THE SHIPBROKER

Dominion, Volume 9, Issue 2723, 18 March 1916, Page 8

THE SHIPBROKER

BUSY AND PROSPEROUS. The broker for the sale and purchase of ships has participated l in the good times, and Trill undoubtedly pay 'in to tho Imperial Exchequer a goodly sum in the shape of excess profit tax, although in comparison with tho amount taken from his patron, tho shipowner, it will be as "the widow's mite."

The' sale and purchase market has been exceedingly active throughout the whole year, the demand: for tonnage being so insistent that buyers were plentiful and boats very scarce. In addition to the buying by established concerns, thore was considerable speculative dealing owing to the consistent rise in values. Competition for the steamers offering for sale was so keen that owners were continually advancing their prices, and buyers had to act quickly or 6eo tho boat snapped up by others or the price increased. Steamers changed hands several times during the space of a few weeks. Owners who sold boats in the early part of the year, when values were considered to be very high, and congratulated themselves oil their 'cuteness at getting "out" so well, bought them, back a few months later at a considerable advance oh the price they received or acquired others at much higher figures proportionately. They have had'no cause since to regret their, conversion. In December, 1914, a steamer was sold for £19,500, delivery to be given at the end of the following month, but before the delivery date arrived the purchaser received £8000 to cancel the contract.

Any cargo boat capable of - keeping fclie sea, no matter of what antiquity or type, has a marketable value it available for immediate ivork, and many of these which in normal times would have been considered fit only for the scrap heap, have realised sums approximating their cost to build. More modern boats have not been securing such good prices in proportion (mainly owing to the higher capital involved), but have sold at prices which can only be described as fabulous. Steamers built and completed iust prior to the war have easily realised" double their cost, and in some instances _ considerably more.. Values were so high that several old-established concerns were tempted and disposed of all their boats. The managors of eevora] of these ajmpanios subsequently put forward claims to . compensation from their shareholders for loss of management, and in'some' cascs were voted handsome amounts from the proceeds of the sales._ The typo of steamer to suffer exceptionally heavy losses owing to the war is the, trawler. Many of these have been taken by the Admiralty for various war purposes, such as patrols and mine-sweeping. The returns to the end of July last show that over 160 had been sunk by submarine, mine, or gunfire. Many now boats will un- 1 douhtcdly be ordered whon the shipyards are in a position to build them at anything like reasonable cost.