THE CUNARD COMPANY

Mataura Ensign, 25 January 1912, Page 5

THE CUNARD COMPANY

NEW FINANCIAL SCHEME. The great Cunard Steamship Company is proposing a reorganisation of its capital in an attempt to place its shares in a better >iosition in the Sfock Exchange, and in order to enable it to pay for the purchase of the further interest it is acquiring in the Anchor line, and to provide it with funds for other developments. It is pointed out that since its agreement with the (Government tight years ago the company has largely rebuilt its fleet, increasing the number of Its ocean-going vessels from 39 \o 24 and their tonnage from 137,000 to L'fjfi.COO. Its average gross profits during the eight years has boon £438,358 per annum, and the average amount written off for depreciation has been £275,730. At present the capital of the company consists of £2,000,020, in 100,000 shares of £2O each and one Government share of £2O. The proposal is to make the capital £2,500,020, to consist of £1,500,000 5 per cent, cumulative preference stock, £1,000,000 ordinary shares of £1 each, and tho Government share of £2o—which share maintaifs the all-British character of tho company. Then the uncalled liability which exists on 40,000 shares will be cancelled ; each existing fully-paid share will receive £l2 of the preference stock and 8 of the £1 ordinary shares; and each of the shares £lO paid will receive £6 of the preference stock and 4. £1 ordinary shares.

That will leave tlio company with £900,000 available for further issue, £3(50,000 of this being in ordinary shares and £540,000 in preference stock, and a substantial portion of this preference stock will be at once issued in part payment for the interest in the Anchor line which the company is acquiring.