THE CUNARD LINE.

Globe, Volume XXII, Issue 1931, 3 May 1880, Page 3

THE CUNARD LINE.

It is announced that part of the capital of the well-known Ounard Steamship Company (Limited) is to be offered for public subscription. A very strong board of direction has been formed, partly rroin among the partners in the old firm, and including besides Messrs T. Brassey,. W. A. Bevan, of Barclay, Bevan and Co., bankers, and Thomas Baring, of Baring Brothers and Co. The capital of the oompany is to be £2,000,000, in 100,000 shares of £2O each, of which 66,667 shares in all are offered for public subsciption. It is' nob' -intended to oall up more than £lO per share on 40,000 of these shares? The present company was formed in 1878, and of the total capital created £1,200,000 was then taken, and is still held by Messrs Canard, Burns, and Mac Iver, the managing owners of the line. This holding would have been retained now, it is Btated, but for the Stock Exchange rule that twothirds of the capital of any public concern must be allotted to the public before a quotation can be granted. Therefore 26,667 shares, part of this holding, will be put on the market, and these must be paid up in full. The old partners, however, have engaged to hold at least £500,000 of the capital, and not to engage in any competing buiiness for fourteen years. The value of the wharves, plant, stores, vessels, &c, belonging to the company is placed at £1,369,034 by the valuators, and nothing is put down for " goodwill." For the laßt few years the profits on the business of the company have been affected by the depression of trade, but that has now largely passed away, and owing to the enormous development in the import of grain, cattle, preserved and dead meats, &c, from America, freights are now heavy. At the same time our export trade has increased to the States, and emigration promises to assume large proportions in the next few years. New vessels are therefore being built for this traffic, and new capital is required. The company runs steamers to Franco and to the Mediterranean, as well as to the United States, and including two ships building—one of which, the Servia, is of 7800 tons gross register—the number of vessels owned is thirty-six. The old partners engage to pay all debts due up to January Ist, 1880, in excess of the difference between £1,200,000, the present paid-up capital, and the £1,369,034 which is the value of the asset', and to place £IOO,OOO to the credit of the company as a reserve fund, so that the now organisation may start clear. Altogether the enterprise seems fairly put before the public.