SHIPPING PROBLEMS

Poverty Bay Herald, Volume LIX, Issue 17957, 8 December 1932, Page 8

SHIPPING PROBLEMS

P. AND O.’S POSITION REVIEW BY CHAIRMAN (Elec. Tel. Copyright —United Press Assn.) (Received Dec. >B, 2 p.m.) LONDON, Dec. 7. Mr Alexander Shaw, addressing the P. and 0. meeting, said the payment of dividends on deferred stock had only been possible for some years by conservative finance in the past. He wan confident, in view of the calamitous state of shipping, that shareholders would approve of the decision to pass the dividend and husband their resources. The book value of the company's investments in subsidiary concerns, £10,588,663, was very conservative, and the present, reduced income therefrom did not reflect their inherent value. (Shipping was still in the trough of the most profound and prolonged depression in, history, he added. In 1980, 5,000,000 tons of shipping was laid up; in 1931, 10,500,000 tons; and in 1932, 15,000,000 tons, or one-fifth of the world’s shipping, was idle. By salary cuts and other economics, the company had succeeded in reducing expenditure by £255,000 a year. He revealed that all the ships diverted to holiday cruises had shown a modest profit instead of heavy losses on the i ordinary runs during the summer.