P. AND O. COMPANY.

Grey River Argus, 14 December 1928, Page 5

P. AND O. COMPANY.

Dividends Increased. WHY IT DIDN’T BUY THE COMMONWEALTH, LINE. Service./ Aus. & N.Z. Cable Assn & Sun Cab)« (Received December 13 at 0.25 p.m.; LONDON, December 2. Addressing the Peninsular and Oriental Coy’s meeting, Lord Inchcape said the Company’s 324 steamers were worth considerably more than the value at which they stood in the books. The Board, therefore, considered it would not be imprudent if it set aside a smaller sum for depreciation, than it had been in the habit of doing, and gave deferred stockholders a dividend of seven per cent, instead of five for half of the year. The Company had not made an offer for the Commonwealth Line as it considered it had for the time being, quite enough on its hands in the Australian trade. Mr Hughes’s venture as a shipowner cost the country something like twelve millions sterling, which added to the Commonwealth national debt. Australia would have done far better if it had never established the Commonwealth Line, which had not in the least been required. There had been a considerable decline in output tonnage last year. This could not be wondered at. As far as he could see there was more tonnage in the world than required to carry the cargo available. Better conditions would eventually prevail, and the country would continue to hold the supremacy of the sea, as in the past.