BIG SHIPPING DEAL.

Gisborne Times, Volume XLVIII, Issue 4711, 8 November 1917, Page 2

BIG SHIPPING DEAL.

In our cable news recently it was announced that the Peninsular and Oriental Company had purchased the Hain Steam Ship Company’s 27 cargo boats, aggregating 108,787 tons, and that the purchase money was about £4,000,000. The annual report and balancesheet of the Hain Steamship Company was published in- London on August 2. Fairplav says that there was a profit on the year ending June 30 of £246,862, which is arrived at after providing for excess profits duty and depreciation. It is possible that a similar amount has been set aside this year. But whereas last year £IOO,OOO was transferred to insurance and repairs account, this time no such recommendation is made although it may he pointed out that the reserve fund has increased during the year from £IOO,000 to £200,000. with no explanation. Last year’s dividend of 35 per cent, is repeated, and the amount carried forward is £47,675, against £3635. It is, of course, impossible to analyse the balance-sheet, as presented. On the one side, the only outstanding item is under the' head of ‘‘sundry creditors,” which has jumped from £855,253 to £1,323,769. When it is remembered that a few years ago the item amounted only to £IOO- - some reason other than excess profits duty is needed to explain the increase.

.In the balance-sheet the assets are set down: —By book value of steamers and value of investments, June 30, 1917, £2,047,341 9s 2d; sundry debtors, £115,742 15s . 6d, cash at bankers and in hand, £162,526 os, Sd —total, £2,325,910. 5s 4d. The report itself states that the credit to the profit and loss account, after making allowance for war taxation. providing for depreciation, ,and deducting interim dividend on December 31, 19J6, is £202,570 ISs. Of this amount it is proposed to place £SDOO to war charities, £20,000 as war bonus to the masters, officers, and engineers, £SOOO to the Captain Edward Hain Memorial Fund, pay a final dividend of £2 10s a share, and to carry forward a balance of £47,678 Bs. The- directors regret to report the loss of seven steamers during the year, accompanied in four instances by loss of life, and four masters with others of - the crews were taken prisoners and are now in Germany. The s.s. Trevorian, which was in the Black Sea. has been sold to the Russian Government. i