PRICE AND RETURN

Evening Post, Volume CXX, Issue 141, 11 December 1935, Page 14

PRICE AND RETURN

(From "The Post's" Representative.) LONDON, November 10.

The directors of the Peninsular and Oriental Steam Navigation Company announce that they arc unable to recommend a dividend on the deferred stock. No dividend lias been paid on the £1,592,518 of deferred capital since the final 3A per cent., making 6 per cent., for the year to September 30 1931.

The usual payment on the £3,040,000 of 5 per cent, cumulative preferred stock will be made, less tax, on December 19.

The annual meeting is to be held on December 11.

The £1 deferred stock units fell on the announcement and closed Is lower at 18s 6d. The preferred stock was dealt in at 106J and 108 and the 4i per cent, debentures at 103.

The passing of the P. and O. Deferred Stock dividend for the fourth year.in succession was referred to by "The Times" as a reminder that all the serious troubles of British shipping have not yet been left behind.

"No doubt," said the City Editor, "iii some of its services the company has done better this year, and one of its associated ownerships has participated in the subsidy granted to tramp shipping for 1935 and has shared in the benefits of the organisation that have resulted from the scheme.

"But in some other directions the difficulties have remained acute, and particularly in the Pacific trades, where the P. and O. is interested through its shareholding in the Union Steam Ship Company of New Zealand, which has passed the dividend on the ordinary shares in recent years.

"In these routes heavily subsidised foreign competition enjoying special advantages of reserved trade is the main trouble, and in order to be able to meet this difficulty the British lines will need the active assistance of all the British Governments concerned."