roughest figures. Without.such figures the discussion was | bound to bo somewhat academic. I The main controversy, however, centred round article 5. This stipulated ' that the'insurance should be an abso- ' lute bar to all actions bn'the part of ':. the passenger against the shipowner. The British Maritime Cominittee proposed ' an amendment providing that the insurance would take the place of the lia- \ bility of the .whole shipping community ; towards the passenger, but it was greet- ! Ed with a storm of indignation. The ' scheme as a whole had a mixed reception: British, Italian,, and presumably " French shipowners being in favour, ! while American, Scandinavian, and Dutch ' owners were unable to support it- In these circumstances,' it is not surprising "that a convenient method of shelving the problem was. devised. This took the usual course of "referring the matter back for further consideration by tho. sub-committee. • WINCHCOMBE, CARSON. "Winchcombe, Carson, Ltd., Auckland, in its annual report, shows a profit of £54,549, an increase of £3711 on the year. The dividend remains at 10 per ceof., and accounts for £34.426. a sum of £ll Tis carried to reserve, making that aceout.' i 135.000, and £SOOO to the reserve for the equalisation of dividends, increasing it to £ls 000. A sum of £6OOO is provided from profits to pay for additions to increased storage, and .£lOl3 is carried forward, against £6890 brought into the account... The paid-up capital in the course of the ■vear has increased by £711678, and will during the course of the present year be brought to £400,000. A .notable- decrease in the liabilities is the amount owing to the bank, which has ■ been reduced by £144,864. to £50.688. Sales made by'the company in Sydney and Brisbane roniprised 188,075' bales of 3 wool. 30,168 fat cattle, and 441,919 fat sheep. The company's'position shows expansion in : the;year's turnover. .-Though the . increased number of sheep in New South' Wales: will yield! .another large wool clip, yet,"■',owing to ! drbughty conditions, which have .developed'-.dating the'past six months, the volume will, not -!be equal to,its predeees- ■. sor. . . ;:;•'■;: /;'. "■ ■ ■■. . / •' ,■ ■■ '•" Shareholders:have confirmed-proposals put forward''by the' directors at. a previous meeting, "'to the eff««t that the -capital of the comvpsny should be increased to £1,000,000 by the creation of 600,000 new £1 chares.