THE SHIPPING SLUMP

Evening Star, Issue 22031, 17 May 1935, Page 9

THE SHIPPING SLUMP

WHITE STAR LIME'S FAILURE HEAVY LOSSES Pros* Association—By Telegraph—Copyright LONDON, May 16, Gross liabilities of £2,643,000 and assets of £362,000 were disclosed at the first meeting of contributories of the White Star Line. The amount of £2,621,000 due to unsecured creditors includes £778.000 owing to the Commonwealth of Australia in _ respect of the purchase of the Bay Line vessels. As regards the shareholders, plus the creditors, there is a deficiency of £11,280,000. , , t 1 , The receiver, at the shareholders meeting, expressed the opinion that there wfis no chance of the shareholders receiving anything. The failure of the company is attributed to the excessive purchase price of assets, to the heavy interest thereon, to the inability of most of the ordinary shareholders to pay the dues on their holdings, and to the extraordinary slump in shipping. A representative of the Commonwealth is included in the committee of inspection of five. The receiver, replying to a question, promised an inquiry into Lord Klysant’s behaviour. A shareholder exclaimed: ‘ It was never a shipping company. It was a gambling company.”