BIG CUNARD LINER

Southland Times, Issue 21647, 8 March 1932, Page 7

BIG CUNARD LINER

WORK TO BE RESUMED. (United Press Assn,—By Telegraph—Copvrfght.) London, March 6. The construction of the giant Cunarder will be resumed in April without Government assistance. A message published on December 12 last stated: The construction of the new Cunard liner at a cost of £4,500,000 and employing 3000 workers at John Brown’s yards on the Clydebank has been suspended owing to the economic situation. The Cunard Company officially states that provision for depreciation would result in an adverse balance in the profit and loss account, consequently there would not be any net profit from which to pay the ordinary dividend on the second half year's preferences. The revenue for 1931 would be £2,320,000 less than in 1930. Economies represented £1,780,000, while the bank balance at the end of the year would be £1,100,000. The new ships must earn depreciation on the old, but this was impossible for the first time in many years owing to a decline in the transatlantic traffic which seemed limitless. A shipbuilding authority says the cessation of work on the Cunarder is almost the last straw. Seventy per cent, of the shipbuilders on the Clydeside are already idle and the stoppage will affect thousands of workmen throughout the world. The Daily Mail in a leading article says it sees in the suspension a grim reminder of the gravity of the extent of the world-wide financial depression. Luxury traffic has collapsed with a completeness indicated by the fact that foreign lines on the North Atlantic run are finding it difficult to pay their way, despite Government subventions. Ten thousand men directly or indirectly employed on the Cunarder will be workless. Cabinet must swiftly deal with the financial crisis. It is confronted with the gravest, situation Britain has faced within the memory of man.