NO DIVIDEND

Timaru Herald, Volume CXXXVII, Issue 19372, 22 December 1932, Page 6

NO DIVIDEND

DECISION OF ORIENT SHIPPING LINE. United Press Association —By Electrla Telfc*rranh- -Copyright LONDON, December 20. At the meeting of the Orient Company, Mr Alan Anderson (presiding), said: “We have been guided in the decision not to pay a dividend not so much by the cash which would enable of the payment of a dividend as by the prospects of trade. The Australian passenger trade does not yet show those clear signs of improvement which would alone justify the payment of a dividend from reserves. We have reason to be thankful in this year of col- ■ lapse, that we not only avoided actual loss, but realised a cash profit of £IOO,OOO on the holiday cruises, which helped to solve the unemployment problem. Among the world causes of our depression is one nation after another giving enormous subsidies and dumping shipping services on the world with the apparent object of ruining shipowners who try to ma|e ends meet. The Matson tine, by placing on the San Francisco-New Zealand-Australia run three new vessels whose capital cost and running expenses are much greater than, judged by past experience, the trade will repay, is competing with a British line which cannot dip into the public purse, and is unable to offer the public such costly vessels. If the Matson Line had found 25,000,000 dollars themselves, and were charged normal rates of interest on it, or were in any serious risk of having to pay the eventual loss, we might blame them for gambling, but as a grateful nation is taking the risk, we must congratulate them on being safe men, not gamblers.”