MAGNATES DIFFER

Hokitika Guardian, 27 July 1929, Page 6

MAGNATES DIFFER

LORD IvYLSANT CENSURES HIS

BROTHER

LONDON FINANCIAL SENSATION

LONDON, July 16

Dissension between Viscount St Davids and liis brother, Lord Kylsnnt, concerning the financial position of the shipping interests controlled by the latter, has culminated in, a city sensation', the “ Daily Mail ” states. Viscount St Davids, who is a trustee for the debenture holders of the Royal Mail Steam Packet Co.; recently issued a private circular to them expressing some uneasiness • about the management of the company’s affairs. This followed a heavy fall in the market value of R.M.S. stocks, which had been started by remarks in the auditor’s report issued early in June. The aggregate of the fall was about £3,299,009.

Lord Kylsant referred to tile dispute in 'a speech at the annual meeting of the Argentine Navigation Company to-day. He stated that on June 20 lie wrote to Viscount St Davids, offering to explain the whole position in a personal interview. The offer was definitely refused. During forty years’ chairmanship of steamship companies lie had not once asked shareholders to consent to the writing down- of capital, •uid had always been able' by good management to bring back to a divi-dend-paying position any company which had suffered temporary difficulties.

Apart from the injurious statements made bv bis relative, rumours had been circulated about. a possible reconstruction of the Royal Mail Company. These were entirely without foundation. He had nothing to add to the explanation lie offered at tliei recent annual , meeting of stockholders, except that the results off the first six months of the company’s current financial year were, better than those of the corresponding period of last year. Lord Kylsant’s denial of the rumour regarding a possible reconstruction nroduced an immediate recovery in the value of the Roval Mail stocks. The ordinaries, after being quoted earlier in the day at 24J-, closed at 55, and the preference stock advanced from 50 to 55. The “Daily,News” says the recovery does not fully reflect the extent of the citv’s relief at the removal of its worst fears.