DISMAY CAUSED

New Zealand Herald, Volume LXXI, Issue 21844, 5 July 1934, Page 11

DISMAY CAUSED

GOVERNMENT'S PLAN VIGOROUS CRITICISM ADVICE NOT HEEDED NEEDS OF THE INDUSTRY By Telegrnph—Preßg Association—Copyright (Received July 4, 8.5 p.m.) LONDON, July 4 Shipowners are to consider the Government's subsidy proposals on July 12. In the meantime their approval is qualified with regret that they are hedged with restrictions which will involve prolonged delay. So far as Parliamentary shipping circles are concerned Mr. Runciman's statement has dashed the hopes of and caused disappointment to those who desire to see more work in the shipyards immediately. When the Minister had concluded his statement shipping members of the House met and vigorously criticised the Government's policy. They sent, a letter to the Times declaring that; they had listened with dismay to Mr. Runeiman's statement and pointing out that responsible shipowners had informed the Government that the "scrap and build" policy not only would not help shipowners but would do more harm than good. " Yet Mr. Runciman announces that he is forcing such a policy c«n the industry," says the letter. " Obviously the Government desires to encourage shipbuilding but it should not protend it is acting with any thought for the future of British shipping. The conditions of the grant seem to be impossible to fulfil. They make shipowners responsible for carrying out negotiations with foreigners without the Government's backing.

" Shipping and shipbuilding would be benefited if the Government took the advice of shipowners from whom it had sought help. The industry agrees that a temporary subsidy is essential until the Government decides upon a permanent policy of the protection of British shipping."

AUSTRALIA'S POLICY EARLY ANNOUNCEMENT BRITISH SCHEME IN MIND (Received July 4. 8.55 p.m.) CANBERRA, July 4 The Prime Minister, Mr. J. A. Lyons, in the House .of Representatives to-day, promised to make an early announcement about the Government's policy in dealing with subsidised shipping. The Government now had under consideration the policy outlined in the British Parliament by the President of the Board of Trade.

WHITE STAR LINE YEAR'S DEBIT BALANCE LARGE DEFICIENCY ACCOUNT (Received July 4. 11.25 p.m.) LONDON, July i The annual accounts of the White Star Line show a credit balance of £12,177. This has been carried to the deficiency account, which now amounts to £2,167,714. Included in that total is £1,487,806 loss on the sale of the Aberdeen Commonwealth fleet. The balance-sheet shows that the balance of the purchase price for that fleet and the accrued interest due to the Commonwealth of Australia is £732,113.

P. AND 0. COMPANY SALE OF CORY SHARES NEWSPAPER'S COMMENT (Received Jnly 4, 11.35 p.m.) LONDON, July 4 Tho Daily Telegraph comments on the sale by the Peninsular and Oriental Steam Navigation Company to Baring Brothers and Company of 1,500,000 £1 shares in William Cory and Sons, coal factors and contractors. It says it augurs well for the future of shipping when the Peninsular Company displays its confidence by parting with remunerative interests in order to lay down new up-to-date steamers. As it prefers this method of raising cash it may be presumed that the raising of new capital would have been regarded as an extravagant form of finance. The rise of Peninsular Company's shares shows that the market opinion supports this view.

The firm of Cory and Son, Limited, has a capital of £850,000 in 5 per cent preference shares and 2,850,000 ordinary £1 shares. It has always been able to pay good dividends. In 1931-32 it paid a dividend of 15 per cent and for the two or three years prior to that 17J per cent. The P. and O. Company held 748,000 shares in Cory and Son, and the British India Steam Company, which is owned by the P. and O. 788,000. Cory and Son havo a fleet of 24 vessels.