HIGH CHARGES
Allowances For Ship Replacement
Out of a gross operating profit of £8,862,228 earned by the Cunard Steam Shio Company, Ltd., during the year ended December 31, .no less than £2,445.203 was taken up by depreciation, said the chairman. Mr F. A. Bates, in his annual statement to shareholders. This sum. although large, he said, was based on costs when the ships were built and was not sufficient in the aggregate to meet replacements at present-day prices. Additional amounts needed to be provided, when they could be earned, to bridge the difference.
“ While we have ships we have prospects,” said Mr Bates, ” and this is as true of this island country as it is of the Cunard Company itself. But what tonnage we shall continue to have depends on annual reserves for replacements. I cannot think cf any major industry essential in the same dpgree as shipping to °n island’s livelihood and defence which has the replacement problem affecting its fixed assets in so acute and quickly recurring a form.”
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Bibliographic details
Otago Daily Times, Issue 27391, 17 May 1950, Page 9
Word Count
171HIGH CHARGES Otago Daily Times, Issue 27391, 17 May 1950, Page 9
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